Proposed Bill Could Cherry Pick Winners and Losers in EV Game
A proposal that gives higher EV tax credits to union shops has caused controversy over preferential treatment for EV incentives.

A proposal that ties EV tax credits to vehicles built in the U.S. by union labor has some manufacturers complaining of favoritism.
A proposal that ties electric vehicle (EV) tax credits to vehicles built in the U.S. by union labor has some manufacturers complaining of favoritism.
The Clean Energy for America Act, advanced by the Senate Finance Committee in May, includes a proposal that would give consumers as much as $12,500 for EVs assembled by union workers in U.S. factories.
Introduced by Democratic Sen. Debbie Stabenow of Michigan, the proposal lacks a Republican sponsor. This makes it unlikely that the full Senate will take up the proposal. But it has stirred up some industry pundits who want a level playing field for EVs.
“Incentives for EV sales should be broadly applicable across the marketplace in order to accelerate sales and consumer adoption,” Don Stewart, executive vice president of public affairs at the Alliance for Automotive Innovation, told Auto News.
Currently EV purchases represent a fraction of total U.S. vehicle sales, which is why industry groups like the Alliance urge policymakers to support efforts that encourage adoption. Policies that limit eligible vehicles could slow EV adoption.
Stabenow’s proposal would give purchasers of internationally made autos a lower incentive since the manufacturers do not operate union plants in the U.S.
The Alliance is calling for supply-and-demand approaches where all stakeholders collaborate and providing broad-based consumer incentives at federal and state levels. Many Alliance members are investing millions in EVs to take advantage of the Biden Administration’s commitment to EVs.
Bloomberg reported last month that Volkswagen plans to make and sell more EVs in the United States after the president unveiled a $174 billion plan to promote EVs. But the German automaker told Automotive News in a statement that it supports incentives that “do not favor one automaker over another.”
Jennifer Safavian, CEO of Autos Drive America, states the proposed tax incentives are unfair to American automakers who choose not to join a union. She says the proposal prioritizes union works over nonunion workers and called the practice discriminatory.
Steve Gates, the 2021 chairman of the American International Automobile Dealers Association agrees. The third-generation dealer sells Ford, Toyota and other brands called on the government to not be “so narrow” in its approach.
He concluded, “I don’t think the government should pick winners and losers, and that’s what this proposed legislation does.”
More Fixed Ops

ASE Acquires WrenchWay
The auto technician certification nonprofit said the deal expands its role in workforce-development and support for current and future service professionals.
Read More →
TraXtion Introduces TireSpec Website Solution
The company says the offering enables consumers to snap a photo of their tire with a smartphone and receive an instant replacement quote, capturing 90% of tire shoppers who start their shopping online.
Read More →
UVeye Launches Same-Day Vehicle Listings for Car Dealers
New 'Scan to Sold' offering turns the service lane into a website-ready merchandising photo booth designed to help dealerships reduce turnaround time from days to minutes.
Read More →
RockED, VINCUE Launch Inventory-Management Industry Certification
Offering for retail automotive dealers and operators is designed to address what the companies say is a lack of standardized and modern thought leadership in vehicle life-cycle management.
Read More →
Survey Shows What Technicians Want
Data gathered by the ASE Training Managers Council shows that service technicians prefer classroom or instructor-led training and hands-on lab work over online or self-led training.
Read More →
Automotive Service Pros Month Shifts to October
ASE is making the change to better align with two other sector observances that take place each year highlighting technicians' key role.
Read More →
Extreme Temps Hinder EV Efficiency
American consumers might be happy to know that their preferred hybrids are slightly less impacted by extreme temperatures than fully electric vehicles, according to a new study.
Read More →
Ban on Air Bag Inflators by Chinese Maker Proposed
NHTSA blames 10 deaths and two serious injuries on what its investigators believe were illegally imported air bag inflators. It’s taking public comments before deciding whether to ban them outright.
Read More →
Fix It Forward Program Helps Man Regain Mobility
Albuquerque consumer who suffered a life-changing injury regains the use of his vehicle after Fiesta Volkswagen's service team shared his story with DOWC Cares.
Read More →
ASE Connects Partners With Worldpac to Build Technician Numbers
The collaboration is intended to help auto dealerships, automakers and after-market shops further develop the technician pipeline.
Read More →