Car Giants Want Congress To Eliminate EV Subsidy Cap

(RTTNews) - A majority of the EV manufacturers in the country are asking the US Congress to lift the cap on the number of vehicles that are eligible for government credit in order to encourage the population to tilt towards electric vehicles. The CEOs of General Motor Company (GM), Ford Motor Company (F), Stellantis N.V (STLA), and Toyota Motor Corp. (TM) have sent a letter to the decision-makers of the state to increase the existing number of 200,000 plug-in EV per company that will be eligible for the $7,500 tax credit. The companies have argued that this decision has allowed the makers to keep the price of the vehicles in check despite the growing cost of manufacturing. "However, recent economic pressures and supply chain constraints are increasing the cost of manufacturing electrified vehicles which, in turn, puts pressure on the price to consumers," said the letter seen first by Reuters. "Eliminating the cap will incentivize consumer adoption of future electrified options," they wrote. The argument also includes how the subsidy has allowed the American EV makers to fend off Chinese and European competitors as of now and as the industry matures, the government help is going to be crucial in setting the tone of the race. "The coming years are critical to the growth of the electric vehicle market and as China and the EU continue to invest heavily in electrification, our domestic policies must work to solidify our global leadership in the automotive industry," the letter added. The CEOs also informed that the four companies have decided to pledge another $170 billion through 2030 to the industry.