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The legislative initiative related to subsidies for the purchase of electric vehicles has divided the governors of the United States, with 11 of them, practically all from the south of the country and with an outstanding production, opposing it.
If the US executive’s proposal is approved, up to $ 4,500 more in tax credits would be provided for the purchase of vehicles produced by unionized workers. So the initiative affects that group of states, with plants where having a union is not mandatory.
For example, General Motors has assembly factories in Texas, Indiana, and Tennessee, while Toyota operates factories in Indiana, Texas, Mississippi, and Alabama; BMW in South Carolina; Nissan in Tennessee and Mississippi, and Daimler AG in Alabama and South Carolina.
“We cannot support any proposal that creates a discriminatory environment in our states by punishing auto workers and auto companies because their plant workers chose not to unionize,” the governors said in a letter to the US Congress.
The governors in question are from the states of Alabama, Arizona, Georgia, Texas, Tennessee, South Carolina, Arkansas, Georgia, Oklahoma, Indiana and Mississippi.
They argued that this legislation is not intended to support emerging technology, but rather is a punitive attempt to side with unions at the expense of American workers and consumers.
“By putting certain vehicles at a cost disadvantage, this legislation works against our states, undermines our residents, and negatively impacts the US economy,” they added.
In this regard, the Mexican Institute for Competitiveness (Imco) considered that these controversies have the potential to become major conflicts for the implementation of the T-MEC and put at risk the objective set by the leaders of the three countries to increase the competitiveness of the region in the international market.
The subsidy ranges from $ 7,500 to $ 12,500 and will be higher if assembly conditions are met in that country, with a certain percentage of US components and unionized labor.
The bill has already been approved, with modifications, by the United States House of Representatives and will be reviewed by the Senate on December 13. Only after approval by the upper house can it be implemented.
The governors argued that Congress should not enact proposals that favor vehicles produced by one workforce over another, particularly when doing so drastically limits consumer choices and undermines broader carbon emission reduction goals.
“We urge you to consider the investment and employment created by all automakers, including non-union garages, as you evaluate the proposals. Our states are working to create a stable environment for American automotive manufacturing, and we ask for your collaboration, not punishment, in this effort, “they concluded.
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