On EV Credits, Dealers' Voices Must be Heard

While much of America, myself included, has spent the past few weeks caught up in election fever, global politics continue to churn around us. One rapidly developing truth: through its embrace of new EV tax credit language, our Congress has thrown us into an unnecessary trade dispute with the EU, South Korea, and Japan.

Instead of working on solutions that can benefit all automakers, their partners, and American consumers, a strictly partisan Congress passed EV legislation that, ironically, will lead to less EV adoption and less investment in America over the next few years.

Representatives of the EU, South Korea, and Japan have all recently notified our government that the terms of the EV tax credits are discriminatory to their automotive brands. Without an immediate legislative fix, our exports will be held up to the same biased standards in their countries while lessening their desire to continue to invest in American manufacturing.  International auto manufacturers in nine states exported 762,000 vehicles to 135 countries in 2021 — this represents tremendous growth. Do we want to lose those jobs? We will if Congress doesn’t adopt a new mindset.

With the incoming 118th Congress, I am hoping that the Biden administration will move beyond focusing on legislation that is focused solely on union support and will broaden their world view. We would welcome the opportunity to sit down and discuss our 2022 International Automakers and Dealers in America Economic Impact Report that was recently released in conjunction with Autos Drive America. We’d start with discussing the 2.3 million American jobs directly and indirectly connected to the 30 international brands that are responsible for 47 percent of all vehicles manufactured in the United States and 59 percent of all vehicles sold in the United States. It is a good story to tell! It is an American success story that came to fruition due to the embrace of free trade and transparency rather than throwing up obstacles to impair growth.

Meanwhile, as we wait for all Congressional races to be called, AIADA looks forward to welcoming the 118th Congress to Washington, D.C. in January. We are your resource to learn about the 500 International automobile facilities located in 36 states and the 9,383 International nameplate dealerships located in all 50 states. We will offer an open and standing invitation to any Members of Congress, officials in the Biden Administration, and officials in state governments to meet with us to discuss how to best implement any EV tax credits and how to best prepare our country for the transition to alternative fuel vehicles. 

You can read here our letter to the Department of the Treasury with innovative ideas to ease the implementation of the new EV tax credits. Over $63 billion dollars in federal, state and local taxes were generated by International Automakers and Auto Dealers in 2021 — clearly our businesses are important to America, and we should have a voice in the best way to implement our shared goals of protecting our environment while also having the best auto industry available in the world.

John Connelly
2022 AIADA Chairman
Johnconnelly@acuracolumbus.com
513-290-5646 (call or text)