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Foreign automakers ask U.S. House Democrats to reject union EV tax credit

Foreign automakers ask U.S. House Democrats to reject union EV tax credit

01 Oct 2021

Toyota Motor (NYSE:TM) Corp is trading down 1.65% at 1967.00

A group of 12 major foreign automakers, including Toyota Motor (NYSE:TM) Corp, Volkswagen AG (OTC:VWAGY), Hyundai Motor Co and Nissan (OTC:NSANY) Motor Co, urged U.S. House of Representatives Democrats to reject a proposed $4,500 tax incentive for U.S-made electric vehicles by union workers.

A House panel this month approved legislation to boost EV credits to up to $12,500 per vehicle, including $4,500 for union-made vehicles and $500 for U.S.-made batteries.

The U.S. units of foreign automakers said in a letter sent to House Speaker Nancy Pelosi and other Democrats on Thursday that the proposal “would unfairly disadvantage American workers who have chosen not to join a union and produce more than half of all vehicles in the United States and the vast majority of American-made EVs.”

Others signatories include Honda, BMW, Kia, Mazda, Daimler AG (DE:DAIGn)’s Mercedes-Benz, Subaru (OTC:FUJHY) and Volvo Cars which is owned by Geely.

Late Thursday, six Democratic lawmakers who are co-chairs of the House labor caucus led by Representative Thomas Suozzi, urged Pelosi to retain the $4,500 incentive for union-built EVs.

“Every foreign-owned automotive manufacturer employs a union workforce in their home country, but those same companies consistently choose to invest in right-to-work states that are hostile to collective bargaining agreements,” they wrote.

On technical fronts Toyota Motor (NYSE:TM) Corp RSI stood at 47.19 and currently stock is trading below all MA. So, SELL position can be taken with following target and stoploss: 

TRADE SIGNAL – : Toyota Motor (NYSE:TM) Corp – SELL : 1967.00, TARGET: 1931.00, STOP LOSS : 2029.00