The Korea Automobile Manufacturers Association (KAMA) has reportedly written to the US House of Representatives, requesting that it reject a legislative bill that would provide tax breaks for US-made EVs, arguing that the proposed plan would unfairly disadvantage foreign automakers and also limit customer choice.
The Association claimed that the letter, addressed to Rep. Richard Neal and House Speaker Nancy Pelosi concerns the $4,500 tax incentive scheme proposed by labor groups for American electric automobiles.
For the uninitiated, last month, a House panel had approved the bill to boost EV credits to approximately $12,500 per vehicle. This included the $4,500 assigned for US-made vehicles manufactured by the unions and an additional $500 for EV batteries made in the US.
In the letter, the Chairman of the Korea Automobile Manufacturers Association, Jeong Man-ki, requested the House to remove the controversial tax incentive clause, which can discriminate between US-made cars and imported ones, as well as between electric vehicles manufactured in factories without labor unions and electric vehicles made in factories with labor unions.
KAMA explained that the proposal, if implemented, would provide disproportionate benefits to American automakers such as General Motors, Stellantis and, Ford while undermining the pricing competitiveness of non-US brands.
According to a quote of Jeong gave to the local media, the regulation would reduce the overall number of EVs available within the US market, eventually reducing consumer choices and causing the EV industry to shrink as a whole.
Inside the letter, Jeong also highlighted that the tax incentive scheme violates the Korea-US free trade pact, which states that the two sides should regard items made in each other's nation equally.
The legislation is also speculated to be in violation of a regulation outlined by the World Trade Organization which prohibits issuance of incentives that could exclude, or hinder products made in foreign locations from entering into the market.
Source credit: http://www.koreaherald.com/view.php?ud=20211007000750