America's Biggest Automakers Ask Congress For Help

The CEOs of GM, Ford, Stellantis, and Toyota say they have consumers in mind in the group's letter to Congress. The letter urges Congress to lift the government's cap on the number of vehicles that are eligible for the EV tax credit, which currently runs up to $7,500. The group of CEOs represents a wide swath of the industry committed to future electrification. Ford already has the F-150 Lightning, and GM will soon produce its answer, the Chevrolet Silverado EV.

The letter states the credit is essential to encouraging more widespread consumer adoption of electric vehicles like Toyota's bZ4X and others. Currently, the credit begins phasing out after a brand has made more than 20,000 plug-in electric vehicles.

"Eliminating the cap will incentivize consumer adoption of future electrified options. 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," said the group of CEOs.

The conglomerate of brands also said that the EV tax credit is key to keeping production costs low and EVs affordable, especially in an industry hampered by supply shortages and rising material costs. Combined, the four brands have invested north of $170 billion through 2030 to produce more electric vehicles.

The letter is a reversal from GM, as CEO Mary Barra has previously urged the 20,000 unit ineligibility cap on the credit be lifted to create a more level playing field for brands. As of now, GM has not further elaborated on this change of position.

However, the group of CEOs is not calling for the tax credit's indefinite use. Instead, the letter argues in favor of a sunset date for the credit. Additionally, that sunset date will only occur once the electric auto market is both more mature and more stable. As of now, it is neither of those things.

Electric vehicles are often priced upmarket for a myriad of reasons, and consistently trade hands above MSRP in many cases, partly due to the current economic climate. Still, brands like Ford have begun to change that, offering more affordable options. Toyota can also be counted in that effort, with the bZ4X starting at$42,000, a far cry from smaller luxury startups like Rivian and Lucid.