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Europe complains about premium for electric cars in US!

Currently, Americans who buy an electric car receive a $ 7,500 premium from an automaker that sells at least 200,000 vehicles a year. Joe Biden, with his “Built Back Better” plan, wants to remove this product cap and add two bonuses under certain circumstances: $ 4,500 if the vehicle is “built by a US carmaker with union representation” and an additional $ 500 if there are US parts. Total support in that case is $ 12,500!

Europe talks about discrimination

Such conditions exclude all European brands from this $ 4,500 premium. European Trade Commissioner Valdis Dombrovsky talks about discrimination and “believes it will not create unnecessary friction or create new barriers to transatlantic relations.” Also, within 5 years, a $ 7,500 bonus can be assigned to US vehicles.

The EU is not alone!

Canada and Mexico have also complained about the proposal, saying they could take countermeasures if the proposal is accepted. None other than Elon Musk objected. However, Tesla could enjoy a $ 7,500 subsidy again, a right it lost many years ago. After all, the brand produces more than 200,000 vehicles a year. On the other hand, since the car maker has no official union, this should not count as $ 4,500. Despite this opposition, is Joe Biden’s ‘Built Back Better’ project coming to fruition? The US Senate decides on this.

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Vanhooch Sebastien

About the author: Vanhooch Sebastien

Sebastien has always been interested in the automotive world in the broadest sense of the word. He is very interested in everything from small old-timers with combustion engines to modern electric mastodons. However, he has a weakness for fast but sensible cars. There is nothing that explodes with power like a station wagon for the pleasure of intelligent driving.