CNBC headline: Toyota hits electric-vehicle sales milestone, joins Tesla and GM in triggering phaseout of tax incentives for buyers
PUBLISHED WED, JUL 6 202210:43 AM EDTUPDATED 3 HOURS AGO
https://www.cnbc.com/2022/07/06/toyota-joins-tesla-and-gm-in…
Toyota sold its 200,000th plug-in electric vehicle during the second quarter, initiating a phaseout of U.S. tax credits of up to $7,500 for its customers.
The wind-down of the credit for Toyota customers is expected to be complete in October 2023, the company said Wednesday. The phaseout will begin Oct. 1.
Tesla and General Motors have already triggered the phaseout for their future customers who purchase an all-electric or plug-in hybrid electric vehicle.
The Japanese automaker joins Tesla and General Motors in initiating a phaseout of the credit for future consumers who purchase an all-electric or plug-in hybrid electric vehicle. The milestone comes at an inopportune time, with Toyota ramping up production of its new all-electric bZ4X.
In June, the CEOs of General Motors, Ford Motor, Chrysler parent Stellantis and Toyota Motor North America urged Congress to lift the cap on the number of EVs a manufacturer sells before the credits start phasing out. But Toyota and other automakers with nonunion workforces in the U.S. opposed a tax credit program last year by the Biden administration that included additional credits for EVs built by organized labor.
Opponents of the tax program say that the credits have largely benefited the wealthy and that the government shouldn’t subsidize the purchases. Supporters of the credits say they have spurred adoption of electric vehicles and assisted in lowering the cost of the pricy vehicles for consumers.