Fiat Issues Warning: Electric Car Incentive Return Could Harm Automakers
Fiat Chrysler Automobiles (FCA) has issued a warning that the proposed electric car incentive return could harm automakers and slow the adoption of electric vehicles (EVs). The incentive return is a policy that would require automakers to repay the government for any electric car incentives they receive if the automaker's electric car sales exceed a certain threshold.
FCA claims that the incentive return would be a "tax" on automakers and would discourage them from investing in and producing electric vehicles. The automaker also argues that the incentive return would undermine the goal of the Biden administration to have 50% of new vehicle sales be electric by 2030.
"The incentive return would be counterproductive and would slow the adoption of electric vehicles," said FCA CEO Mike Manley. "It would send a signal to automakers that the government is not serious about its commitment to electric vehicles and would discourage us from investing in and producing these vehicles."
The incentive return is supported by some environmental groups who argue that it is necessary to prevent automakers from "gaming the system" and receiving windfall profits from the government. They argue that the incentive return would ensure that the government's investment in electric vehicles is used to reduce the cost of EVs for consumers, rather than to line the pockets of automakers.
The Biden administration has not yet released details of the incentive return plan. However, the White House has said that it is committed to working with automakers to ensure that the transition to electric vehicles is smooth and affordable for consumers.
The incentive return is just one of the many challenges facing automakers as they transition to electric vehicles. Automakers are also facing rising costs for batteries and other EV components, as well as competition from new entrants to the EV market, such as Tesla.
Despite these challenges, automakers are increasingly investing in electric vehicles. In 2020, global sales of EVs increased by 43% to 3.1 million units. FCA is one of many automakers that have announced plans to invest in electric vehicles in recent years. The automaker has pledged to spend $35 billion on electrification through 2025.