Toyota Elaborates Ad to Fight $4,500 Union Tax Incentive

Toyota decided it could not just watch the Build Back Better Act (H.R. 5376) be submitted for Congress approval with the $4,500 tax incentive for electric cars made by unionized factories. The company created an ad to fight that and started publishing it in major American newspapers on November 2, 2021.
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Already published in The Wall Street Journal and The New York Times, the text urges voters to contact their lawmakers to prevent approving the bill as it currently is. Toyota did not hold back all its concerns related to the additional proposed tax credit.

According to the Japanese carmaker, the incentive tells “the American autoworker who has decided not to join a union” that “their work is worth $4,500 less because they made that choice.” To American customers, it says that “they will have to pay an extra $4,500” if they prefer to purchase “an electric vehicle not made by Ford, General Motors, or Chrysler.”

Toyota’s pièce de résistance in that text argues that the U.S. government’s message is that unionizing takes priority over fighting climate change. That said, it should “treat all American autoworkers fairly,” “do the right thing.” In other words, it should let “the American consumer choose the best electric vehicle for them without needing to pay an extra $4,500 to buy an electric vehicle not made by Ford, GM or Chrysler.” Ouch...

To make that happen, Toyota urges its readers to call their Members of Congress and ask them to “apply the electric vehicle tax incentive equally to all EVs assembled by U.S. autoworkers.”

Curiously, we have not found the ad on big websites or television programs. That shows the strategy Toyota adopted may be a metaphor for how traditional the company is. How many people will it reach by publishing the ad in these prestigious newspapers? Is Toyota focusing on the few who still read newspapers and may make a difference with their requests?

Regardless of the company’s strategy, it shows that Toyota is not happy about the Democrat proposition. Like Toyota, other 12 automakers also think the union incentive is flawed. Suppose they manage to convince customers that taxpayers should not help unions and the Big Three sell more electric cars. In that case, it may demote Biden to insist on it.
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