Sen. Joe Manchin, speaking at Toyota event in W.Va., calls union-built EV tax credit 'wrong'

BUFFALO, W.Va. -- The key swing senator who has already played an outsized role in shaping Democrats’ nearly $2 trillion Build Back Better Act told Automotive News that he opposes a planned provision to grant an extra $4,500 federal tax credit for union-made electric vehicles.

Democratic Sen. Joe Manchin, speaking at an event here that announced Toyota Motor North America’s $240 million investment in the automaker’s West Virginia components plant, called the provision backed by Michigan’s congressional delegation “wrong” and “not American.”

“When I heard about this, what they were putting in the bill, I went right to the sponsor [Sen. Debbie Stabenow, D-Mich.] and I said, ‘This is wrong. This can’t happen. It’s not who we are as a country. It’s not how we built this country, and the product should speak for itself,” Manchin said in an interview. “We shouldn’t use everyone’s tax dollars to pick winners and losers. If you’re a capitalist economy that we are in society then you let the product speak for itself, and hopefully, we’ll get that, that’ll be corrected.”
 

Asked what Stabenow’s response was, he said: “Not good. I respect that, because she’s fighting for her [constituents] and I’m fighting for mine. I’m just fighting for fairness in the system, and hopefully, we’ll prevail.”

In a statement, Stabenow said: “Senator Manchin and I work together on many issues, and I was proud to stand with him two years ago to help the members of the United Mine Workers of America union in West Virginia. At that time, some argued his bill was unfair and was picking winners and losers. But we rejected that argument and stood together to protect union pensions
 
“This issue is no different. Standing up for hardworking Americans is always the right thing to do.”

Manchin’s comments came after he toured the 25-year-old Toyota Motor Manufacturing West Virginia plant with Ted Ogawa, Toyota Motor North America’s CEO; Chris Reynolds, the automaker's chief administrative officer for corporate resources; and other company executives. Toyota -- along with American Honda, Volkswagen Group of America and other non-Detroit 3 automakers -- has fiercely opposed the proposed federal tax credit for union-made EVs as unfairly benefitting General Motors and Ford Motor Co., as well as potentially Stellantis.

In his remarks delivered on a stage feet away from Manchin, Ogawa stressed that “To be successful, we need the opportunity to compete on an equal, level playing field with all automakers. Given that chance, without any added disadvantage placed on the backs of our team members, we are confident you will help build vehicles customers will choose in an open marketplace.”

Toyota’s investment in the West Virginia plant will be used to make transaxles that will power its growing number of hybridized vehicles.

A company spokesman said there will be no additional increase in employment at the plant from the planned investment. Toyota Motor Manufacturing West Virginia is the automaker's only combined engine and transmission plant in North America.

Additionally, it is the only factory in North America to produce hybrid transaxles, which transfer power seamlessly among the engine, electric motor and wheels in any number of combinations.

Toyota has invested about $1.8 billion in the 2 million-square-foot plant since it opened in 1996. This year, Toyota announced an additional $210 million investment in the plant to expand capacity of its inline-four and V-6 engine lines, adding 100 jobs. The plant produces about 1 million engines and transmissions annually for many Toyota and Lexus vehicles built in North America.