The Alliance for Automotive Innovation, a powerful lobbying group representing major automakers and suppliers, is struggling to present a unified message on the Senate’s consideration of a bill that would make significant changes to electric vehicle and manufacturing tax credits. The split among automakers over the bill, particularly regarding anti-China restrictions on clean energy tax credits, has hindered the trade group’s ability to communicate a consistent stance.
General Motors (GM) is supporting new anti-China restrictions, while most other automakers have publicly opposed them. GM believes its current supply chain is set up to comply with the new restrictions and sees it as an opportunity to strengthen its manufacturing in the United States. In contrast, Ford Motor Company has expressed concerns that the restrictions would “imperil” its under-construction battery plant in Marshall, Michigan.
The Alliance’s failure to take a public stance on the bill is due to disagreements among its members over changes to a key tax credit claimed by automakers for producing EV batteries. The House-passed megabill would largely sunset the $7,500 consumer EV tax credit and impose severe restrictions on the advanced manufacturing production credit, known as 45X.
Industry insiders say GM’s stance is undermining other companies, which could give China’s auto manufacturers a competitive advantage in the global market. However, General Motors’ vice president of battery, propulsion and sustainability, Kurt Kelty, argues that the automaker’s investments will strengthen the US industry for the future.
The Alliance has been engaged with both chambers of Congress on the megabill, including on credits for consumer EVs, leased EVs, and manufacturing. The organization says it supports extending tax credits due to their importance to the auto industry’s health and competitiveness.
Source: https://www.politico.com/news/2025/06/05/automaker-divisions-paralyze-key-trade-group-in-megabill-fight-00387726