Filed under: Hybrids/Alternative, Government/Legal, Green, Chevrolet, GM, Toyota
Toyota attacks potential Volt-only tax break
Click above for high-res gallery of the 2011 Chevy Volt
Automotive News reports that Toyota is preparing a statement for a congressional hearing on the progress of EVs, the results of which could influence legislation that gives a big $7,500 tax credit to any hybrid with a battery pack rated at 6 kilowatt-hours of electricity or more. Toyota argues that the legislation is too restrictive and redefines what a hybrid is since the only vehicle eligible (that we know about) would be the 2011 Chevy Volt with its 16 killowatt-hour battery pack, though Toyota never calls out the series hybrid by name.
For reference, the current Toyota Prius uses a battery pack that generates 1.3 killowatt-hour, and judging by the Japanese automaker's reaction to this legislation, we doubt that its plug-in hybrid electric Prius currently under development uses a battery pack powerful enough, either. Nevertheless, there could be other hybrids being developed besides the Volt that would be eligible, which would poke a big hole in Toyota's argument. Also, as AutoblogGreen points out, this legislation will likely change many times before it becomes law.
The government is right, however, to put higher restrictions on what is eligible for a tax credit of this size. Current hybrid tax credits have topped out around $3,000, with the largest on record being for the Prius itself at $3,150. If the government is considering offering more than twice that amount for future hybrids, then we think it's fair they raise the bar on what should be eligible.
Gallery: 2011 Chevy Volt
[Source: Automotive News, sub. req'd]
Reader Comments (Page 1 of 6)
mm 4:45PM (9/16/2008)
I find it wrong that a vehicle such as the Prius, that is 100% imported and does not generate any tax dollars via the manufacturer and its employees should even have a tax credit. It just goes to show how screwed up Washington really is!
Damn right the Volt should have its own tax credit.
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Red 5:16PM (9/16/2008)
Normally, I shy away from these types of debates, but I must agree with what you have said here.
EXP Jawa 5:12PM (9/16/2008)
There are no more tax credits on the Prius (or other Toyota hybrids) at this point. The IRS set up the credits to encourage manufacturers to market the vehicles - specifically, to get them to sell up to 60,000 "qualifying" hybrid vehicles here. Once that number is reached - and it has for Toyota - the tax credits are tapered off quarterly over the next year. After that, there is nothing offered.
The info regarding what credits are offered for which vehicle is published on fueleconomy.gov.
big j 8:57PM (9/16/2008)
friggin bandwagon jumpers, when Toyota comes out w/ the Prius, the import factor isn't an issue because of the environment. Now that a domestic company has the capability to produce a non gas guzzling p.o.s., it's time to bash Toyota, typical mentality of the ignorant American.
MM 9:01PM (9/16/2008)
If its the environment you care about, then a Prius or any Battery propelled Hybrid is something that should be avoided all together. The Mercury in the batteries and the way they are refined makes driving a Hummer look as environmentally friendly as riding a bike.
Lad 9:33PM (9/16/2008)
mm:
Something you need to know: Toyota and GM are both members of the Washington Lobbying group called The Alliance of Automobile Manufacturers (AAM). Additionally, This is the group that coordinates and set general schedules for most of the American Auto Industry. You can be assured there will be something from Washington for Toyota also.
see http://www.autoalliance.org/
Tim 10:14PM (9/16/2008)
I could totally get behind this car if
A. the press was allowed to drive the car for a day
B. GM wasn't asking for a 50 billion dollar nonrecoverable loan.
Are you telling me that GM is the only car company in the world who could make a plug-in? BMW, Benz, Ford and Toyota all would have made one if they could make money. This is a money loser and the taxpayer will subsidize its production and the purchase. I say no
arturo 11:24PM (9/16/2008)
I think that if toyota wants to sell a better prius at the same price, use those 7 000 and upgrade the prius to meet the standards as well.
SimbaDogg 1:21AM (9/17/2008)
@ tim
Correct me if i'm wrong but...
GM isn't askign for a $50 billion non recoverable loan.
1) they're asking for a 25 billion dollar loan w/ the option of getting another 25 billion at a later date
2) the loan would be structured a lot like the AIG loan which was made available today. Not a bailout where the big 3 outright get 50 billion to piss away if they want, but it is an outright loan made at a certain interest rate. The problem is w/ GM, Chryslers, and FMCs credit, they would be getting loans in the high teens range for that amount of money, for that mount of time. WAY too much (because of the current credit crunch, and VERY weary lenders) for a company that is as big as GM. What they're asking for is a loan for that same amount of money, but in the neighborhood of about 4-5%. Correct me if i'm wrong, but i'm pretty sure this is how they wanted it to go down.
Glenn 1:40AM (9/17/2008)
Toyota sold a ton of Prius' because of tax breaks -- we all heard Honda complaining like crazy up here in Canada about it.
Second, Toyota essentially got a enormous rebate when the Japanese government paid for the entire development of that car -- according to Jim Press who ran their North American operations at that time.
Third, Toyota should take the equally enormous amount the pay on lobbying, and put it into getting their next generation hybrid to market.
bornfromjets03 4:46PM (9/16/2008)
ok toyota, go back to Japan and cry about it!
This here's Volt country!
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Brian 9:27PM (9/16/2008)
+1 For real. Go back to Japan for more government money. They helped you build the Prius now ask them to give you tax credits to make it cheaper once its hits our shores. Why would our U.S. government give you a tax break? Your a foreign automaker.
bornfromjets03 11:07PM (9/16/2008)
@ Big J
I bet you wish your Prius would qualify for this tax break.
you obviously have no idea where 'born from jets' came from if you're calling me a redneck.
vwboyaf1 4:02AM (9/17/2008)
I'm a huge fan of everything Japanese, but I do not think you are a "jackass redneck". I've been to Japan and have seen how they block the sales of anything made abroad. If you see someone driving a chevy or ford, you think that they must be loaded or something.
Toyota and the rest of the japanese automakers get a lot of support from the government. Including healthcare plans for their workers. Of course Toyota is bitching. They finally have some competition.
s13hybrid 1:41PM (9/17/2008)
I am not saying Toyota is not complaining to much, but you have to give the Prius some credit. Without it Chevy probably would not have jumped forward with the volt. With out the prius, there would be no proof that a hybrid can do amazingly well (seeing how the honda Insight did not take off), and even if the volt was the first hybrid, it would probably not been a plug in, and as advanced as it is today.
So don't bite the hand that feeds you, the prius made hybrids main stream, and opened the door for chevy to build the next step up.
On that note, Toyota does need to calm down, they are mad because now they have some major competition. They need to just do what we all have been telling the american companies to do, build a better car.
Adis 3:35PM (9/17/2008)
Yea, your right this is Volt Country.....and lagging way behind Volt country.
bornfromjets03 6:57PM (9/17/2008)
Thank you for backing me up vwboyaf1.
Let me also take this time to reply to s13hybrid and adis by bringing up the GM EV1. Sure GM made the dumb decision to kill it, but the fact that they made it in 1996 (aka before the Prius or Insight) is pretty remarkable, also the fact that GM had celebs drooling over it like they do now over Obama.
GM scared Japan into making the Prius and Insight, but were to stupid to realize what a jackpot they had hit, and are now playing catch up while trying to integrate new tech to what they already know.
So we should give GM credit where credit really is due.
I could go on ranting about Toyota and its double standard but I know none of you would read everything anyways, so I'll spare you the hassle :P
TJ 4:47PM (9/16/2008)
"If the government is considering offering more than twice that amount for future hybrids, then we think it's fair they raise the bar on what should be eligible."
If fascism is to be thrust upon the populace, yeah, some logic would be nice.
As it is though, I would rather MY tax dollars NOT be spent in a government effort to persuade the population to change purchasing habits.
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The Luigiian 5:45PM (9/16/2008)
I hardly think this tax break constitutes fascism.
This isn't forcing people to buy hybrids, it's giving them an incentive to do so because hybrids can help reduce America's dependence on foreign oil.
It is both an economically sound and strategically intelligent measure.
Dan 6:20PM (9/16/2008)
It's forcing me to pay for someone else's hybrid on the categorically false assumption that all miles are equal and therefore achieving high miles per gallon in and of itself is an important societal goal that justifies looting my wages.
Larsony is not an incentive.