Statement from Autos Drive America President & CEO Jennifer Safavian on Proposed Treasury Guidance for Inflation Reduction Act’s Sourcing Requirements for Clean Vehicle Tax Credits

WASHINGTON, D.C. – “International automakers are committed to the transition to carbon-neutral transportation, having pledged $25 billion in the U.S. since 2020 toward electrification efforts.  Autos Drive America appreciates the additional clarity provided by Treasury’s proposed guidance and Treasury’s inclusion of key allies, like South Korea and Japan, to help us build strong supply chains and access critical minerals needed to produce clean vehicles. We urge the Biden administration and the European Union to quickly reach a similar critical minerals agreement.

“The proposed guidance continues to highlight the challenges ahead for U.S. automakers’ electrification efforts and consumers’ adoption of clean vehicles.  The number of vehicles eligible for even a partial tax credit has been significantly reduced, slowing adoption of electric vehicles, under the new rules. Autos Drive America members are committed to an electrified future for our customers and look forward to continuing to collaborate with Treasury as the guidance is finalized.”