### Disagreement Among Automakers Stalls Unified Lobbying Effort Over GOP Megabill

A rift among automakers regarding Republicans' megabill has hampered their influential lobbying group, the Alliance for Automotive Innovation, from presenting a unified stance. This split emerges as the Senate deliberates substantial rollbacks to electric vehicle and manufacturing tax credits that many industry players had relied upon.

The Alliance, which boasts nearly four dozen members including prominent automakers and suppliers, has refrained from publicly commenting on the House-passed budget reconciliation bill. This bill proposes major reductions to incentives that automakers were counting on while investing billions into EV and battery production facilities across the U.S. Though the group had previously defended these credits under Democrats' climate legislation, it now finds itself divided over the changes.

The House's version of the megabill seeks to end the $7,500 consumer EV tax credit and restrict credits for leased EVs by the year's end. Furthermore, it aims to impose stringent "foreign entity of concern" limitations on the advanced manufacturing production credit, known as 45X, a measure criticized by many in the industry as too restrictive.

General Motors (GM), however, backs the new restrictions, believing its supply chain can comply with the provisions. A GM spokesperson emphasized the company's initiatives to bolster a resilient U.S.-based supply chain, stating this validates the strengthened restrictions in the megabill. GM's unique position, as revealed, contrasts with the broader automaker consensus seeking more lenient terms.

Conversely, other automakers like Ford and international companies, including Volkswagen and Mercedes Benz, have voiced concerns over the restrictive nature of these proposed measures. Ford, for instance, has highlighted the potential jeopardy to its upcoming battery plant in Marshall, Michigan, citing reliance on licensed Chinese technology as the only viable solution for domestic production.

Public statements from industry figures underscore the friction. Bill Ford, Executive Chair of Ford Motor Co., and representatives from Volkswagen and Mercedes Benz have called for a reevaluation of the 45X restrictions, warning that the current language might render the credit unworkable for most automakers.

While GM focuses on augmenting its battery production capacity in North America, other industry leaders express fears that stringent policies could inadvertently favor Chinese manufacturers by stunting U.S. competitiveness. Efforts to advocate for more flexible terms continue, with lobbying groups engaging with Congress to find a balanced resolution.

The Alliance for Automotive Innovation remains actively involved in discussions with both the House and Senate. Despite internal disagreements, the overwhelming majority of its members support extended credits for consumer EVs, leased EVs, and manufacturing to sustain the auto industry's health and international competitiveness.