If the automotive subsidies that are about to be voted in the US Congress are approved, investment in Mexico would be discouraged, he warned. Tatiana clouthier, Secretary of Economy.
In an interview with the agency Bloomberg, the official specified that at least two investments in electric vehicles could not be closed in Mexico and eight states could lose the expansions of automakers due to the legislation.
The initiative would increase credits for electric vehicles to $ 12,500 per vehicle, including $ 4,500 for vehicles made by syndicated plants and $ 500 for batteries made in the United States. The vehicles would have to be assembled in the United States beginning in 2027 to qualify for any credit.
“It cannot be that we are working so harmoniously in some areas with the United States when, at the same time, senators are making this issue,” Clouthier said. “There are effects in terms of investments stopped in some states by electric cars that are yet to come.”
In parallel, Luz Maria de la Mora, Undersecretary of Foreign Trade of the Ministry of Economy, highlighted that the automotive industry in Mexico generates more than 1 million direct jobs and around 5 million indirect jobs, in addition to having captured 13.3% of the total arrivals from Foreign direct investment (FDI) to the country.
The proposal provides a maximum credit of $ 12,500 for a new qualified plug-in electric motor vehicle purchased and put into service by an individual who meets certain standards for battery capacity, household assembly, household content, and collective bargaining.
For vehicles purchased before January 1, 2027, the base credit amount would be $ 4,000 and a supplemental credit of $ 3,500 would be available for vehicles with a battery capacity of not less than 40 kilowatt hours and such vehicle has a capacity of Gas tank no larger than 2.5 gallons.
For vehicles purchased after December 31, 2026, the base credit amount would be $ 4,000 and a supplemental credit of $ 3,500 would be available for vehicles with a battery capacity of not less than 50 kilowatt hours and such vehicle has a capacity of gas tank no larger than 2.5 gallons.
The base credit amount would be increased by an additional $ 4,500 for qualified new plug-in electric motor vehicles for which final assembly is performed at a facility located in the United States and such facility is operating under a collective bargaining agreement negotiated by an organization of employees.
The base credit amount would be further increased by $ 500 for new qualified plug-in electric powered motor vehicles with US-made battery cells.