By David Shepardson

WASHINGTON (Reuters). Toyota Motor (NYSE 🙂 Corp stated Thursday that $240 million will be invested in West Virginia’s engine and transmission plants to create hybrid transaxles.

As the largest automobile manufacturer in the world, this new investment follows a strong lobbying campaign against a $4,500 tax credit for electric vehicles that is being offered to union-made vehicle owners.

Congress will consider a proposal to spend $1.75 trillion on social and climate spending. The bill includes tax credits of up to $12,500 for U.S. made electric vehicles, which include the provision that entitles employees to $4,500 each.

For the credit to apply, the vehicle must have been built in America starting in 2027.

The President Joe Biden’s and the United Auto Workers Union back the EV credit credits. They would be disproportionately beneficial to Detroit’s Big Three automakers – General Motors Co, Ford Motor (NYSE) and Chrysler-parent Stellantis NV – who assemble U.S. made vehicles in union-represented facilities.

While automakers from abroad have criticized this decision, 25 diplomats wrote legislators opposing the move.

The U.S. Senate has a evenly split Democratic and Republican majority. Democratic Senator Joe Manchin from West Virginia, a crucial vote in a variety of provisions, is the key vote.

Tesla (NASDAQ:), and most foreign automakers lack unions that represent U.S. worker workers. Many have also fought efforts to organize U.S. plant unions.

Toyota regards hybrid vehicles as an integral part of its emission reduction strategy.

Toyota claimed Thursday that many parts of the world were not ready for zero emission vehicles. Therefore, it has not signed a pledge to end fossil-fuel-powered cars by 2040.

Six large carmakers including GM and Ford as well as Sweden’s Volvo Cars. Daimler AG (DE)’s Mercedes-Benz signed the Glasgow Declaration for Zero Emission Cars & Vans. This was also done by a variety of other countries, including India.

Toyota and No. 2. Global automaker Volkswagen AG (OTC) – as well as key car markets that the United States of America, China, and Germany didn’t.