The Biden Energy Dept. announced on Thursday that it will provide roughly $2 billion to facilities in swing states like Pennsylvania or Michigan that are at risk of closing or going out of business if they switch to electric cars.
In an effort to integrate industrial and climate change policies, the Biden administration is utilizing $2 billion from the Inflation Reduction Act, sometimes known as a climate change law.
The money will support initiatives in eight states, including conversions and retooling, in order to produce electric cars and other associated components.
Jennifer Granholm told reporters on Thursday that the news “is a cornerstone of the Biden administration’s industrial policy, which is a strategy to bring about manufacturing and employment back to America after years of offshore.”
Nevertheless, Pennsylvania, Michigan, Georgia, and Virginia are among the swing states where some of the 11 sites that will get cash are located. The financing will go to Stellantis, General Motors, Harley-Davidson, Volvo, and suppliers, including American Auto Parts. According to Biden officials, this will guarantee that over 15,000 union workers maintain their jobs and generate over 3,000 new ones.
Granholm claimed that it would contribute to the yearly production of more than a million “electrified” light-duty cars, including electric and hybrid models.
Autonews stated:
“GM’s Lansing Grand River facility will receive the biggest award of all. It will be one of many GM facilities, along with Orion Assembly in Michigan, Factory Zero in Detroit, Spring Hill Manufacturing in Fairfax Assembly in Kansas, Tennessee, and Toledo Propulsion Systems in Ohio, that are capable of producing EVs and their components. In the autumn, GM pledged to invest $1.25 billion at the Lansing facility toward future electric vehicle manufacturing as part of the automaker’s new agreement with the UAW.”
Furthermore, according to President Joe Biden, “creating a clean energy economy needs to be a win-win for union workers and automakers” in Georgia and Michigan.
The car industry would normally lose money on making and marketing electric vehicles, so the handouts to the manufacturers are another way that the Biden administration is trying to encourage them to keep doing so.
According to research by the Boston Consulting Group, American automakers lose $6,000 for each $50,000 electric car they sell in the country.
Comments are closed.