Biden, by encouraging tax rebates for electric vehicles, is expected to visit the GM factory by Reuters

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By David Shepardson
WASHINGTON (Reuters) – U.S. President Joe Biden will visit a Michigan General Motors (NYSE 🙂 electric vehicle plant next week when the White House urges Congress to pass major tax incentives for zero-emission vehicles.
The largest auto manufacturer in the U.S. said its “Factory Zero” will mark its grand opening during a visit by Biden on Wednesday. The plant, which covers parts of Detroit and Hamtramck, opened in 1985, but GM said it would use it again in 2020 to build electric trucks and SUVs.
Biden will discuss $ 7.5 trillion in the recently approved infrastructure bill on funding for electric vehicle charging stations, as well as how it will create electric vehicles to reduce emissions, improve air quality and “pay for union work across the country,” the White House said.
GM CEO Mary Barra will attend Wednesday’s event.
In August, Biden signed an executive order with the goal of converting half of all new vehicles sold in 2030 to electric. The 50% target, which is not legally binding and includes plug-in hybrid gasoline-powered models, garnered the support of U.S. and foreign automakers, and would require millions of dollars in government funding to achieve this.
The proposed $ 1.75 trillion social spending and climate bill includes an EV tax credit of $ 12,500, including a $ 4,500 incentive for union-made vehicles and $ 500 for U.S. batteries. The cost of the tax credit is $ 9.6 trillion over 10 years.
It also includes new tax credits on used electric vehicles, a $ 3.5 billion subsidy for automakers to convert existing factories into vehicles and electrical components, and $ 9 billion for the U.S. government and the Postal Service to purchase electric vehicles and charging infrastructure.
On Thursday, Democratic Democrat Sen. Joe Manchin expressed opposition to the union https://www.reuters.com/business/autos-transportation/toyota-investing-240-million-west-virginia-build-hybrid-parts-2021-11-11 EV provision.
Biden has repeatedly refused to delay a specific date for the removal of new gasoline vehicles. The United States did not join https://www.reuters.com/business/cop/six-major-carmakers-agree-phase-out-fossil-fuel-vehicles-by-2040-uk-says-2021-11- Glasgow another 10 countries are approving the removal by 2040.
EV tax credits would unduly benefit Detroit’s three largest automakers – GM, Ford Motor (NYSE 🙂 Co.
and Chrysler’s parent Stellantis NV – which assembles vehicles made in the U.S. in factories represented by unions.
Foreign automakers have strongly criticized the decision to give a leg up to vehicles made by unions.
The Democratic proposal eliminates the abolition of tax credits after auto manufacturers sell 200,000 electric vehicles, which would once again make GM eligible, along with Tesla (NASDAQ :).
Tesla and foreign automakers have no unions representing U.S. factory workers, and many have struggled with the UAW’s efforts to organize U.S. factories.
GM said in 2020 that the Detroit-Hamtramck Assembly plant was being renamed “Factory Zero,” announcing a $ 2.2 billion investment to move the plant to EVs. The GM plant has built more than 4 million vehicles.
In September, Detroit raised $ 4 million https://eda.gov/news/press-releases/2021/09/23/detroit-mi.htm A U.S. Department of Commerce grant to rebuild roads that are deteriorating in favor of Factory Zero.
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