Automobile

President Biden promotes tax relief for electric vehicles and visits GM Zero Factory

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WASHINGTON – President Joe Biden will visit an electric car factory in Michigan General Motors next week as the White House is pushing Congress to approve large tax incentives for zero-emission vehicles.

The largest US automaker said its “factory zero” will be grandly opened during Biden’s visit on Wednesday. The plant spans parts of Detroit and Hamtrak. It actually opened in 1985, but General Motors said it will reuse it in 2020 to produce electric trucks and SUVs.

The White House stated that Biden will discuss in the recently approved infrastructure bill about $7.5 billion in funding for electric vehicle charging stations, and how electric vehicles will reduce emissions, improve air quality, and create “high-paying union jobs” nationwide. .

General Motors Chief Executive Mary Barra will attend the event on Wednesday.

In August, Biden signed an executive order aimed at making half of all new cars sold in 2030 electric. The 50% target is not legally binding, including plug-in hybrid models with gasoline engines, which has won the support of US and foreign automakers, who said that achieving this target will require billions of dollars in government funding.

The proposed $1.75 trillion social expenditure and climate bill includes up to $12,500 in tax credits for electric vehicles, including $4,500 in union car incentives and $500 in U.S.-made battery incentives. The cost of tax credits over 10 years is estimated to be US$9.6 billion.

It also includes new electric vehicle used car tax credits, a $3.5 billion grant for automakers to convert existing plants into electric vehicles and parts, and the purchase of electric vehicles and charging infrastructure for the U.S. government and postal services The facility provides $9 billion in grants.

On Thursday, key Democratic Senator Joe Manchin expressed his opposition to the union’s electric vehicle clause.

Biden has repeatedly refused to support any specific date for phasing out new gasoline-powered cars. The United States did not support the phase-out by 2040 with some other countries in Glasgow.

The electric vehicle tax credit will enable Detroit’s three major automakers-General Motors, Ford Motor and Chrysler’s parent company Stellattis NV-to assemble their American-made cars in factories represented by the union.

Foreign automakers severely criticized the decision to let union-made cars prevail.

The Democratic Party’s proposal eliminates the gradual elimination of tax credits after automakers have sold 200,000 electric vehicles, which will make General Motors and Tesla eligible again.

Tesla and foreign automakers do not have a union representing American factory workers, and many people oppose the efforts of the American auto workers’ union to organize American factories.

General Motors said in 2020 that it was renamed its Detroit-Hamtrak assembly plant “Factory Zero” because it announced an investment of $2.2 billion to transfer the plant to electric vehicles. The GM plant has produced more than 4 million cars, including the Chevrolet Volt plug-in hybrid.

In September, Detroit won a $4 million grant from the U.S. Department of Commerce to rebuild deteriorating roads to support Zero Factory.

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