President Biden, pushing tax breaks on electric vehicles, visits GM Factory Zero

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WASHINGTON – President Joe Biden wants to visit a Michigan General Motors electric vehicle plans next week as the White House pushes Congress to pass large tax incentives for zero-emission vehicles.

The largest US automaker said its “Factory Zero” will mark its grand opening during Biden’s visit on Wednesday. The plant, which covers parts of Detroit and Hamtramck, actually opened in 1985 but GM he said in 2020 he would reuse it to build electric trucks and SUV.

Biden to discuss $ 7.5 billion in funding for electric vehicle charging stations in a recently passed infrastructure law, as well as how electric vehicles will cut back emissions“Improving air quality and creating” well-paid and union jobs across the country, “the White House said.

GM CEO Maria Barra will attend the event on Wednesday.

In August, Biden signed an executive order aimed at doing half of everything new vehicles sold in 2030 electric. The 50% target, which is not legally binding and includes plug-in hybrid models with gasoline engines, won support from US and foreign automakers, who said achieving it would require billions of dollars in government funding.

A $ 1.75 trillion social and climate spending proposal includes an electric vehicle tax credit of up to $ 12,500, including a $ 4,500 incentive for union-made vehicles and $ 500 for U.S.-made vehicles batteries. The cost of the tax credit is estimated at $ 9.6 billion over 10 years.

Also includes the new EV used car Tax credits, $ 3.5 billion in grants for automakers to convert existing plants into electric vehicles and components, and $ 9 billion for the U.S. government and postal service to purchase electric vehicles and infrastructure. charging.

Thursday, key Democratic Senator Joe Manchin expressed opposition to the EV union arrangement.

Biden has repeatedly refused to support a specific date to phase out new gasoline vehicles. The The United States did not join other countries in Glasgow in advocating phasing out by 2040.

Electric vehicle tax credits would disproportionately benefit Detroit’s big three automakers – GM, ford and Chrysler parent company Stellantis NV – who assemble their US-made vehicles at union-represented factories.

Foreign carmakers have harshly criticized the decision to upgrade union-produced vehicles.

The Democratic proposal eliminates the phasing out of tax credits after automakers hit 200,000 electric vehicles sold, which would make GM eligible again, along with Tesla.

Tesla and foreign automakers have no unions representing US factory workers, and many have fought UAW efforts to organize US factories.

GM in 2020 said it was renaming its Detroit-Hamtramck Assembly plans “Factory Zero” as it announced a $ 2.2 billion investment to move the factory to electric vehicles. The GM plant has built more than 4 million vehicles, including the Chevrolet Volt plug-in hybrid.

In September, Detroit won a $ 4 million grant from the United States Department of Commerce rebuild degraded roads in support of Fabbrica Zero.

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