The money will help retain current employees despite the switch to EV production.
A total of 1.7 billion dollars
The US Department of Energy has revealed that it is giving auto and auto parts factories in eight states a total of $1.7 billion in funding to retool to produce electric vehicles and their components. The money will come from the Inflation Reduction Act, which provides subsidies for EVs and battery factories, as well as a $7,500 tax credit that consumers can get if they buy an electric vehicle.
One of the 11 winners is the Jeep plant in Belvidere, Illinois that closed last year. The initiative will allocate $334.8 million to reopen electric vehicle manufacturing and restore 1,450 jobs. GM, which will receive $500 million, will remodel a plant in Lansing, Michigan to produce EVs instead of gasoline cars. The U.S. subsidiary of Korean auto parts maker Hyundai Mobis will also receive $32.6 million to remodel a factory in Toledo, Ohio to produce components for plug-in vehicles.
Officials said they chose communities disproportionately affected by pollution or lack of investment. In addition, employees in all selected companies are represented by trade unions.
Warranties are not final. Companies still have to negotiate terms with the energy service. They must commit to retaining their current workers despite the transition to EV, and must meet hiring targets. Companies must also promise to provide their workers with certain benefits, such as childcare, pensions and training for further career development.
The fund will keep 15,000 jobs and create 3,000 new ones
Several factories selected for the initiative are located in “climate states” for the upcoming presidential elections. “This investment will create thousands of good-paying, union manufacturing jobs and retain more,” Biden said in a statement. “This fulfills my commitment to never give up on the manufacturing communities and workers my predecessor left behind.”
Jennifer Granholm, US Secretary of Energy, believes the fund will preserve 15,000 jobs and create 3,000 new ones. Granholm also said it would help the US “compete with other countries that subsidize their auto industries.”
While the secretary did not directly mention China, the country is known for subsidizing its EV manufacturers. Earlier this year, the US government quadrupled import tariffs on Chinese EVs, while the European Union announced it would impose additional tariffs of up to 38 percent on Chinese electric vehicles to protect local manufacturers.
Source:
PCpress.rs / Engadget
Photo: Arhiva Autoblog.rs / Chevrolet
Source: autoblog.rs
