Amidst all the UAW strikes within the American automotive industry right now, there is another problem to keep your eye on. As you may know, the Biden Administration has issued a $7,500 tax incentive on the purchase of new electric vehicles. But those new electric vehicles have certain stipulations. 1) They must be sold below a certain, challenging MSRP. And 2) They can’t use battery components from a “foreign entity of concern”. Which is semi-diplomatic way of saying… China. Ah but it’s no secret that China largely controls the EV battery market from mining to production. So at this point…
How can legacy car companies affordably build EVs without China?
Well Ford thinks they found a loophole in the Inflation Reduction Act, and is essentially paying a licensing fee to use ‘the recipe’ of Chinese battery manufacturer, CATL. Ford will take that recipe & build the batteries on U.S. soil. Therefore, from Ford’s perspective, their EVs should qualify for the $7500 tax credit since the batteries are “made in America”. But the bigger issue here is: Ford is paying China for every electric Ford that Ford builds in America. And that’s dependence, not American innovation. It also begs the question: At what point does Ford essentially become a Chinese brand with MADE IN AMERICA stamped on it? Naturally…
GM is taking issue with this…
General Motors is trying to create their own batteries using American innovation & technology (allegedly). They argue that this strategy will provide a stronger future for the American automobile industry. And that it aligns with the true intentions of the Biden-signed Inflation Reduction Act. But – playing catch-up with American innovation comes at a substantially higher cost than taking the Chinese route. And GM’s concern is that they won’t be able to compete with Ford & their Chinese cheater batteries. And additionally, that they won’t be able to sell GM EVs under the required MSRP of incentives. Both Ford and GM are bringing their arguments straight to the White House. And things are apparently getting heavy, because…
The Biden administration has gotten themselves in a bit of a catch-22 here…
The White House has made it clear that they’re all-in on EVs. But in order for mass EV adoption to happen, the prices of EVs need to come down substantially (amongst other things like improving infrastructure, battery tech, serviceability, etc). And getting EV prices down, is proving to be an insurmountable task for legacy automakers. At least without handing the automobile industry over to China… a “foreign entity of concern”.
Government has interfered too much…
And it’s causing massive turbulence in the automotive industry. The Biden administration is forcing car manufacturers to build something they’re not good at, and sell it to people who don’t want it… at a price most cannot afford. All for a climate change agenda that makes the automotive industry dependent on the largest polluting country in the world – China.
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Thing is, Pedo Peter and the Deep State also need to win the next election to ensure this isn’t reversed, and Trump is basically gonna roll all this bullshit back. I read Ford is holding off on the $4.3b EV plant because they’re sensing blood in the water and are holding out to see if Pedo Peter or Big Mike Obama are gonna win or not.
Love him or hate him, Trump isn’t gonna force this EV crap upon everyone, why the DS is going HAAM to stop him, since all their bullshit agendas and regs will be cut and slashed once Trumps back. He’d be drilling once more, bringing down the price of oil, and cutting red tape, allowing things to be free once more.
As you guys mentioned before, who’s gonna be left standing in the end, since not everyone has the foresight to just wait and see. Some went balls deep into this EV push, and will be SOL once Trump’s back and it’s like “Oh… we don’t gotta sell these Rolling Crematoriums anymore… oh…”, and others are taking their time, so when its no longer necessary, they’re just fine.
Soon, this nightmare will be over, and things will go back to normal