LANSING, Mich. (Michigan News Source) — The Biden administration has unveiled over $1 billion in grants aimed at revamping or reopening 11 auto plants, with approximately $650 million allocated to two Michigan factories. The primary goal is to propel the auto industry toward electric mobility and bolster job retention and creation in Michigan—a state critical to Biden’s reelection bid.
General Motors’ Lansing Grand River Assembly is set to receive up to $500 million, contingent upon meeting targets for retooling, production, and workforce metrics, as reported by the Detroit Free Press. This investment is projected to preserve over 650 United Auto Workers (UAW) jobs and introduce 50 new positions. The refurbishment will enable the production of new EV models, positioning GM to better compete in the rapidly evolving automotive landscape.
ZF North America Inc. in Marysville, St. Clair County, has been awarded approximately $158 million to transition part of its plant from producing internal combustion engine components to EV parts. This grant is integral for retaining 536 jobs, including 387 UAW employees.
Beyond Michigan, the grants extend to other states like Illinois, Indiana, Ohio, Pennsylvania, Georgia, Maryland, and Virginia. Notably, Stellantis’ idled Fiat Chrysler assembly plant in Belvidere, Illinois, will receive $335 million to resume operations, potentially reinstating 1,450 union jobs. Additionally, $250 million will help convert Stellantis’ transmission plant in Kokomo, Indiana, to produce electric drive modules, safeguarding 585 UAW jobs.
Former Michigan Governor and U.S. Energy Secretary Jennifer Granholm explained to the Detroit Free Press that this financial support will benefit both the industry and the communities that have historically been integral to its success.
“These grants ensure that our automotive industry stays competitive — and does it in the communities and with the workforce that have supported the auto industry for generations,” Granholm said.
The timing of this announcement, just ahead of President Biden’s campaign visit to Detroit, belies its political importance. With recent polls showing Biden trailing former President Donald Trump in Michigan and other swing states, the administration’s focus on job preservation and creation in the auto sector is a strategic move to garner support.
According to the Detroit Free Press, moreover, the initiative has faced criticism from Republicans who argue that the administration’s push for EVs imposes undue regulations on automakers, potentially leading to higher costs for consumers and forcing the market toward products that may not yet have widespread public demand.
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Similar sentiments have been expressed on X (formerly Twitter), with users voicing their frustrations. One X account commented, “Send our tax money to companies that don’t need it to build vehicles we don’t want, then force Americans to buy them and tax them for the purchase.” Another user labeled the recipient companies as “welfare corporations,” pointing out, “LOL General Motors and that European company.”
The frustration with the government’s spending is evident in another X post stating, “The scam continues unabated despite the public’s resistance.” Additionally, the financial burden on taxpayers is a recurring theme, as highlighted by a comment: “Taxpayers informed they will be paying $650 million to construct EVs they cannot afford themselves.”
Not to mention that Michigan’s own auto companies, particularly Ford, have recently scaled back their ambitious EV goals.
According to Bloomberg, this shift is due to slower-than-anticipated EV adoption, increased labor costs from recent UAW agreements, and political scrutiny over partnerships with foreign entities like the Chinese battery manufacturer Contemporary Amperex Technology Co. (CATL).
Specifically, the company has reduced the planned production capacity of its new battery plant in Michigan by 43% and cut its 2024 production goals for the F-150 Lightning by half.
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