The automotive industry is trying hard to turn to the production of EVs (electric vehicles) and, as we saw in a previous Targetnews story, faces important problems. Biden’s “green agenda” is here to respond to this problem by channeling the cost to automotive workers and the taxpayer.
The United Auto Workers (UAW) is criticizing President Joe Biden’s “green energy” agenda, arguing that it will lead to wage reductions while providing billions of dollars in taxpayer money to the largest automakers in the country: Ford, General Motors (GM), and Stellantis. Under Biden’s Inflation Reduction Act, which was passed last year, automakers are expected to receive substantial benefits in the form of tax credits for producing electric vehicles (EVs) in the United States, Canada, and Mexico. UAW President Shawn Fain and union members in Lordstown, Ohio, are expressing concerns about significant wage cuts that auto workers may face due to the Biden administration’s efforts to encourage automakers to transition to EVs by offering federal subsidies.
The case of Lordstown, Ohio
- 2008: in a period of high gasoline prices, GM had received over $60 million in tax credits as part of an agreement with the state of Ohio to retain 3,700 employees at the local plant until 2028.
- 2018: GM shuts down the plant.
- 2020 September: The state of Ohio ordered GM to repay $28 million in tax credits for failing to keep its part of the initial agreement . Additionally, GM was asked to invest an extra $12 million for community development in the state, aiming to revive its previous manufacturing prowess, which has been on a decline.
- 2020 October: GM buys a significant amount of Lordstown Motors shares, a local automotive production company.
- 2022: GM sells its Lordstown Motors shares, attempting to finally disengage from the area.
