Ford Authority

UAW Against Biden Plan To Extend IRA Credits To EU, Japan

With automakers and government officials alike working to speed up the adoption of electric vehicles, much is at stake for a number of entities, whether that be suppliers, retail and commercial consumers, or battery manufacturers. New EV tax credits stemming from the Inflation Reduction Act of 2022 (IRA) figure to richly reward each of them, though that’s also been a sticking point with some, as many believe that U.S. tax dollar-based incentives should stay in the U.S. rather than go to companies like China’s CATL, particularly as manufacturing operations figure to shrink moving forward. Now, the United Auto Workers union (UAW) has come out against President Biden’s plan to allow subsidies to go to European and Japanese-based companies, according to Bloomberg.

The UAW – which counts Ford among its largest supporters – recently announced its plan to organize workers at the new BlueOval Battery Park Michigan, and has also been quite vocal about its desire to ensure that U.S. EV tax incentives only apply to vehicles made in America. As such, it isn’t terribly surprising that the union would voice its opinion in this manner.

The main concern here is that sending tax dollars to European and Japanese raw materials suppliers will take potential jobs away from Americans, as well as undermine the goal of the IRA, which is intended to reduce the country’s reliance on other markets, particularly as it relates to the raw materials used in the construction of EV batteries.

While the IRA contains country of origin requirements for the sourcing of these materials, there are roughly five minerals that can’t be produced domestically at this time, according to sources. The UAW reportedly wants this upcoming agreement to limit incentives for companies from other countries strictly to those materials, while the White House is working closely with unions as it hammers out the finer details of this deal.

We’ll have more on this soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. David Dickinson II

    UAW finally figured out that the EV push and the incentives behind it are a raw deal for the unions. Better late than never.

  2. RWFA

    Agree with the Union here.

    The foreign OEM’s and their supply chains can get incentives from their home countries.

    It’s enough our market is open to them. We don’t need to subsidize them.

    1. Mike says...

      I don’t know if ‘agreement’ is the right adjective.
      You have argued before that Government investments are needed and should be supported for the game changing impacts they bring. You cited some examples as I recall.
      The transition to BEV is one of those government supported changes… one that is very expensive and is a ‘global’ shift.
      Counter point to the Union position should consider that if they support the BEV transition, they support any/all global initiatives that drive the change from ICE to BEV.
      The Union perspective should consider embracing these expenditures as the take up rate for BEV in Europe will likely be more rapid than anything experienced in North America.
      From a business investment point of view, this is good insurance looking forward. All domestic BEV builders and workers would be seriously naïve if they only supported changes exclusive to the U.S..
      The Biden investment will provide for more growth in the global BEV industry and ultimately, more growth for domestic builders and employment for North American workers.
      Times are a changing….
      The ‘knee jerk’ Union reaction is not unexpected, but it is out of step with times we live in.

  3. Michael J Genzale

    When our tax dollars are being spent, they should be spent here and here alone.
    On a related issue, why are tax dollars spent on ‘job creation’? Every purchase by any government, town, county, state or federal should be spent on purchases from a US company, produced here in the US. Whether it be vehicles, copy machines or any other thing. The realty is no other nation gives a hoot about us.

    1. Mike says...

      Michael, your point of view would be nice and agreeable…. only if we were an undiscovered ‘island’.
      To make the point more gently, poke through the stuff in your home and tell me how you support your above noted position.
      You are not wrong per se…. just a bit out of touch in a rapidly changing world.
      The U.S. must change quickly or ‘shrink from the global stage’… not a good thing I hope you would agree.


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