Biden Administration Allocates Over $1B to GM and Stellantis to Prevent Plant Shutdowns and Develop Electric Vehicles

Money | July 11, 2024, 8:43 a.m.

The federal government is allocating $1.7 billion in grants to reinvigorate 11 struggling auto manufacturing facilities, with a focus on transitioning to low-emission vehicles. Michigan stands to benefit significantly with projects at plants owned by GM, Stellantis, and ZF North America. President Joe Biden emphasizes the creation of union manufacturing jobs and the retention of existing ones in key battleground states. This initiative comes amidst a push for EV adoption, with concerns over pricing, range anxiety, and competition from foreign markets. Companies must commit to a transition to sustainable vehicles and worker-friendly practices to receive funding. The program aims to strengthen the American auto industry, compete with Chinese manufacturers, and support a clean energy future. Biden's administration underscores the importance of investing in domestic manufacturing communities that have been neglected in the past.