[FiskeredMan]

that new Green component in the Biden Bill is brilliant strategy - a lot of EV and battery manufacturing is going to come to USA!

 

[rr191]

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[DBatz10]

that new Green component in the Biden Bill is brilliant strategy - a lot of EV and battery manufacturing is going to come to USA!

I have been saying this to many of my skeptical friends. Giving a carrot to companies to bring their production to the US is a good strategy. I think the only really big hurdle is finding the labor. We have an aging population, compounded with a slowing replacement rate (smaller families/less babies), which leads to a shrinking work force. That part will most likely work itself out, IMO.
The bill is far from perfect, but this part was a net positive for the long term auto industry in America.

 

[TT97]

I have been saying this to many of my skeptical friends. Giving a carrot to companies to bring their production to the US is a good strategy. I think the only really big hurdle is finding the labor. We have an aging population, compounded with a slowing replacement rate (smaller families/less babies), which leads to a shrinking work force. That part will most likely work itself out, IMO.
The bill is far from perfect, but this part was a net positive for the long term auto industry in America.

My issue with the Act is while you providing a "carrot to companies to bring their production to the US"; it provides a bigger carrot for companies to keep their EV products in Europe where they get much bigger benefit selling there and just export their ICE products to the U.S. where they have no incentive to clean up their product mix here.

 

[DBatz10]

My issue with the Act is while you providing a "carrot to companies to bring their production to the US"; it provides a bigger carrot for companies to keep their EV products in Europe where they get much bigger benefit selling there and just export their ICE products to the U.S. where they have no incentive to clean up their product mix here.

Fair concern, but as more people are moving to the EV space (and some states are mandating it), these companies would fall in to the Toyota trap - riding the ICE train and getting passed up. In the short run, we will see how it shakes out, but to neglect one of the largest car markets, with a growing appetite for EV's, would seem to be misguided.

For example, they would have a hard time selling cars in California, a rather large marketplace. The US market is huge and very lucrative and their competition is making inroads currently. As it is, VW has already opened a plant here, so has BMW, which will pressure their competition to do the same. In BMW's case, I'm not sure if they are making EV's here yet, but they have seen the benefit of making some of the cars here in the states, and if there EV's qualify for the credit, they will take a hard look at expanding production. Time will tell.