Detroit’s Big Three automakers are showcasing a number of new electric vehicles at the auto show. The US Congress and Mr. Biden, a self-described “car man” Democrat, have pledged tens of billions of dollars in loans, manufacturing and consumption tax credits and grants to accelerate the transition from internal combustion vehicles to cleaner EVs.
General Motors Chief Executive Mary Barra, Stellantis NV CEO Carlos Tavares and Chairman John Elkann, and Ford Motor Co Executive Chairman Bill Ford Jr. will welcome Biden to the auto show where he will take a look at some new green models before commenting on the transition to EVs.
However, petrol trucks are well represented at the show. A large majority of new vehicles sold by the Detroit Three are still gasoline models, and Tesla Inc dominates the US EV market and surpasses the Detroit Three’s combined EV sales.
The White House hailed a series of recent major investment announcements from US and foreign automakers to build new battery and electric vehicle factories.
White House national climate adviser Ali Zaidi told Reuters that automakers and battery companies have announced “$13 billion for EV manufacturing” in 2022 as they pick up “the pace of their investments in capital projects here in the United States”.
Zaidi said “the answer is now unambiguous and clear – that future – an all-electric transport sector – will be made in America.”
Biden’s remarks will focus on a “sense of momentum” for EVs, Zaidi said, including cutting battery prices by more than 90% since 2009.
In July, the U.S. Department of Energy said it planned to lend $2.5 billion to Ultium Cells LLC, a joint venture between GM and LG Energy Solution, to help fund construction of new cell manufacturing facilities. lithium ion batteries.
In August 2021, Biden set a goal for EVs or plug-in hybrid vehicles to account for 50% of all new vehicle sales in the United States by 2030. The Detroit Three support the non-binding goal of 50 %.
Detroit Mayor Mike Duggan said the city’s auto show – the first since January 2019 – would mark American automakers’ shift to EVs.
“I think you’re going to see auto companies in Detroit leapfrog Tesla and compete with Chinese companies that are also way down the EV road,” Duggan told reporters Tuesday.
When he was vice president in the Obama administration, Mr Biden attended the Detroit auto show and was a strong advocate for the bailouts of GM and Chrysler, now part of Stellantis, in 2008 -2009.
EV battery makers are looking to increase US production as the country implements tougher regulations and tightens eligibility for tax credits.
In August, California moved to require all new vehicles sold in the state by 2035 to be electric or plug-in hybrids. The Biden administration has refused to approve a specific date for phasing out gasoline vehicles.
Honda Motor Co Ltd recently announced that it will build a new $4.4 billion lithium-ion battery plant for US EVs with Korean battery supplier LG Energy Solution Ltd.
Toyota Motor Corp said it would increase its planned investment in a new battery plant in the United States from $1.29 billion to $3.8 billion.
In August, GM and LG Energy Solution began production at their $2.3 billion joint venture battery plant in Ohio. The companies are considering a New Carlisle, Indiana, site for a fourth US battery cell manufacturing facility expected to cost about $2.4 billion.