The Biden administration revealed Thursday it will make available more than $15 billion for automakers to retrofit existing manufacturing plants for gas-powered vehicles to instead make cars and trucks that run on electric.
The move comes amid heightened tensions between President Biden and the auto industry, including automakers and the United Auto Workers. The companies fear that a too-rapid clean-energy transition could hurt their bottom line while the unions fear the loss of thousands of blue-collar union jobs.
The Department of Energy will provide $2 billion in grants and up to $10 billion in loans to repurpose factories for EVs. “While we transition to EVs, we want to ensure that workers can transition in place, that there is no worker, no community left behind,” Energy Secretary Jennifer Granholm told reporters.
Nearly all — 97% — of the UAW’s 150,000 members with General Motors, Ford and Stellantis, which owns Chrysler, voted to authorize the strike.Rep. Dan Kildee, a Michigan Democrat whose district borders Detroit, said he was satisfied with the administration’s action and said it would protect union jobs.
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