Retooling auto plants for EVs will cost billions. Biden wants to help

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General Motors Co's 'Factory Zero' in Detroit is on the front line of a battle for the U.S. electric vehicle market between ageing, unionized factories, and new, non-union plants run by young electric vehicle companies.

General Motors assembly workers connect a battery pack underneath a partially assembled 2018 Chevrolet Bolt EV vehicle on the assembly line at Orion Assembly in Lake Orion, Michigan, U.S., March 19, 2018. REUTERS/Rebecca Cook/File Photo"Factory Zero" in Detroit is on the front line of a battle for the U.S. electric vehicle market between ageing, unionized factories, and new, non-union plants run by young electric vehicle companies.

The Biden administration and fellow Democrats in Congress have proposed nearly $50 billion in tax breaks, incentives for government agencies to buy electric vehicles, loans for retooling factories and aid to automotive plant communities. Build Back Better would also allocate $3.5 billion for converting U.S. factories for production of electrified or fuel cell vehicles, and revive incentives that could generate $3.7 billion for automotive communities by 2031.

If the Build Back Better legislation passes, GM will factor that into its plans, he said. "It does not change what we are doing."

 

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