Biden Entices Offshore Car and Parts Makers With "A Deal They Can't Refuse"
Editor's Note: What products will these factories be producing when the BEV renaissance doesn't materialize...Ginsu Knives?
WASHINGTON. DC - February 26, 2023: Audi is one of a list of foreign car makers who are eyeing a chance to make a can't refuse decision by building factories here in US at bargain prices after subtracting "Attractive" US Subsidies and an elimination of the onerous "No US Tax Breaks For Foreign Car Maker's Customers".
Audi revealed that it is considering building a U.S. factory for electric vehicles, the German automaker Audi became the latest company to signal that the Biden administration’s support for green new deal elements like clean-energy manufacturing is bearing fruit.
The Washington Post reports, the German carmaker joins a string of manufacturers of cars, computer chips, batteries, and solar panels that have announced concrete plans or tentative prospects for boosting U.S. production, all drawn at least in part by subsidies and tax breaks rolled out in White House-backed legislation.
Some of the projects could fail to materialize, and there are larger economic factors motivating the investments. But it’s clear that incentives in the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA) are helping spark the activity, said Willy Shih, a manufacturing expert at Harvard Business School.
“What it’s done is it’s stimulated a huge wave of new capacity building in the U.S. for EVs and EV materials and batteries,” he said. “I used to be a skeptic about the practicalities of bringing manufacturing back to the U.S. Now that I see the impact of the IIJA and Inflation Reduction Act my observation is, well, that seems to be working.”