Shulou(Shulou.com)11/24 Report--

On September 1, the US government announced that it plans to provide 12 billion US dollars (currently about 87.24 billion yuan) in subsidies and loans to automakers and suppliers to transform their factories to produce electric cars and other advanced cars.

"as we switch to electric cars, we want to make sure that workers make a smooth transition and that no workers or communities are left behind," energy minister Jennifer Granhom said on Thursday. Glenhom was governor of Michigan, a state that is famous for its car manufacturing.

Analysts say the move will help the White House defuse criticism from automakers and the UAW of environmental regulations aimed at promoting the era of electric vehicles.

The UAW has warned that rapid change could put thousands of jobs at risk in states such as Michigan, Ohio, Illinois and Indiana.

Last week, members of the United Auto Workers Union (UAW) overwhelmingly authorized Detroit's big three automakers to strike without a wage and pension plan agreement before the current four-year contract expires on September 14.

Shawn Fain, president of the UAW, welcomed the policy, saying it "made it clear to employers that the transformation of electric vehicles must establish a strong partnership with the UAW to inherit and maintain the high pay and safety standards that UAW has fought for and won for generations."

"Building a clean energy economy can and should provide win-win opportunities for car companies and union workers who have supported the US economy for decades," US President Joe Biden said in a statement.

Fane promised to save the jeep plant in Belvidere, Illinois, while Stellantis plans to close it. The carmaker has reserved the possibility of producing new products with government assistance.

Asked if it was possible for government aid money to help factories continue to operate, Glenhom said factories that had been set up around the community were "the best way to use the money". Companies that receive financial assistance have no specific labor requirements, but projects with better working conditions will have a better chance of getting funding, an energy ministry official said.

Glenhom also said that the government will also provide $3.5 billion in aid to domestic battery manufacturers.

Of the $12 billion, $2 billion came from the inflation reduction Act passed by Democrats last year, and $10 billion from the Department of Energy's loan Program Office.

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