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Lansing – The Gov. Gretchen Whitmer is promoting a plan to give Michigan consumers tax credits for buying new cars from electric only to internal combustion engines, along with more rebates on car purchases. was built in a union shop.
Under the plan announced Wednesday, people who buy a new electric or hybrid car will get a $2,000 rebate while those who buy a a new gas-powered car will receive $1,000. Both reimbursements will increase to $500 if the vehicle is located in a unionized area representing workers.
Whitmer plans to ask the Democratic-led Legislature for $25 million in the next budget to fund the program. If implemented, the electric car rebate — if tied to a $7,500 federal credit — could save consumers up to $10,000 on a EV or plug-in hybrid sales.
The MI Vehicle Rebate plan is slightly different from a plan Whitmer introduced at last year’s State of the State address that limited a $2,500 cash back on electric cars and appliances. The program did not win funding in the annual budget.
Whitmer’s administration said Wednesday that its new proposal would lower costs, “stimulate auto production” and support auto workers.
“MI Vehicle Rebate will save you money on your new car as you walk out of the store with your keys,” Whitmer said in a statement.
The announcement came after the announcement of the slow and stop traffic in Michigan. Ford Motor Co. earlier this week it moved to reduce production of its F-150 Electric pickup truck. The production change follows Ford’s announcement in recent weeks that the Dearborn-based automaker will scale back plans for a state-of-the-art plant in Marshall.
Last week, Stellantis NV announced that thousands of workers at its Mack Assembly Plant in Detroit and Toledo Assembly Plant in Ohio may lose their jobs.
The press release Wednesday describes the program as including endorsements from trade groups such as the Michigan Automobile Dealers Association and the Detroit Regional Chamber’s MICHAuto division, whose members benefit from Whitmer’s plan if accepted.
Michigan’s transition to electric vehicles “will take time,” but the state’s ability to remain a leader in EV development and adoption is critical, says CEO MICHAuto Glenn Stevens: “Support for new EV sales and for those vehicles made in America is essential as Michigan moves forward as a leader in the technology of today and tomorrow.”
In addition to the $25 million in tax refunds, the Legislature and the Whitmer administration in recent years have provided nearly $2 billion in direct, taxpayer-funded grants, including Most of the money goes to car companies like Ford, General Motors Co. and Gotion Inc.
In his release Wednesday, Whitmer said the refunds came after Michigan’s three automakers and the United Auto Workers reached new contracts this fall. found 27% of payments, cost-of-life adjustments and ways to integrate new batteries.
It’s Tuesday, at what Wall Street Journal CEO Conference In Washington, Whitmer said the UAW’s landmark contract presented “extraordinary pressure on companies” when asked if he was concerned that union revenue meant companies would cut back. Drive or move jobs out of Michigan to raise money elsewhere. But Whitmer also said that car companies are facing a slower-than-expected transition to electric cars.
“We know this is a global issue, but I’m certainly not surprised that people are dealing with it the same way,” Whitmer said. “They may or may not be related.”
When asked if Republican union workers are on the rise, the Democratic governor said the organization is not as “monolithic” as it was 50 years ago, adding: “I think Democrats and Republicans have to show all of whom have such plans. worthy of one’s support.”
eleblanc@detroitnews.com