When Reality Catches Up With Business Ventures

On Monday, The Federalist reported that Ford Motor Company is stopping work on a plant in Marshall, Michigan that was going to make batteries for electric cars.

The article reports:

Ford Motor Co. is halting work on a $3.5 billion plant in Marshall, Michigan, that would make batteries for electric vehicles.

The announcement came after the automaker in July projected its EV unit would lose $4.5 billion this year, about 50 percent more than initially expected, and that it was slowing its plans to increase EV production, according to Reuters.

The delay also comes as Ford is in the midst of talks with the striking United Auto Workers union. President Joe Biden plans to join a UAW picket line on Tuesday, a day ahead of a planned visit to the workers by former President Donald Trump.

It is becoming obvious that American consumers are not all that enthralled with electric vehicles. The high cost of the vehicles, the time consumed in charging the vehicles, issues regarding how far the vehicles will travel on a charge, the fire hazard of an electric vehicle, the cost of replacing the batter in an electric vehicle, and the increased insurance rates insurance companies are charging for electric vehicles are all unresolved issues in the minds of consumers.  (Also, in my humble opinion, the electric Ford Mustang is a disgrace to its heritage! I realize that it can go really fast, but it doesn’t look good doing it!)

Getting Rewarded For Your Political Support

Traditionally the unions have supported the Democrat party. Periodically they are rewarded for their support. Yesterday Red State posted an article that illustrates how that system works.

The article reports:

In yet another example that powerful teachers unions and labor unions enjoy joint custody of Joe Biden and the Democrat Party, the ridiculously named socialist monstrosity “Build Back Better” Act contains a provision that provides a tax credit of up to $12,500 to purchasers of electric vehicles — other than Teslas.

Why not Teslas? Three words: United Autoworkers Union.

That’s right, America, as reported by CBS News, only electric vehicles made in unionized U.S. factories qualify for the full $12,500. However, if Tesla it must be, your tax credit would be capped at $7,500.

The article lists the criteria for the tax credit (note that it is a tax credit–not a refund–the government doesn’t want you to keep too much of your own money):

  • A credit of up to $7,500 for an electric or plug-in hybrid vehicle, defined as a car with a battery capacity of at least 40 kilowatt-hours and a gas tank, if any, under 2.5 gallons.
  • An additional $500 credit for a car with a battery pack made in the U.S.
  • An additional $4,500 credit for cars assembled at a unionized U.S. plant. (Currently, only plants owned by GM, Ford, and Stellantis qualify [formerly, Fiat-Chrysler].)

The information above comes from CBS News.

The article continues:

In addition, to qualify for tax credits under Biden’s BBB (Build Back Broke), electric vehicles must fall under a price limit. Vans, sports utility vehicles, and pickup trucks need to be under $80,000 to be eligible for the credit; for all other cars, the price limit is $55,000.

The article concludes:

The worst part about the Democrat Party in situations like this — blatant pandering to labor unions — is the complete disingenuousness of the whole thing. We know — and they know we know — that “climate change,” “green energy,” and fossil fuels have less to do with this provision, along with taxpayer relief and “good-paying jobs,” and more to do with delivering to the UAW exactly what it expects.

Doubt it? One look at the Democrat coddling of teachers’ unions should eliminate any doubt.

I guess the unions are simply getting what they have paid for.