Lansing — Gov. Gretchen Whitmer is expanding a plan to give consumers Michigan tax rebates for new vehicle purchases ranging from electric-only engines to internal combustion engines as well, with the larger rebates tied to purchases of Union Shop-built vehicles.
Under the plan unveiled Wednesday, individuals who purchase a new electric or hybrid vehicle will receive a $2,000 rebate, and those who purchase a new gas-powered vehicle will receive a $1,000 rebate. Both rebates would increase by $500 if the vehicle was manufactured at a facility where the union represents the workers.
Whitmer plans to ask the Democratic-led Legislature for $25 million in the upcoming budget to fund the program. If implemented, the electric vehicle rebate — when tied to a $7,500 federal credit — could save buyers up to $10,000 on an electric vehicle or plug-in hybrid sale.
The MI Vehicle Rebate plan differs slightly from the plan Whitmer introduced in her State of the State address last year that limited $2,500 off electric vehicles and charging equipment. The program did not receive funding in the annual budget.
The Whitmer administration said Wednesday that its new proposal would lower costs, “stimulate vehicle manufacturing” and support auto workers.
“The MI Vehicle Rebate program will save you money on your new vehicle when you walk out of the dealership with your keys,” Whitmer said in a statement.
The announcement came after a reported slowdown and layoffs in Michigan’s auto industry. Ford Motor Co. moved earlier this week to cut production of its all-electric F-150 Lightning pickup truck. The production change came after Ford announced weeks ago that the Dearborn-based automaker would scale back its plans for a state-stimulated electric vehicle battery plant in Marshall.
Last week, Stellantis NV told thousands of autoworkers at a Mack assembly plant in Detroit and a Toledo assembly plant in Ohio that they could lose their jobs.
Wednesday’s press release detailing the program included fawning from auto industry groups like the Michigan Auto Dealers Association and the Detroit Regional Chamber’s MICHAuto group, whose members would benefit from Whitmer’s plan if adopted.
Michigan’s transition to electric vehicles “will take time,” said Glenn Stevens, CEO of MICHAuto, but the state’s ability to remain a leader in manufacturing development and adoption of electric vehicles is critical: “Supporting sales of new electric vehicles and those made-in-America vehicles is critical.” Importance”. “Important as Michigan moves forward as a leader in today’s and tomorrow’s technology.”
In addition to the proposed $25 million in tax cuts, the Legislature and Whitmer’s administration in recent years have awarded nearly $2 billion in direct taxpayer-funded incentives, with the majority of the money going to auto companies like Ford and General Motors. Guteon Company, based in China.
In her statement Wednesday, Whitmer noted that the proposed rebates come after Michigan’s Big Three automakers and the United Auto Workers reached new contracts in the fall that included a 27% wage increase, cost-of-living adjustments and paths to consolidation for new battery plants.
Tuesday at a.m Wall Street Journal CEO Council Summit In Washington, Whitmer said the UAW’s landmark contract has put “unique pressure on companies” when asked if she was concerned that the union’s gains would mean auto companies would cut jobs or move them out of Michigan to make savings elsewhere. But Whitmer also said auto companies are dealing with a slower-than-expected shift to electric vehicles.
“We know this is a global issue, but I’m certainly not surprised that people are equating negotiations with this issue,” Whitmer said. “They may or may not be really related.”
When asked if union workers were increasingly leaning toward the Republican Party, the Democratic governor said the organization was no longer as “monolithic” as it was 50 years ago, adding: “I think Democrats and Republicans all have to show that they have a plan that is worthy of someone’s support.” “