US lawmakers to urge automakers to minimize reliance on China

US lawmakers to urge automakers to minimize reliance on China

WASHINGTON, June 19 (Reuters) – A bipartisan group of U.S. lawmakers will urge the CEOs of Ford Motor (F.N) and Common Motors (GM.N) to shrink reliance on China automobile elements, notably electric powered vehicle batteries, sources instructed Reuters on Monday.

Four lawmakers who are part of the Household of Representatives China Pick Committee will vacation to Detroit Tuesday to fulfill with Ford’s Jim Farley and GM’s Mary Barra, the resources mentioned.

Republicans Mike Gallagher and John Moolenaar and Democrats Raja Krishnamoorthi and Haley Stevens also approach to satisfy with executives from car suppliers such as BorgWarner (BWA.N), Continental (CONG.DE), Bosch (BOSH.NS), Tenneco and battery startup Our Subsequent Energy (One particular).

The aim on Chinese car components will come shortly soon after U.S. Secretary of Point out Antony Blinken made a exceptional take a look at to Beijing and hrs of conferences unsuccessful to develop any main breakthroughs.

Ford reported Monday it “shares the committee’s objectives of strengthening American competitiveness and developing EV source chains in the U.S., and in our conference tomorrow we system to share how we’re accomplishing just that.”

GM declined to comment on the assembly.

Gallagher, who chairs the China committee, in April elevated fears about Tesla’s (TSLA.O) dependency on China, following the company uncovered plans to open up a Megapack battery manufacturing unit in Shanghai.

The $430 billion Inflation Reduction Act (IRA) signed by President Joe Biden in August aims to wean U.S. EV output from Chinese offer chains by imposing new ailments on EV tax credits. The new tax credit history rules restrict eligibility to only North American assembled cars and established battery sourcing procedures.

Ford’s offer declared in February to use technological know-how from Chinese battery organization CATL (300750.SZ) as portion of the automaker’s approach to devote $3.5 billion to create a battery plant in Michigan has drawn criticism from some lawmakers.

Republican Senator Marco Rubio has requested the Biden administration to block EV tax credits for batteries created employing Chinese technological innovation.

Ford said previously “creating all those batteries below at house is substantially better than continuing to rely completely on foreign imports, like other automobile companies do.”

Bloomberg Information 1st documented the planned meetings.

Reporting by David Shepardson and Kanishka Singh in Washington Modifying by Sandra Maler and Lisa Shumaker

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