Report: Biden to Use Wartime Powers to Boost EV Battery Production

U.S. President Joe Biden is said to be considering utilizing wartime powers to spur domestic electric vehicle battery production. The administration reportedly wants to add the necessary raw materials to the Defense Production Act (DPA) penned at the start of the Korean War in 1950.

Originally designed to give the federal government more control of the U.S. economy (especially in regard to raw materials) throughout the Cold War, the law has also been leveraged by the Department of Defense to advance new technologies starting in the 1980s. In 2011, Barack Obama invoked the act to force telecommunications companies to provide detailed information to the Commerce Department’s Bureau of Industry and Security. Donald Trump would later invoke the DPA to identify an array of products deemed critical to national security as the trade war with China heated up, and then again to spearhead domestic production of materials and goods pertaining to the COVID-19 pandemic.

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Report: Biden Admin May Link Semiconductor Subsidies to Unions

Despite the semiconductor shortage having encouraged the automotive sector to repeatedly idle factories, word on the ground is that things are becoming more stable. Companies are seeing less production downtime overall and workers are reporting more reliable working conditions across the board. However, several automakers have continued to express concerns (e.g. Volvo), alleging that chip shortages could stretch deep into 2022, while the U.S. government ponders how to advance chip production in-country and become less dependent on Asian suppliers.

Commerce Secretary Gina Raimondo has been touring Michigan, meeting with union members and industry heads, and plans to urge Congress to move on a $52 billion in funding bill aimed at boosting domestic production. We’ve questioned the efficacy of the CHIPS Act before, primarily in relation to how the subsidies would be allocated. But there are new concerns that the plan will mimic the Biden administration’s EV subsidies by spending heaps of taxpayer money and giving union-backed organizations a larger cut.

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Automakers Accused of Chip Hoarding, U.S. Considers Defense Production Act

Despite the occasional media report claiming that the semiconductor shortage is nearly over, reality looks quite a bit different. Some manufacturers have managed to temporarily stabilize supply chains, even though others have continued announcing work stoppages as they run out of chips. Wait times for the electronic components have also increased by about 61 percent since the beginning of 2021. Meanwhile, a recent Kelly Blue Book survey had 48 percent of respondents saying they were going to postpone buying a new automobile until shortages end, prices come down, and they can actually find the vehicles they’re looking for. But even those that were willing to buy now expressed a surprising level of acceptance to abandon brand loyalty or their preferred body style just to get a fairer deal on an automobile.

With the United States fairing worse than other regions in regard to chip availability, the White House has been under pressure to solve the problem all year. Thus far, government strategy has focused on encouraging investments for new semiconductor production. But there’s a new gambit being proposed that would invoke a Cold War-era national security law that would force manufacturers to furnish information pertaining to semiconductor supply lines and chip sales.

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Trump Edges Closer to Invoking Defense Production Act

One should never pay too close attention to social media, but sadly, that’s where a lot of diplomacy takes place these days. Especially today.

Since dawn broke over the nation Friday, President Donald Trump has chastised General Motors and Ford for their perceived foot-dragging in getting much-needed ventilators into production, urging them to pick up the pace and suggesting that he might invoke the Defense Production Act — a wartime measure aimed at aligning industrial output with America’s immediate defense needs. In this case, the enemy is microscopic, but packs a punch.

We’re already on it, Ford and GM replied.

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  • Johnster "Vale" is the [s]cheap[/s] lower-priced performance version with black trim and stiff suspension."Mist" is the "DeLuxe" version with a bit more chrome and trim. (Sort of like the "Decor Package" option.)"Magentic" is the full-on Brougham treatment (in its current state) with more chrome trim than the "Mist" and all sorts of gimmicky electronic features inside. (Sadly, it will not include simulated landau irons or a vinyl covered roof, even as an option.)"Aurora" is the Oldsmobile of Cadillacs (sort of like the old Cadillac Calais). No, that's not right. It's the top-of-the-line model, sort of a "Grand Touring" version, with not as much chrome as the "Magentic" but all of the gimmicky electronic features and a stiffer suspension.
  • Drew8MR Why can't CARB leave hobbyists alone? Maybe lay off the low hanging fruit and go after the gross polluters. Bring back the rolling exemption.
  • ToolGuy According to Americans, the very lovely and quite powerful Ford Fairmont (1978-1983) was Way Better.Source: Sales figures.
  • Goatshadow Use case: trade it in the moment the warranty is up.
  • SCE to AUX Why can't the NHTSA find or keep its leaders?