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Opinion. Why a law discriminating against foreign electric cars in the United States might be a good idea?

Opinion.  Why a law discriminating against foreign electric cars in the United States might be a good idea?

The President of the United States has introduced a rule that prevents electric cars from being produced in the United States or in countries with free trade agreements such as Canada or Mexico, Won’t be able to get public help for your purchase. A protectionist movement has been strongly criticized by Europe and China, but can have many positive effects.

The law on the reduction of inflation, within the package of measures to combat the economic crisis, this clause will require that those brands that Those who want to receive $7,500 in government aid will have to follow a number of measuresLike producing their vehicles in the United States, Canada or Mexico, and the battery components have specific origins and do not come from markets like China.

It aims to gradually reduce dependence on China, which controls the supply of core materials such as nickel, cobalt, graphite and lithium.

The US Department of Energy has released a table listing the electric cars and plug-in hybrids produced in its region that are subject to the new requirements. made a list of 31 models where we get only six European offers, and one Asian. Nissan Leaf.

List of electric or plug-in models manufactured in the United States

There are also no models that seem to yield the best results, such as group proposals. hyundai/kiaThe IONIQ 5 and KIA EV6 or KIA e-Niro both ranked sixth, seventh and ninth respectively in electric vehicle sales in the US market between January and July.

where to sell a top 10 pole star 2Which will also not comply with the new regulations of the US government and to which other European models will be added, except for a few, such as the Volkswagen ID. 4 which will be produced in Chattanooga, Tennessee, but will have to prove that the battery origin is compatible.

Top 10 best-selling electric cars in the United States: January-July 2022

  1. Tesla Model Y: 103, 215 units
  2. Tesla Model 3: 97,075 units
  3. Ford Mustang Mach-E: 18,399 units
  4. Tesla Model S: 15,317 units
  5. Tesla Model X: 13,384 units
  6. Hyundai Ioniq 5: 13,200 units
  7. Kia EV6: 12,036 units
  8. Nissan Leaf: 7,911 units
  9. Kia Niro EV: 6,931 units
  10. Polestar 2: 4,873 units

Inflation Reduction Act Is It A Good Idea?

Ford F-150 Lightning

we are definitely the first a purely protectionist measure Which, on the one hand, wants to increase investment in the local production of electric cars while reducing China’s reliance on strategic materials that will affect the transport sector, but also the energy sector due to the increasing importance of backup systems. electrical network.

This would be a double whammy for European models, but especially for the Chinese who play the trick to lower their local production costs and it would mean their vehicles are $7,500 less competitive than their local rivals. Something that can help a lot in balancing the economic balance.

But such measures, or at least comparable measures, were already tried by China back then. Rules that require foreign brands that want to establish themselves in their region to do so in a joint venture with a local brand. Also a good idea on paper, but that ended a few decades later when it was discovered that it negatively affected the competitive position of Chinese brands, without investing much in R&D or marketing. Hope away. fruits automatically.

Some groups that have experienced the transition to a more competitive market A stratospheric jump for its clusters means: Which have become an object of covetousness over western brands by being considered a punishment for forced purchase, only for those with low purchasing power.

Another important factor in this type of movement is that: Will reduce pollutant emissions from vehicle transport“And that local production means avoiding the transshipment of millions of cars by sea over thousands of kilometers. The effect of large dimensions, which will inevitably decrease with production closer to the customer.

But where almost all experts agree that It is absurd to give public support to electric cars that are produced outside the confines of the market where they are sold.“And it’s that from the outset, China has limited subsidies to locally produced brands.

Something that hasn’t caught the eye or caused a scandal among trade organizations, and for many, should be immediately adopted by the United States and Europe to avoid an imminent invasion of Chinese models.

And what do you think, is the implementation of this protectionist measure a good or a bad idea?