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Electric vehicle 'workforce hub' coming to Michigan, White House says

Grant Schwab, The Detroit News on

Published in Business News

WASHINGTON — Michigan will be among four new "workforce hubs" designated to help prepare workers for new manufacturing jobs, the White House said Thursday. The Michigan hub will focus specifically on electric vehicles.

The effort — a collaboration between federal and state agencies — is meant to train or retrain workers through apprenticeships, high school programs and community colleges.

"As the country accelerates into an electric vehicle (EV) future, President Biden is committed to ensuring that the workers, unions, and businesses that have historically powered the auto industry lead the next generation of clean vehicles," the White House said in a press release.

Transitioning to zero-emission EVs and spurring more domestic manufacturing have been top priorities for Biden since he took office, but the auto industry has lagged on both fronts. EV adoption is lower than many had hoped, and automakers are only in the early stages of domestically manufacturing essential EV components, namely batteries. The new initiative shows Biden's commitment to Michigan as a key part of his economic agenda — and a key part of making the case that Michiganians should stick with him in the 2024 presidential election.

Politically, the transition to EVs has been a thorny issue for Biden in Michigan. The Detroit News was first to report last year that the United Auto Workers labor union planned to withhold an endorsement for Biden until the Democratic president showed support for a "just transition" to electric vehicles.

The influential union came around and eventually endorsed Biden, but concerns about how the EV transition will affect jobs remain.

 

Electric vehicles remain far less profitable for the auto industry than internal combustion engine cars. Ford Motor Co., for example, lost $1.32 billion on EVs in the first quarter of 2024, the company said this week. That represents a significant increase over a $722 million loss a year ago.

Workers have faced layoffs as the companies adjust — and continually readjust — their product mixes and expectations surrounding EVs.

But the Biden administration has remained steadfast in promoting EVs. It previously announced $15.5 billion in funding and loans to retool existing factories and support infrastructure related to EVs, and a new raft of regulations targeting vehicle emissions will push automakers to adjust.

"I asked every business owner I know — not a joke — when the federal government makes a multi-billion dollar investment in something, does that encourage you or discourage you from getting engaged? Guess what, every single solitary leader said overwhelmingly 'yes,' " Biden said during a speech Thursday in Syracuse, New York.

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