US lawmakers to urge automakers to cut reliance on China (updated)
19/06/2023 21:21
(Updates with confirmation in headline and first paragraph,
Ford statement in paragraph 3, GM not commenting in paragraph 6)
By David Shepardson
WASHINGTON, June 19 (Reuters) - A bipartisan group of
U.S. lawmakers will urge the CEOs of Ford Motor F.N and
General Motors GM.N to shrink reliance on China auto parts,
particularly electric vehicle batteries, sources told Reuters on
Monday.
Four lawmakers who are part of the House of Representatives
China Select Committee will travel to Detroit Tuesday to meet
with Ford's Jim Farley and GM's Mary Barra, the sources said.
Republicans Mike Gallagher and John Moolenaar and Democrats
Raja Krishnamoorthi and Haley Stevens also plan to meet with
executives from auto suppliers including BorgWarner BWA.N ,
Continental CONG.DE , Bosch BOSH.NS , Tenneco and battery
startup Our Next Energy (ONE).
The focus on Chinese auto parts comes soon after U.S.
Secretary of State Antony Blinken made a rare visit to Beijing
and hours of meetings failed to produce any major breakthroughs.
Ford said Monday it "shares the committee’s goals of
strengthening American competitiveness and establishing EV
supply chains in the U.S., and in our meeting tomorrow we plan
to share how we’re doing just that."
GM declined to comment on the meeting.
Gallagher, who chairs the China committee, in April raised
concerns about Tesla's TSLA.O dependency on China, after the
company revealed plans to open a Megapack battery factory in
Shanghai.
The $430 billion Inflation Reduction Act (IRA) signed by
President Joe Biden in August aims to wean U.S. EV production
from Chinese supply chains by imposing new conditions on EV tax
credits. The new tax credit rules restrict eligibility to only
North American assembled vehicles and set battery sourcing
rules.
Ford's deal announced in February to use technology from
Chinese battery company CATL 300750.SZ as part of the
automaker's plan to spend $3.5 billion to build a battery plant
in Michigan has drawn criticism from some lawmakers.
Republican Senator Marco Rubio has asked the Biden
administration to block EV tax credits for batteries produced
using Chinese technology.
Ford said previously "making those batteries here at home is
much better than continuing to rely exclusively on foreign
imports, like other auto companies do."
Bloomberg News first reported the planned meetings.
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(Reporting by David Shepardson and Kanishka Singh in
Washington; Editing by Sandra Maler and Lisa Shumaker)
((Kanishka.Singh@thomsonreuters.com; +1 202 450 8248;))