Auto Industry’s Electric Transition Sparks Tension With Autoworkers: The Kiplinger Letter
DoE announces $12 billion to support electric transition and factory retrofits — autoworkers fear it may mean the end of numerous auto manufacturing jobs.

President Biden’s Investing in America agenda stated aims are to: leverage historic levels of private sector investments in the U.S., bring manufacturing back to America and create new, good-paying jobs, including union jobs. But autoworkers fear they’ll be left at the altar. To help you understand what is next for the auto industry’s transition to electric, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…
A new round of funding aims to ease the auto industry’s electric transition. The Department of Energy (DoE) has announced $12 billion to support factory retrofits, primarily loans, so older facilities can produce hybrid and/or electric vehicles (EVs). An additional $3.5 billion will promote domestic battery manufacturing.
But this assistance for automakers is stoking tensions with autoworkers who fear being left behind. Electric vehicles have fewer parts than gas-powered ones, which could result in the elimination of numerous auto manufacturing jobs.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Moreover, it’s still unclear how well these various policies will work. Electric vehicles accounted for 8.7% of new car sales in the first quarter of 2023, up from 2.7% in the same period of 2022. But despite some advantages, including lower maintenance costs and faster acceleration, they still cost more and have a shorter range than conventional vehicles, limiting consumer uptake.
Related
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
Four Surprising Signs You’ll Never Retire (and How to Fix Them)
Gearing up to retire? If any of these four signs ring true, you may want to make some changes before you do.
-
Stocks Rise After Trump-Powell Fed Tour: Stock Market Today
Nvidia hit a new all-time high intraday, but another renowned semiconductor name and some less iconic stocks were bigger movers Friday.
-
AI-Powered Smart Glasses Set to Make a Bigger Splash
The Kiplinger Letter Meta leads the way with its sleek, fashionable smart glasses, but Apple reportedly plans to join the fray by late 2026. Improved AI will lure more customers.
-
Breaking China's Stranglehold on Rare Earth Elements
The Letter China is using its near-monopoly on critical minerals to win trade concessions. Can the U.S. find alternate supplies?
-
Things that Surprise Business Owners When It’s Time to Sell
The Kiplinger Letter When it’s time to retire and enjoy the fruits of growing their business, owners are often surprised by how tough it is to give up their baby!
-
What New Tariffs Mean for Car Shoppers
The Kiplinger Letter Car deals are growing scarcer. Meanwhile, tax credits for EVs are on the way out, but tax breaks for car loans are coming.
-
AI’s Rapid Rise Sparks New Cyber Threats
The Kiplinger Letter Cybersecurity professionals are racing to ward off AI threats while also using AI tools to shore up defenses.
-
Blue Collar Workers Add AI to Their Toolboxes
The Kiplinger Letter AI can’t fix a leak or install lighting, but more and more tradespeople are adopting artificial intelligence for back-office work and other tasks.
-
Tax Rule Change Could See Millions Lose Health Insurance
The Kiplinger Tax Letter If current rules for the health premium tax credit (PTC), a popular Obamacare subsidy, aren't extended, 3.7 million people could lose their health insurance.
-
Will State Laws Hurt AI’s Future?
The Kiplinger Letter Republicans in Congress are considering a moratorium on state AI laws. But it’s likely a growing patchwork of state AI regulations will be here for a while.