US lawmakers to urge automakers to cut reliance on China

US lawmakers to urge automakers to cut reliance on China

WASHINGTON, June 19 (Reuters) – A bipartisan team of U.S. lawmakers will urge the CEOs of Ford Motor (F.N) and Common Motors (GM.N) to shrink reliance on China auto sections, specially electric automobile batteries, resources informed Reuters on Monday.

Four lawmakers who are portion of the Residence of Reps China Choose Committee will journey to Detroit Tuesday to meet up with with Ford’s Jim Farley and GM’s Mary Barra, the resources explained.

Republicans Mike Gallagher and John Moolenaar and Democrats Raja Krishnamoorthi and Haley Stevens also prepare to meet up with with executives from vehicle suppliers including BorgWarner (BWA.N), Continental (CONG.DE), Bosch (BOSH.NS), Tenneco and battery startup Our Next Electrical power (One).

The concentration on Chinese auto pieces comes quickly right after U.S. Secretary of Condition Antony Blinken produced a unusual stop by to Beijing and hours of meetings failed to produce any big breakthroughs.

Ford explained Monday it “shares the committee’s aims of strengthening American competitiveness and setting up EV supply chains in the U.S., and in our meeting tomorrow we strategy to share how we’re undertaking just that.”

GM declined to remark on the conference.

Gallagher, who chairs the China committee, in April lifted concerns about Tesla’s (TSLA.O) dependency on China, right after the firm unveiled ideas to open up 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 creation from Chinese source chains by imposing new problems on EV tax credits. The new tax credit score principles limit eligibility to only North American assembled vehicles and set battery sourcing rules.

Ford’s offer declared in February to use technological innovation from Chinese battery corporation CATL (300750.SZ) as aspect of the automaker’s strategy to expend $3.5 billion to establish a battery plant in Michigan has drawn criticism from some lawmakers.

Republican Senator Marco Rubio has questioned the Biden administration to block EV tax credits for batteries created making use of Chinese technologies.

Ford mentioned earlier “earning those batteries below at dwelling is substantially much better than continuing to depend solely on foreign imports, like other automobile corporations do.”

Bloomberg News first noted the prepared meetings.

Reporting by David Shepardson and Kanishka Singh in Washington Modifying by Sandra Maler and Lisa Shumaker

Our Standards: The Thomson Reuters Rely on Ideas.

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