[Junction65]

Originally Posted by Martinjlm

I think you must be misinterpreting something I said. It is NOT allowing US automakers to compete on a level playing field because US automakers are already behind on developing new vehicle technology. The playing field is NOT level today and will become even more lopsided over the next few years. In the meantime, foreign automakers who are already ahead in many aspects can also avoid tariffs by building product here. That includes Chinese automakers.

Can you provide any links/evidence where any new policies prevent domestic manufacturers from building HEVs/EVs or prevent development of battery or other new technologies? Can you at least give some specifics to substantiate your claims?

The "isolationist" position of which I speak is tilting the regulations to reward the manufacture of "old tech" at the expense of (as opposed to in addition to) new tech. As if the US auto market is an island and as long as we are the best on the island we're all good. Fact is, everyone else is competing globally and bringing their best products here to compete against our outdated products. Just like the Japanese did in the '70s and '80s.

Previous policies rewarded "new tech" at the expense of (as opposed to in addition to) "old tech". My garage, my choice, wouldn't you agree?

Also can't domestic auto manufacturers build and sell their vehicles globally?

Didn't the '80s bring about domestic auto manufacturers innovating new technologies such as OBD, fuel injection systems(cross fire, tuned port, multi port), turbos and smaller displacement engines as a response to the Japanese autos you mention? Innovation has always been one of America's strengths and the current situation is pretty "Pro-American".

It's not just EV technology, but also telematics technology and anything requiring semiconductors. Everything in modern cars requires semiconductors these days. What the automobile-relevant parts of the Inflation Reduction Act did was to provide incentive for domestic automakers to invest in battery technology, minerals refinement, semiconductor technology and other technologies to get caught up to where the rest of the world, particularly China, S. Korea, and Japan are with respect to new vehicle technology. It also provided incentives for building plants to produce relevant components in the US (jobs). The US does not need to catch up with relation to engine technology. GM and Ford are both in great position there. Just look at Corvette and Mustang. But most other portions of the vehicle, like feature technologies (semi-conductors, rare earth materials) and some assembly technologies, the US is behind. IRA was a path to getting caught up.

Let's be honest here, the previous IRA policy had nothing to do with "inflation". That was just a Orwellian name game so that if someone questioned it, they could be shamed in media sound bites while lining the pockets and coffers of certain individuals and groups. What does automotive design and innovation have to do with inflation and the cost of groceries? Last time I checked, you can't eat semiconductors, minerals, solar panels and windmills.

Also current policies provide even more incentives(reinstates 100% bonus depreciation for qualifying business assets, 100% deduction for qualified production property, etc) for building plants here to produce relevant components among other things in the US. Consider funding, stock piling, tax credits and loan programs for boosting rare earth production as well.

A big, beautiful future for the domestic automotive industry, all right there in front of our eyes, should we choose to open them.