Ford is expected to start focusing on the production of electric cars in order not to lose ground in the market. Photo: Armando Varela / Courtesy
The incoming Joe Biden administration has made it clear that clean energy will be a central focus in its policies . Traditional automakers like Ford and General Motors are not often seen as companies that go hand in hand with the transition to clean energy.
Despite the fact that both companies have not focused the necessary efforts to reverse this situation, it is likely that the next federal administration help them with an investment of at least $ 40 billion dollars .
The above may be a reality, since in 2009, the American Recovery and Reinvestment Act (ARRA) included Department of Energy loans to these consortia. Thus, can be a reality the distribution of the $ 40 billion, as the government reported that there are funds in that area.
The recent nomination of Biden from former Michigan Governor Jennifer Granholm to take over as the Department of Energy could be a strong indication for investors that Biden’s drive for clean energy could focus on Detroit, a benchmark city for the automotive business in the country and the world.
This move should be seen by auto companies as positive news, as Granholm in the framework of the economic crisis of 2009 helped coordinate and oversee federal bailouts for the entire Michigan auto industry, the above should not be considered a minor thing.
The sale of electric vehicles around the world is obl This is why companies change their business and production models, since firms like Tesla are already starting to have a broad dominance of the market , so established automotive firms should not lose ground in this niche.
EV stocks have performed strongly in the stock market over the past year. However, both Ford and GM have announced massive investments in next-generation automotive technology, so there will be a huge competition in the production of electric vehicles.
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