November 17, President Biden delivered an address on the just-signed Infrastructure Law at the opening of Factory Zero, a new EV plant rising from ashes of an old ICE plant, lauding the CEO for “electrifying the entire auto industry”, and recounting the bold, ambitious plans the company has to lead the industry.
Like many political speeches, it was long on superlatives and promises, and given the heavy lifting the President and his party did to get the Infrastructure Law passed, a well-deserved victory lap.
However, some EV industry observers suggested the president was in the wrong state, wrong factory, standing beside the wrong CEO. The president was not in California visiting Tesla Fremont beside Elon Musk, he was in Michigan, visiting the former GM Detroit-Hamtramck plant, hosted by GM CEO Mary Barra.
Two days later, the Los Angeles Auto Show 2021 opened with the number of EVs on display creating a buzz. At the GM Pavilion, the company showcased its new models and technology, proudly displaying a cut-away of its new power plant, a 5.5 liter, 670 horsepower, V8 Internal Combustion Engine.
Not a single EV was shown. Not even the Hummer EV to be produced at GM Factory Zero.
To anyone who follows EVs, it was not surprising Biden chose a GM plant that will soon be the beneficiary of Infrastructure Law funding for the celebration rather than Tesla; Biden has consistently cold-shouldered Tesla and Musk. Still, it rankled industry observers that his words seemed more to describe Tesla than GM, some going as far to call it “stolen valor”.
Writing in Electrik, Fred Lambert held his Tesla fanboy emotions in check long enough to write a fact-checking takedown worth reading in full, including:
A segment of the speech stood out because Biden somehow thought it would be a good idea to give Mary Barra, CEO of GM, credit for “electrifying the entire automobile industry.”
If you know anything about the auto industry, you’d think that this is a joke, but Biden literally followed up by adding that he is “serious.” As if there was laugh track.
Here’s the relevant part of the speech:
Mary, I can remember talking to you way back in January about the need for America to lead in electric vehicles. And I can remember your dramatic announcement that by 2035, GM would be 100% electric.
You changed the whole story, Mary, wherever — [applause] — wherever you are. There you are. You did, Mary. You electrified the entire automobile industry. I’m serious. You led — and it matters — in drastically improving the climate by reducing hundreds of millions of barrels of oil that will not be used when we’re all electric.
You know, up until now, China has been leading in this race, but that’s about to change.
Biden is a politician, and if he was standing in a Ford factory he would have given Jim Farley credit for electrifying the industry, even though the guy has been at the head of Ford for barely a year.
But I think it’s worth correcting the president here because as someone passionate about electrifying the auto industry, I don’t think Barra deserves any credit whatsoever ….
Lambert goes on to examine the record (including the fact Barra-led GM joined Trump efforts to reverse California emissions standards) and questions how GM will realize lofty goals it shows little progress on today compared with competitors.
That is what this story is about. Not the bad blood between Biden and Musk, a petty distraction, but about the steep uphill climb legacy automakers face to transition their business from ICE to EV, overcoming significant technical challenges, and more importantly, financial challenges given their huge debt burdens that will ultimately be transferred to taxpayers one way or another, success or failure.
But first, let’s set the record straight: there is an American auto company that electrified the industry and has met its goal to produce 100% EVs.
Tesla. In 2012. In a refurbished ICE plant previously run by GM before it was shuttered. So it can be done.
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