Michigan Republicans Demand Answers from Auto Maker Stellantis on How Electrification Will Impact Constituents

Three Michigan Republican lawmakers are asking Stellantis for an update on the car manufacturer’s economic footprint in the state and its shift towards electric vehicles.

Representatives John James, Jack Bergman, and Bill Huizenga wrote a letter to Stellantis North America CEO Carlos Tavares listing out their “grave concerns” about Stellantis’s business practices in Michigan and the implications of electrification for Michigan workers.

“We have grave concerns regarding recent actions and reactions in the automotive industry that threaten both Michigan’s economy and the livelihoods of our world-class workforce,” the lawmakers wrote in a letter obtained by National Review.

Stellantis is the multinational parent company to famous car brands such as Jeep, Chrysler, Dodge, and Ram. The company is reportedly searching for a new CEO as it suffers from declining sales across its iconic brands and maintains a tense relationship with the United Auto Workers.

The letter cites Stellantis’s plan to lay off more than 2,000 American autoworkers from its plant in Warren, Michigan, and the fines Stellantis was required to pay the National Highway Transportation and Safety Administration for failing to meet the agency’s fuel economy standards in past model years.

Despite being awarded hundreds of millions in electric-vehicle grants from the Biden administration, Stellantis is considering moving Ram 1500 production from a plant outside Detroit to Mexico, United Auto Workers vice president Rich Boyer said last month amid contract negotiations between the company and the union.

Now, lawmakers are demanding to know whether those jobs will be made up elsewhere.

“Of the $406 million announced in investments to assembly plants in Warren, Dundee, and Sterling Heights, $97.6 million is committed to Warren. How much of that will be invested in job creation—and how does that compare to the total amount of jobs lost after the announcement of 2,450 layoffs on the Ram 1500 Classic line? Is total workforce at the Warren plant a net gain or loss?

More broadly, the lawmakers describe the importance of the auto industry to Michigan’s economy and how the Biden administration’s electric-vehicle mandate could prove extremely damaging to the state. The senators press Stellantis to commit to producing vehicles that are actually in demand, rather than blindly acquiescing to the EPA’s new mandate that 67 percent of consumer vehicles produced in the U.S. by 2032 be electric.

“Will Stellantis commit to selling vehicles that are not only built by auto workers in our state, but that auto dealers can actually sell in the marketplace?” the lawmakers ask.

The Environmental Protection Agency’s strict tailpipe emissions requirement for new vehicles is designed to push car manufacturers towards electrification, especially when paired with the Biden administration’s electric-vehicle subsidies and investments. But, demand for electric vehicles is faltering and automakers have struggled to make a profit from large-scale investments.

Stellantis’s electric-vehicle business and substantial investments in Michigan manufacturing facilities are the subject of six detailed questions from the Republican lawmakers who hope Stellantis will create jobs and invest in Michigan rather than outsourcing its workforce and relying on foreign suppliers.

“We are requesting answers to these questions within seven days of delivery of this letter, given this is a sink-or-swim moment for our state and our domestic auto industry. The actions taken by the Biden/Harris Administration will result in the cratering of Michigan’s economy, and the continued evaporation of Michigan’s working-class,” the letter concludes.

James recently lead a House Republican vote to pass legislation meant to overturn the tailpipe-emissions rule, but the measure is unlikely to go anywhere in the Democratic-controlled senate. Republicans often warn about the negative consequences of vehicle regulations on manufacturing jobs and believe that promoting electric vehicles will benefit China’s economy because of its supply-chain dominance.

With the 2024 election coming up, the auto industry will be top of mind for politicians and voters alike. Swing-state polling previously reported by National Review found that majorities oppose the tailpipe-emissions rule and having to pay higher prices for cars in order to reduce emissions.