Why GM, Ford could lose grants worth billions in US

Why GM, Ford could lose grants worth billions in US

The US Department of Energy (DOE) has proposed cutting billions in federal funding, a move that could impact several promising start-ups and major automakers like Ford, General Motors (GM), and Stellantis.

The proposal seeks to cancel over $500 million in contracts awarded to more than a dozen companies under the Bipartisan Infrastructure Law.

This comes on top of the Donald Trump administration's earlier announcement last week about cutting over $7.5 billion in contracts.

Major automakers also facing potential losses

The proposed cuts aren't just limited to start-ups. Major companies like Daimler Trucks North America, Ford, GM, Harley-Davidson, Mercedes-Benz Vans, Stellantis, and Volvo Technology of America are also facing the brunt of this decision.

GM's Lansing plant retooling at risk

GM might lose at least $500 million in grant money from a federal Domestic Manufacturing Conversion Grant program.

The funds were supposed to be used for retooling the Lansing Grand River Assembly Plant in Michigan, where GM had announced plans to make electrified vehicles including hybrids back in July 2023.

Start-ups like Brimstone could face operational disruptions