MichMash: Gov. Whitmer unveils new vehicle rebate plan

Gov. Gretchen Whitmer recently unveiled plans for a new tax rebate for those who purchase electric vehicles. Automotive News’ Jake Neher sat down with MichMash host Cheyna Roth to unpack the nature of these tax rebates.

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In this episode:

• Gov. Whitmer’s tax rebate program for new car purchases
• The state of electric vehicles
• The UAW filing unfair labor charges against Honda, Hyundai and Volkswagen

This $25 million tax rebate program aims to boost new electric, hybrid, and traditional combustion vehicle sales in Michigan while incentivizing purchasing cars from unionized factories. The tax rebates will be awarded under four categories: $2,500 on a new battery electric or hybrid vehicle from a unionized factory; $2,000 on a new battery electric or hybrid vehicle from a non-union factory; $1,500 on a new internal combustion vehicle from a unionized factory; and $1,000 on all other new internal combustion vehicles.

Neher is questioning the purpose of the plan.  

“Is [the tax rebate program] to actually boost new vehicle sales in Michigan? New vehicles sales aren’t what they were before the chip shortage or the pandemic but they have been steadily coming back since those supply issues, and the pandemic has ended, so it’s not like there is some emergency to boost vehicle sales right now,” he said, adding that we might be given more clarity on the motivations behind the program during the State of the State address in January.  

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