The industry's rapid transition to electric vehicles is causing stress and adding cost at dealerships across the country. But the U.S. government has some reassuring words: It's all very necessary.
The point of the government efforts to drive the content of EVs sold in the U.S. is not to control the market, Michael Berube, the Department of Energy's deputy assistant secretary for sustainable transportation in the Office of Energy Efficiency and Renewable Energy, said Thursday. The point is to make U.S. industry self-reliant as quickly as possible.
"In the short term, in the first few months, I get it. It's painful. It's not ideal," said Berube, who spoke at the J.D. Power Auto Summit. He was answering criticism that the new Inflation Reduction Act is tough on some import brands for withholding federal EV tax credits on models that are assembled outside North America and that source their batteries and critical materials from overseas.