The President believes the initiative will create and support one million jobs in the United States.
On January 25, President Biden spoke to reporters about a specific executive ordering he signed that focuses on American manufacturing. The “Made in America” order contains commitments to purchase more American products at federal level. A pledge to go entirely electric with federal vehicles is of particular interest to the auto sector. This move could lead to a million new jobs.
Biden stated to reporters that the federal government also has an immense fleet of vehicles. He said that they would replace them with electric, clean vehicles built right here in America by American workers. This will create a million jobs for autoworkers and clean energy, as well as vehicles that emit zero emissions. This will be the largest mobilization in public investment since World War II, and it will include R&D and procurement infrastructure.
Biden also announced changes in criteria for federal agencies purchasing vehicles. These new requirements will help determine whether the vehicle is made in America. For a vehicle to be eligible, 50 percent must be made in America. This will mean that the U.S. components will have a higher value, both in monetary terms and in terms of their contributions to the U.S. Economy, notably through jobs. The President pledged to work with Manufacturing Extension Partnership (MEP), to improve the connection of suppliers to government projects.
The President Biden executive order calls for investment in clean energy, biotech and battery technology. These two may be applicable to the auto industry as electricity and autonomous systems continue to improve.
Although there was no specific information about the type of zero-emission vehicles that the government would consider, it could prove to be lucrative for automakers. The U.S. government spends approximately $600 billion annually on procurement. According to President Biden’s report, foreign government contracts increased by 30% under the Trump administration.