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Automotive

Federal loan to struggling EV automaker under fire

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From The Center Square

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All-electric automaker Rivian Automotive announced on Monday that it received a “conditional commitment” for a $6.6B loan from the U.S. Department of Energy.

If finalized, the loan would be used to aid in the construction of a $5B Rivian plant just outside Atlanta, Georgia.

Politicians from both sides of the aisle were quick to react to the announcement of additional funding going to what they’ve labeled a “failing company.”

“Biden is forking over $6.6B to EV-maker Rivian to build a Georgia plant they’ve already halted,” said Vivek Ramaswamy, who will be leading President-Elect Donald Trump’s new Department of Government Efficiency, along with Elon Musk, CEO of X and Tesla Motors. “One ‘justification’ is the 7,500 jobs it creates, but that implies a cost of $880k/job which is insane. This smells more like a political shot across the bow at Elon Musk and Tesla.”

With its first plant currently operating in Illinois, the California-based vehicle startup company officially closed on the 1,800-acre lot in Georgia in Nov. 2023.

Acquired to be the location for a second “next-generation manufacturing facility” producing upwards of 400,000 vehicles a year, the company halted construction plans earlier this year after financial troubles. Over the course of the year, shares in Rivian have dropped about 50%, while the Michigan-based Center for Economic Accountability labeled the project the “Worst Economic Development Deal of the Year” for 2022.

Georgia also promised over a billion dollars in incentives for the company, The Center Square previously reported.

Rivian said the loan will accelerate the company’s “growth and leadership of electric vehicle design” as well as benefitting the electric vehicle industry throughout the United States.

“This loan will help create thousands of new American jobs and further strengthen U.S. leadership in EV manufacturing and technology,” said Rivian founder and CEO RJ Scaringe in a statement. “This loan would enable Rivian to more aggressively scale our U.S. manufacturing footprint.”

The funding will come from the Department of Energy’s Advanced Technology Vehicle Manufacturing Loan Program, which has also historically loaned both General Motors and Tesla money.

Jo Jorgensen, the 2020 Libertarian candidate for president, called out the loan.

“Electric vehicle startup Rivian Automotive has snagged up to $6.6 billion in funding from the U.S. government to grow its production capability,” she said. “Related news-Rivian is ranked among the worst brands for reliability in 2024. Per usual, our federal government is leading the race to the bottom!”

Earlier this month, the company’s quarter three financials signaled even more financial troubles for Rivian.

In the third quarter, it had a negative gross profit of $392 million, producing only 13,157 vehicles and “delivering” only 10,018. That means the company had a loss-per-vehicle of nearly $40,000.

“They should at least be required to get to positive gross margin with existing models before being given billions for future models,” Musk said of the loan announcement.

While Rivian promises the Georgia factory “will add billions of dollars in positive economic impact for Georgia,” Georgia Representative Marjorie Taylor Greene, a Republican, pushed back on that.

“I can tell you right now Georgians do not support Rivian and are sick and tired of seeing tax dollars handed over to this failing company, federal and state,” Greene said.

It was recently announced that Greene will be leading a congressional subcommittee dedicated to working with DOGE and rooting out “every penny of waste and abuse.”

Greene said that the Rivian loan is “the exact type of insanity that we have to stop.”

Elyse Apel is an apprentice reporter with The Center Square, covering Georgia and North Carolina. She is a 2024 graduate of Hillsdale College.

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Automotive

Governments continue to support irrational ‘electric vehicle’ policies

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From the Fraser Institute

By Kenneth P. Green

Another day, another electric vehicle (EV) fantasy failure. The Quebec government is “pulling the plug” on its relationship with the Northvolt EV battery company (which is now bankrupt), and will try to recoup some of its $270 million loss on the project. Quebec’s “investment” was in support of a planned $7 billion “megaproject” battery manufacturing facility on Montreal’s South Shore. (As an aside, what normal people would call gambling with taxpayer money, governments call “investments.” But that’s another story.)

Anyway, for those who have not followed this latest EV-burn out, back in September 2023, the Legault government announced plans to “invest” $510 million in the project, which was to be located in Saint-Basile-le-Grand and McMasterville. The government subsequently granted Northvolt a $240 million loan guarantee to buy the land for the plant, then injected another $270 million directly into Northvolt. According to the Financial Post, “Quebec has lost $270 million on its equity investment… but still had a senior secured loan tied to the land acquired to build the plant, which totals nearly $260 million with interest and fees.” In other words, Quebec taxpayers lost big.

But Northvolt is just the latest in a litany of failure by Canadian governments and their dreams of an EV future free of dreaded fossil fuels. I know, politicians say that it’s a battle against climate change, but that’s silly. Canada is such a small emitter of greenhouse gases that nothing it could do, including shutting down the entire national economy, would significantly alter the trajectory of the climate. Anything Canada might achieve would be cancelled out by economic growth in China in a matter of weeks.

So back to the litany of failed or failing EV-dream projects. To date (from about 2020) it goes like this: Ford (2024)Umicore battery (2024)Honda (2025),General Motors CAMI (2025)Lion Electric (2025)Northvolt (2025). And this does not count projects still limping along after major setbacks such as Stellantis and Volkswagen.

One has to wonder how many tombstones of dead EV fantasy projects will be needed before Canada’s climate-obsessed governments get a clue: people are not playing. Car buyers are not snapping up these vehicles as government predicted; the technologies and manufacturing ability are not showing up as government predicted; declining cost curves are not showing up as government predicted; taxpayer-subsidized projects keep dying; the U.S. market for Canada’s EV tech that government predicted has been Trumped out of existence (e.g. the Trump administration has scrapped EV mandates and federal subsidies for EV purchases); and government is taking the money for all these failed predictions from Canadian workers who can’t afford EVs. It really is a policy travesty.

And yet, like a bad dream, Canada’s governments (including the Carney government) are still backing an irrational policy to force EVs into the marketplace. For example, Ottawa stills mandates that all new light-duty vehicle sales be EVs by 2035. This despite Canadian automakers earnest pleas for the government to scrap the mandate.

Canada’s EV policy is quickly coming to resemble something out of dysfunctional-heroic fiction. We are the Don Quixotes, tilting futilely at EV windmills, and Captain Ahabs, trying to slay the dreaded white whale of fossil-fuelled transportation with our EV harpoons. Really, isn’t it time governments took a look at reality and cut their losses? Canada’s taxpayers would surely appreciate the break.

Kenneth P. Green

Senior Fellow, Fraser Institute
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Automotive

Big Auto Wants Your Data. Trump and Congress Aren’t Having It.

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From the Daily Caller News Foundation

By Ken Blackwell

Congress is not going to allow Big Auto to sideline consumer privacy and safety while getting subsidized massively by the federal government.

That is because, in late September, by an overwhelming vote of 50 to 1, Chairman Brett Guthrie’s (R-KY) House Energy & Commerce Committee joined the Senate Commerce, Science, and Transportation Committee in passing the AM Radio for Every Vehicle Act.

This legislation is in response to some automakers removing AM radios from new model vehicles despite pleas from America’s public safety community not to do so.

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Advisors to President Trump have argued they continue doing so for financial reasons — because they want to force increased traffic onto their infotainment systems, which collects drivers’ personal information and sells it to third parties.

“They’d rather force consumers to use their infotainment devices — which collect and sell their third-party data — than protect American lives,” Corey Lewandowski, President Trump’s 2016 campaign manager and senior adviser to his 2020 and 2024 campaigns, stated.

 No one in Congress likes that the auto companies are doing this. That is why the bill has broad bipartisan support with over 300 cosponsors in the House as well as a filibuster-proof level of support in the Senate.

The entirety of America’s public safety community spanning the federal, state, and local levels, insists AM radio remaining in cars is critical for protecting the nation’s emergency alerting systems. These systems rely heavily upon AM radio, the only communication method that has stayed reliably accessible during many disasters such as the Sept.11 terrorist attack and major disasters like Hurricanes Katrina, Sandy, and most recently, Helene.

Brendan Carr, the current chairman of President Trump’s FCC, nominated by President Trump, has also endorsed the AM Radio for Every Vehicle Act. In a statement, Carr said that “millions of Americans depend on the value of AM radio and the local news that AM broadcasters offer in communities across the country.” He also recounted hearing firsthand stories of Hurricane Helene victims who “could only access lifesaving information in the days following the storm by tuning into their AM radios.”

AM radio also serves another purpose that the elites in Silicon Valley and Detroit often forget: it keeps rural and working-class America connected. Millions of people outside the big cities rely on AM for local news, farm reports, weather alerts, and even community events. For many small towns, AM stations are a lifeline—far more reliable than expensive streaming services or spotty cell coverage. Pulling it out of cars is yet another way of telling Middle America: “you don’t matter.”

Of course, no good idea in Washington is safe from special interests.

Despite the broad support within Congress, the administration, and throughout the public safety and first responder communities, the bill has faced a full-court press by the musicFIRST Coalition — a group backed by the Recording Industry of America — to tank the legislation unless it is tied to unrelated music royalty reform legislation.  That’s cronyism politics at its worst—holding public safety hostage to squeeze out another payday.

However, now that the AM Radio for Every Vehicle Act has passed both committees by overwhelming margins, the only stop left for the legislation is the House and Senate Floor — meaning Speaker Mike Johnson (R-LA) and House Majority Leader John Thune (R-SD) must call it up for a roll call vote.

At the heart of this fight is more than just whether a radio dial stays in your dashboard. It’s about whether Americans can trust that their safety won’t be sacrificed for corporate profit.

It’s also about data privacy. Automakers and Big Tech are eager to funnel drivers into infotainment systems that monitor every move, harvest personal information, and sell it to the highest bidder. AM radio doesn’t spy on you. It doesn’t crash when the grid goes down. It doesn’t put profit ahead of people. It just works.

For the sake of both public safety and personal freedom, Congress should make sure it stays that way.

Ken Blackwell (@KenBlackwell) is an adviser to the Family Research Council and a chair at the America First Policy Institute. He is a former Mayor of Cincinnati, Ohio, Ohio Treasurer and Secretary of State, and U.S. Ambassador to the United Nations Human Rights Commission. He is also a former member of the Trump transition team.

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