America's Work Force Union Podcast

The CHIPS Act will help the automotive industry

Written by awfblog | August 11, 2022

United Auto Workers (UAW) Legislative Director Josh Nasser appeared on the America’s Work Force Union Podcast and explained how federal legislation will affect the automotive industry.

Nassar explained how the recently passed CHIPS and Science Act will eventually help end the nationwide semiconductor shortage. Once the chip plants are up and running, the bill will benefit the auto industry, which relies heavily on semiconductors.

The U.S. House of Representatives will soon vote on the Inflation Reduction Act. Nassar claimed the bill, once passed, will not tax the middle class; it will only affect corporate CEOs and the rich. 

From the perspective of the automotive industry, the Inflation Reduction Act will not be as beneficial as he hoped. Many electric vehicles (EVs) will not qualify for the tax credit - due to the bill’s language. Domestic car manufacturers will be able to sell some EVs, but there is a cap on the tax credits.

Listen to the interview to learn more about these topics.