Rivian Is Not A Recipient Of The DOE's EV Grants Because Its Workforce Isn't Unionized: Bloomberg
Earlier this week, reports emerged stating that General Motors (GM) and Stellantis would be receiving over $1 billion in grants from the US federal government. The grants, which are from the Department of Energy’s (DOE) Domestic Manufacturing Auto Conversion program, are designed to help automakers with their respective programs.
Notably absent from the list of the DOE’s recipients are non-unionized electric vehicle makers such as Rivian. This, according to a report from Bloomberg Businessweek, seems to be partly due to Rivian’s non-unionized workforce. This is quite unfortunate as Rivian could use any grants from the DOE to ramp its plans to produce its next-generation vehicle, the R2.
Citing people familiar with the matter, Bloomberg stated in its report that Rivian CEO RJ Scaringe has been trying to get the federal government to cover some of the costs of the company’s upcoming Georgia plant through grants and loans that are made available by the Inflation Reduction Act. But while Rivian seems to be a perfect fit for the IRA’s EV funding, the company is missing one important part of the equation — its workforce is not unionized.
According to Bloomberg’s sources, Rivian’s relationship with the United Auto Workers (UAW) union has become a point of contention. US DOE officials reportedly hinted that if Rivian wishes to secure some of the federal funding that it is seeking, it would have to take a "friendlier" position to the UAW. This could reportedly come in the form of some public statement or action that’s specifically related to Rivian’s position on unions, which would then hint that the company is keeping the option of a unionized workforce open.
Bloomberg’s Ed Ludlow shared his thoughts on the matter. “The union element is intriguing on multiple levels. It speaks to the extent of the Biden administration’s backing of organized labor, and raises questions about how a potential second term for former President Donald Trump would change the landscape for EV makers.
“What I do know from my reporting is that the Energy Department has thought about this broadly, and that this doesn’tnecessarily amount to a quid pro quo with Rivian. The Loan Programs Office asks any applicant to lay out how its project benefits the surrounding community, and that includes discussion around labor engagement and union-represented construction or operations workforce,” Ludlow wrote.
Do you think Rivian should adopt a unionized workforce?
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