On Monday, September 23, White House National Economic Advisor Lael Brainard visited the Michigan Workforce Hub in Detroit to announce a series of new measures to support American auto manufacturers and workers and protect the U.S. auto industry from the impact of unfair trade practices by China.
According to a statement released by the White House on Monday, investment firm Monroe Capital LLC announced the launch of a new fund named “Drive Forward” with the aim of providing up to $1 billion in low-cost funding to support smaller auto suppliers in transitioning from fuel-powered vehicles to electric cars.
The statement mentioned that the Biden-Harris administration has taken a series of “strong and strategic actions,” including imposing 100% tariffs on electric cars from China, to protect these investments from the impact of unfair trade actions by China.
Reuters cited Ted Koenig, CEO of Monroe Capital, saying, “We believe the new Drive Forward fund is crucial in promoting growth and innovation in the U.S. automotive supply chain.”
Headquartered in Chicago, Monroe Capital stated that unlike large manufacturers, small and medium-sized auto suppliers often lack funding sources, which hinders their ability to scale up production of electric vehicle components.
The White House statement mentioned that an advisory committee composed of experts from the automotive industry will provide recommendations for the Drive Forward fund to ensure that funds are directed towards small and medium-sized auto suppliers that adhere to high labor standards and have a high domestic manufacturing content.
Also on Monday, the U.S. Treasury announced a $9.1 million grant to provide funding assistance to Michigan auto suppliers through the Michigan Auto Supplier Transition Program, helping small companies secure financing for the production of electric vehicle components.
The statement highlighted that auto suppliers support the majority of auto manufacturing jobs, and small and medium-sized suppliers employ over 250,000 workers nationwide, serving as economic engines for Michigan, Ohio, and other longstanding automotive communities.
Vice President Harris stated in the White House announcement that today’s unveiling is based on actions she announced in May, supporting small and medium-sized auto manufacturers in accessing funds to “ensure our auto supply chain stays in America, strengthen our economy by investing in communities that have been historically disadvantaged, and retain more auto jobs in Detroit.”