MichAuto Executive Director Glenn Stevens Jr. sat down with National Economic Advisor and the National Economic Council Director Lael Brainard to discuss strengthening the U.S. automotive industry at a Detroit Economic Club meeting on Sept. 23.
Working in Tandem With Industry
Stevens opened the conversation by asking Brainard about her mission-based work to support the automotive industry. She shared that what motivates her the most, which is “seeing the effect on people, on communities. In particular, lifting up the economic opportunities that they have.”
Brainard also emphasized how important the industry is not only for our city and state but for the county. Her team from the White House has visited Detroit more than five times this year to speak to suppliers, manufacturers, workers, and government officials.
“We have so much ability to work together now to reimagine that whole supply chain and to position ourselves for the future,” she said.
Noting a high level of commitment from the federal government to the automotive industry, Brainard shared that they maintain engagement with a set of communications channels that allow them to hear from suppliers, manufacturers, training institutions, unions, and workforce institutions. This feedback helps her team identify exactly where the pain points are and address the structural challenges, most recently through creating an Automotive and Battery Workforce Hub, which seeks to:
- Identify jobs
- Create standardized curricula for high school students
- Creating more registered apprenticeships
- Increasing small business access to capital and grants
The Economy is on the Rise
On the current state of the economy, Brainard said that the Federal Reserve’s interest rate cut on Sept. 18 shows that inflation has roundtripped after soaring during the height of the COVID-19 pandemic due to supply chain disruptions and the invasion of Ukraine.
Unemployment has stayed consistently among its lowest levels, and over 60 million jobs have been created. Even with price increases, she said, “people have more wealth and higher incomes – more purchasing power.” While much has improved, the availability of affordable housing is still a challenge.
Competing With China
When it comes to competing on a global scale with China’s extremely successful state-backed splash into the EV market, Brainard expressed confidence in the country’s ability to address the challenge. The biggest concern that the federal government has been exploring is the level of risk these products pose to our national security.
“Today’s cars are like computers on wheels,” she said, which have enormous consumer benefits for safety and communications, but it also makes them capable of directing and stopping cars and stealing personal data. For this reason, the Commerce Department has proposed using ICTS authority to prevent any cars with Chinese software and hardware systems from driving on U.S. roads.
To ensure domestic manufacturers can compete fairly with China, the federal government is creating a set of safeguards that ensures American consumers will be able to choose whatever kind of vehicle they want to drive.
“When Americans do choose electric vehicles, we want to make sure they choose an American vehicle, not a Chinese vehicle,” she said.
Domestic mining of nickel will be critical in bolstering the country’s EV supply chain, with the U.S. on track to become a major producer of lithium. The permitting process for new mines has been a roadblock, so the National Economic Council has been working to streamline the process by creating “broad permits” wherever possible for companies doing activities already shown not to have negative environmental consequences.
“We are doing everything we can to have a shorter environmental review process and help companies get through the federal, state, and local levels with a single point of contact and a partnership model,” Brainard said.