Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Jeff Greenberg/Universal Images Group via Getty Images

President Biden's plan to replace the government’s fleet of 650,000 cars and trucks with electric vehicles assembled in the U.S. by union workers is easier said than done.

Why it matters: The populist "Buy American" message sounds good, but the vehicles Biden wants are still several years away and his purchase criteria would require an expensive overhaul of automakers' manufacturing strategies, not to mention a reversal of fortune for labor organizers long stymied by Tesla and other non-union companies.

Reality check: Right now, not a single model fits the president's criteria: battery-powered, made in America, by union workers.

  • Tesla produces the vast majority of EVs in the U.S., and all of its models contain at least 55% American-made parts, according to federal data. But Tesla doesn't have a union and CEO Elon Musk has run afoul of federal labor laws.
  • General Motors' Chevrolet Bolt is the only U.S.-built EV made by union labor. But it's made mostly with parts imported from Korea. Just 24% of the content is considered domestic.
  • The Nissan Leaf, another popular EV, is made in Tennessee. But the factory is non-union and only 35% of the parts are domestic.

"Made in America" itself is confusing, because current rules governing "domestic" content include parts made in both the U.S. and Canada.

  • Under the American Automobile Labeling Act, passed in 1992, every car requires a label disclosing where the car was assembled, the percentage of equipment from the U.S. and Canada combined, and the country where the engine and transmission were built.
  • The newly passed US-Mexico-Canada trade agreement adds another layer of rules about the origin of parts.

Biden wants to change the whole system of determining whether a federal vehicle is "American."

  • Today, the government requires federal vehicles to have at least 50 percent of their components made in America, but loopholes allow the most valuable parts like engines or steel to be manufactured elsewhere, Biden told reporters Monday.
  • He wants a higher threshold and tighter rules that would directly benefit American workers.

Be smart: It's all doable, but definitely not within Biden's four-year term in office.

  • "It just doesn't add up," said Joe Langley, a forecasting analyst for IHS Markit. "The product is still a few years away."
  • And replacing 650,000 federal vehicles with EVs would require an increase in U.S. investment through the whole supply chain, including electric motors, batteries and vehicles — all of which will take time, Langley said.
  • Union leaders are glad Biden is focused on the industry's future. "He sees new technology as a way to grow our industry and our economy," a spokesperson for the United Auto Workers told Axios.

Some of that investment is already happening. GM, for example, is overhauling several factories to produce electric vehicles in Tennessee and Michigan. Ford will make its upcoming e-Transit van in Missouri.

  • But GM, Ford and Stellantis (the newly merged FiatChrysler and Peugeot) just recently committed to build more EVs at union factories in Canada.
  • And Ford is ramping up production of its highly anticipated Mustang Mach-E in Mexico.

What to watch: There could be some surprise winners from Biden's plan.

  • A handful of well-funded EV startups such as Lordstown Motors, Rivian and Workhorse are developing plug-in commercial vehicles like vans and trucks — things that are often needed in government fleets.
  • "This could put wind in the sails of a lot of new startups," said Langley.

Go deeper

Ben Geman, author of Generate
Jan 29, 2021 - Energy & Environment

Electric vehicle sales far surpass pandemic expectations

Data: EIA; Note: 2020 figures are preliminary; Chart: Axios Visuals

New International Energy Agency preliminary data shows that worldwide sales grew by an estimated 40% last year, exceeding the agency's expectations.

Why it matters: The increase occurred despite a drop on overall global vehicle sales.

Lawmakers call for Israel-Hamas ceasefire amid aerial bombardments

Combination images of Republican Sen. Todd Young and Democratic Sen. Chris Murphy. Photo: Michael Reynolds-Pool/Getty Images/Greg Nash-Pool/Getty Images

Sen. Todd Young (R-Ind.) and 28 Senate Democrats on Sunday called for a ceasefire between Israel and Hamas as fighting continued into the night.

Driving the news: Young, a ranking member of the U.S. Senate Foreign Relations Subcommittee on Near East, South Asia, Central Asia and Counterterrorism, joined panel Chair Chris Murphy (D-Conn.) in a bipartisan statement saying: "Israel has the right to defend itself from Hamas' rocket attacks, in a manner proportionate with the threat its citizens are facing.

Bill Gates faces scrutiny over relationship with Microsoft employee, Epstein ties

Photo: Alessandro Di Ciommo/NurPhoto via Getty Images

Representatives for Bill Gates pushed back on claims Sunday that he left Microsoft's board because of an earlier sexual relationship and against two other reports detailing more extensive ties with Jeffrey Epstein than had previously been reported.

Driving the news: Microsoft said in an emailed statement to Axios that it "received a concern" in 2019 that its co-founder "sought to initiate an intimate relationship with a company employee in the year 2000," but denied a Wall Street Journal report that its board members thought Gates should resign over the matter.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!