>> WELCOME BACK.
FREQUENT VIEWERS OF THIS PROGRAM
KNOW ALL TOO LONG OF MY FONDNESS
AND FASCINATION WITH THE
VEHICLES.
AND WITH THE GENERAL MOTORS
ANNOUNCEMENT ON TUESDAY AND THE
GOVERNOR’S STATE OF THE STATE
FROM DETROIT DIESEL IT’S BEEN AN
ELECTRIC WEEK POINT TO GO AN
ELECTRIC FUTURE.
AND LET’S TALK WITH MICHELLE AND
GREAT TO HAVE YOU BOTH ON THE
PROGRAM.
MICHELLE, LET ME START WITH YOU,
WHEN THE ANNOUNCEMENT CAME OUT
FROM GENERAL MOTORS THIS WEEK,
YOUR FIRST THOUGHTS WERE WHAT?
>> WELL, I THINK IT WAS
EXPECTED.
THEY CERTAINLY HAVE BEEN HINTING
FOR SOME TIME THAT THEY WERE
GOING TO INVEST $6 BILLION, $7
BILLION INTO EV’S HERE IN
MICHIGAN SO I DON’T THINK IT
CAME AS A TOTAL SURPRISE.
>> Devin: BUT WHAT DOES IT SAY
THEN ABOUT MICHIGAN’S FOOTPRINT
IN THIS TERRIBLY IMPORTANT PART
OF THE FUTURE?
>> WELL, I THINK THAT WAY, IT
WAS A HUGE RELIEF THAT MICHIGAN
IS GETTING SOME OF THE ACTION.
YOU KNOW, WE SAW FORD GO TO
KENTUCKY AND TENNESSEE AND THAT
DIDN’T SIT WELL.
SO, I THINK, YOU KNOW, HAVING
GM, IT’S THE BIGGEST INVESTMENT
THEY’VE MADE AND IT’S COMING TO
THE STATE OF MICHIGAN.
>> Devin: JOHN, CLEARLY WE JUST
SPOKE IN THE LAST SEGMENT THE
DIFFERENCE BETWEEN WHAT HAPPENED
WITH FORD AND GENERAL MOTORS,
BUT THEN THE NEXT NIGHT, THE
GOVERNOR TALKING ABOUT
INCENTIVES SHE WOULD LIKE TO PUT
ON TOP OF THE FEDERAL
INCENTIVES, WHICH IS MAKING IT
HAVE I INCENTIVE-LADEN NOW FOR
SOMEONE TO PURCHASE AN ELECTRIC
CAR.
BUT AS I SAID TO THE GOVERNOR
THE NIGHT AFTER THE ADDRESS, THE
AVERAGE TESLA OWNER IS AT A
HOUSE FOR SOMEONE TO BRINGS IN
$150,000 A YEAR.
IS THAT THE BEST PEOPLE THAT WE
SHOULD BE AIMING OUR INCENTIVES
AT?
>> THAT’S NOT GOING TO HAPPEN.
EVEN THE FEDERAL LEGISLATION FOR
EV INCENTIVES, THEY’RE CAPPING
THAT.
I CAN’T REMEMBER THE EXACT
NUMBER, BUT SOMETHING LIKE A
$70,000 HOUSEHOLD INCOME.
THAT’S TWO-EARNER INCOME.
YEAH, WE’RE NOT GOING TO BE
GIVING INCENTIVES TO PEOPLE
THAT, YOU KNOW, ARE BUYING
LUXURY CARS.
THE INCENTIVES WILL UNDOUBTEDLY
BE TARGETED IN THE MIDDLE OF THE
MARKET ON THE EDGE AS TO WHETHER
THEY WANT TO BUY AN EV OR NOT
AND THE INCENTIVES WILL HELP. IT’S CRITICALLY IMPORTANT FOR
IT’S CRITICALLY IMPORTANT FOR
GM, THE CHRYSLER GROUP OF STA
STALANTIS THAT THEY SELL.
>> Devin: SOME POINT IT NEEDS TO
GO FROM BEING A LOFTY IDEA.
>> WHAT’S IT GOING TO TAKE FOR
EV ADOPTION AND THE NUMBER ONE
IS PRICE.
WE NEED THE BATTERY POWERED
VEHICLES ARE CLOSE TO GASOLINE
POWERED ONES.
WHETHER TAX CREDITS ARE THE WAY
TO GO I’M NOT SURE, BUT WE HAVE
TO ADDRESS THE PRICE ISSUE AND
RANGE AND CHARGING ARE OTHER
ISSUES.
>> Devin: AND I WANT TO MAKE
SURE WE GET TO THOSE, BUT IT’S
INTERESTING THAT IT’S A PRICE
MATTER.
THEY TEND TO BE CHEAPER TO KEEP
AND I HAVE KIND OF ENJOYED
DRIVING PAST GAS STATIONS AND
WAVING THAT PRICE OF GASOLINE,
YOU KNOW, I HAVEN’T ENJOYED
WATCHING IT MOVE UP BECAUSE IT’S
HURTING A LOT OF PEOPLE, BUT
I’VE ENJOYED IT’S NOT AFFECTING
MY BOTTOM LINE.
>> GO AHEAD, JOHN.
>> YEAH, THAT’S THE POINT.
THE BEAUTY OF ELECTRIC CARS FOR
MOST PEOPLE, NOT EVERYONE, YOU
CAN CHARGE IN YOUR GARAGE AT
HOME.
I MEAN, IT’S LIKE HAVING A GAS
STATION IN YOUR OWN GARAGE AT
HOME AND GUESS WHAT?
YOU KNOW, ELECTRICITY, YOU KNOW,
SORT OF RULE OF THUMB, IS ABOUT
THE EQUIVALENT OF A 1.20 A
GALLON.
>> Devin: YEAH.
>> WHO DOESN’T WANT TO FILL UP
AT 1.20 A GALLON.
>> Devin: WE HAVE TWO PROBLEMS
THAT EXIST AND ONE OF THEM IS
DEFINITELY THE ANXIETY AND
COUPLED WITH THAT A COLD WEATHER
TOWN LIKE OURS.
I’M WATCHING MY BATTERY DWINDLE
TO HALF THE CAPACITY IT USUALLY
HAS IN THE SUMMER.
THAT’S A PROBLEM WE ARE GOING TO
HAVE TO TECH OUR WAY AROUND,
ISN’T IT?
>> RIGHT, THERE’S A LOT OF WORK
GOING ON IN BATTERIES.
I THINK WE’RE GOING TO SEE
AMAZING ADVANCEMENTS IN THE NEXT
FIVE, 10 YEARS, TO JOHN’S POINT
NOT EVERYBODY HAS A GARAGE TO
PUT A CHARGER INTO, TOO.
LET’S REMEMBER THAT.
>> Devin: IN FACT, WE’RE GOING
TO HAVE TO GET TO THE POINT
WHERE CHARGING STATION ARE NOT
HIDDEN AT THE BACK OF A STRIP
MALL THE WAY THAT MANY OF THEM
ARE.
IT’S NOT ALWAYS--
CERTAINLY KNOWS THE EXPERIENCE
THAT YOU HAVE DRIVING UP TO A
GAS STATION, GOING IN AND
GETTING SOMETHING TO EAT AND
DRINK DURING THE THREE MINUTES
THAT YOUR CAR FILLS UP.
>> THAT’S GOING TO GET SOLVED.
IF YOU GO BACK OVER 100 YEARS
AGO, THERE WERE NO GAS STATIONS
IF.
YOU WANTED GASOLINE FOR YOUR
HORSELESS CARRIAGE YOU HAD TO
LOOK AT THE PHARMACY OR DRUG
STORES AND SOLD THEM IN TINS AND
JUGS AND THE DEMAND WAS THERE,
AND THAT FOLLOWED.
AND THE SAME THING WILL HAPPEN
WITH ELECTRIC CARS AND CHARGING
STATIONS.
>> Devin: WE’RE EVENTUALLY,
JOHN, GOING TO SEE--
WE’RE GOING TO WATCH TECHNOLOGY
THAT IS GOING TO MAKE CHARGING
MUCH, MUCH FASTER.
>> THAT’S HAPPENING.
IT’S IN THE DEVELOPMENT LAB AND
DEVELOPMENT STAGES RIGHT NOW.
BUT ALL AROUND THE WORLD.
R AND D CENTERS, CAR COMPANIES,
SUPPLIERS, TECH STARTUPS,
UNIVERSITIES, YOU NAME IT,
EVERYBODY IS WORKING ON THIS
PROBLEM AND WE’VE SEEN THIS
THROUGHOUT THE 100 YEAR-PLUS
INDUSTRY OF THE AUTOMOTIVE
INDUSTRY.
WHEN THEY BUCKLE DOWN AND TRY TO
SOLVE THE PROBLEM THEY DO IT,
THEY DO IT EVERY SINGLE TIME AND
THEY’LL GET THE COST DOWN AND
THE CHARGING UBIQUITOUS AND THE
CHARGING TIME DOWN AS WELL.
>> Devin: MICHELLE, WE’VE SEEN
PEOPLE ENJOY THE RESURGENCE AND
MANUFACTURING PLANTS IN
MICHIGAN, BUT I THINK THERE’S
DOUBT WHETHER OR NOT IT CAN EVER
BE WORKED THE SAME WAY THAT THE
OLD SYSTEM IT DID TO WHICH
MICHIGAN BECAME SO ACCUSTOMED.
>> WELL, I THINK, THERE IS A LOT
OF NERVOUSNESS BECAUSE ELECTRIC
VEHICLES DON’T REQUIRE AS MANY
PEOPLE TO BUILD.
YOU KNOW, WE ARE GOING TO BE
BUILDING BATTERIES HERE, THAT
WILL TAKE SOME JOBS.
BUT I THINK THAT’S A REAL
CONCERN WITH WORKERS AS TO, NOW,
WHAT’S GOING TO HAPPEN AND ABOUT
THE THINGS, THE AFTER-MARKET
SHOPS, HOW MANY PEOPLE DO THEY
NEED.
BUT THEY’RE SIMPLER VEHICLES TO
REPAIR, IT’S A LEGITIMATE
CONCERN.
>> Devin: AND JOHN, WHAT ARE THE
TIE-UPS IN THE SUPPLY CHAIN
DOING TO THIS VERY NASCENT
GROWTH WE WERE TRYING TO DEVELOP
IN THIS INDUSTRY?
ISN’T IT PULLING IT BACK LIKE
EVERY PART OF THE CAR WORLD?
>> IT D, BUT CHINA PUT TOGETHER
A STRATEGIC PLAN TO DOMINATE THE
ELECTRIC CAR INDUSTRY.
THEY CONTROL THE SUPPLY CHAIN
FOR RAW MATERIALS THAT ARE
NEEDED FOR BATTERIES AND
ELECTRIC MOTORS.
THE CHANNEL FOR U.S.--
THE CHALLENGE FOR THE U.S. AND
EUROPE AND ALLIES, WHO DO WE
DEVELOP OUR SUPPLY CHAIN?
THERE’S A LOT OF WORK LOOK
INTOING DOING THAT.
I’M NOT SAYING THAT SOMEBODY
MAKING CRANK SHAFTS IS GOING TO
START PROCESSING WHAT THEY CALL
RARE EARTH MINERALS, NONE OF
LESS, NET OF NET, THE U.S.
ECONOMY CAN GROW THE NUMBER OF
JOBS IN THE AUTOMOTIVE INDUSTRY
IF WE ON SHORE AND INCLUDE THIS
ENTIRE SUPPLY CHAIN OF RAW
MATERIALS.
>> IF WE DON’T GET THAT RIGHT,
SHAME ON US, NO DOUBT.