{"id":2061461,"date":"2023-10-10T00:29:04","date_gmt":"2023-10-10T04:29:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ev-maker-suffers-623-million-loss-but-has-1-2-billion-in-taxpayer-subsidies-lined-up\/"},"modified":"2023-10-10T00:34:08","modified_gmt":"2023-10-10T04:34:08","slug":"ev-maker-suffers-623-million-loss-but-has-1-2-billion-in-taxpayer-subsidies-lined-up","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ev-maker-suffers-623-million-loss-but-has-1-2-billion-in-taxpayer-subsidies-lined-up\/","title":{"rendered":"EV Maker Faces $623M Loss, Yet Secures $1.2B in Taxpayer Subsidies"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fev-maker-suffers-623-million-loss-but-has-1-2-billion-in-taxpayer-subsidies-lined-up%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2061461&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>VinFast, \u2064an electric vehicle company based in Vietnam,\u200c has received an unprecedented taxpayer subsidy in North Carolina after reporting over $600 million in losses during\u2062 the third\u2063 quarter.<\/p>\n<p>The \u200dEV maker experienced a net loss of $622.9 million for Q3 2023, which \u2063is \u2062nearly 20 percent higher than the previous \u200dquarter, according to VinFast&#8217;s Oct. 5 earnings release. Since transitioning to\u2062 electric SUVs in 2021, the\u200d company \u200chas accumulated over $5\u2063 billion in \u2063losses. VinFast is currently constructing a $4 \u2064billion manufacturing and assembly\u2064 plant in Chatham County, North \u2063Carolina, and will receive record subsidies for\u200d this project.<\/p>\n<p>The \u2062state \u200bhas pledged $854 million\u2064 over 32 years to support the facility, contingent on VinFast meeting its investment and employment goals. The company\u200b aims to create 7,500 jobs at the plant by \u20632027, making this the \u200clargest subsidy ever granted by North Carolina to a private economic venture.<\/p>\n<div class=\"shortcode\">\n    <!--$--><\/p>\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/epochtv\/the-national-security-implications-of-the-push-for-electric-vehicles-kelly-sloan-5500312?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>The National Security Implications of the Push\u2062 for Electric Vehicles: Kelly Sloan<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/28\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/epochtv\/the-national-security-implications-of-the-push-for-electric-vehicles-kelly-sloan-5500312?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n        <\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n            <a href=\"http:\/\/www.theepochtimes.com\/epochtv\/the-true-environmental-impact-of-electric-vehicles-5499483?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>The True Environmental Impact of\u2063 Electric Vehicles<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/27\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/epochtv\/the-true-environmental-impact-of-electric-vehicles-5499483?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>    <!--\/$-->\n  <\/div>\n<p>In addition to the state&#8217;s \u200d$854 million contribution, Chatham County is expected to provide around $400 million \u200cin funding, bringing the total taxpayer \u2062support\u2062 for VinFast to\u200d over $1.2 billion. \u200bThe groundbreaking ceremony for the manufacturing plant took place in July, and production \u2062is scheduled to commence in 2025.<\/p>\n<p>Despite incurring $5 billion in losses since \u20632021, VinFast has been\u2063 promised\u2062 subsidies and is seeking additional capital\u2064 to fuel its business\u2062 growth, as stated in an Oct. 2 prospectus filed with the U.S. Securities \u2064Exchange Commission \u200b(SEC).<\/p>\n<div class=\"shortcode post-related-videos\">\n    <!--$--><\/p>\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/p><\/div>\n<p>    <!--\/$-->\n  <\/div>\n<p>The provision of government subsidies to \u200dan EV manufacturer operating at a loss raises concerns about the \u200deconomic viability of such expenditures.<\/p>\n<p>Over the past decade,\u200c several other \u2063EV companies \u2064that received taxpayer funding have ceased\u2062 operations.\u200c For \u200dinstance, in 2014, Missouri-based Smith Electric Vehicles suspended its American operations after receiving $30 million \u200cin funds from President Barack Obama&#8217;s 2009 stimulus package.<\/p>\n<p>Similarly, California-based EV \u2064firm\u2062 Proterra filed for Chapter 11 bankruptcy protection in \u2064August this year. The company, once praised by President Joe Biden, received a $10 million loan under the COVID-19 Paycheck Protection Program,\u2063 which was later forgiven in May 2022.<\/p>\n<p>Meanwhile, the \u2063Biden administration continues to allocate more\u200c subsidies to EV manufacturers.<\/p>\n<div class=\"my-5\">\n<p>    \u200b    In June, the government announced its intention to invest $2 billion from the Inflation Reduction Act (IRA) \u200dpassed last year to accelerate domestic EV manufacturing and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ev-maker-suffers-623-million-loss-but-has-1-2-billion-in-taxpayer-subsidies-lined-up\/\" title=\"EV Maker Faces 3M Loss, Yet Secures .2B in Taxpayer Subsidies\">revive struggling\u200b electric vehicle\u200b plants<\/a>.<br \/>\n \u2062<\/p>\n<h2>Republican Criticism<\/h2>\n<p>    \u2062 The Biden administration&#8217;s policy of funding electric vehicle production at the \u2062expense \u2064of American citizens has faced\u200d criticism from Republicans.<br \/>\n \u200d\n  <\/p><\/div>\n<div class=\"post-figure\">\n<figure style=\"width:600px\" class=\"alignnone\"><figcaption>U.S. Secretary of Transportation Pete Buttigieg testifies before the House Transportation and Infrastructure Committee in\u2064 Washington, on Sept. 20, 2023. (Madalina\u2064 Vasiliu\/The Epoch\u2063 Times)<\/figcaption><\/figure>\n<\/p><\/div>\n<p>During a House Transportation and Infrastructure \u2064Committee hearing on Sept. 20, House Republicans engaged \u200din a heated exchange with Transportation Secretary Pete \u200dButtigieg on \u2064this matter.<\/p>\n<p>&#8220;Despite the subsidization, the market is simply \u200cnot embracing EVs, regardless of\u2064 what we want to believe or say,&#8221; stated Rep. Scott Perry (R-Pa.)\u200c during the discussion.<\/p>\n<p>He further expressed\u2064 concerns about the federal government using taxpayers&#8217; money \u200cto undermine the automotive industry and eliminate jobs in \u2064Michigan, where\u200b Buttigieg recently relocated.<\/p>\n<p>In\u2064 addition to subsidizing EV companies,\u200c the Biden administration is \u200cutilizing taxpayer \u200bfunds\u200d to facilitate the transition of\u200b <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/union-electric-vehicle-showdown-throws-a-wrench-in-bidens-reelection-push\/\" title=\"EV showdown disrupts Biden's reelection bid.\">traditional auto plants<\/a> to EV manufacturing.<\/p>\n<div class=\"my-5\">\n<p>    \u2062  In\u200b August, the \u200cfederal government announced a $12 billion investment for this purpose, with $10 billion allocated by the Energy Department. The U.S. Environmental Protection Agency (EPA) has\u200d also unveiled \u200ba \u200dplan \u200dto make two-thirds of all new vehicle sales in the\u2062 United States electric by 2032.<br \/>\n \u2064<\/p>\n<h2>Buyer Subsidies<\/h2>\n<p>    The Biden administration is further using taxpayer funds to provide subsidies to individuals purchasing electric vehicles.\n  <\/p><\/div>\n<p>Last week,\u2063 the Treasury Department released new\u2063 guidelines outlining how vehicle dealers can effectively reduce the price of EVs by \u2062up to $7,500 for prospective buyers at the point of sale.<\/p>\n<p>This means that buyers no longer have to wait until they file taxes to claim the credit. The $7,500 credit was approved as part of the\u200c Inflation Reduction Act.<\/p>\n<p>While\u200c these \u200d$7,500 rebates aim to boost\u2064 EV sales, they create a situation \u2063where \u200dthe success of electric vehicle sales relies heavily\u200b on government subsidies.<\/p>\n<p>In January, energy research firm Rystad Energy reported a significant decline in global EV sales due \u2062to the &#8220;abrupt halt&#8221; in subsidies \u200dand \u200ctax credits.<\/p>\n<p>&#8220;The automotive market typically \u2063experiences a downturn after the implementation of new subsidy rules at the \u200cbeginning\u200c of each year, followed\u2064 by a gradual recovery,&#8221; \u200cthe firm stated in a\u2062 press release.<\/p>\n<p>Despite the\u2064 Biden \u200badministration&#8217;s \u200cstrong push for EVs, the majority of\u2064 Americans \u2064remain uninterested in \u2062purchasing electric vehicles.<\/p>\n<p>According to a July survey conducted by\u200d Pew Research,\u200d 50 percent\u2063 of respondents stated that they were &#8220;not too\/not at \u200ball&#8221; likely to buy an \u200bEV, while only\u2064 38 percent expressed being &#8220;very\/somewhat likely.&#8221; The disinterest in EVs is particularly high among Republican\/Republican-leaning participants, with 70 percent stating they were\u2063 &#8220;not too\/not at all&#8221; likely to make a purchase.<\/p>\n<p>&#8220;The share of the public interested in purchasing an EV has decreased by \u20634 percentage points\u200d since May 2022,&#8221; \u2063the research revealed.<\/p>\n<\/div>\n<p> <\/p>\n<h2> What are the arguments in favor of offering a property \u2063tax exemption and a grant to VinFast?<\/h2>\n<p><span>  Will provide a property\u200d tax exemption worth $16.1 million, and\u200b the town of Siler City will offer a $4.5 million grant. These incentives are intended to attract VinFast to the region and stimulate economic growth.<\/p>\n<p>However, the decision to provide such a substantial subsidy to VinFast has drawn criticism from some experts \u200band\u2064 residents. Critics argue that the company&#8217;s significant financial losses raise \u2062concerns about its long-term viability and the effectiveness of taxpayer-funded support. They question whether the investment in VinFast is a prudent use\u200b of public funds, especially \u2063given the uncertainty surrounding the electric vehicle market.<\/p>\n<p>Proponents of the subsidy argue \u200bthat it will bring much-needed jobs \u200band investment \u2063to the area.\u200b They believe that the development of VinFast&#8217;s manufacturing and assembly plant will boost the local \u2064economy\u2062 and create new opportunities for residents. Additionally, supporters claim that the subsidies are \u200bnecessary \u2062to compete with other states\u2063 and countries that offer similar incentives to attract electric vehicle companies.<\/p>\n<p>VinFast, owned by Vietnamese conglomerate Vingroup, has ambitious plans to become a major player\u2064 in the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrats-massive-climate-bill-might-violate-critical-south-korean-trade-deal\/\" title=\"Democrats\u2019 Massive Climate Bill Might Violate Critical South Korean Trade Deal\">global electric vehicle market<\/a>. The company \u200bis aiming to produce and sell 300,000 electric vehicles per year by \u20622025, with a focus on the United States market.\u200c VinFast&#8217;s entry into the North Carolina market is seen as a strategic move to establish a foothold in the highly competitive US electric vehicle industry.<\/p>\n<p>The success of VinFast&#8217;s venture in North Carolina will ultimately depend on several factors. The company\u2064 will need to address its financial challenges and demonstrate a sustainable business model. It will also\u200d face competition from established automakers and potential regulatory changes that could impact the electric vehicle market.<\/p>\n<p>As \u2063the electric vehicle industry\u200c continues\u200b to evolve\u200c and grow, governments around the world are grappling with the\u200c question of how best to support its development. Subsidies and incentives for electric vehicle companies are common, with the aim\u200c of encouraging innovation, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/landmark-climate-study-says-melting-arctic-wont-lead-to-more-severe-cold-weather\/\" title=\"Landmark Climate Study Says Melting Arctic Won\u2019t Lead to More Severe Cold Weather\">reducing greenhouse gas emissions<\/a>, and creating jobs. However, striking the right \u200bbalance between supporting the \u200cindustry and protecting the interests of taxpayers is essential.<\/p>\n<p>The VinFast subsidy\u200b in North Carolina represents a significant investment in the\u200d future of the \u200celectric vehicle industry. While \u2063it has attracted criticism and\u2062 raised\u200c important questions about the use of taxpayer funds, it also highlights the challenges and opportunities \u200bthat come with\u200c supporting emerging technologies. Only time will tell whether VinFast&#8217;s gamble on the North Carolina market will pay off.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>VinFast, a Vietnamese electric vehicle company, is set to receive the largest taxpayer subsidy ever in North Carolina. This comes after the company reported losses of over $600 million in Q3. Their net loss for the quarter was $622.9 million, nearly 20% higher than previous losses.<\/p>\n","protected":false},"author":186,"featured_media":2061462,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2061461","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2061461","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/186"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2061461"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2061461\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2061462"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2061461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2061461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2061461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}