US Lawmakers To Dissuade Automakers From China Reliance: Report

A group of U.S. lawmakers is expected to ask the top leadership of automotive giants General Motors Co GM and Ford Motor Co F to cut dependence on China.

The CEO's of the companies will be urged to lessen their reliance on China, particularly for electric vehicle batteries, reported Reuters.

About four lawmakers, part of the House of Representatives China Select Committee, will meet with Ford's Jim Farley and GM's Mary Barra in Detroit.

The members will also meet with executives from auto parts suppliers, including BorgWarner Inc BWA, Continental AG CTTAY, Bosch and battery startup Our Next Energy.

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The report further noted Republican Mike Gallagher, who chairs the China committee, had in April raised concerns about Tesla Inc's TSLA dependency on China after its plans to launch a megapack battery factory in China.

Also, Ford's plan to utilize Chinese battery company CATL's technology in its $3.5 billion Michigan battery plant proposal drew the ire of some lawmakers.

The $430 billion Inflation Reduction Act (IRA) aims to dissociate U.S. EV production from Chinese supply chains through new conditions on EV tax credits.

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Price Action: GM shares are trading lower by 0.87% at $37.63 in premarket on the last check Tuesday