LOWER MACUNGIE TWP., Pa. — U.S. Rep. Susan Wild and a senior adviser to President Joe Biden joined Mack Trucks executives and employees Friday to celebrate millions of dollars of federal funding expected to help the Lehigh Valley plant expand its production of electric trucks.
Speaking before a room of about 100 Mack Trucks employees, Biden adviser Tom Perez praised Mack for seizing a moment to change America for the better.
As the world attempts to shift away from fossil fuels, the auto manufacturer was adapting to address climate change while creating family-sustaining jobs, he said.
Last week, the Department of Energy doled out $1.7 billion in matching grants to auto manufacturers to help them convert their fleets to zero-emission vehicles. Volvo, Mack's parent company, is splitting its $208 million share between the Lehigh Valley plant and facilities in Maryland and Virginia.
"We can address our climate challenges and we can strengthen and grow middle-class jobs — middle-class union jobs. We are doing it here in the Lehigh Valley, and we're doing it across America."Tom Perez, senior advisor to President Joe Biden, on promoting production of electric vehicles
The investment, he said, was the epitome of the Biden administration's efforts to remake the economy, lower unemployment and reduce carbon emissions.
"This is a great day for people who reject false choices," said Perez, who served as U.S. Secretary of Labor in the Obama administration. "We can address our climate challenges and we can strengthen and grow middle-class jobs — middle-class union jobs. We are doing it here in the Lehigh Valley, and we're doing it across America."
It's not yet clear how much of the funding will be heading to the Lehigh Valley. Jonathan Miller, a vice president with Volvo North America, said grant money and Volvo's match will be divided between the three shops, but the specifics haven't been determined. The money is expected to create 295 union jobs within the corporation, but it's not clear how many of those will wind up in the Lehigh Valley, Miller said.
And while the Biden administration said last week the money is heading to endangered or shuttered auto plants, Miller said that did not describe any of the three facilities. Volvo views the funding as an opportunity to better compete with electric vehicle makers in China and elsewhere, he said.
"This will allow us to scale up," Miller said. "Eventually, we see over time that we'll be building additional products with zero-emission drive trains."
Wild said she was thrilled to advocate on behalf of Mack's application. The company has been creating quality products in Pennsylvania for nearly 120 years, creating quality union jobs. Given Mack's strong record and the backing of the union, it was an easy pitch to make in the halls of Washington, she said.
"Nobody wants to waste money. Nobody wants to just give away money," Wild said. "When you can show an application that has a strong chance of success, it's much more likely to be granted."
Three years in the making
The award comes three years after Biden toured the Lehigh Valley plant while he was promoting his Build Back Better plan, which called for spending trillions of dollars on COVID relief, social initiatives, American infrastructure and battling climate change. Some of those efforts eventually passed as part of the Inflation Reduction Act, including the $1.7 billion in grant money.
One of the models Mack employees demonstrated to Biden was Mack's LR Electric truck — the model Perez drove. The heavy-duty electric vehicles make ideal garbage trucks because they can haul heavy loads, don't lose their charge despite frequent stops and don't need long-range hauling, employees said at the time.
After the remarks, Perez and Pennsylvania Secretary of Community and Economic Development Rick Siger each took a turn driving the LR Electric around the parking lot. It was something of a flashback for Perez, who said he worked on the back of a diesel garbage truck while attending college.
"It's a metaphor for the future and our clean energy economy," Perez said after parking the near-silent truck. "We can grow and strengthen the middle class and create good union jobs. And we can lead the world in combating climate change."
