What President Biden's infrastructure plan means for legacy players GM and Ford

President Biden's infrastructure plan moved one step closer to reality this week when a bipartisan group of 10 senators announced they had reached a deal on the bill's framework. On the electric-vehicle front, the deal will spend $15 billion on EV infrastructure and electric buses. So how will the infrastructure plan play out for legacy players like GM and Ford, and how will this will impact the uptake in EV among consumers in the US?

We spoke to senior analyst at Investing.com Samuel Indyk, to find out.

"Traditional vehicle manufacturers, such as General Motors and Ford, should see plenty to like in Biden’s infrastructure plan but there is still a long way to go until the transition to electric vehicles is fully embraced," said Indyk.

"The two big auto manufacturers have been pivoting towards electric vehicles with multibillion dollar investments and the $7.5 billion earmarked for electric vehicle infrastructure will be welcomed by the industry," he continued. "The plan is set to include an expansion of charging infrastructure and updating the grid but an update to current electric vehicle tax rebates was not mentioned in the framework. That doesn’t mean that incentives for buying electric vehicles won’t be forthcoming further down the road, but, for now, a more ambitious plan to incentivize EV purchases appears to have been abandoned."

"In the near term, the plans are unlikely to lead to consumers rushing to buy electric vehicles as the lack of fresh incentives keeps cars relatively expensive," Indyk predicated. "In the long term, funding for additional charging points and boosting R&D, should mean that some of the elements that currently slow the take-up of electric vehicles - such as low range and degrading batteries – begin to subside."