Daily Digest August 21, 2024

BUSINESS

Daily Digest August 21, 2024

An Update From the Front

Left or right, right or wrong, it's hard to do any business in the U-S-of-A without keeping an eye on politics. In the auto industry, this rings especially true.

UAW vs. Stellantis: Strike Threat Looms

The United Auto Workers (UAW) is gearing up for a potential national strike against Stellantis, accusing the automaker of breaking key commitments to the Belvidere, Illinois plant. The union claims Stellantis failed to launch the promised Mopar Mega Hub and delayed other crucial operations. UAW President Shawn Fain has emphasized the union's readiness to strike if necessary, raising concerns about the broader impact on jobs and investments nationwide.

Stellantis's Response: Delay, Not Cancellation

In response to the UAW's strike threat, Stellantis confirmed it plans to delay—but not cancel—the reopening of the Belvidere Assembly Plant. The company asserted that it has not violated its commitments under the collective bargaining agreement, citing market conditions as the reason for the delay. Stellantis also argued that the UAW cannot legally strike over this issue, as the union had agreed to language allowing the company to modify product investments and employment levels.

Trump and EVs

Former President Donald Trump has recently voiced concerns about the fairness of EV tax credits in the U.S. He argues that these incentives may harm American jobs and create an uneven playing field among automakers. Trump's skepticism highlights a broader debate over the role of government in promoting electric vehicles.

Trump and Musk

In a notable meeting, Trump and Tesla CEO Elon Musk discussed the implications of EV tax credits. While Trump questioned their impact on industry competitiveness, Musk stressed the importance of these incentives for keeping the U.S. at the forefront of global EV adoption. Their exchange underscores the ongoing tension between economic policy and environmental goals in the automotive sector.

Waymo Unveils Generation 6 Technology

Waymo unveiled its sixth-generation self-driving technology, featuring fewer sensors and cameras for cost efficiency, integrated into roomier Geely Zeekr EVs. The new robotaxis aim to perform better in diverse weather and are part of Waymo's plan to scale its services across U.S. cities with a $5B investment.

EU Tariff Reductions Impact EV Imports

The European Commission has revised tariffs on Chinese-made electric vehicles, leading to significant reductions for automakers like Tesla and Volkswagen. Tesla's EU import tariff dropped from 20.8% to 9%, while Volkswagen's Cupra Tavascan saw its tariff lowered from 37.6% to 21.3%. These changes are part of the Commission's efforts to balance competition within the EU market following an investigation into Chinese EV imports.

However, not all automakers benefited—non-cooperating companies still face a maximum tariff of 37.6%. Combined with existing EU import duties, these adjustments result in a total duty of up to 46.3% for some Chinese-made EVs, highlighting the ongoing global trade tensions. As the EU recalibrates its policies, Tesla and Volkswagen are strategically navigating the new landscape to remain competitive in Europe.

Automaker Announcements

This week, top automakers revealed exciting updates across their lineups, focusing on expansion, innovation, and electrification.

GM Expands High-End SUV Lineup

General Motors is expanding its high-end offerings with the 2025 GMC Yukon AT4 Ultimate, enhancing its profitable SUV lineup.

• Positioned between Denali and Denali Ultimate trims

• Off-road capabilities, adaptive air suspension

• New styling, tech upgrades, and engine options

Every week we write about some upgraded model GM has coming. It’s worth wondering how much you can upgrade a vehicle before it is a new vehicle. The SUV of Theseus, amirite?

Hyundai Motor Group Hits Double-Digit U.S. EV Market Share

Hyundai Motor Group, including Hyundai, Kia, and Genesis, now commands 10% of the U.S. EV market, narrowing the gap with Tesla.

• IONIQ 5, 6, and Kia EV9 driving growth

• Metaplant in Georgia to boost production

• Positioning for U.S. EV tax credit eligibility

Hyundai keeps claiming territory, and nobody seems worried because they seem to be stealing the market from Tesla. It’s like if one part of your house is on fire, and another part is flooding. Maybe, eventually, they will take care of each other.

Honda Marks 40 Years of ATV Production, Shifts to Electric Powersports

Honda celebrates four decades of ATV manufacturing with plans to electrify its lineup at its North Carolina facility.

• $21.5M facility upgrade for electric ATV production

• North Carolina plant to handle all U.S. ATV manufacturing

• Focus on reducing noise pollution and fire risks

All this time, we thought Honda ATVs ran on Monster Energy drinks.

Audi Updates 2025 RS3 with Performance and Scent Enhancements

Audi's 2025 RS3 receives a mid-cycle update, improving both its driving experience and interior atmosphere.

• Interior scent refined by evaluating 200 components

• New exterior tweaks, flatter steering wheel, carbon seats

• Retains its signature five-cylinder engine for enthusiasts

If somebody tells you “you smell better,” you know they are also saying “you used to stink.”