Good morning! It’s Wednesday, September 18, 2024, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
1st Gear: Trump Warns Pivot To EVs Will Kill America’s Auto Industry
Election fever is heating up as Donald Trump campaigns for re-election and Kamala Harris has her eyes set on a promotion to the biggest job in the country. This means that the pair are clashing on all kinds of issues, like reproductive rights, gun ownership and the future of America’s auto industry. Now, Trump has gone on another of his classic rants, this time targeting the auto industry and the impact Chinese electric vehicles could have on American business.
The convicted felon was in Michigan recently, where he spoke to voters and took questions from auto industry workers, reports the Detroit News. While talking to the assembled crowd, Trump went off on one about the impact Chinese EVs could have on American jobs, even warning that he was the only person who could possibly prevent the U.S. automotive sector from collapsing. As Detroit News reports:
Drawing a contrast with the administration of Democratic President Joe Biden and Vice President Kamala Harris, which has marshaled financial resources to try to strengthen the United States’ ability to compete in the production of EVs, Trump said China is “going to dominate” EVs.
China will take over “all of your business” because of electric vehicles, Trump told the crowd. The United States has gasoline, while China has the materials needed for EVs, he said.
“Why are we making a product that they dominate?” Trump said. “They are going to dominate.”
“You will not have a car industry left, not even a little bit of a car industry,” Trump added.
During his speech, Trump even went so far as to claim that if those EV incentives went unchecked during a Harris presidency, the U.S. “will have no auto industry within two to three years.” That’s pretty stark warning, and one that echoes comments the ex-president has previously made about backtracking EV mandates that don’t exist to try and boost industry jobs across America.
However, he may not be the savior Michigan is hoping for, especially when you look at the number of jobs across America’s auto industry. Sure, the number of people working across the sector rose during Trump’s first two years in office. However, the second half of his presidency was much tougher on the sector and when he left office there were five percent fewer automotive jobs in America compared with four years previously.
In contrast, the number of automotive jobs across the country has only fallen by three percent since January 2021, when Joe Biden stepped up as president.
2nd Gear: Fikser Backtracks On Charges For Recalls
Fisker showed so much promise when it unveiled the Ocean all-electric SUV, but its launch was ultimately an unmitigated failure. The car was hit with woeful reviews when it began rolling out, owners reported all kinds of software problems and the company eventually folded and ran out of money while trying to fix its problems. This left buyers worried about what support would be available for their troublesome trucks, and Fisker initially made it sound like they might be left to fend for themselves.
In an update to its website this weekend, the failed automaker suggested that Ocean owners may have to pay for repairs to be made to their cars in the event of recalls. However, a new report from CarScoops found that the company has backtracked on that policy, as the site reports:
Under the question “Will I be charged for the recall-related inspections or repairs?”, the EV startup answered:
Regarding the recalls that require physical inspections and potential repairs, Fisker will provide the necessary parts at no cost to you. However, due to Fisker’s current financial situation under Chapter 11 bankruptcy, the is only able to cover the cost of the parts required to address these issues. Please note that the labor costs associated with the inspection and repair process will need to be covered by you, the vehicle owner.”
That didn’t sit well with owners or many others. Today, that page is updated with a new additional question, which we’ll circle back to, but the main gist appears to be that Fisker will now cover labor. Now, the answer to that same question on the FAQ page simply reads:
“For the software updates delivered over the air, there will be no cost to you as the owner of the vehicle. These updates are part of our commitment to ensuring the ongoing safety and performance of your Fisker Ocean. Regarding the recalls that require physical inspections and potential repairs, Fisker will provide the necessary parts (including the labor) at no cost to you.”
Fisker filed for bankruptcy earlier this year after it failed to resurrect its struggling sales, which begs the question: who will be around to pay for all these recalled issues that could arise in the future? It’s a question that will want answering sooner, rather than later, as the Ocean has already been hit with recalls here in the U.S. since its launch, including recalls due to issues with the car’s doors and cooling.
3rd Gear: UAW Considers Strike Action At Stellantis
While its year hasn’t been quite as bad as Fisker’s, Stellantis has had a pretty rough start to 2024. The company has faced stagnating sales, saw profits drop and has even received calls to sell off its brands so they can find success in more prosperous pastures. Now, after surviving a historic strike last year, the Chrysler and Fiat owner is facing further industrial action at its sites.
The United Auto Workers Union, which represents workers at plants operated by Stellantis as well as Ford and General Motors, is threatening strike action at the Jeep worker, reports the Detroit Free Press. The union is reportedly planning strike authorization votes among members over concerns about future products and investment in the automotive giant. As the Free Press reports:
UAW President Shawn Fain on Tuesday called CEO Carlos Tavares and Stellantis management “out of control” and pledged to force the automaker to honor its contract commitments as he laid out a process for upcoming strike votes against the automaker that owns the Jeep, Ram, Chrysler, Dodge and Fiat brands.
Fain, in between sips from a mug with the words, “BOSS’S TEARS,” blasted the company and said the UAW is prepared to enforce contract provisions negotiated last year that allow the union to strike over product and plant investment commitments.
“It is clear this company will not stop at Belvidere. They will not stop at the Durango. They are determined to beat down the UAW and devastate the American working class, and we will not let them,” he said.
Fain’s comments came after reports suggested that Stellantis may move production of the Dodge Durango SUV out of America and into Canada. Stellantis has also delayed the reopening of the Belvidere plant that previously assembled the Jeep Cherokee.
In response, Stellantis warned that “a strike does not benefit anyone,” and instead called on Fain and the UAW to open a dialogue with the automaker to get to the bottom of the issues raised.
4th Gear: Norway Has More EVs Than Gas Cars
While we can argue until the cows come home about how successful America’s adoption of electric vehicles is going, there’s one country where there’s no argument to be had: Norway. The bastion of sensibilities is leading the world with its pivot to electrification and now has more eclectic cars on its road than gas-powered models, reports the BBC.
The Scandinavian country, which is a global powerhouse when it comes to oil exports, now has 754,303 all-electric cars registered on its roads. In contrast, there are 753,905 gas-powered cars registered with Norwegian residents. As the BBC reports:
The Nordic country of 5.5 million people is aiming to become the first nation to end the sale of new petrol and diesel cars – by 2025.
Sales of electric vehicles (EVs) have been boosted by tax breaks and other incentives, funded in large part from the money Norway makes out of oil and gas.
The country has a sovereign wealth fund worth more than $1.7 trillion (£1.3tn), built up from the proceeds of its oilfields, to act as a “pension fund” for when it runs out.
This cash cushion has made it possible for the government to offer green incentives to motorists, including exempting electric car buyers from sales tax.
Despite the oodles of support for Norwegians to make the switch to electric power, the country does still have one stubborn power option that it just can’t shake: diesel. In fact, diesel cars remain the most numerous in Norway, with more than a million of them still on the country’s roads.
However, with EVs accounting for 90 percent of new car sales in the country, it’s hoped that this figure will start plummeting as residents take advantage of tax breaks, proper EV infrastructure and free charging offers.