All articles tagged with #us automakers
President Trump is considering extending significant tariff relief for U.S. auto production, potentially eliminating costs for major automakers with final assembly in the U.S., to incentivize domestic manufacturing and create American jobs, with a decision expected soon.
U.S. automakers are disappointed with a new trade deal between the US and Japan, as it maintains high tariffs and doesn't address their main challenges, such as producing small cars preferred in Japan or navigating different standards, leading to concerns about competitiveness and policy inconsistency.
The new trade agreement between the US and Japan reduces tariffs on Japanese cars to 15%, potentially giving Japanese automakers an advantage over US, Canadian, and Mexican manufacturers, who face higher tariffs. US automakers express concern that this could hurt their competitiveness unless similar deals are made with other countries. The tariffs are expected to influence car prices and sales, but the full impact will take time to materialize, especially given the challenges Japanese cars face in the US market.
US automakers, having invested $146 billion in electric vehicles, face uncertainty as the incoming Trump administration threatens to dismantle emissions regulations established under Biden. Automakers are lobbying to maintain these rules, fearing that their removal could lead to competitive disadvantages and job losses. The current regulations, which allow a mix of gasoline, hybrid, and electric vehicles, are crucial for the industry's stability. Meanwhile, Elon Musk's stance on eliminating EV tax credits could further disrupt the market, potentially benefiting Tesla at the expense of competitors.
U.S. automakers are scaling back on electric vehicle production, creating an opportunity for cheaper Chinese EVs to enter the market, which some economists warn could pose a security risk due to potential data collection and remote control capabilities. Despite the Biden administration's push for green energy, challenges such as consumer interest, infrastructure, and cost concerns are hindering the U.S. EV market, while China's advancements in EV technology could threaten both the economy and national security.
Chinese electric vehicles (EVs) face trade barriers in the US market due to tariffs and exclusion from advantageous credits, hindering their presence in the American automotive landscape. Despite these obstacles, Chinese automakers are expanding globally, raising concerns among US officials about the long-term effectiveness of these trade barriers. Chinese automakers are adapting by planning to assemble EVs in or near the US to circumvent tariffs. US automakers recognize the complexity of potential retaliatory tariffs from China and the reliance on China's dominant EV battery supply chains. Experts warn of the potential for market saturation as China has the capacity to produce millions of autos annually.
Honda plans to raise wages for workers at its US factories by 11% in January, reducing the time it takes to reach the top wage rate from six years to three years. This move follows the recent labor negotiations between the United Auto Workers (UAW) union and major US automakers, including Ford, General Motors (GM), and Stellantis. Toyota also announced a wage increase for its hourly manufacturing workers in the US. The UAW aims to expand its organizing efforts to nonunionized foreign automakers in the future.
President Joe Biden is urging major U.S. automakers and the United Auto Workers (UAW) to avoid plant closures and ensure that the transition to electric vehicles (EVs) provides "good jobs that can support a family." The UAW, representing workers at Ford, General Motors, and Stellantis, is seeking an end to wage tiers, double-digit pay raises, defined benefit pensions, and restoration of retiree health coverage. Automakers argue that the shift to EVs incurs significant development costs, while the UAW emphasizes the need for fair transitions and job opportunities in the same factories and communities.
BMW, Nissan, Rivian, Hyundai, Volvo, and Volkswagen are no longer eligible for the $7,500 EV tax credit in the US due to new rules for battery sourcing. The Tesla Model 3 credit will be reduced to $3,750, while all General Motors EVs will still qualify for the full credit. The rules aim to reduce reliance on China for EV battery supplies and boost the US's own capacity to control the supply chain. Automakers are building battery plants in the US, and there is a loophole for ineligible EVs to potentially qualify for a commercial leasing credit.
Top US automakers, except Toyota, reported a rise in Q1 sales due to improving shipments to dealers. GM gained significant market share and sold more than 20,000 EVs in a quarter for the first time. However, rising interest rates and fears of a recession may impact the industry's demand. Toyota struggled with parts shortage and reported an 8.8% decline in sales. The pandemic disrupted the supply of semiconductor chips and other raw materials, hurting carmakers' ability to meet the upsurge in demand for personal mobility.
Top US automakers reported a rise in Q1 sales due to improving inventory, except for Toyota, which continued to struggle with parts shortage. General Motors posted a 17.6% rise in sales, gaining significant market share and selling more than 20,000 EVs in a quarter for the first time. Rising interest rates and fears of a recession may impact the industry, where most vehicle purchases are financed with loans. Edmunds forecasts an overall increase in sales from last year, but a decrease from the fourth quarter.