The United Auto Workers strike against the Big Three auto manufacturers took center stage as the first topic of discussion in Wednesday night’s Republican presidential primary debate. Former Vice President Mike Pence was the first candidate to directly address the underlying issues, asserting that President Joe Biden’s support for electric vehicles is destroying the industry and sending jobs to China. Pence claimed that this is advantageous for Beijing but detrimental to Detroit.
While this argument may sound familiar, as it has been championed by former President Donald Trump, there is little evidence to support the Republican claim. In fact, since Biden took office in January 2021, total employment in the U.S. auto industry has actually increased, according to the U.S. Bureau of Labor Statistics. This growth translates to approximately 4,000 new auto jobs per month.
In contrast, Trump’s record on auto industry employment was stagnant, with little change over the course of his presidency. It is worth noting that the decline in employment during the early months of the pandemic played a significant role in this outcome.
The Republican attacks on electric vehicles primarily stem from two Democratic policies that have only recently come into effect. The first is stricter emission standards, which necessitate the production of more electric cars by U.S. manufacturers. The second is direct subsidies for electric vehicles, which make it more cost-effective for companies to produce and consumers to purchase them.
The subsidies specifically apply to vehicles and parts manufactured in the U.S., closing the cost gap between domestic and overseas manufacturers. As a result, numerous auto companies have announced plans to build new factories in the U.S., generating hundreds of thousands of jobs and fostering economic growth.
Nevertheless, challenges remain. Some newly created auto jobs may not be subject to existing labor agreements guaranteeing fair pay and benefits, which is a key demand of the United Auto Workers strike. The Big Three are hesitant to meet these demands due to concerns that high labor costs would offset the benefits of the Biden subsidies, leading to potential roadblocks in the industry’s transition to electric vehicles.
Balancing the interests of both the companies and the workers will require careful navigation. While the Biden administration has expressed support for labor, there is ongoing uncertainty regarding whether they can successfully execute the transition in a manner that benefits both parties. In contrast, it is unlikely that autoworkers would receive greater support under Republican leadership, given Trump’s anti-union appointments and deregulatory actions during his presidency.
Furthermore, the global shift towards electric vehicles is inevitable, regardless of U.S. policy decisions. The industry had already committed to this transition prior to Biden taking office. The key question now is who will lead in the manufacturing of these vehicles and where they will be produced. Repealing Biden’s policies would eliminate incentives for domestic production, resulting in more vehicles being manufactured in China, which would be detrimental to both Detroit and the rest of the U.S.
In summary, while the Republican argument against electric vehicles may be persuasive at first glance, the evidence suggests otherwise. Under Biden’s presidency, the U.S. auto industry has seen growth in employment, and policies aimed at supporting the production of electric vehicles hold promise for future job creation. Balancing the interests of the industry and its workers will be a complex task, but it is essential for fostering a thriving domestic auto sector.
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