Trump Launches Attack On Electric Vehicles

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Not all the recent news surrounding Donald Trump was focused on indictments. On Thursday, the former president released a video and statement regarding the auto industry, specifically addressing how he plans to rescue it from what he perceives as President Joe Biden’s neglect. The statement covered various topics, including Trump’s claim that Biden’s mishandling of inflation and failure to take a tough stance on trading partners has put U.S. carmakers at a disadvantage.

However, the central focus of the message was an attack on Biden’s support for electric vehicles (EVs). Biden and his Democratic allies have been highlighting this support, especially through the subsidies included in last year’s Inflation Reduction Act, as one of their major accomplishments. They see it not only as a way to combat climate change but also as a means to revive America’s manufacturing sector and the associated jobs.

Initial signs suggest positive outcomes. The industry has witnessed a significant increase in investment and the announcement of new factories, with Michigan alone set to welcome four new battery plants. Each of these facilities has the potential to create thousands of jobs directly, as well as many more indirectly through suppliers and nearby businesses. Companies all across the country are expanding their factories and building new ones, resulting in tens of thousands of well-paying jobs that don’t necessarily require a four-year degree, as highlighted in Biden’s recent speech on “Bidenomics.”

However, the success of the EV transition ultimately depends on Americans purchasing these vehicles. The market is fluctuating, as is typical for emerging markets, and there are now signs of a slowdown after months of rising sales. Trump’s statement on Thursday seized on one report to argue that the promotion of electric vehicles, including the implementation of higher gas mileage standards, is pressuring companies to produce cars that consumers neither want nor can afford, even with subsidies.

“Joe Biden is waging war on the U.S. auto industry with a series of crippling mandates designed to force Americans into expensive electric cars, even as thousands of electric cars are piling up on car lots, all unsold,” Trump stated. He had already hinted at this argument during a speech to supporters in Michigan last month, where he predicted that the push for electric vehicles would “decimate” the auto industry, which holds historical and cultural significance for the state. Trump also noted that some of the planned factories are partnerships with Chinese companies, framing the push for electric cars as detrimental to the United States and a boon for China.

It’s evident why this argument would resonate within MAGA circles, where fuel-efficient EVs have become a symbol of cultural liberalism, and concerns about China loom large. However, it remains to be seen whether this argument will appeal to other voters, who may prioritize climate change or see the shift to EVs as an opportunity to save money on gas.

Nevertheless, Trump’s attack had one vital political aspect: the assertion that the transition to EV production would result in fewer jobs or lower wages for autoworkers. This argument has the potential to connect with a broader group of voters, especially if they hear it from a trusted source. That’s precisely what transpired this week when United Auto Workers (UAW) President Shawn Fain visited Washington.

Fain, who took office a few months ago following an election where members directly chose their leadership, promised to adopt a more aggressive stance toward automakers and exercise greater independence from traditional Democratic Party allies. The UAW is now entering negotiations for new contracts with Ford, General Motors, and Stellantis (the European conglomerate that owns Chrysler), and the future of EV production is a significant point of contention. The union is particularly concerned about the automakers’ plans to operate the new battery plants in partnership with overseas companies that possess technical capabilities not currently available in the United States.

The Big Three automakers have stated their desire to treat the union contracts for these plants differently from the “master agreements” that cover workers at existing factories operated solely by the companies. UAW leadership sees this insistence as an attempt to circumvent the terms of current contracts and weaken the union’s bargaining power. They argue that they need more support from the White House.

The union has refrained from endorsing Biden at this stage, and Fain expressed anger last month after the Biden administration approved a $9.2 billion loan for a Ford partnership plant without first reaching agreements on compensation and working conditions.

“We have made it absolutely clear that the transition to electric engine jobs, battery production, and other EV manufacturing cannot lead to a race to the bottom,” Fain stated. “Not only is the federal government failing to use its power to turn the tide, but they are actively funding this race to the bottom with billions in public money.”

White House officials have responded by emphasizing their support for the union and its objectives, citing Biden’s record as arguably the most pro-labor president in 50 years. They have defended the right to organize, linked green energy subsidies to high labor standards, and explained that the limited strength of the requirements for EV subsidies is due to insufficient congressional support. Regardless, they stress that Biden is leveraging his influence to push for a “just transition” to EVs, where new jobs provide workers with the same treatment as existing jobs.

Celeste Drake, deputy director of the National Economic Council responsible for labor issues, noted, “The laws don’t contain every single legal tool that we would have liked, but … [Biden] is out there using the bully pulpit and talking about how U.S. firms are better off if they use union labor. He is out there explaining his expectations for the creation of good jobs, including the free and fair choice to join a union. He’s really using every tool there is … to put his thumb on the scale for a just transition for workers.”

The seriousness with which Biden regards such promises is exemplified by his successful efforts to pressure railway carriers into granting workers sick leave last year. The railway carriers eventually yielded and agreed to provide some sick days, earning praise from railway unions that had criticized Biden earlier.

Despite the public tensions, Fain and other UAW leaders have made it clear that they will not back the Republican assault on EVs and will not support Trump. Fain has already expressed his belief that “another Donald Trump presidency would be a disaster” in an open letter, and he has conveyed this privately as well, according to multiple sources.

Debbie Dingell, a seasoned Michigan Democrat well-versed in the state’s labor politics, believes this skepticism towards Trump is widespread, as workers recall how little he did for them during his presidency. Dingell stated, “Most workers are not going to believe that he’s going to be fighting for them every day, or trying to get them higher wages or fighting for their benefits or the things that they’re going to be looking for in the contracts … What workers are looking for is a person who really understands them, which Joe Biden does, who will fight for them as people and individuals, as Joe Biden will.”

However, Dingell added that the administration’s challenge in the coming months lies in ensuring that workers see these efforts and addressing their anxieties.

Reference

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