Weekly News

UAW Strike - The Impacts

As tensions mount between the United Auto Workers (UAW) union and the "Big Three" American car manufacturers – General Motors, Ford, and Stellantis – there's growing concern over the possible consequences of a strike on the automotive industry. If a deal is not reached by the September 14 deadline, the UAW will move forward with a strike. Their primary requests include a 40% pay rise over four years and stricter limitations on part-time employment and mandatory overtime. EV policies have played a role in the demands as the transition will cost union jobs over the next decade.

There are possible ramifications to the automotive market, especially considering the industry's recent recovery from the COVID-19 pandemic and resulting supply disruptions. While the immediate aftermath of a short strike might be subtle, a prolonged halt in production could severely limit the availability of new models. If the strike encompasses all three auto giants, it could mean the cessation of nearly half of all vehicles produced in the U.S.

We might witness an increase in both new and used car prices, echoing the supply challenges experienced during the pandemic. Initially, the impact on the used market may be largely speculative, with the actual supply effect being determined by the strike's duration. A strike could temporarily bolster new vehicle sales for import brands, leading to price hikes—both from heightened demand for these imports and from a supply constraint affecting the Big Three.

Yoke or No Yoke?

Once a standard feature for the Tesla Model S and X, Tesla's "yoke" steering wheel has now become a premium feature and priced at $1,000. Initially showcased in the revamped versions of these models, the yoke's design stirred mixed reactions. While some appreciated the innovation, others expressed concerns, especially regarding its practicality with things like hitting turn signals.

Tesla's price change might signal that it’s taken consumer feedback into account without blatantly saying the yoke wheel was a mistake. Tesla will likely gently phase out the yoke due to limited consumer interest at a higher price point, rather than abruptly discontinuing it.

Mercedes-Benz EV Push with BYD Batteries

Mercedes-Benz is gearing up to introduce new electric vehicles fitted with BYD's LFP Blade battery by 2025. This move follows the unveiling of their CLA electric sedan concept, which is set to compete directly with Tesla and other dominant EV brands.

The CLA concept boasts an impressive range of 466 miles, with the power stemming from BYD’s LFP batteries.

While Mercedes has traditionally utilized ternary lithium-ion batteries for its EVs, there's a growing industry tilt towards LFP batteries. One reason is the reduced production cost due to the limited requirement of precious metals like cobalt.

Interestingly, Tesla's production trends show a similar lean towards LFP batteries for certain Model 3s and Model Ys produced at Gigafactory Berlin, with Elon Musk emphasizing the shift to navigate raw material supply challenges.

Education Corner

Did you know the U.S. government offers various federal tax credits and incentives to promote the adoption of EVs? These incentives help make EVs more affordable, encouraging consumers to make the switch from traditional internal combustion engine vehicles.

Used Clean Vehicle Credit: $4,000 (vehicles under $25,000)

New Clean Vehicle Credit: $7,500 (cars under $55,000; Trucks / SUVs under $80,000)

You may have noticed manufacturers like Tesla pricing their EVs right below the limits to make sure consumers can still capitalize on the tax credits!