Europe’s EV Market Collapse Provides A Lesson For UAW Leadership

From the Daily Caller News Foundation

It is an ill-kept secret of American politics that most of the big labor unions in the country have long been client organizations of the Democratic Party. In presidential election years, endorsements from these unions for the party’s nominee have generally been foregone conclusions regardless of voting attitudes of rank-and-file union members.

Some are quicker to endorse than others. Vice President Kamala Harris barely had time to buy campaign letterhead before the United Auto Workers (UAW) weighed in on July 31 with its endorsement. The union’s bosses made the move despite the reality of the Biden-Harris electric vehicle mandates placing many of that union’s jobs at risk as the companies they work for lose billions each year on quixotic efforts to force the public to enjoy paying premiums for cars they cannot rely upon when the going gets tough.

Even with that early move, the UAW fell 9 days behind the AFL-CIO, which jumped on the Harris bandwagon so quickly it probably made union members’ heads spin. Hey, speed matters when your business model relies on constantly asking for favors and protections from the federal government, for which the Democratic Party has traditionally been the most fertile ground to plow.

Given that reality, the Teamsters Union made big news this week by endorsing — well, no one — despite overwhelming support among the rank-and-file for the Republican candidate, former President Donald Trump. It was the first time the Teamsters had failed to endorse the Democrat in a race since 1996, and only the second time in the union’s existence. Teamsters General President Sean O’Brien spoke at the Republican convention in July — and was snubbed by the Democrats at their convention in return. So, the refusal to endorse Harris was not a huge surprise. But O’Brien, fully aware of the vindictive nature of the Democrats towards their political enemies, apparently decided it would not be politically prudent to give a full-throated endorsement to the candidate his members so obviously prefer.

With the race shaping up to be another nail-biter, it remains to be seen whether any of these major unions’ decisions will prove to be wise. But for the UAW, the move to endorse Harris comes with increasing risk amid a softening market for the EVs being forced on U.S. consumers and the rising challenge by Chinese EV makers to the hegemony of domestic car companies in the U.S. market.

With legacy automakers like Ford and General Motors already bleeding billions of dollars in losses in their EV divisions despite heavy government subsidies in place, they can ill-afford an incursion into the U.S. market from Chinese carmakers who are able to make and sell quality EVs for far less than American car companies can. Right now, Europe is providing an object lesson about what happens in the EV space when governments allow that to happen.

EU countries were slow to move to protect their domestic car manufacturers when Chinese companies like BYD began to flood the European market with EVs. EV buyers in countries like Germany and France eagerly bought up the Chinese cars, saving thousands of Euros per unit in the process. When the EU belatedly moved to impose import tariffs on Chinese cars, the domestic car companies responded by raising prices for their own EVs in an effort to recover losses.

The result has been entirely predictable: EV sales in Germany collapsed by nearly 70% during the month of August. In France, they plunged by 33%. Clearly the appetite among EU car buyers for EVs is extremely price sensitive (no one could have possibly seen that coming), and consumers are more than happy to go back to buying gas-powered cars as cheaper alternatives.

Now, the climate alarmist central planners at the EU are proposing to respond to those uncooperative buyers by imposing massive fines on car makers for continuing to sell them the gas-powered cars they actually want to buy. Because, of course, that would be the response from power-mad apparatchiks.

Given that the Biden-Harris regime has basically followed the EU’s model on EV regulation, the EU’s struggles provide a preview of coming attractions for the U.S. auto market under a Harris presidency. It is hard to believe this is the future the UAW leadership really desires for its members.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

Related Topics:#ChineseEVs #DailyCaller #DavidBlackmon EuropeEVMarket TeamstersUnion UAW USEVMandate

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Published on April 25, 2025

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Electric vehicle prices fell 7.8 per cent in the last quarter of 2024 year-over-year, according to the AutoTader price index

Fewer Canadians are considering buying an electric vehicle, marking the third year in a row interest has dropped despite lower EV prices, a survey from AutoTrader shows.

Forty-two per cent of survey respondents say they’re considering an EV as their next vehicle, down from 46 per cent last year. In 2022, 68 per cent said they would consider buying an EV.

Meanwhile, 29 per cent of respondents say they would exclusively consider buying an EV — a significant drop from 40 per cent last year.

The report, which surveyed 1,801 people on the AutoTrader website, shows drivers are concerned about reduced government incentives, a lack of infrastructure and long-term costs despite falling prices.

Electric vehicle prices fell 7.8 per cent in the last quarter of 2024 year-over-year, according to the AutoTader price index.

The survey, conducted between Feb. 13 and March 12, shows 68 per cent of non-EV owners say government incentives could influence their decision, while a little over half say incentives increase their confidence in buying an EV.

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Hyundai moves SUV production to U.S.

Published on April 25, 2025

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MxM News

Quick Hit:

Hyundai is responding swiftly to 47th President Donald Trump’s newly implemented auto tariffs by shifting key vehicle production from Mexico to the U.S. The automaker, heavily reliant on the American market, has formed a specialized task force and committed billions to American manufacturing, highlighting how Trump’s America First economic policies are already impacting global business decisions.

Key Details:

Hyundai has created a tariffs task force and is relocating Tucson SUV production from Mexico to Alabama.
Despite a 25% tariff on car imports that began April 3, Hyundai reported a 2% gain in Q1 operating profit and maintained earnings guidance.
Hyundai and Kia derive one-third of their global sales from the U.S., where two-thirds of their vehicles are imported.

Diving Deeper:

In a direct response to President Trump’s decisive new tariffs on imported automobiles, Hyundai announced Thursday it has mobilized a specialized task force to mitigate the financial impact of the new trade policy and confirmed production shifts of one of its top-selling models to the United States. The move underscores the gravity of the new 25% import tax and the economic leverage wielded by a White House that is now unambiguously prioritizing American industry.

Starting with its popular Tucson SUV, Hyundai is transitioning some manufacturing from Mexico to its Alabama facility. Additional consideration is being given to relocating production away from Seoul for other U.S.-bound vehicles, signaling that the company is bracing for the long-term implications of Trump’s tariffs.

This move comes as the 25% import tax on vehicles went into effect April 3, with a matching tariff on auto parts scheduled to hit May 3. Hyundai, which generates a full third of its global revenue from American consumers, knows it can’t afford to delay action. Notably, U.S. retail sales for Hyundai jumped 11% last quarter, as car buyers rushed to purchase vehicles before prices inevitably climb due to the tariff.

Despite the trade policy, Hyundai reported a 2% uptick in first-quarter operating profit and reaffirmed its earnings projections, indicating confidence in its ability to adapt. Yet the company isn’t taking chances. Ahead of the tariffs, Hyundai stockpiled over three months of inventory in U.S. markets, hoping to blunt the initial shock of the increased import costs.

In a significant show of good faith and commitment to U.S. manufacturing, Hyundai last month pledged a massive $21 billion investment into its new Georgia plant. That announcement was made during a visit to the White House, just days before President Trump unveiled the auto tariff policy — a strategic alignment with a pro-growth, pro-America agenda.

Still, the challenges are substantial. The global auto industry depends on complex, multi-country supply chains, and analysts warn that tariffs will force production costs higher. Hyundai is holding the line on pricing for now, promising to keep current model prices stable through June 2. After that, however, price adjustments are on the table, potentially passing the burden to consumers.

South Korea, which remains one of the largest exporters of automobiles to the U.S., is not standing idle. A South Korean delegation is scheduled to meet with U.S. trade officials in Washington Thursday, marking the start of negotiations that could redefine the two nations’ trade dynamics.

President Trump’s actions represent a sharp pivot from the era of global corporatism that defined trade under the Obama-Biden administration. Hyundai’s swift response proves that when the U.S. government puts its market power to work, foreign companies will move mountains — or at least entire assembly lines — to stay in the game.