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New York CNN —A high-stakes union election is underway at a Mercedes-Benz plant near Tuscaloosa, Alabama, the only plant for the luxury automaker in North America. The fallout will be significant whether the workers at Mercedes-Benz vote to join the United Auto Workers union or not. And last month, it won a union election at a Volkswagen plant in Chattanooga, Tennessee, its first victory in three attempts to organize the factory. Though a union win could generate momentum, it doesn’t mean a victory will mean other plants can overcome management opposition at other foreign-owned plants. Non-union automakers have already begun their response to the big union victories thus far.
Persons: Shawn Fain, Fain, , , Tesla, Mercedes, Mercedes ’, , MBUSI, Wheaton, Mercedes plant’s, It’s, Mercedes Benz, ” Wheaton, “ It’s, Harry Katz, ” Katz, Katz, ’ ” Katz, they’ve, CNN’s Chris Isidore, Nathaniel Meyersohn Organizations: New, New York CNN, Benz, Mercedes, United Auto Workers, UAW, Big Three, Volkswagen, Kia, Toyota, US, BMW, Honda, Hyundai, Mazda, Nissan, Subaru, Volvo, Team, The National Labor Relations Board, Benz US International, Member, Volkswagen didn’t, Cornell University School of Industrial and Labor Relations ’, CNN, “ Labor, Big, – GM, Ford, Cornell University School of Industrial and Labor Relations, P Global Market Intelligence, General Motors Locations: New York, Tuscaloosa , Alabama, North America, Chattanooga , Tennessee, United States, Vance , Alabama, Tuscaloosa, , Cornell University School of Industrial and Labor Relations ’ Buffalo, Alabama, Alabama , Georgia , Mississippi, South Carolina , Tennessee, Texas
More than 5,000 Mercedes-Benz workers in Alabama are voting this week on whether to join the United Automobile Workers union, a decision both supporters and opponents say will have consequences far beyond two factories near Tuscaloosa where the German carmaker churns out luxury sport utility vehicles and batteries for electric cars. Conservative political leaders have portrayed the union campaign to organize Mercedes workers as an assault by outsiders on the region’s economy and way of life. The vote tally is expected to be released by federal officials on Friday. Six Southern governors, including Kay Ivey, an Alabama Republican, issued a statement last month criticizing unions as “special interests looking to come into our state and threaten our jobs and the values we live by.” Alabama recently passed a law intended to discourage union organizing. For the union, a win would add to a string of victories in the South, where organized labor has traditionally been weak, and provide momentum to the U.A.W.’s efforts to win over workers at other nonunion automakers like Hyundai, Toyota, Honda and Tesla.
Persons: Kay Ivey Organizations: Benz, United Automobile Workers, Conservative, Six, Alabama Republican, , Hyundai, Toyota, Honda Locations: Alabama, Tuscaloosa, Six Southern, ” Alabama
The Biden administration's decision to impose tariffs on $18 billion worth of imports from China could help a handful of stocks break out, according to Morgan Stanley. Stocks that are poised to benefit include U.S. automakers Ford and General Motors , as well as solar panel manufacturer First Solar . Morgan Stanley maintains an overweight rating on First Solar stock. GM YTD mountain General Motors stock. Morgan Stanley maintains an overweight rating on both Ford and GM.
Persons: Morgan Stanley, Laura Sanchez, Sanchez Organizations: Biden, White, U.S, Ford, General Motors, Wall, Department of Commerce and International Trade Commission, GM Locations: China, Cambodia, Malaysia, Thailand, Vietnam
It’s a very different matter in Europe — by far the biggest export market for Chinese EV manufacturers. EU tariffs could backfireAccording to Citi, the EU accounted for 36% of Chinese EV exports last year, more than the next five largest markets combined. By contrast, the United States currently receives just 1.1% of China’s EV exports. For BYD, China’s biggest EV maker, the tariffs would likely have to be even higher to be effective, they add. “I’d say we are entering a very tense period in terms of trade interactions and trade defense,” she added.
Persons: Joe Biden, “ I’m, ” Biden, Joseph Webster, Agatha Kratz, Kratz, That’s, Oliver Zipse, , Tu Le, , Josh Lipsky, Juliana Liu Organizations: London CNN, United, EV, European Union, Atlantic Council, EU, CNN, Citi, Capital Economics, BMW Locations: China, America, Europe, United States, It’s, Brussels, “ Brussels, Beijing, subsidization, EU, States, Italy, Hong Kong
The Biden administration’s new tariffs on Chinese electric vehicles won’t have a huge immediate impact on American consumers or the car market because very few such cars are sold in the United States. But the decision reflects deep concern within the American automotive industry, which has grown increasingly worried about China’s ability to churn out cheap electric vehicles. “Today’s announcement is a necessary response to combat the Chinese government’s unfair trade practices that endanger the future of our auto industry,” Senator Gary Peters, a Michigan Democrat, said in a statement. The tariff on electric vehicles made in China was quadrupled from 25 percent. Chinese lithium-ion batteries for electric cars will now face a 25 percent tariff, up from 7.5 percent.
Persons: Biden, , Gary Peters, Organizations: Biden, Michigan Democrat Locations: United States, China, Michigan
Win Mcnamee | Getty ImagesDETROIT – President Joe Biden's plan to quadruple tariffs on China-made electric vehicles is unlikely to stave off the threat of more Chinese cars and trucks on U.S. roadways. Automotive and trade experts say the increased tariffs are a near-term protectionism act that may delay, but won't stop, Chinese automakers from coming to the U.S. with EVs. The EV tariffs, including other increases regarding battery materials, were among new tariff rates on $18 billion worth of Chinese imports. The quality and build of vehicles by Chinese automakers have gotten significantly better in recent years, as the Chinese government has subsidized their operations to grow domestic production. GM and others have found it hard to compete against budget and mainstream Chinese vehicles, including EVs.
Persons: Joe Biden, Win Mcnamee, Joe Biden's, It's, Dan Hearsch, Stellantis —, Warren Buffett, BYD, Morgan Stanley, Tim Hsiao, Lincoln Organizations: White, Getty, DETROIT, Communist, U.S . Automotive, Motors, U.S, — GM, Ford Motor, Chrysler, Warren, EV, Wall Street, China Association of Automobile Manufacturers, U.S . Vehicles, Lincoln Nautilus, Volvo, Biden Administration Locations: Rose, Washington , DC, China, Mexico, Americas, U.S
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe don't know when the short squeeze ends, but it does eventually: Cramer on meme stock resurgence'Mad Money' host Jim Cramer digs into today's market action and the impact of EV tariffs on U.S. automakers.
Persons: Cramer, Jim Cramer Organizations: U.S
"Not only does this tariff protect American car companies from cheap Chinese electric vehicles, it also means that their regular vehicles — their regular cars and trucks and hybrids — will benefit, too," he said. But with Biden increasing tariffs on Chinese electric vehicles from 25% to 100% this year, automakers like Ford and General Motors have less to worry about. Biden will also raise tariffs on semiconductors, solar cells, masks and medical gloves as well as issue first-time tariffs on medical needles on syringes. Cramer also said Ford shares can go higher if the company can "curtail the immense losses in electric vehicles," which will be easier to do with these new tariffs. "The chief reason GM and Ford stocks sell at the bottom of the S&P 500 barrel is because of this existential Chinese threat," he said.
Persons: CNBC's Jim Cramer, Cramer, Biden, Becton Dickinson, Ford, China's Organizations: Biden, Ford, GM, General Motors, Texas Instruments, Owens, Minor
Jim Cramer talks the White House's new China EV tariffs
  + stars: | 2024-05-14 | by ( Jim Cramer | ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailJim Cramer talks the White House's new China EV tariffs'Mad Money' host Jim Cramer digs into today's market action and the impact of EV tariffs on U.S. automakers.
Persons: Jim Cramer Organizations: U.S Locations: China
Porsche’s iconic 911 is going hybrid
  + stars: | 2024-05-13 | by ( Peter Valdes-Dapena | ) edition.cnn.com   time to read: +3 min
A hybrid Porsche 911, with its gas engine assisted by at least one battery-powered electric motor, will officially be revealed in an online event on May 28. Porsche itself already sells plug-in hybrid models like the Cayenne e-Hybrid SUV and Panamera e-Hybrid four-door car but a hybrid 911 is another matter. This new hybrid model will be the closest Porsche can get to an electric 911 without raising those sorts of philosophical questions. But we do know the hybrid 911 is clearly faster than the current purely gas-powered 911. The faster time indicates the hybrid 911 has greater power due to the addition of electric assistance.
Persons: CNN —, ” Jörg Bergmeister, didn’t, Ferdinand Porsche Sr, Ferdinand “ Ferry, Ferry’s, Ferdinand “ Butzi Organizations: CNN, CNN — Porsche, Porsche, Volkswagen Locations: Cayenne
In this article TSLA Follow your favorite stocks CREATE FREE ACCOUNTVisitors inspect a Tesla Model Y car during the 40th Thailand International Motor Expo at the Impact Challenger hall in Nonthaburi. A Trump reelection is not even necessary: the Biden administration may introduce 100% tariffs on Chinese EVs next week, according to reporting on Friday. Chinese EV makers, including BYD, have earmarked $1.44 billion in new production facilities in Southeast Asia's second-largest economy. Tesla Thailand recently rolled out a special financing program to spur more sales. Southeast Asia is a growing auto market, and Thailand is already the region's biggest car producer and exporter, with Toyota, Honda, Nissan, Ford, GM and Mercedes-Benz having already embraced Thailand as a regional headquarters.
Persons: Goldstein, Donald Trump, Trump, Biden, There's, Tu Le, Tesla, Le, Steven Dyer, AlixPartners, Frank, Walter Steinmeier Organizations: Tesla, Getty, Auto, Nurphoto, Nikkei, Krungsri Securities, Nikkei Asia, Ford, Toyota, Honda, Nissan, GM, Mercedes, Benz Locations: Thailand, Nonthaburi, U.S, Southeast Asia, Beijing, Detroit, China, Trump, Bangkok, Nonthaburi Province, Nikkei Asia, Southeast Asia's, Shanghai
How American carmakers lost ground in China
  + stars: | 2024-05-11 | by ( Robert Ferris | In | ) www.cnbc.com   time to read: +2 min
American automakers and their non-Chinese counterparts are fighting an existential battle, as local rivals in China outpace them. GM's sales in China, including those of joint ventures it maintains in the country, have fallen from a high of 4 million vehicles in 2017 to 2.1 million in 2023. Several factors have contributed to the decline of U.S. automakers in China. That's precisely why American automakers shouldn't give up on China despite the U.S. companies' sales setbacks, according to Bill Russo, a former Chrysler executive who runs Automobility, a consulting firm in Shanghai. "If you don't compete in China, then what are you going to do when China shows up in your backyard?"
Persons: Michael Dunne, Dunne, Berkshire Hathaway, , shouldn't, Bill Russo, Russo, haven't Organizations: U.S, Ford, GM, Hyundai, Kia, Nissan, Lotus, Volvo, Berkshire, Huawei, Chrysler Locations: China, U.S, Sweden, Shanghai
Why Detroit failed in China
  + stars: | 2024-05-11 | by ( Robert Ferris | Darren Geeter | Tala Hadavi | ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy Detroit failed in ChinaDetroit automakers like General Motors made a fortune selling cars to Chinese consumers after the Asian country opened its auto market. But Chinese firms have caught up with top names like BYD, Geely and Great Wall. Tech companies are jumping in too, including Li Auto, XPeng, Nio, Xiaomi, Huawei, Baidu, Tencent and Alibaba. One industry analyst said he expects Ford and GM to withdraw from the country in the next five years along with others such as Hyundai, Kia and Nissan.
Persons: General Motors, Li Auto Organizations: Detroit, China Detroit, General, Wall . Tech, Li, Huawei, Baidu, Ford, GM, Hyundai, Kia, Nissan Locations: China
Inside Tesla's chaotic month of brutal layoffs
  + stars: | 2024-05-11 | by ( Grace Kay | ) www.businessinsider.com   time to read: +6 min
Several executives at the company have departed and Tesla workers say morale is flagging. AdvertisementTesla faces headwindsAhead of the layoffs, Tesla's delivery numbers slumped, falling below Wall Street's estimates. AdvertisementMore on the EV slowdown:The cuts commenceBefore Musk notified staff of the mass layoff, workers had been wary of impending cuts. Tesla workers hadn't seen such a deep cut since 2022 when Tesla slashed 10% of its salaried staff. In the weeks that followed, Musk cut Tesla's US advertising team and reportedly chose to slash Tesla's entire Supercharging team, as well as its vehicle programs and new product introduction team.
Persons: , Elon, Musk, Tesla, Elon Musk, Omar Marques, they'd, Tesla's, he'd, Justin Sullivan, Tom Zhu Organizations: Service, Business, Tesla, Musk, Bloomberg, Getty Locations: Tesla, Berlin, China —, Fremont, California, China
The Biden administration is set to raise tariffs on China EVs from 25% to roughly 100%. Wedbush's Dan Ives told Bloomberg on Friday that China is very likely to retaliate against the move. Ives said rising competition from cheap Chinese EVs would pose risks to the US domestic EV market. AdvertisementChina is likely to retaliate against the move by President Joe Biden's administration to impose new tariffs on electric vehicles from China, says Wedbush's analyst Dan Ives. Legacy automakers would also take a hit given their large bets on EVs, so the tariffs would protect the Detroit car companies as well as Tesla.
Persons: Biden, Wedbush's Dan Ives, Ives, , Joe Biden's, Dan Ives, Tesla Organizations: Bloomberg, EV, Service, Street, Detroit Locations: China, Nio
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Citing people familiar with the matter, Bloomberg reported that the US government is set to impose new tariffs on a range of Chinese industries, including EVs. Chinese EV producers such as BYD have so far largely avoided the US market due to pre-existing trade barriers, such as a 25% tariff on Chinese auto imports previously touted by President Donald Trump. AdvertisementRelief for US firmsThe expected decision to target China's EV exports would come as a relief to US EV companies. Tesla CEO Elon Musk said earlier this year that Chinese EV firms would "demolish" their Western rivals if trade barriers weren't put in place.
Persons: , Joe Biden, Donald Trump, he's, Elon Musk, Trump Organizations: Service, Bloomberg, Business, Reuters, EV, Chery Locations: Mexico
Read previewChinese EV makers are challenging Tesla — but one of the company's rivals still thinks they're years away from overtaking Elon Musk's firm in one respect. Lucid CEO Peter Rawlinson said that despite their success, Chinese automakers are still some distance behind Tesla when it comes to the underlying technology that powers EVs — but warned that they could catch up quickly. Related storiesHowever, Rawlinson warned that Western car makers must not "underestimate" the ability of their Chinese rivals to quickly catch up on core EV technology. After once laughing off Tesla's Chinese rivals, Musk now seems a lot more worried, telling investors that Chinese EVs are likely to "demolish" the competition if trade barriers aren't put in place. The company has slashed prices on its high-end Lucid Air sedan to compete with Tesla, and produced less than 10,000 vehicles last year.
Persons: , Elon Musk's, Peter Rawlinson, EVs, they're, Tesla, Rawlinson, they've, They're, Warren Buffett Organizations: Service, Elon, Business, Financial Times, Geneva, Tesla, Saudi Public Investment Fund Locations: London, China
In all, six of the top 10 most-stolen vehicles in America last year were Hyundai and Kia models. The list included the Kia Soul, Kia Forte, and Kia Sportage. Certain older Hyundai and Kia models made before 2023 are particularly vulnerable to car thieves. Hyundai and Kia operate as separate companies in the United States, but Hyundai Motor Group owns a large stake in Kia, and various Hyundai and Kia models share much of their engineering. More than 1.1 million Kia vehicles nationwide have had anti-theft software installed, according to Kia.
Persons: Kia, Kia Forte, Kia Sportage, ” Kia, James Bell Organizations: CNN, National Insurance, Hyundai, Kia, Chevrolet Silverado, Silverado, Honda Accord, Honda Civic, Ford, Crime Information Center, Data, Hyundai Motor Group Locations: America, United States
The consumer, making up 70% of the U.S. economy, is being hit by higher interest rates and sticky inflation. Consumer spending, also known as personal consumption expenditures (PCE), typically represents about two-thirds of the U.S. GDP. While that is attributed to easing consumer demand for EVs, dealer inventories of ICE vehicles have recovered significantly since the pandemic. Away from consumer discretionary and towards consumer staples. The Consumer Staples Select Sector ETF (XLP) is trading 21 times trailing earnings and about 19.6 times forward earnings estimates versus 25.7 times trailing and 22.83 times forward for the Consumer Discretionary Select Sector Index.
Persons: there's, Tesla, Power Organizations: Starbucks, Investors, PPI, CPI, Federal Locations: U.S
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGlobal automakers can't retreat from China if they want to compete with it: Automobility Limited CEOBill Russo, founder and CEO of Automobility Limited, discusses the strategies that Toyota and other carmakers should use in the face of China's highly competitive electric vehicle market, saying "you have to be present in the world's largest market."
Persons: Bill Russo Organizations: Email Global, Automobility, Toyota Locations: China
Reuss also touted the competitiveness of GM's Chinese joint venture partners such as Wuling Motors. GM's market share in China, including its joint ventures, has plummeted from roughly 15% as recently as 2015 to 8.6% last year — the first time it has dropped below 9% since 2003. DETROIT – General Motors believes it can regain market share in China after hitting a roughly 20-year low last year amid changing market conditions and increased domestic competition, GM President Mark Reuss said Thursday. The market declines have spurred questions on whether GM would exit China, as it has other underperforming markets in recent years. The automaker said Steve Hill, currently GM's vice president of global commercial operations, would succeed GM China President Julian Blissett, effective June 1.
Persons: Mark Reuss, Reuss, " Reuss, Mary Barra, Steve Hill, Julian Blissett Organizations: Hamtramck Assembly, Wuling Motors, GM, Buick, DETROIT –, Motors, JV, Financial Times, Car, U.S . GM's, Chevrolet, China Locations: Detroit, Hamtramck, Michigan, China, DETROIT, U.S . GM's U.S
General Motors said on Wednesday that it would stop making the Chevrolet Malibu, the last affordable sedan in its U.S. model lineup and a venerable nameplate that was introduced in the 1960s when the company was a dominant force in the U.S. economy. For years, American drivers have been gravitating toward sport utility vehicles and away from sedans, compacts and hatchbacks. G.M.’s two Detroit rivals, Stellantis and Ford Motor, have also largely wiped their slates clean of cars in the United States. Last month, Subaru, a Japanese automaker, said it would stop making its Legacy sedan next year. produces the Malibu at a plant in Fairfax, Kan., and will continue to manufacture the car until later this year, when it plans to retool the factory to make a new version of the Chevrolet Bolt, an electric car, and the Cadillac XT4, a luxury S.U.V.
Persons: Motors, Chevrolet Organizations: Chevrolet Malibu, Detroit, Ford Motor, Foreign, Toyota, Honda, Hyundai, Toyota Camry, Honda Accord, Subaru Locations: U.S, United States, Japanese, Fairfax, Kan
The rate of EV sales has been slowing for about a year, major automakers have pulled back on their previously lofty EV goals, and even electric car-giant Tesla is faltering. Demand for electric vehicles hasn't dried up completelyDemand for expensive EVs has softened significantly, but an opening exists in the affordable market. A new generation of electric car shoppers are looking for different options than their early-adopting counterparts. Essentially every major automotive company at this point has built its future around selling more electric vehicles. The real divide here is not between hybrids and EVs, but between legacy car companies and EV-only startups.
Persons: , it's, Power, It's, Elon Musk Organizations: Service, Business, EV, Companies, Ford, GM Locations: EVs
Alex Kendall, 29, is the co-founder and CEO of autonomous driving startup Wayve. British startup Wayve on Tuesday said it had raised $1.05 billion in an investment round led by Japan's SoftBank to accelerate the growth of its self-driving car technology. The Series C funding round included new investor U.S. chipmaker Nvidia and existing investor, software giant Microsoft , which is a major backer of AI firms. Founded in 2017, Wayve is one of a multitude of startups looking to enable autonomous driving — technology that enables cars to effectively drive without humans at the helm. Unlike Tesla , which manufactures its own cars, Wayve licenses its self-driving technology to other firms, including retailers and automakers.
Persons: Alex Kendall, Japan's SoftBank, Wayve Organizations: Nvidia, Microsoft, Cambridge, Tesla
Despite lower price tags, Chinese EVs often have more powerful batteries and more advanced technology. The competition among hundreds of Chinese EV makers has spurred rapid innovation. Even Tesla CEO Elon Musk, who made a surprise visit to Beijing last week, has said that without trade barriers Chinese EV makers would "demolish" their competitors. Chinese EVs tend to be smaller, cheaper and more accessible to the masses — BYD's Seagull, a small all-electric hatchback, starts at less than $10,000. It would take time to set up a sales and distribution network, Fields said, and Chinese EV makers could face a perception issue among American consumers.
Persons: They're, Stella Li, America's Tesla, Tesla, BYD, Mark Fields, Elon Musk, Musk, Fields, they've, Li, Biden, Musk's, That's Organizations: Alliance for American Manufacturing, U.S, BYD, NBC News, Western, Communist Party, Ford, International Energy Agency, Western automakers, United States, Lawmakers, World Trade Organization, European, Rhodium Group, EV, China Association of Automobile Manufacturers Locations: China, EVs, U.S, BYD Americas, BYD, Shenzhen, United States, Beijing, Europe, United, Union, Chinese, Mexico, South Korea, Japan
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