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    ‘Major brand worries’: Just how toxic is Elon Musk for Tesla?

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    Globally renowned brands would not, ordinarily, want to be associated with Germany’s far-right opposition. But Tesla, one of the world’s biggest corporate names, does not have a conventional chief executive.After Elon Musk backed Alternative für Deutschland (AfD) – calling the party Germany’s “only hope” – voters are considering an alternative to Tesla. Data released on Thursday showed that registrations of the company’s electric cars in Germany fell 76% to 1,429 last month. Overall, electric vehicle registrations rose by 31%.Tesla’s biggest shareholder, who has voiced support for rightwing leaders around the world, is now a de facto US cabinet member under Donald Trump’s administration.Tesla’s valuation has become inextricably tied to Musk’s politics. After he spent $288m backing Trump’s 2024 election victory, Tesla’s valuation passed $1tn. Yet Musk’s political involvements – unprecedented for the head of a company that size – could also be having a negative effect.On Friday, a group of Extinction Rebellion activists occupied a Tesla store in central Milan. Activists chained themselves to the cars’ tyres, and others glued themselves to the windows along with the slogans “Make millionaires pay again” and “Ecology for all, no ecofascism”.Analysts are openly wondering if Musk is causing lasting damage to a brand he has made synonymous with electric cars and, by extension, liberal aspirations to tackle climate change.Tesla was approached for comment.Tesla was the world’s biggest producer of battery electric cars in 2024, but sales dropped to 1.79m, the first time the company has endured a sales decline since 2011 after years of rapid growth that made it the world’s most valuable carmaker.The manufacturer said in January that global sales would grow during 2025, and Wall Street analysts expect Tesla to sell more than 2m cars this year. But even those forecasts would hardly represent a blazing return to form. As recently as October, Musk said he expected 20% to 30% annual sales growth, implying as many as 2.3m cars sold.“Customer retention will be key in 2025 as customers may begin to look for an ‘Alternative for Tesla’,” said Matthias Schmidt, a Berlin-based electric car analyst.View image in fullscreenOther analysts are more optimistic. Dan Ives, of Wedbush Securities, a US financial firm, is a longstanding Tesla supporter. Ives believes the company’s share price could rise from its current level of about $280 to hit $550. However, he acknowledged the negative perception created by Musk’s partnership with Trump and his work on the so-called department of government efficiency (Doge) – an issue he described as the “elephant in the room” for the brand.Calling them “major brand worries for Tesla”, he added in a note to investors that the direct impact on sales should be relatively small. “We estimate less than 5% of Tesla sales globally are at risk from these issues despite the global draconian narrative for Musk.”Ives said that Tesla was on the verge of making a new, cheaper vehicle – costing less than $35,000 – and would “own” the autonomous vehicle market, factors that would help push Tesla to a valuation of more than $2tn.Nonetheless there are clear signs in the US, Tesla’s biggest market, that would-be buyers are wavering, according to Strategic Vision, a market research company. Its new vehicle experience study tracks the buying preferences of up to 250,000 car buyers in the US, and it shows a sharp decline in regard for Tesla since Musk bought Twitter (now X) in 2022.Shortly before the multibillionaire bought the social media platform, 22% of new vehicle buyers would have “definitely” considered buying a Tesla. By the end of 2024 it was just under 8%. The proportion who would not consider buying a Tesla has risen from 39% over the same period to 63%.According to Strategic Vision, approximately half of non-Tesla EV buyers identify as Democrat or liberal, compared with about 20% identifying as Republican or conservative. Among Tesla owners, the Democrat owner group has fallen from 40% during the Biden administration to 29% now, with the Republican group averaging about 30% since 2021.“Democrats, the majority party of EV owners, are now actively rejecting Tesla and choosing other options,” said Alexander Edwards, president of Strategic Vision.Meanwhile, global protests against Musk and Tesla are intensifying. In America, there have been demonstrations outside dozens of Tesla showrooms, while in the UK a guerrilla poster campaign – “0 to 1939 in 3 seconds” – has emphasised Musk’s fascist-style salute at an inauguration rally. In Germany, he was recently caricatured on a carnival float as “Napo-Elon”.Ross Gerber, chief executive of the US investment management firm Gerber Kawasaki, which holds shares in Tesla, said Musk had given people an outlet to express their disdain for his politics.skip past newsletter promotionafter newsletter promotionHe said: “He has left himself open to a direct way for people to attack him if they don’t like his politics. It’s ironic because the vehicles were made for liberals who care about the environment and it has become a symbol of the conservative movement.”Tesla is valued at about $847bn – still more than the next 10 carmakers combined. Few investment banks have included any effect from Musk in their work trying to accurately value Tesla. Still, there are further reports of falling sales. In Australia, February sales were down about 72% compared with the same month in 2024, according to data released this week.View image in fullscreenSeveral analysts have raised concerns that the current valuation is much too high. JP Morgan is among the most pessimistic of the investment banks, suggesting that Tesla’s share price could fall as low as $135 – or a valuation closer to $400bn. Musk is the largest shareholder in Tesla, a key contributor to his status as the world’s wealthiest person.“Tesla shares continue to strike us as having become completely divorced from the fundamentals,” wrote JP Morgan in January, pointing out that 2025 profit expectations were down 70% since 2022. The share price has more than doubled since then – something that would not usually happen when investors expect lower profits.Analysts at UBS, a Swiss investment bank, concur, saying that Tesla’s valuation “continues to confound us”, with big risks in its efforts to make money from self-driving cars or humanoid robots.While sales declined steeply in January in several markets, several analysts have warned against relying on numbers for a single month. Schmidt said: “Some consumers are likely holding back purchase decisions and waiting for the updated Model Y which arrives this month. The big question though is, are these just the die-hard Tesla enthusiasts which remain in line while other potential consumers jump ship?”There have also been positive signs elsewhere. UK Tesla sales fell in January, but bounced back by a fifth in February to leave sales up year-on-year for 2025 so far. In the US there were also signs of a recovery after a fall in January, with preliminary data for February indicating rebound sales of about 42,000 cars, up 14% year-on-year, according to Wards Intelligence.But the UK sales figures also highlight another concern for investors: that Tesla’s lead on rivals could be narrowing as a flood of new models arrive. Tesla’s electric market share for the first two months of 2025 was 11%, down from 14% in 2024, according to New Automotive, a research group.Ben Nelmes, New Automotive’s chief executive, said: “The impact of Elon Musk’s political views on Tesla’s sales may have been overstated, but Tesla is gradually losing its position as the dominant EV seller in the UK as other carmakers bring more up-to-date and cheaper models to market.”In China Tesla is under big pressure from a slew of cheaper competitors, most notably BYD. In Tesla’s second-biggest market, sales of its China-made EVs dropped 49% year-on-year in February, to the lowest level since August 2022.Edward Niedermeyer, author of Ludicrous – a 2019 book about Tesla which focuses on Musk’s habit of making bold claims about the business that don’t stack up – argues that the prospect for new business like robotaxis and robots are distant. “The unique moment that we’re in now is the business has peaked,” he said.The worry for Tesla investors is whether Musk has turned that peak into a cliff-edge.Additional reporting Lorenzo Tondo More

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      Trump’s promise to tax imported goods could spell trouble for US auto industry

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      Few vehicles are as emblematic of the American auto industry’s might as the Ford F-150 pickup truck, the nation’s best-selling vehicle for over 40 years. But the F-150 is much less American than its image suggests. A fact that could present unique challenges for the company as Donald Trump moves to “make America great again”.Only about 32% of its components are made in the US or Canada, federal data shows, and that could spell trouble if Trump’s proposed tariffs on imported goods are implemented. Even less of the F-150 Lightning electric truck is made in the US – about 24%, a Cars.com analysis of federal data showed.The F-150’s price would almost certainly soar without some mitigation, industry observers say. Moreover, it would be virtually impossible to completely onshore its supply chain in short order – a process that could take many years.The uncertainty around the truck is representative of the auto industry as a whole as it waits to see if Trump follows through on his promised blanket taxes on imported goods. Top-selling vehicles in the US are similarly sourced from around the globe, and the auto industry’s supply chain is “a complicated universe”, said Ivan Drury, director of insights with industry analyst Edmunds.“The auto manufacturer is more like a parts collector – it’s not like Ford makes every component like everyone thinks,” Drury added. Because of that, tariffs would likely deliver supply chain shocks similar to the pandemic disruptions: “It could have the effect of you not getting the truck that you want.”Trump has proposed tariffs of between 60% and 100% on Chinese goods, and a tax of between 10% and 20% on every product imported from all other US trading partners, though very few details are available. During an October rally, he promised as much as a 500% tax on cars made in Mexico.“I’ll put a number where they can’t sell one car,” Trump boasted to the crowd.The goal is to force Ford and other automakers to onshore production and create manufacturing jobs here, but the idea is generating fears of shortages and inflation across the economy – the tariffs would cost the average US household about $2,600 per year, by some estimates.A more expensive F-150 could factor into that figure, but the impact of new tariffs will be felt widely across the industry.The industry analyst’s American Made Index (AMI) ranks how “American” 100 of the top vehicles sold in the US are, based on where parts are made as reported under the American Automobile Labeling Act, the location of vehicle assembly, US factory employment relative to vehicle production, and engine and transmission sourcing.The F-150 and F-150 Lightning ranked 58th and 56th, respectively, in 2024.The law does not require automakers to make granular data about where components such as steering wheels or airbags are made, so it is impossible to calculate how much a theoretical 20% import tax would increase the F-150’s cost. But Cars.com reported that the F-150’s 3.5-liter engines – including the Powerboost hybrid and the Raptor – are made in Mexico.All of its transmissions are made in the US, and final assembly takes place at plants near Kansas City or Detroit. For the F-150 Lightning, all motors and drive units are made in the US, and final assembly is near Detroit.“We’re at a point now in automotive history where the supply chain is not as simple as it once was and the badge on the hood is not indicative of where a vehicle was made,” said Patrick Masterson, chief copy editor at Cars.com.Ford didn’t respond to requests for comment, but when previously asked about the AMI rankings, it said: “Every single Ford F-Series truck is made in America. We build F-150s at Dearborn Truck Plant in Dearborn, Michigan, and Kansas City Assembly Plant in Kansas City, Missouri.”View image in fullscreenBy comparison, the highest ranking truck in the AMI was the Toyota Ridgeline, slotted at sixth, with 70% of its parts produced in the US or Canada, and final assembly in Alabama.No vehicles from Detroit automakers are represented in the top 20 – the highest ranking is the Chevrolet Colorado at 23. Meanwhile, three Teslas are in the top 10 with about 70% of their parts produced in the US, and final assembly in Austin or Fremont, California. The Cybertruck is also among the most American-made trucks. Given that figure, tariffs could be a boon to Trump ally Elon Musk.An automaker’s calculus on where it sources parts includes variables like cost and efficiency of the components’ production, and many even have joint production agreements with other automakers.Fully onshoring would be a long, difficult process because factories would have to be built or expanded, and a workforce would have to be hired and trained. Parts suppliers are often at capacity or do not keep stock on hand to meet sudden shifts in demand, Drury noted.If Ford suddenly asked a US supplier for millions of a hypothetical part for the F-150, there would be a “snowballing effect” as the automaker waited for it to be produced, he added.“We don’t have interchangeable cogs, and these aren’t widgets for which you can swap out one for the next – these are highly specialized components,” Drury said. “Things always sound good on paper at first but the reality of the situation is no factories can be made overnight; a lot of suppliers are stretched thin.”Some automakers who have invested in US factories may be in a better position to weather tariffs, Masterson said, especially with EVs. Ford and GM are readying several new plants that will produce EVs or batteries across the south and in Michigan.On the other hand, tariffs could be especially problematic for EVs because automakers import critical minerals or electronics, like semiconductors. The semiconductor industry began onshoring under Biden, who implemented significant tariffs on Chinese semiconductors, but it remains far from being able to fully supply US automakers.The hit on an F-150 buyer would in part depend on what form tariffs take, Masterson said. Trump has proposed blanket tariffs on imported goods, which would, in theory, include all components produced elsewhere, but observers suspect that may change as he receives input from automakers.Trump’s most dramatic claim – the 500% tax on imported cars – seemed aimed at those undergoing final assembly in Mexico, though a hypothetical vehicle assembled there could have a significant number of parts sourced from the US.While tariffs could ignite turmoil, the cost increases could also benefit automakers by presenting an opportunity to raise prices, and create a sellers’ inflation similar to that which padded major corporations’ profits, including some automakers, as inflation soared several years ago, said Isabella Weber, an economist with the University of Massachusetts, Amherst.Implementing policies that cause the nation’s most popular vehicle to suddenly be unaffordable would be deeply unpopular. Trump saw Democrats lose power over inflation, Weber added, and he might come up with measures to avoid hitting US consumers with the cost, like forcing foreign companies to pay part of the tariff.“Power will be their first goal,” Weber said. “Inflation undermines this.”Even with the potential cost shock, the tariffs seem to have some public appeal as a measure to protect the US auto industry. The message is especially potent when it comes to vehicles like the F-150, which holds cultural and emotional value. If Trump can implement policies to make the truck more American without hitting consumers with costs, it could be a huge win.“These are American companies and people have memories of them going back decades, so there’s a lot there for people to grab on to financially and emotionally,” Drury said. “That’s why autos are always going to be top of mind when asking ‘What are we are going to do to protect American industry?’” More

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      Shawn Fain, president of the UAW: ‘Workers realized they’ve been getting screwed for decades’

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      From Amazon and UPS to Starbucks and Hollywood studios, organized labor is making a comeback in the US after decades of decline. Shawn Fain thinks he knows why: “Workers have realized they’ve been getting screwed for decades, and they’re fed up.”The United Auto Workers (UAW) president has emerged at the front of the pack of a new generation of labor leaders as a galvanizing voice in a critical year for the labor movement and American politics.A soft-spoken but unrelentingly blunt midwesterner, Fain has met the moment in his role as the union’s newly elected president. Having beaten the US’s big three automakers into a landmark new union contract, Fain’s members have been courted by both Joe Biden and Donald Trump. Fain has gone all in for the Democrats despite some reservations and the misgivings of some of his members.Now he faces bigger tests. The UAW is taking its fight to states that have long, successful records of seeing off union drives – and he must hold his new coalition together as the US enters a fractious election cycle that will pit worker against worker.The union boss’s political ascendancy was crowned by his recent appearance as a guest at Joe Biden’s State of Union address, where both he and the union were called out in a nationally-televised salute from the commander-in-chief.Sporting a new, closely cropped beard and wearing a dark business suit and tie for the Capitol occasion, Fain responded with a raised power fist, telegraphing in one succinct image how much organized labor’s message and tone have changed of late, along with their popularity.View image in fullscreenThe winning trajectory of the union and its new, class-conscious president have caught carmakers off guard, no more so than when Fain, 55, contrasts his workers’ declining wages with corporate share buybacks and the lavish compensation bestowed upon automotive CEOs.Not without irony, Fain’s ascent almost certainly wouldn’t have been possible but for the 2022 federal felony convictions of more than a dozen union officials, as well as three Stellantis executives, for fraud and corruption, including embezzlement of union training funds. A UAW dissident with near 30 years’ previous service as a Stellantis (formerly FCA and Chrysler) electrician in Kokomo, Indiana, Fain unseated the union’s long-entrenched leadership cabal in 2023, vowing to root out corruption and change what he viewed as the union’s overly accommodating posture toward their employers.Speaking recently with the Guardian in his office at the UAW’s Detroit headquarters – Solidarity House, a brutalist four-story structure built in the 1950s along a grim stretch of East Jefferson Avenue, overlooking the Detroit River – Fain without naming names derided previous leadership. “The corruption was one thing. But even prior to that. What they call ‘working together’, I call ‘company unionism’. All we witnessed out of that philosophy is losing plants, losing jobs. We watched over 20 years as 65 factories [owned by] the big three, disappeared. ‘Working together’ in the spirit of what I view it as would be when it’s a win-win for everybody. It’s not one-sided.”View image in fullscreenFain was a national bargaining negotiator during the Great Recession and the 2009 Chrysler bankruptcy. “I saw how the company really went after everything, took advantage of a bad situation while our workers bore the brunt of all that sacrifice. Moving forward, we’ve sat here for over a decade, watching the big three make massive profits. I ran for this reason, to change this union, to get us back to what it is supposed to be and hasn’t been in my lifetime. Right from the beginning, we had to set the tone and do things differently. We ran the contract campaign to define the narrative and define the issues. In the last decade, the [big three] companies made a quarter trillion dollars in profits. CEO pay went up 40% in the last four years. And our pay went backwards. So that was really setting the table.”Cleaning house at the union’s headquarters, Fain brought in new staff experienced in the use of social media, something that helped galvanize his campaign to lead the UAW. “I didn’t have the advantages that [predecessors] had because they were in power. They could fly all over the country on the union’s dime and visit plants under the guise of union business. People like me who were running had to take vacation [time] and go stand out at plant gates and hope to catch workers coming and going.”Fain turned to social media to interact with members all over the country. “We were doing this as a way to communicate with our members. But it turned into a lot more because social media brought in anyone that wanted to come in. The general public was paying attention, the news media paid attention. And I think it was really effective because when it got time to go on strike, 75% of Americans supported us.”The big hree were caught flat-footed by the fresh approach. “I think they just thought that it was talk,” Fain said. “They’re used to hearing talk. Companies were used to having their way, saying what they wanted and getting it. I don’t think they really knew how to handle leadership that wasn’t operating in that mode. I mean, our leaders in the past, they’d stand up and beat the podium and say, ‘We’re gonna fight, we’re gonna fight, fight, fight!’ and then when they got into negotiations, they’d roll over. Obviously, I don’t think they expected this and, let’s be honest, they didn’t expect me to be president.”View image in fullscreenBreaking with precedent, where just one of the trio of American legacy makers would be “targeted” for a strike, the UAW launched simultaneous strikes against all three, then shrewdly conserved strike funds by closing individual plants rather than all at once. The 46-day “Stand Up Strike,” begun after contract negotiations with General Motors, Ford and Stellantis collapsed, ended in a resounding victory for the UAW. Since then, with the wind at its back, the union has taken the fight to the many non-union auto manufacturing plants dotting the country, including many in southern, so-called “right to work” states.News last month that 96% of unionized workers at Daimler Trucks North America plants in North Carolina, Georgia and Tennessee voted to authorize a strike should ongoing negotiations fail to yield a satisfactory replacement for a contract expiring in April, brought fresh evidence that the record gains in its 2023 campaign against the big three have drastically altered the wider industry’s state of play. So did the UAW’s successful drives to have elections held at Volkswagen’s Chattanooga, Tennessee, and at Mercedes-Benz’ Vance, Alabama plants.Fain is bullish on the possibility of extending the union’s gains to non-union automobile factories. Notable among the Detroit settlements’ broader impact has been how, in efforts to avert unionization, several non-union carmakers, including Toyota, Honda, Tesla, Nissan, Subaru, Volkswagen, and Hyundai hurried to give workers unsolicited raises and, in some cases, improved benefits and eliminated the two-tier wage structures, where new hires, often classified as temporary, are paid substantially less than veteran workers.Fain said he believes these companies all have more to give, as does Tesla, which, despite recent share losses, has been one of the world’s most profitable makers of electric vehicles. Elon Musk, the company’s CEO, is a vociferous foe of unionization. Recently, following a complaint filed against his SpaceX company, the rocket and satellite maker joined Amazon, Starbucks and Trader Joe’s in suing the NLRB, challenging the constitutionality of the almost 90-year-old agency.View image in fullscreenFain’s overarching optimism is grounded, he insists. “Workers have realized they’ve been getting screwed for decades, and they’re fed up … If Volkswagen workers had Ford’s [new] agreement, they would have got $23,000 profit-sharing checks this year. Instead, they got zero … We made a big deal in the big three contract fight that these companies made a quarter trillion dollars in profits in the last decade. But the Japanese and Korean six [with US factories] made $480bn. The German three made $460bn in profits worldwide. Toyota alone made $256bn profit in the last decade. Their profit margins are obscenely more gross than they were at the big three, and yet their workers get less. I truly believe we’re going to see a huge shift this year. I think we’re gonna win in the south.” And Musk? A somewhat tougher nut to crack, Fain concedes, adding: “He’s the epitome of everything that’s wrong with this world.”Not one to mince words, Fain’s bold rhetoric harkens to a long-gone era, his regular use of stark terms like “billionaire class” recalling, for this reporter, childhood remembrances of elderly trade unionist relations recounting 1930s Labor Day marches down New York’s Fifth Avenue. Fain credits his old-school class consciousness to the experience of his grandparents – poor people who emigrated from the south during the Depression to the north to work in the newly unionized automobile industry, affording them a middle-class life. He also notes the importance of his faith. An unthinking churchgoer as a youth, he said adulthood brought a renewed interest in religion. “I started reading the Bible. I pray every day when I wake up. I do a daily reading. And everything I read about it, no matter what religion someone is, whether you’re Muslim or Christian, whatever your belief is, all religion speaks to one thing, it’s love of your fellow human being. With the greatest excess in the history of the world, why don’t we work with a mindset of what works for human beings?”What he doesn’t have faith in is the likelihood that corporations will use technology to make life better for his members. “[Legendary UAW leader] Walter Reuther [who died in a 1970 plane crash] had this famous saying, ‘We have to master technology, not let it master us,’” said Fain.“As we have advancements in technology, it should be making life easier for people and workers’ lives. But what happens? When technology advances, the companies find ways to eliminate jobs, close plants, exploit workers in other places. And then the people that are left with a job, they want them to work longer and harder … The companies have to realize they’ll still make their profits; government should be subsidizing some of this. And everyone wins in this equation. Workers have better lives, working class people have better lives. The companies are profitable. The money’s there. This can all happen but let’s go back to the central issue of this. It’s corporate greed and a miniscule amount of people, the billionaire class, who want to concentrate all the wealth in their hands and screw everybody else to do it.”View image in fullscreenFain objects strongly to those who would place the blame for rising car prices on union contracts. “Another myth. Five to 7% of the cost of a car is labor. [Carmakers] could give us everything they gave us in that contract and not raise the price of cars a penny and still make massive profits. Why are they not saying what $20 billion in [additional] corporate dividends and stock buybacks cost them? That affects the bottom line more. That money somehow just disappears and doesn’t count, right? All they want to talk about is our wages and our benefits. People forget, over the last four years, the price of vehicles went up 35% on average. But our wages didn’t go up. Our benefits didn’t get better. Nothing changed for us. [Price hikes are] because of two things: corporate greed and consumer price gouging. They just pile all those costs on and then try to blame the workers for it.”A latter day rise in the union’s long-sagging fortunes – its membership dwindled from 1.5m in the 1970s to its current 380,000 – has been seen by some hopeful observers as early evidence of a burgeoning reversal of the downward trend that began with the punishing defeat of the air traffic controllers’ union early in the Reagan administration. In hindsight, Fain, who was a teenager at the time, suggests “all labor, not just union labor, should have come together then. I wish they would have. Because what’s happened over the last 40 years? Reagan and the ‘greed is good’ idea and the new philosophy of the rich getting richer. Forty years of going backwards for the working class … people understand that they’ve been left behind. Workers are now scraping to get by, while working multiple jobs, seven days a week, 12 hours a day and living paycheck to paycheck. That’s not a life. When I was a kid it didn’t matter if you worked at a grocery store, or if you worked at an assembly plant, a one-person income could sustain a family. That’s not the case anymore … workers, union and non-union, have to harness the power that we have and take back our lives.”Asked about the parallels between Reagan and Trump, charismatic presidents who quietly championed the interests of wealth and organized capital while retaining a strong following among the working class, Fain acknowledged the undeniable presence of a voluble Maga contingent among autoworkers including members of his own union. But he played down the political division within the ranks.Trump, a lifelong anti-union voice, has singled out the labor organization and Fain, in particular, for derision. Calling the union corrupt and Fain “a weapon of mass destruction” for jobs, Trump traveled to Detroit during the high-profile strike to a staged rally purportedly in support of auto workers but opposed to the union. Held at a non-union plant that charged his campaign $20,000 for its use, the event featured a crowd containing no actual auto workers, anti-union or otherwise.In January, Fain, who has said Trump represents the billionaire class and “doesn’t give a damn about working-class people” endorsed Biden’s re-election bid on the union’s behalf. “As I tell our members, ‘Look, this isn’t a Democrat-Republican issue. This isn’t a party issue. This wasn’t my opinion. Let’s look at their own words and their own actions.’” Fain credits Biden and Democrats with the federal government’s rescue of the domestic industry during the 2008-2009 recession, as the newly-installed Obama administration pro-actively addressed the bankruptcies of GM and Chrysler. “They worked on a path forward for [the US car business] to come out of this and to live, they battled for the American worker. Trump, at the same time, was blaming the workers for everything that was wrong with these companies.”Last Fall “[f]or the first time in American history, a sitting US president [Biden] joined workers on the picket line. Trump had that opportunity in 2019, when GM was on strike for 40 days. He never said a word about the strike. He never did a damn thing to support it.”Auto worker support could well be critical in determining the allegiance of Michigan’s electoral college delegates, as well as those in other swing states. There’s no doubting where Fain thinks their best interest lie. “Joe Biden has a lifelong history of serving others and in standing with working-class people. President Trump has a lifetime history of serving himself and the billionaire class. And so there’s a stark contrast there. When you look at those things, the decision for us is very easy about who has our interests at heart. And who doesn’t. Sure, some of our members are still going to vote for Trump. But at the end the day we have to put the facts out there, we have to talk to our members about that and hope like hell we don’t have another disaster for four years.” More

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      Biden gains union worker support but faces ceasefire protests in Michigan

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      Joe Biden won a strong pledge of support on Thursday from union autoworkers crucial to his re-election bid in Michigan, while yet more protests over his backing of Israel’s actions in Gaza put pressure on the trip.The president’s travel to the battleground state was intended as a celebration after the United Auto Workers (UAW) union recently endorsed his re-election bid. But his visit was also met with protests amid the state’s sizable Arab American community, demanding Biden seek a ceasefire in the Israel-Gaza war, and refusing to meet his campaign.Biden visited a UAW union hall in Warren, Michigan, where UAW members plan to work a phone bank on his behalf ahead of the state’s 27 February nominating contest.He was greeted by UAW president Shawn Fain, who last week gave a full-throated endorsement of the Democratic incumbent and a sharp rebuke of Republican frontrunner Donald Trump.As the crowd chanted, “Joe, Joe”, Fain promised Biden: “We’re going to fight like hell” for him to win the November presidential election.“Wall Street didn’t build the middle class. Labor built the middle class, and the middle class built the country,” Biden said. “When labor does well, everybody does well.”He later joked: “Besides, you built my ’67 Corvette.”The campaign kept specific details of Biden’s visit private in the face of expected opposition until just before his arrival.Ahead of his motorcade, about 100 protesters marched down a street toward the UAW location, chanting “Genocide Joe has got to go” and waving Palestinian flags.Before heading to Michigan, Biden attended the National Prayer Breakfast in Washington. He said he was working to resolve the Gaza conflict, including a two-state solution for Palestinians and bringing home the hostages still held following Hamas’s 7 October attack on southern Israel.“We are actively working for peace,” he said at the breakfast.skip past newsletter promotionafter newsletter promotionTrump on Wednesday met with the Teamsters, one of the US’s biggest unions representing truck drivers, airline pilots and others, as he competes for their backing.Ahead of Biden’s visit to the Detroit area, protesters amassed in cars and vans with blue and white “Abandon Biden” signs and Palestinian flags, planning to rush to wherever he appeared.Arab Americans account for 5% of the vote in Michigan and Biden’s margin of victory over Trump was less than 3 percentage points in 2020.Reuters contributed reporting More

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      ‘We want everybody walking out’: UAW chief outlines mass strike for May 2028

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      Shawn Fain, the United Auto Workers president, criticized Donald Trump on Monday but declined to back Joe Biden as he reaffirmed plans to lead a general strike in the US in 2028.Speaking to union members at the UAW national political conference in Washington DC, Fain said it was time for union members to come together.“We have to pay for our sins of the past. Back in 1980 when Reagan at the time fired patco workers, everybody in this country should have stood up and walked the hell out,” Fain said. “We missed the opportunity then, but we’re not going to miss it in 2028. That’s the plan. We want a general strike. We want everybody walking out just like they do in other countries.”He reaffirmed ambitious plans to organize a general strike for 1 May 2028, coinciding with International Solidarity Day or May Day.The UAW rescheduled the expiration of their union contracts with the US’s big three automakers to align on this day in the contracts it reached late last year and has been encouraging other labor unions to schedule contracts to expire on this day to maximize the participation from workers across different industries.A general strike is a mass strike across various industries around similar demands or bargaining positions. In the US, they have been virtually non-existent in recent decades given the passage of the Taft-Hartley Act in 1947 that restricted secondary strikes and the decline of labor unions in the US since the 1970s.After successfully taking on the US auto companies, Fain has emerged as a potent political figure, courted by Trump and Biden.Fain also used his speech to criticize Trump, telling reporters that Trump “is as a person … pretty much contrary to everything we stand for”.skip past newsletter promotionafter newsletter promotionBut the UAW has yet to formally endorse Biden, who was the first president to walk on a picket line with striking workers in September 2023. Fain told reporters the union will be holding formal discussions on an endorsement amid rumors that Biden may address the union in person later this week.
      Reuters contributed reporting More

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      ‘Fed up’ US autoworkers expand strikes against GM and Ford

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      The United Auto Workers union escalated its strike against the big three US automakers on Friday as the industrial action entered its third week.In a livestream updateon the strike on Friday, the UAW president, Shawn Fain, said another 7,000 workers would be joining the action. About 25,000 workers are now on strike.Fain said: “We are fed up with corporate greed and we are fed up with corporate excess. We are fed up with breaking our bodies for companies that take more and more and give less and less.”Fain said bargaining with Ford and General Motors had not made meaningful progress in the past week, adding Ford’s Chicago assembly plant and a GM plant in Lansing, Michigan, to the strike. Action at Stellantis was not escalated this week due to progress made in talks.The strike has become a hot-button issue in political circles with Joe Biden and Donald Trump visiting Michigan this week to address autoworkers.“This strike is absolutely about the worker and listening to the worker,” Haley Stevens, a Democrat representing Michigan’s 11th congressional district, told the Guardian. “This strike has opened up new channels to hear from workers in ways that we haven’t seen in a very long time in the country.”Stevens served as chief of staff to the US Auto Rescue Task Force under the Obama administration and has appeared on the strike picket lines in support of autoworkers. She recently reintroduced a bill to protect union autoworkers in Congress.She said the concessions autoworkers made to help the auto industry recover from the 2008 economic recession have not been returned. She also praised the work auto employees did to get the industry through the Covid-19 pandemic.“Now is the time to recognize that work, and their fair share of the profit, and ensure that anyone who works at the automakers is treated fairly, and dealt in to the profits and to the transition that’s under way,” Stevens added.Shaun Collier, a Stellantis assembly worker in Sterling Heights, Michigan, said: “The big three have been making record profits, giving themselves increases, while us UAW members are the ones doing all of the work, putting wear and tear on our bodies, missing our kids’ extracurricular activities because we are forced to be here to build a product we can’t even afford.“All we want is a livable wage, a work-life balance, and job security.”Biden joined the UAW picket line in Michigan on Tuesday, the first sitting president ever to do so.“The fact of the matter is you guys, the UAW … you saved the automobile industry back in 2008 and before. You made a lot of sacrifices, gave up a lot. The companies were in trouble. Now they are doing incredibly well, and guess what? You should be doing incredibly well too,” Biden said.Trump held a rally at a non-union auto parts plant outside of Detroit on Wednesday, coinciding with the Republican presidential primary debate. More

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      Biden is right to praise the auto strike. His climate agenda depends on it | Kate Aronoff

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      Joe Biden had to choose a side in the United Auto Workers’ contract fight with the “big three” American automakers, and he did. This week, he became the first US president to walk a picket line while in office when he joined strikers in Belleville, Michigan, offering enthusiastic support for their demands. Biden should be thanking the UAW for handing him a golden opportunity: to prove that the green jobs his administration is creating will be good, union jobs, too, and that climate policy will bear dividends for the working class.Republicans cosplaying solidarity have tried to exploit the strike to score cheap political points. As Republican presidential hopefuls debated this week, Donald Trump told a rally at a non-union plant in Michigan that the strike wouldn’t “make a damn bit of difference” because the car industry was “being assassinated” by “EV mandates”. (Whether there were any union members or even autoworkers in the room isn’t clear.) Ohio senator JD Vance has similarly blamed autoworkers’ plight on “the premature transition to electric vehicles” and “Biden’s war on American cars”.These are cynical, false talking points from politicians who couldn’t care less about autoworkers – but they aren’t going away. (Although similar lines are old hat in the US, they’re finding new purchase in places like 10 Downing Street: Rishi Sunak, the British prime minister, has recently taken a “U-turn” on climate goals, citing “unacceptable costs” for “hard-working British people”.) Optimistically, the UAW strike could be a chance to dismantle the rightwing myth that reducing emissions hurts working people – not by pointing to the jobs that will trickle down from the bosses of the energy transition, but by standing with the unions fighting to make those jobs better.Being willing to go on offense against automakers’ bad behavior is a great start and a big shift. The Biden administration has routinely praised car manufacturers as climate heroes poised to decarbonize the country and create millions of middle-class jobs along the way, turning the industry into a sort of mascot for its climate agenda. “You changed the whole story, Mary,” Biden told General Motors’ chief executive, Mary Barra, a frequent White House guest, in 2021. “You electrified the entire automobile industry. I’m serious.”White House climate policy will be good for Barra and her colleagues at the top. The business-side tax credits and government-backed loans furnished by the Inflation Reduction Act (IRA) are already helping the big three retool factories to produce EVs and their component parts. The IRA’s consumer-side subsidies for American-made electric cars – worth up to $7,500 – will boost demand.Yet no one should confuse companies taking advantage of tax breaks with a commitment to the climate fight. The big three lag well behind their competition in the US and abroad; federal incentives are helping them play catch-up. They’ve lobbied to undermine fuel efficiency and clean car standards, including through front groups like the Automotive Alliance. Like oil and gas companies, GM and Ford knew for decades that their products fueled climate change, and proceeded to double down on gas-guzzling models and political attacks on laws and regulations that might hem in their emissions. They still bankroll the campaigns of Republicans dead-set on stopping climate policy.Neither is it a given that EV subsidies benefiting companies will benefit workers there, too. Automakers are already using electrification as an excuse to supercharge attempts to ship jobs to less union-friendly states, and split workers off from their master agreement with the big three.Biden’s decision to join the strike would be remarkable on its own. Beyond the obvious symbolism, his presence there lends tangible material support to workers’ demands, handing the union leverage over companies that might otherwise reasonably assume he’d have their backs.It could also usher in a broader shift in the way he and other Democrats talk about climate policy. Impressive as the IRA is, its most direct benefits accrue largely to companies and consumers with enough cash on hand to afford up-front payments for big-ticket items like solar panels and heat pumps. Like Bidenomics more generally, its goal isn’t to reduce emissions so much as to build out domestic supply chains for clean energy goods, making US companies less reliant on and more competitive against Chinese firms in sectors that will be increasingly important over the coming decades.Targeting climate policy at corporations and affluent consumers doesn’t make a great counterargument to Republicans eager to frame it all as elitist virtue signaling, and win elections accordingly. What the Republican party can be reliably expected to do, though, is side with the bosses. That’s where even self-professed “car guy” Joe Biden might be able to set himself apart – by being willing to offend the automakers so that the rewards of America’s green industrial policy aren’t hoarded at the top.Standing alongside Biden in Belleville this week, the UAW president, Shawn Fain, offered as good a framing for that approach as any. “This industry is of our making,” he said. “When we withhold our labor, we can unmake it. And as we’re going to continue to show: when we win this fight with the big three, we’re going to remake it.”
      Kate Aronoff is a staff writer at the New Republic and the author of Overheated: How Capitalism Broke the Planet – And How We Fight Back More

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      Trump’s pitch for autoworker votes in car heartland is short on autoworkers

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      As the rain came down a small crowd was still left outside Drake Enterprises, a non-union automotive manufacturing plant in Clinton Township, Michigan, on Wednesday night waiting for former president Donald Trump.“We want to take our country back! Let Biden sleep in his hospital bed! We want guns! We want Trump!” shouted one of the 50 or so people still waiting as Trump’s motorcade pulled away from the sodden event. He declined to give his name.Trump spoke at the plant a day after President Joe Biden had joined a picket line in nearby Wayne in support of the United Auto Workers (UAW) strike against Detroit’s big three auto companies.Before the speech began, hundreds of Trump supporters lined the street in an industrial park, erupting in cheers as the former president’s motorcade pulled in.The gathering had all the festive, and sometimes chaotically surreal, energy that is often part of Trump rallies. Supporters banged on drums, breaking to yell “Freedom!” and drawing loud cheers from up and down the street. Many were draped in Trump 2024 flags. Another flag showed Trump as a Rambo-like figure holding a grenade launcher. Passing traffic blared their horns in support.Inside the event, Trump gave a rambling speech for more than an hour. Union workers should support him because electric cars would take their jobs, said Trump. China and other foreign powers were the real enemy, not low wages or incompetent bosses. “Your current negotiations don’t mean as much as you think,” said Trump.By Trump standards, the crowd was small but there was no doubting their enthusiasm and they did not seem to mind the twisting word salad of the speech as it touched on trans rights, the Taliban, grudges against Hillary Clinton and Trump’s current 2024 Republican opponents.Clinton Township is in Macomb county, a crucial battleground in 2024’s election, and the one thing that Trump and Biden have in common is a recognition that voters here are crucially important in the race for the White House.Unsurprisingly given the nature of the event, the crowd was firmly behind Trump.Ed Sands, a 73-year-old retired auto supplier employee, said Trump is “the only one who gives a shit about working people.“Joe Biden, Hillary Clinton, Obama – they were all terrible for Macomb county, jobs went to China, south, and you see all these people here today because Trump will bring them back,” Sands added.The former US president’s return to office is all but guaranteed, Sands said. “Look around you, look at these people. Do you think he is going to lose? Do you?”Christopher Demopolis, 35, who works in heating and cooling, echoed that sentiment, and said his UAW base will play a role. “I don’t see why he won’t win Michigan next time around – a lot of this is going to determine it,” he said, motioning to the lively crowd. “Trump supports the workers, Biden supports the leaders.”Though the focus of Trump’s event was on auto unions, it was unclear how many union members were there. Several of those who spoke with the Guardian said they were small business owners, or work for small businesses, but their numbers in this swing county are high.“That’s the thing – there are people who are union, but there’s also a whole bunch of us who are not and who work for small businesses, and we are more pro-Trump,” said Laura, who lives in nearby Mount Clemens, she declined to give her last name.Trump’s speech came a day after a New York judge ruled that the former president’s business fortune was built on rampant fraud and blatant lies.None of that seemed to faze his supporters. “I don’t care if he didn’t pay taxes,” said a supporter who declined to give his name. “He shouldn’t even have to pay taxes!” More

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      Strikes aren’t bad for the US economy. They’re the best thing that could happen | Robert Reich

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      America is in the midst of the biggest surge in labor activity in a quarter-century.The United Auto Workers (UAW), the Writers Guild of America, the actors’ union known as Sag-Aftra, Starbucks workers, Amazon workers, the Teamsters and UPS, flight attendants. The list goes on.More than 4.1m workdays were lost to stoppages last month, according to the labor department. That’s the most since 2000. And this was before the UAW struck the big three.Some worry about the effect of all this labor activism on the US economy, and view organized labor as a “special interest” demanding more than it deserves.Rubbish. Labor activism is good for the economy in the long run. And organized labor isn’t a special interest. It’s the leading edge of the American workforce.What accounts for this extraordinary moment of labor activity?Not that workers enjoy striking. Even where unions have funds to help striking workers offset lost wages, they rarely make up even half of what’s forgone. Large corporations whose operations are hobbled by strikes often lay off other workers, as the big three and their suppliers are now threatening to do.The reason workers go on strike is their expectation that the longer-term gains will be worth the sacrifices.Today’s labor market continues to be tight, despite efforts by the Fed to slow the economy and make it harder for workers to get raises. So employers (like UPS) are more inclined to give ground to avoid a prolonged strike.But something far more basic is going on here. As I travel around the country, I hear from average working people an anger and bitterness I haven’t heard for decades. It centers on several things.The first is that wages have barely increased while corporate profits are in the stratosphere.Average weekly non-supervisory wages, a measure of blue-collar earnings, were higher in 1969 (adjusted for inflation) than they are now.The American dream of upward mobility has turned into a nightmare of falling behind. Whereas 90% of American adults born in the early 1940s were earning more than their parents by the time they reached their prime earning years, this has steadily declined. Only half of adults born in the mid-1980s are now earning more than their parents by their prime earning years.Nearly one out of every five American workers is in a part-time job. Two-thirds are living paycheck to paycheck.Meanwhile, executive compensation has gone through the roof. In 1965, CEOs of America’s largest corporations were paid, on average, 20 times the pay of average workers. Today, the ratio is over 398 to 1.Not only has CEO pay exploded. So has the pay of top executives just below them. The share of corporate income devoted to compensating the five highest-paid executives of large corporations ballooned from an average of 5% in 1993 to more than 15% today.Corporate apologists claim CEOs and other top executives are worth these staggering sums because their corporations have performed so well. They compare star CEOs to star baseball players or movie stars.But most CEOs have simply ridden the stock market wave. Even if a company’s CEO had done nothing but play online solitaire, the company’s stock price would have soared.Stock buybacks have also soared – a huge subsidy to investors that further tips the scales against working people. The richest 1% of Americans owns about half the value of all shares of stock. The richest 10%, over 90%.Why don’t corporations devote more of their income to research and development, or to higher wages and benefits for average workers? In a word, greed.Small wonder that unions are more popular than they’ve been in a generation. A Gallup poll published in August found that 67% of Americans approve of unions, the fifth straight year such support has exceeded the long-term polling average of 62%.Joe Biden has pitched himself as the most pro-union president in recent history. More surprisingly, Republican politicians are trying to curry favor with union workers as well. Both parties know that much of the working class is up for grabs in 2024.American workers still have little to no countervailing power relative to large American corporations. Unionized workers now comprise only 6% of private-sector workforce – down from over a third in the 1960s.Which is why the activism of the UAW, the Writers Guild, Sag-Aftra, the Teamsters, flight attendants, Amazon warehouse workers and Starbucks workers is so important.In a very real sense, these workers are representing all American workers. If they win, they’ll energize other workers, even those who are not unionized. They’ll mobilize some to form or join unions.They’ll push non-union employers to raise wages and benefits out of a fear of becoming unionized if they don’t. They’ll galvanize other workers to stage wildcat strikes for better pay and working conditions.For far too long, America’s top executives, Wall Street traders and biggest investors have siphoned off almost all the economic gains. This is unsustainable, economically and politically.It’s not economically sustainable because the only way businesses can sell the goods and services American workers produce is if workers have enough money to buy them. If most gains continue to go to the top, the economy will become ever more susceptible to downdrafts and crashes.Today’s mainstream media emphasize the feared negative effects of the current wave of strike on the US economy, forgetting that the wave of strikes in the 1930s, 1940s, and 1950s helped create the largest middle class the world had ever seen – the key to America’s postwar prosperity.Stagnant wages and widening inequality are politically unsustainable because they foster anger and bitterness that’s easily channeled by demagogic politicians (re: Donald Trump and his enablers in the Republican party) into bigotry, paranoia, xenophobia and authoritarianism.The current wave of strikes isn’t bad for America. It’s good for America.Labor is not a “special interest”. It is, in a real sense, all of us.
      Robert Reich, a former US secretary of labor, is a professor of public policy at the University of California, Berkeley, and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His newest book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com More