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    Michigan autoworkers wary of Trump’s tariffs: ‘Playing poker with people’s lives’

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    The General Motors Flint Assembly plant is a hulking symbol of American auto industry might, a 5m-sq-ft factory stretching as far as the eye can see down Van Slyke Road, and it hums: three shifts almost daily crank out the Silverado truck, the automaker’s most popular product.The plant weathered decades of industrial disinvestment in Flint, a blue-collar city of about 80,000 in mid-Michigan, the nation’s auto capital. Flint Assembly remains an economic cornerstone of a Rust belt region filled with working-class swing voters who helped propel Donald Trump to his second term.The president did well here in part because he promised an industrial revival that will regenerate towns like Flint. On the campaign trail he promised tariffs would achieve this goal. This week the tariff war kicked into a higher gear. The reviews are mixed.Autoworkers, small business owners and residents here say tariffs could help Flint, but many aren’t comforted by what they characterized as Trump’s haphazard approach, higher prices on everyday goods and the prospect of middle-income folks becoming “collateral damage”.“Trump is playing poker, but he’s playing poker with people’s lives at this point,” said Chad Fabbro, financial secretary of United Auto Workers (UAW) Local 538 in Flint. Even the union is a house divided. The UAW president, Shawn Fain, supports tariffs, but Fabbro said many of the 5,000-strong rank and file at Flint Assembly see them as “bullshit”.Onshoring industry is a good idea, if well planned, Fabbro added, but an abrupt, full-scale tariff war is “not good for anyone because middle America is going to suffer”.Before Trump partly pulled back on Wednesday, his unprecedented trade war enacted at least 10% tariffs on nearly every country in the world last week, while hitting China, Taiwan and Vietnam with much higher rates. The war with China has escalated.There’s little disagreement about whether the tariffs would cause prices to increase for everyday goods like clothing, electronics and groceries – some estimate it could cost the average US household $3,800.In Flint, the debate seems to be: “Is the president’s political and economic gamble worth it?”The president’s supporters say “yes”, and have pushed variations of a message: any economic pain will be worth the benefits of a restructured world economy. Among them is Brian Pannebecker, a retired Ford employee who started Auto Workers for Trump.“It’s going to cause a little short-term pain, but we’re going to have to endure it for six months or a year, however long it takes,” he said last week. “The workers of this country have been enduring pain for decades as they closed plants down.”But among small business owners in downtown Flint, there’s some doubt about the idea of more pain in one of the nation’s poorest big cities – about 35% live in poverty.“The person who said that must be coming from a place of privilege because it is obvious that they’re going to be OK for the next year or so, but I think a lot of people are not in the same boat, so we have to be mindful of that,” Rebekah Hills, co-owner of Hills’ Cheese, said on Tuesday.Her shop imports about half of its product from countries such as the Netherlands, France and England – the cost of those products would go up 10% under Trump’s latest plan, or more if he changes his mind. “It really sucks because it’s small businesses that suffer the most,” Hills added.Frustration with stubbornly elevated prices – especially among foods – was largely behind a relatively strong Trump showing in 2024 in Genesee county, where Flint is located. He had lost to Biden and Hillary Clinton here by about 10% in the two previous elections, but closed the gap to 4% last year. Just north, in Saginaw county, also part of Michigan’s auto industry heartland, the president edged out Kamala Harris.Democrats in Michigan, some of whom are fiercely critical of free trade agreements, are calibrating their messaging with these things in mind. Among those who support tariffs is US representative Debbie Dingell, whose district near Detroit is home to many rank-and-file autoworkers.“I think tariffs are a tool in the toolbox so that we are competing on a level playing field with China, who subsidizes production, owns the companies and doesn’t pay a decent wage,” Dingell recently told WDET. “But it can’t be done chaotically.”Trump’s approach was damaging the economy, she said, but she also noted that 90% of the nation’s pharmaceuticals are imported, and onshoring that kind of production was a good idea. But, Dingell added, “you can’t do it overnight”.On Wednesday, just after Trump pulled back on most tariffs, the conservative-leaning Michigan political analyst Bill Ballenger said he wasn’t surprised by the abrupt announcement. The tariff rollout wasn’t going well for Republicans in Michigan or nationally, he said. It was more “too much, too soon” from the administration.“The public understands the tariffs and they get his overall goal and mission, but the way he’s implementing them seems incoherent,” Ballenger said. However, what that may mean in 19 months when the next elections happen is anyone’s guess, he added.skip past newsletter promotionafter newsletter promotionWill Flint be OK?Alan Jackson, a retiree from an auto supplier, echoed the president’s line. “Why does China and everyone else get to take advantage of us? Why do they get to screw us? I’m glad someone is standing up to that.”Jackson dismissed the fears of higher prices and economic damage. “People will be fine – it’s worth it,” he added.But polls showed a major drop in Trump’s approval rating, and in downtown Flint people are worried.The Flint farmers’ market, in a repurposed newspaper printing press building, is a local economic hub where a half-million people annually shop for everything from locally grown produce to local jerky.But many here partly rely on imports. Tony Vu, a restaurateur and leader in the local food system, is about to reopen his Vietnamese restaurant, MaMang. The uncertainty is generating fear of supply chain shortages, Vu said: “It seems like deja vu, but with no end in sight.”The tariffs especially take a toll on south-east Asian, Latino and other chefs of color importing goods that can’t be produced here – avocados don’t grow in Flint, Vu noted, and Michigan’s growing season is only five months long. Imports are essential.A case of fish sauce, a staple of Vietnamese cuisine, went from about $82 to $100 just on the speculation that tariffs were increasing, highlighting another problem – some companies use disruptions to the economy as an excuse to raise prices, even if they don’t need to.“It’s going to take an industry that already operates on thin margins and is really hard, and it’s going to create more pressure,” Vu said. “If businesses are not quick enough to adapt, then it’s going to be a death blow.”At d’Vine Wines, with shelves full of bottles from France and Italy, manager Aaron Larson said on Tuesday he was not totally sure what to make of the tariffs yet, but he doesn’t trust Trump. Fabbro, of the UAW, pointed to massive increases in Canadian aluminum prices that were a threat to Michigan’s robust craft brewery industry. Meanwhile, his neighbors where he lives in rural Vassar, a few miles north of Flint, grow soybeans they sell to China.About 40% of US soybean exports go to China, which just hit them with an 84% tariff on all US goods (later raised to 125%). They’re scared, Fabbro said.‘That’s how capitalism works’Auto Workers for Trump’s Pannebecker said that corporations should “absorb” some increased costs, and added that the unions are trying to have it both ways – they want higher wages but they want cars to be affordable. Something might have to give, he said.“The market will settle itself out because that’s how capitalism works,” he said.The president’s supporters trust his judgment.“He’s a shrewd businessman, right? That’s why people vote for him, so I say let’s give it a chance, but if the cost of everything goes up then maybe he has to pull back at some point,” said Russ, an autoworker at the farmers’ market who would only give his first name.At the UAW local hall across from the Flint Assembly plant, Fabbro isn’t convinced, and fears layoffs. “It’ll only be a few years? OK, don’t feed your kids for a few years. Sell your boat and home and everything you’ve worked for because you’re willing to be a bargaining chip,” he said. More

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      Labour: changes to EV rules will have ‘negligible’ impact on UK emissions

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      Labour’s changes to electric vehicle (EV) rules in response to Donald Trump’s tariffs will have a negligible impact on emissions, the transport secretary has said.Keir Starmer has confirmed plans to boost manufacturers, including reinstating the 2030 ban on the sale of new petrol and diesel cars.But regulations around manufacturing targets on electric cars and vans will also be altered, to help companies in the transition, and new hybrids will be on the market for a further five years.Heidi Alexander said the taxes on imports announced by the US president last week, which spurred reciprocal action by some affected countries, “are bad news for the global economy, because it’s bad for global demand, it’s bad for prices and it’s bad for consumers”.Speaking on BBC Breakfast about the impact on carbon emissions of the government’s changes to electric vehicle rules, she said: “The changes we are making have been very carefully calibrated so as not to have a big impact upon the carbon emissions savings that are baked into this policy. In fact, the impact on carbon emissions as a result of these changes is negligible.”Under the measures, luxury supercar companies such as Aston Martin and McLaren will be allowed to keep producing petrol cars beyond 2030 because they manufacture only a small number of vehicles a year. New hybrids and plug-in hybrid cars will be allowed to be sold until 2035. Petrol and diesel vans will be able to be sold until 2035, as well as all hybrid models.Alexander said the government had “struck the right balance” between protecting British businesses and cutting carbon emissions.Asked whether the retention of a 2030 target for the phasing out of all pure petrol and diesel cars would restrict free markets at a time when the car industry was on its knees, she said: “It is an opportunity for the car industry to remain at the cutting edge of the transition to EVs, but it’s right that we’re pragmatic.“It’s right that we are looking at how we can be flexible in the way in which car manufacturers make this transition, because we want cheaper EVs to be available for consumers. We want people to be able to benefit from those lower running costs as well.“And so it’s important that, as a government, we do everything that we can – not only to support British businesses and manufacturing to grow the economy, but also to cut those carbon emissions, and I think we’ve struck the right balance in the package that we’re announcing today.”Asked on BBC Radio 4’s Today programme if Starmer was prepared to use the relationship he has built with Trump to ask him to change course, she said: “Obviously when the prime minister has discussions internationally with allies he will be honest about what is in the best interests of the British people.”Challenged that the EV measures were planned before the announcement of the tariffs and were a tweak to policy rather than dramatic change, she told Today: “These are significant changes to the car industry. You are right to say we started the consultation on Christmas Eve and that we closed the consultation in the middle of February.”skip past newsletter promotionafter newsletter promotionShe said Trump’s imposition of tariffs meant the UK government had to look at its EV plans with “renewed urgency”.The Green party MP Siân Berry said: “The government is wrong to apply the brakes on the sale of EV cars. This is just the latest in a series of boosts the Labour government has given fossil fuel industries. We’ve also seen the green light being given to airport expansion and a new road tunnel under the Thames. This suggests Labour is weakening its climate commitments, and its health-related policy goals because all these moves will have a detrimental impact on air quality.“Slowing down the move away from fossil-fuelled transport makes no economic sense either, since green sectors of the economy are growing three times faster than the overall UK economy.”Colin Walker, the head of transport at the Energy and Climate Intelligence Unit, said: “In weakening the mandate elsewhere by extending flexibilities and allowing the sale of standard hybrids between 2030 and 2035, the government risks reducing the competition it has stimulated between manufacturers, meaning prices for families seeking an EV might not fall as fast, and sales could slow.“The growth of the secondhand EV market, where most of us buy our cars, would in turn be stunted, leaving millions of families stuck in petrol and hybrid cars paying a petrol premium of hundreds, and even thousands, of pounds a year.” More

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      Tesla investors brace for global sales data amid consumer backlash over Elon Musk

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      Tesla investors are bracing for evidence of declining global demand this week as the electric carmaker battles headwinds including a consumer backlash against its chief executive, Elon Musk.On 2 April, the US company will release data for first-quarter deliveries – a proxy for sales – that is expected to show a dip on the same period last year. The figures follow global protests on Saturday against Musk and Tesla, targeting the carmaker’s showrooms.Analysts have been lowering their forecasts amid evidence that Musk’s senior role in the Trump administration has damaged the Tesla brand.Dan Ives, managing director at the US financial firm Wedbush Securities and a self-avowed Tesla “core bull”, forecast deliveries to come in at between 355,000 and 360,000, a fall of 7% on the same period last year and down from initial predictions across Wall Street of 400,000.View image in fullscreenIves, who recently warned investors that Tesla was facing a “brand tornado crisis moment”, said 30% of the anticipated decline was due to brand damage associated with Musk and his involvement in the so-called department of government efficiency (Doge). The advisory body has targeted federal agencies with cost-cutting policies and redundancies.Other issues affecting Tesla’s figures during the first three months of the year include consumers waiting for an update to the top-selling Model Y. The US is Tesla’s biggest market.In a note to investors last week, Ives said that while “much of this softness is related to customers waiting for Model Y refreshes along with a lower-cost new model set to be launched by the summer … the anti-Musk and brand issues are clearly at play”.Matthias Schmidt, a Berlin-based electric car analyst, said Musk was “hitting his liberal consumer demographic exactly where it hurts”.“He has become the core toxic issue behind the disintegration of the brand and should step-aside before it explodes like one of his rockets,” added Schmidt, who is expecting first-quarter deliveries in western Europe to come in at just under 70,000 for the first time since the end of 2022.skip past newsletter promotionafter newsletter promotionView image in fullscreenAmong 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, according to market research firm Strategic Vision.Last week, Donald Trump announced a 25% tariff on cars from overseas, with Tesla also expecting to be affected despite making its cars for the US market in America. The company imports some parts for its US-made cars. Last week, Musk wrote on X, his social media platform, that Tesla is “not unscathed” by tariffs. He added: “The tariff impact on Tesla is still significant.”The tariffs threaten to plunge the global auto industry into “pure chaos”, according to Ives. “Every auto maker in the world will have to raise prices in some form selling into the US and the supply chain logistics of this tariff announcement heard around the world is hard to even put our arms around at this moment,” he said in a note to investors last week.However, on Saturday, Trump said he “couldn’t care less” if carmakers raise prices in response to the tariffs on foreign-made vehicles. Indeed, the US president told NBC News that he hoped foreign carmakers raise prices as it means “people are gonna buy American-made cars. We have plenty.” More

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      US allies worldwide decry Trump’s car tariffs and threaten retaliation

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      Governments from Tokyo to Berlin and Ottawa to Paris have voiced sharp criticism of Donald Trump’s sweeping tariffs on car imports, with several of the US’s staunchest long-term allies threatening retaliatory action.Trump announced on Wednesday that he would impose a 25% tariff on cars and car parts shipped to the US from 3 April in a move experts have predicted is likely to depress production, drive up prices and fuel a global trade war.The US imported almost $475bn (£367bn) worth of cars last year, mostly from Mexico, Japan, South Korea, Canada and Germany. European carmakers alone sold more than 750,000 vehicles to American drivers.France’s president, Emmanuel Macron, said on Thursday he had told his US counterpart that tariffs were not a good idea. They “disrupt value chains, create an inflationary effect and destroy jobs. So it’s not good for the US or European economies,” he said.Paris would work with the European Commission on a response intended to get Trump to reconsider, he said. Officials in Berlin also stressed that the commission would defend free trade as the foundation of the EU’s prosperity.Germany’s chancellor, Olaf Scholz, bluntly described Trump’s decision as wrong, and said Washington appeared to have “chosen a path at whose end lie only losers, since tariffs and isolation hurt prosperity, for everyone”.France’s finance minister, Eric Lombard, called the US president’s plan “very bad news” and said the EU would be forced to raise its own tariffs. His German counterpart, Robert Habeck, promised a “firm EU response”. “We will not take this lying down,” he said.Poland’s prime minister, Donald Tusk, said Europe would approach the US with common sense but “not on our knees”. Good transatlantic relations are “a strategic matter” and must survive more than one prime minister and one president, he said.The European Commission president, Ursula von der Leyen, described the move as “bad for businesses, worse for consumers” because “tariffs are taxes”. She said the bloc would continue to seek negotiated solutions while protecting its economic interests.The British prime minister, Keir Starmer, said the tariffs were “very concerning” and that his government would be “pragmatic and clear-eyed” in response. The UK “does not want a trade war, but it’s important we keep all options on the table”, he said.His Canadian counterpart, Mark Carney, said on social media: “We will get through this crisis, and we will build a stronger, more resilient economy.”Carney later told a press conference that his administration would wait until next week to respond to the new US threat of tariffs, and that nothing was off the table regarding possible countermeasures.He would, he added, speak to provincial premiers and business leaders on Friday to discuss a coordinated response.“It doesn’t make sense when there’s a series of US initiatives that are going to come in relatively rapid succession to respond to each of them. We’re going to know a lot more in a week, and we will respond then,” he said.One option for Canada is to impose excise duties on exports of oil, potash and other commodities. “Nothing is off the table to defend our workers and our country,” said Carney, who added that the old economic and security relationship between Canada and the US was over.South Korea said it would put in place a full emergency response to Trump’s proposed measures by April.China’s foreign ministry said the US approach violated World Trade Organization rules and was “not conducive to solving its own problems”. Its spokesperson, Guo Jiakun, said: “No country’s development and prosperity are achieved by imposing tariffs.”The Japanese prime minister, Shigeru Ishiba, said Tokyo was putting “all options on the table”. Japan “makes the largest amount of investment to the US, so we wonder if it makes sense for [Washington] to apply uniform tariffs to all countries”, he said.Reuters and Agence-France Presse contributed to this report More

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      Tesla tells US government Trump trade war could ‘harm’ EV companies

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      Elon Musk’s Tesla has warned that Donald Trump’s trade war could expose the electric carmaker to retaliatory tariffs that would also impact other automotive manufacturers in the US.In an unsigned letter to Jamieson Greer, the US trade representative, Tesla said that it “supports fair trade” but that the US administration should ensure that it did not “inadvertently harm US companies”.Tesla said in the letter: “As a US manufacturer and exporter, Tesla encourages the Office of the United States Trade Representative (USTR) to consider the downstream impacts of certain proposed actions taken to address unfair trade practices.”The company, led by Musk, a close ally of Trump who is leading efforts to downsize the federal government, said it wanted to avoid a similar impact to previous trade disputes which resulted in increased tariffs on electric vehicles imported into countries targeted by the US.Tesla said: “US exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions. The assessment undertaken by USTR of potential actions to rectify unfair trade should also take into account exports from the United States.“For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on electric vehicles imported into those countries.”Trump has imposed significant tariffs that will affect vehicles and parts made around the world.The EU and Canada have announced large-scale retaliations for tariffs on steel and aluminium imports into the US, while the UK has so far held off on announcing any countermeasures.Tesla’s share price has fallen by more than a third over the last month over concerns about a potential buyer backlash against Musk, who has shown support for Germany’s far-right Alternative für Deutschland party, theatrically brandished a chainsaw at a conservative conference, and accused Keir Starmer and other senior politicians of covering up a scandal over grooming gangs.skip past newsletter promotionafter newsletter promotionThis week Trump said said he was buying a “brand new Tesla” and blamed “radical left lunatics” for “illegally” boycotting the EV company – a day after Tesla’s worst share price fall in nearly five years.Tesla said: “As USTR continues to evaluate possible trade actions to rectify unfair trade practices, consideration should also be given to the timeline of implementation. US companies will benefit from a phased approach that enables them to prepare accordingly and ensure appropriate supply chain and compliance measures are taken.” More

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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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      in US Politics

      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