Latest news with #ShawnFain
Yahoo
11-05-2025
- Automotive
- Yahoo
UAW: Stellantis has scrapped plans for battery plant, parts hub in Belvidere
BELVIDERE, Ill. (WTVO) — Stellantis has scrapped plans for an EV battery plant and parts distribution hub in Belvidere, according to the United Auto Workers union Vice President Kevin Gotinsky. On Tuesday, Gotinksy told that the battery plant and parts hub were no longer part of Stellantis' plan for the Belvidere Assembly Plant. The plant has sat idle since 2023. That fall, Stellantis announced it would invest nearly $5 billion in the factory, including an electric vehicle battery plant and a parts distribution hub. The project was in federal funding announced by the Biden administration to help Stellantis convert the Belvidere plant to build electric vehicles. Stellantis said the state had purchased 170 acres of land next to the plant for the factory, which was to be a joint venture with an unannounced business partner. It was expected to launch in 2028. The company cited 'market conditions' for its delay in reopening the plant, as demand for EVs slowed. In January, UAW President Shawn Fain announced the plant would reopen in 2027, putting 1,500 union members back to work. In March, United Auto Workers Local 1268 President Matt Frantzen said the Belvidere Assembly Plant would operate in two shifts once it comes back online, with the company looking to recall Skilled Trades workers in the 1st quarter of 2026, Team Leaders in the 4th quarter, and Team Members in the 1st or 2nd quarter of 2027. In a letter to union members in March, Frantzen said the promised Mopar Mega Hub and battery plant, part of the original union contract, were not included at that stage. In April, Stellantis said it was the Belvidere Assembly Plant in 2027, with production of a midsize pickup truck, but it is unknown whether its drive train would be electric or internal combustion. When asked for a statement on Gotinksy's comments, a Stellantis spokesperson replied, 'Stellantis has no updates to share at this time on the MegaHub or the battery plant.' Stellantis CEO Carlos Tavares announced his exit in December, with the embattled executive handing the reins to chairman John Elkann while efforts were undertaken to find his replacement. Antonio Filosa, the company's chief operating officer for the Americas, has emerged as a. News of the battery plant cancellation comes as a setback in Illinois' objectives to become an electric vehicle manufacturing and supply hub. Gov. JB Pritzker of having 1 million EVs on Illinois roads by 2030, and introduced a Reimagining Electric Vehicles Act (later renamed the Reimagining Energy and Vehicles Act), which incentivized manufacturers to move to the state. Lion Electric, which opened a plant in Joliet to build electric school buses, recently . The state recently pledged $16 million to help EV maker Rivian open a near its headquarters in Normal. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Miami Herald
11-05-2025
- Business
- Miami Herald
Detroit automakers warn UK trade deal will hurt US auto industry
The business community is taking the arrows from the trade war the U.S. launched on "Liberation Day" last month. Unlike in a traditional war, businesses are on the front lines, as they pay the 145% duties on imported goods from China and the 25% tariffs on imported vehicles. Don't miss the move: Subscribe to TheStreet's free daily newsletter The U.S. government collects the money, and businesses usually pass at least some of the cost along to consumers. The same thing happens to Chinese importers who pay that country's tariffs on the mineral fuels, oil seeds, electric machinery, aircraft, and spacecraft parts that they need from America. Despite this extra cost, tariffs are championed by numerous industries due to their long-term benefits for domestic producers. Higher prices on foreign goods due to taxes make domestically made products more attractive. "We're in a triage situation," Shawn Fain, president of the United Auto Workers union (the largest auto worker union in the country), told ABC earlier this year. "Tariffs are an attempt to stop the bleeding from the hemorrhaging of jobs in America for the last 33 years." Related: UK trade deal gives car buyers a glimpse of what the future holds Fain famously campaigned for President Donald Trump's opponent Kamala Harris during the 2024 election. If companies already produce their goods domestically, they can benefit without any extra work. So, as Trump negotiates tariff deals that lower the duties placed on foreign competitors, the short-term pain domestic producers endure becomes that much worse. On Thursday, the White House announced a trade deal with the UK, and it is ruffling feathers among some of the people backing Trump's tariff campaign back home. Image source: Shen/Bloomberg via Getty Images On Thursday, the White House announced an outline for a trade deal with the United Kingdom. The United States is the UK's largest trading partner, with business between the two countries (imports and exports) rising nearly 4% last year to £314.6 billion ($416.8 billion). The U.S. accounted for about 18% of total UK trade. Cars accounted for about 5% of the UK's total exports to the U.S. in 2024, making automotive the largest UK export to the States. In 2024, the UK exported £9.0 billion ($12 billion) worth of cars to the U.S., accounting for 24.7% of the country's total car exports. The U.S. is Britain's top trade partner in the car sector. Related: Elon Musk's Starlink is the key to avoiding U.S. tariffs American Automotive Policy Council, the automotive group representing Detroit's Big 3 automakers (Ford (F) , General Motors (GM) , and Stellantis (STLA) ), responded unhappily. "The U.S. automotive industry is highly integrated with Canada and Mexico; the same is not true for the U.S. and UK. We are disappointed that the administration prioritized the UK ahead of our North American partners," Matt Blunt, president of the AAPC, said. "Under this deal, it will now be cheaper to import a UK vehicle with very little U.S. content than a USMCA-compliant vehicle from Mexico or Canada that is half American parts. This hurts American automakers, suppliers, and auto workers." If you are a U.S.-based fan of luxury UK brands like Bentley, Jaguar, Land Rover, or McLaren, rejoice, because the deal between the two countries will make the price tags for those vehicles slightly more reasonable. The UK exported about 102,000 vehicles to the U.S. in 2024. The average cost to ship a car to the US from the UK is about £1,205 ($1,597), according to AutoShippers. Much of that cost is often passed on to the consumer. The Trump administration had placed 25% import taxes on cars coming from overseas on top of the existing 2.5% duty. That number was cut to 10% on a maximum of 100,000 vehicles; any cars exported above that level are subject to the 27.5% import tax. More Automotive news: Ford could take drastic measures to combat tariffs, leaked memo saysTesla quietly kills model it teased just last year, for nowForget tariffs; used car buyers have another reason to worry about prices U.S. automakers are hoping that this deal isn't the blueprint for future tariff negotiations. "We hope this preferential access for UK vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors," Blunt said. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CBC
07-05-2025
- Automotive
- CBC
UAW leaders in Michigan break with Fain on tariffs against Canada
Social Sharing United Auto Workers President Shawn Fain has emerged as an unexpected supporter of U.S. President Donald Trump's tariffs against Canada, to the frustration of workers north of the border. But some of Fain's own leaders in Michigan say they don't support a trade war with Canada — a country they say has been both a friend and reliable partner to the U.S. "They pay great wages over there, we pay great wages over here," said LaShawn English, director of UAW Region 1, told CBC News at an event in a Detroit suburb Tuesday. "There's no disadvantage between the two countries. And that tariff that [Trump's] putting on them should go away. I truly believe that." English, who represents some Canadian workers at auto suppliers in southwestern Ontario, said she believes other union members feel the same. "I think the ones in Michigan do because everybody in Michigan [knows] how closely tied in we are with Canada," she said. Romaine McKinney III, president of UAW Local 869, says the trade fight between the U.S. and Canada "does not make a lot of sense." "When the tariff issue began, one of the worst things that could have happened was the war between Canada and America," said McKinney, who represents workers at Stellantis' stamping plant in Warren, Mich. The range of opinions within UAW leadership is emblematic of the union's diverse membership, as well as its heavy representation in border communities where the two countries have developed their auto sectors side-by-side over more than a century. That history of co-operation is in part what fuelled outrage from Canadian labour leaders when the UAW first came out in support of Trump's trade moves, which experts have warned could heavily damage the continent's interconnected auto industry. In early March, Trump slapped Canada and Mexico with 25 per cent tariffs on a broad range of goods, citing fentanyl and immigration concerns. In response, the UAW released a statement praising the president for taking "aggressive action on ending the free trade disaster that has dropped like a bomb on the working class." Trump has since largely clawed back those levies, but has also hit all parts and assembled vehicle imports – including those from Canada — with 25 per cent tariffs. Canada has enacted retaliatory measures. Carney says he 'pressed the case' for tariffs to be lifted in meeting with Trump 23 hours ago Duration 1:40 During a news conference in Washington following his meeting with U.S. President Donald Trump, Prime Minister Mark Carney said he is making the case for tariffs to be removed and that 'considerable efforts' have been made to increase border security, specifically regarding fentanyl. Carney added there is 'more work to do' in making the case that tariffs aren't good for Americans either. In response to complaints from North American companies, the U.S. president has provided some tariff relief and exemptions to lessen the impact. Still, industry and union leaders in Canada say the trade war is hurting, not helping, workers on both sides of the border. Already, some plants in both Windsor and Michigan have temporarily shuttered due to the tariffs, and backlash to the trade war has arisen in Congress. In April, Fain hosted a livestream where he qualified his support of tariffs. "We support some use of tariffs on auto manufacturing and other similar industries," he said. "We don't support the use of tariffs for political gains about immigration or fentanyl. We do not support reckless, chaotic tariffs on all countries at crazy rates. "We absolutely support, and have always supported, tariffs on the auto industry ... The difference is, the auto tariffs are designed for a specific purpose. They raise the costs on the companies that have killed good jobs in a race to the bottom for cheap labour elsewhere, while Wall Street makes a killing." Fain, who has focused his ire on automakers who shift production to Mexico, where workers earn lower wages and have fewer protections, has told at least one media outlet that he doesn't view Canada as the problem. "Canada pays decent wages; they have good standards; they have good health care," he told Jacobin in early April. "They're not the enemy in this." But Fain and the UAW have not responded to repeated requests for comment from CBC News on whether that means he wants to see Canada fully excluded from tariffs. McKinney, the union leader at the Warren Stamping Plant, says he doesn't like the way Trump went about handling the tariffs. "To drop them on everybody immediately at one time, I mean, how can you not think that that is a breach of trust that breaks their friendship?" said McKinney. "I think everything should have been incrementally installed. There should have been a plan laid out month to month, fiscal cycle to fiscal cycle." McKinney said he does support "a kind of a tariff that would equalize things." But he says the current trade measures are "just decimating both sides," and that Canada's place in the auto sector is "probably the least of our concern right now." "To say I am for the tariffs, I can't say that, but I am definitely for the United States of America working their members and their laid-off former members," he said. English, the regional director, called on automakers such as Stellantis to use what the industry calls "white space" — unused capacity at existing factories – in the U.S. instead of offshoring production to countries like Mexico. She said there are 3,000 laid-off workers in the region that are "sitting at home, don't know when they're gonna get called back or if they're going to get called back." She said her Canadian members are worried right now as well because of the "uncertainties that are happening in the United States right now." "It is going to hurt the Canadians and it's gonna hurt here," she said. "And with the president that we got, every day it changes. So it's almost like you really can't speak on tariffs because no one knows what he's going to do, right?" But she was certain about one thing: "We've got to stop the fighting between Canada and the United States. Especially Michigan. [We're] tied in like this," she said, interlacing her fingers.
USA Today
06-05-2025
- Automotive
- USA Today
UAW claims US automakers can build millions more vehicles — experts disagree
UAW claims US automakers can build millions more vehicles — experts disagree Show Caption Hide Caption UAW president Shawn Fain supports Trump's auto tariffs The president of the United Auto Workers union is praising President Trump's tariffs on foreign-made vehicles, but says it can't stop there. Straight Arrow News The UAW says underutilization of auto plants is no accident and is calling on automakers to build more vehicles in the United States. Automation is one reason for today's auto manufacturing employment numbers, one expert notes. The UAW wants more vehicles to be built in the United States, and the union says the country's underutilized auto plants offer tremendous potential to boost employment numbers. Reaching full existing capacity 'could create up to 90,000 new manufacturing jobs, not to mention 630,000 more in the rest of the U.S. economy,' according to the union. The union assertions coincide with UAW President Shawn Fain's embrace of President Donald Trump's auto tariffs, although tariffs aren't cited in the union's white paper, 'Unlocking the Potential of U.S. Auto Manufacturing Capacity,' issued in April. The report, which got a mixed reaction from several industry watchers, also doesn't appear to reference auto parts manufacturing, a major piece of the auto sector. The paper says 16 Ford Motor Co., General Motors, Stellantis and Volkswagen plants, including what was once GM Lordstown in Ohio, have capacity to spare, and it argues automakers have the infrastructure to produce millions more vehicles. "In 2024, the U.S. auto industry had the capacity to build more than 14.7 million vehicles. However, only 10.2 million vehicles were produced, leaving 4.5 million units of unused capacity," according to the white paper. The report calls out this underutilization as not accidental but rather 'the result of a deliberate strategy that puts offshoring, stock buybacks and short-term profits ahead of investment in union jobs, strong communities and long-term stability.' In case you missed it: UAW members could see $3,780 profit-sharing checks, a big drop from 2024 The message is straightforward, urging the industry to 'step up' as it did during World War II's 'Arsenal of Democracy' and during the COVID-19 pandemic with the production of medical equipment. The UAW even planned rallies in Trenton and Warren, on May 5 and 6, respectively, to call on Stellantis, owner of Jeep, Ram, Chrysler, Dodge and Fiat, to 'fully utilize the excess capacity at its American plants.' Fain, in a news release, said 'we don't need to break ground on a single new plant to rapidly grow auto manufacturing capacity — it's already right in front of us, in the plants we've built, the skills of our members and the communities that depend on these jobs. Instead of offshoring jobs to low-wage, high-exploitation countries, auto companies must invest here at home and rebuild the middle class with union labor.' The Free Press asked several auto industry watchers to weigh in on the union's white paper. Harley Shaiken, labor expert and professor emeritus at the University of California, Berkeley: 'The UAW paper makes an important point that 'The American auto industry has a proud legacy of rising to national challenges.' … "I would add to that 'The Treaty of Detroit' that Walter Reuther and GM signed after World War II laid the basis for another critical achievement to come out of Detroit a vast expansion of the middle class, perhaps the most important model that was produced. "That said, the paper is incomplete in the present form. It doesn't mention what kind of vehicles that will be produced: ICE (gas-powered) or EVs (electric vehicles). Last year about half of all production in China was EV or hybrid. We are managing to damage the environment further at a critical moment and fall behind competitively both at the same time. "As a result of not mentioning EVs, the paper just talks about unused production 'space.' Billions of new tooling will be required and a transition could take two to five years. It's not as simple as ripping up machines and moving them north or south. And what about USMCA? The (United States-Mexico-Canada trade) agreement will be up for review in 2026 and much criticism is appropriate, but simply dumping it rather than extensively revising it could create havoc in Mexico and Canada, two of our closest allies. "The unprecedented turmoil in the administration's tariff policies gives 'chaos' a bad name. What is introduced at 9 a.m. on any given day could be dumped or significantly revised at noon. There is clearly little manufacturing expertise in the administration and it's damaging to the companies and to UAW workers. 'Solidarity forever' should not simply stop at the border to have successful economies that benefit workers across North America." Marick Masters, labor expert and professor emeritus at Wayne State University: "I have read the paper, and it presents data to bolster the UAW's argument that there is much unfilled capacity in the U.S. auto vehicle manufacturing sector (which I read to be auto assembly per se) that could be employed to offset the tariffs on vehicles, which is the intended effect of Trump's 25% general tariff on auto vehicles. I do not have any basis for disputing their calculations on untapped capacity. "Data on unused capacity from government sources show potential for growth in capacity utilization. They are using a straightforward calculation from Federal Reserve data on the expected employment gains if this were done by the Big Three, plus. "But that does not mean there is demand for the products that existing facilities are set up to assemble. The production footprint and supply chains in (North America) are intricately linked connecting parts and assembly for certain brands of vehicles. In addition, the companies are in a state of transition from ICE to EV, which means that some of their U.S. capacity may not be suited for use under this transition. "There is lot more that needs to be done to reindustrialize the U.S., which is arguably a worthy objective. Several major things come to mind immediately. Perhaps the most important would be to reduce the regulatory burden on manufacturing, increase energy capacity and reduce costs in this area, and reduce the tax burden on businesses, including general tax rates and expensing of depreciation and capital investments. Auto tariff shake-up: Economists estimate new tariff costs to range between $2,000 to $12,000 per vehicle "I think a large part of the Trump policy regarding auto tariffs is aimed directly at China, the world's leading automaker and EV producer. It subsidizes auto production, does not have the same regulatory burdens as operating in the U.S., and substantially lower labor costs than the U.S." Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions "Comparing capacity of plants making ICE vehicles with the upgraded plants making EVs is not an apples-to-apples comparison. Many of these plants, such as Orion, Factory Zero and Spring Hill are attempting to ramp up for an electric future. To make EVs most efficiently, the assembly lines cannot easily switch between traditional cars and trucks and modern EVs. Failing to express this reduces the importance of comparing factory output 10 years apart. "Just because the capacity is there doesn't mean (it) could be filled. Unless UAW workers were willing to take a pay cut or increase the automation in these factories, U.S. buyers will not have the choice of entry-level models that are currently imported. "Much of the current level of employment in the industry is due to the increased automation, a point that the UAW doesn't want to acknowledge. It takes fewer people to make a vehicle today. Increased automation could open plants to more production, especially of the lower-priced models the market needs, but that would be counter to the UAW's drive for more members. "Ignoring the benefits of the USMCA reduces the competitive nature of the U.S. by closing doors for exports and raising the prices of vehicles and components for American buyers." Contact Eric D. Lawrence: elawrence@ Become a subscriber. Submit a letter to the editor at
Forbes
05-05-2025
- Business
- Forbes
Tariffs: What They Are, How They Work, Who Pays The Bill
Concept: Trade protectionism by the United States of America by implementing tariffs. A security ... More fence built around a 3d map of the USA with signs "Tariffs" and 10%, 30%, 80%, 100%. Gray Background Tariffs are a hot topic these days. We will discuss in simple terms what they are, how they work, and who pays the bill. We'll also look at the trade imbalance of the United States during the past 78 years. In short, you will see when the U.S. had a trade surplus and when there was a trade deficit. Hint: America has had a trade deficit in about 90% of the years since 1947. Understanding tariffs and who pays is crucial these days. Tariffs are a tax imposed by one country on goods and services imported from another country. One purpose of tariffs is to protect domestic businesses from lower-priced foreign competition. This is a key reason why Shawn Fain, President of the U.A.W., voiced his support for Trump's tariffs. If you'd like to know more, here's an article I wrote on March 10 entitled, 'UAW President Shawn Fain Supports Trump's Tariffs. Here's Why.' Tariffs are sometimes called duties. If you've ever returned to America from a trip to Canada, you may have had the option to buy certain products 'duty free.' In essence, this means no tax (tariffs). Tariffs may be imposed on all imports from a specific country or on targeted items. In addition to protecting domestic businesses, tariffs can raise revenue for the importing country, helping to reduce a budget deficit. Tariffs may also cause a reduction in economic growth (GDP) as consumers no longer have the option to buy the previously lower-priced, foreign-made product. In response to a higher priced import, consumers may choose to reduce spending, which raises the risk of recession. In today's global economy, there is a downside risk with tariffs. Many U.S. companies are highly dependent on foreign-made components to make their products. When the U.S. imposes high tariffs on those components, it raises the cost of production, which increases the cost of the product. To keep production costs down, the U.S.-based company must find the required components from another source. The U.S. company may be able to find what they need from within the U.S., but the cost is often higher than from its foreign supplier. Why? Primarily because the average annual wage in the U.S. in 2023 was about $65,470 per year, significantly higher than China's $39,218 (USD) or Mexico's $20,090 (USD). Since wages are one of the largest expenses for many companies, all else being equal, the higher the wage, the more expensive it is to manufacture. Even though the average wage can vary based on location, industry, etc., a higher average wage can be a good indication of the general standard of living for a given country. In short, the standard of living in the U.S. is much higher than in most foreign countries, making it more expensive to produce products. If a domestic source is available for the components needed, buying from within the country can help boost GDP, assuming the materials needed for production are reasonably priced. In addition to a financial strategy, tariffs can be used to facilitate foreign policy goals. For example, tariffs can be a tool to motivate foreign countries to reduce tariffs on U.S. products or services, which would help boost U.S. exports. Tariffs can also be used as leverage to get other concessions from a foreign country. Tariffs are collected at the U.S. border by the Customs and Border Protection agency. Tariffs imposed by the U.S. on imports are paid by the importing company. As mentioned, tariffs raise the cost of the products and services, which may be passed on to the consumer. At least one company, General Motors, recently announced that it would absorb the cost of tariffs on its imports to the tune of $4-5 billion. Thus, if a major U.S. company has a substantial profit margin and can afford to offset the cost of tariffs on its imports, their consumer would not face a price hike. However, small to medium sized businesses in America are not as financially able and will likely pass the increase to consumers. In short, there will likely be price increases on many products until new supply chains are up and running and/or tariffs are significantly reduced or eliminated. Tariffs have been a staple in the U.S. since its founding. In fact, until the modern income tax was installed in 1913 with the ratification of the sixteenth amendment, tariffs were the primary source of revenue for the federal government. While trade is vitally important, it is not a major factor for the U.S. economy. It should be noted that the U.S. economy in 2023 – as measured by GDP, consisted of consumer spending (68%), business spending (18%), government spending (17%), and net exports (-3%). Thus, closing the trade deficit by boosting exports will have a positive effect on GDP. The following chart shows the trade surplus or deficit for the past 78 years, on a quarterly basis, from January 1947 to January 2025. There were 313 calendar quarters during this period. The U.S. had a trade surplus in 31 of the quarters and a trade deficit in 282 quarterly periods. Thus, the U.S. had a trade deficit about 90% of the time. The chart also reveals that the deficits have worsened considerably in recent decades, which helps explain why tariffs have been front-and-center recently. Also shown is the largest trade surplus, which was $50 billion in the second quarter of 1980 and the largest deficit of $1.374 trillion during the fourth quarter of 2024. U.S. Trade Surplus-Deficit from Jan 1947 to Jan 2025 Trade is an important part of the U.S. economy. After losing 90,000 manufacturing facilities and millions of jobs in the past 33 years, President Trump has decided to install substantial tariffs to increase domestic manufacturing and create more favorable trade deals between the U.S. and its trading partners. Will it work? Will inflation rise? How long will it last? How much pain will American consumers have to shoulder before the issue is resolved? Good questions, but questions that cannot be easily answered at this point. Understanding tariffs and who pays is important. While the consumer will most likely pick up the tab, in some cases, the importing company will pay the tariff. If you'd like to learn more about tariffs, please read, 'Trump's Tariffs Loom. There's More To It Than Most Understand' or 'Trump's Tariffs And Inflation – Who Pays?' or 'Trump's Tariffs: What Every American Should Know'
