President Biden is about to hitch the United Auto Staff’ strikes this week to point out assist for union staff, shortly earlier than Former President Donald Trump joins picket traces in Detroit, skipping out on the second GOP debate.
One of many points on the middle of the strike is EV manufacturing and what it means for the way forward for auto staff. Biden’s coverage to have electrical automobiles account for 50% of all new auto gross sales by 2030 has been lauded by Trump, amongst different Republicans, over automation fears that would eradicate jobs and the auto components wanted for meeting.
Yahoo Finance Senior Reporter Rick Newman joins to debate what’s factual and what’s political technique from each side of the aisle.
For extra skilled perception and the newest market motion, click on right here to look at this full episode of Yahoo Finance Stay.
Video Transcript
– President Biden will meet with placing UAW staff tomorrow, placing himself in the midst of the labor debate amid the transition to electrical automobiles. And former president Trump not far behind. He’ll be in Michigan on Wednesday. And it comes as he launches a brand new marketing campaign in opposition to EVS. Yahoo Finance senior columnist Rick Newman is right here with extra. So Rick, in opposition to EVs. What are the main points?
RICK NEWMAN: Proper. So all the things else is politicized in America. So why not electrical automobiles? There’s this Republican line that Trump has actually seized on, which is that Biden induced the United Auto Staff strike due to his fervent assist for electrical automobiles and all of the subsidies he has signed into regulation to attempt to get automakers to construct extra electrical automobiles and other people to purchase extra electrical automobiles. Biden’s coverage is he desires 50% of all new automobile gross sales to be electrical by 2030.
So why is that this a foul factor within the view of Republicans? Effectively, electrical automobiles have fewer components. They require fewer staff to construct them. From a technological perspective, that feels like progress to me. I imply, that is the entire historical past of capitalism, which is that you simply construct a greater mousetrap. You develop into extra environment friendly. You enhance your margins. And that is the way in which expertise progresses. However put this in a political context, and I assume they’re making an attempt to show that into a foul factor as a result of it means there will probably be fewer automaker jobs.
Now that’s not 100% true as a result of one other factor Biden has achieved is create these incentives for producers to construct all these inexperienced vitality vegetation, electrical automobile batteries and issues like that, to construct these all in america as an alternative of importing that, and that’s truly taking place. However Trump’s not going to say that. He desires the autoworkers and he desires voters, particularly in swing states like Michigan and Wisconsin, to assume, oh, EVs should be dangerous. Biden desires EVs. Subsequently, I’ll vote for Trump. I do not know if he’ll get any traction with that line of reasoning. It is probably not proper. However he’ll give it a shot.
– Effectively, after which there’s additionally one other constituency in all of this, which is the autodealers. We had been speaking a bit of bit earlier about CarMax. For many who are promoting EVs and being requested by the automakers to promote EVs, they are not essentially very comfortable about it both as a result of an EV does not want an oil change, proper? It does not want as a lot service as a combustion engine does. So the sellers do not make the cash on that side, proper? So it is very fascinating all these competing constituencies right here.
What I am interested by, Rick, is also unions are historically very core, democratic contingent right here. Is that being upended?
RICK NEWMAN: Trump is certainly making an attempt to upend it. We may speak for the following 45 minutes about all of the stuff you raised, Julie. I imply, assume, simply return to this argument. So electrical automobiles require much less upkeep. Do not all customers need their merchandise to require much less upkeep? I imply, that could be a non-ambiguously good factor for customers. And sellers, by the way in which, they are a fairly good markups on a variety of these electrical automobiles, in order that they’re making fairly good cash on a variety of them.
To return to the unions, the UAW endorsed Joe Biden in 2020, which upset Donald Trump clearly. So , Mr. Vengeful, he was making an attempt to get again on the UAW for this. The UAW has not but endorsed Biden in 2024, however they nearly actually will. However Trump on the similar time has gotten a really giant portion of union vote for a Republican who just isn’t endorsed by the union itself. That occurred in 2016, and it occurred in 2020.
So an enormous a part of what Donald Trump is making an attempt to do and possibly the primary factor he is making an attempt to do is simply get some vengeance in opposition to the management of the United Auto Staff. And considered one of his different traces is that he is been telling autoworkers, your management has bought you down the river, that is his phrase. And he desires to inform autoworkers that their union leaders suck and attempt to roil the union and see if he can simply trigger some mischief inside the union.
So , you’ll be able to vote for whoever you need in case you’re in a union. You do not have to vote for the get together that your union endorses. However Trump in a means is simply making an attempt to make bother. And he is campaigning. He is making an attempt to get the votes of blue collar staff in Michigan.
– All proper. We have now to depart it there. However thanks, as all the time. Yahoo Finance’s Rick Newman.
