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Ford Plans More Gas Trucks, Fewer Electric Vehicles

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Ford, General Motors and other automakers are slowing investments in electric vehicles and doubling down on more profitable gasoline cars and trucks.For much of the last five years, automakers have been spending billions of dollars in a frantic race to develop electric vehicles and build factories to produce them, with expectations that consumers would flock to these new models.But in the past 12 months, the growth rate of electric vehicle sales has slowed sharply as some car buyers have balked at the high prices of electric cars and trucks and the hassles of charging them, especially on long trips.The shift in consumer sentiment is now forcing many automakers to pull back on aggressive investment plans, and pivot, at least partly, back to the internal-combustion engine vehicles that still account for most new car sales and a large share of corporate profits.The latest example came on Thursday when Ford Motor said it would retool a plant in Canada to produce large pickup trucks rather than the electric sport-utility vehicles it had previously planned to make there.Ford’s move comes a day after General Motors said it expected to make 200,000 to 250,000 battery-powered cars and trucks this year, about 50,000 fewer than it had previously forecast.“After the pandemic, there was a huge exuberance around E.V.s, and I think a lot of the manufacturers thought that growth was going to continue,” said Arun Kumar, a partner and managing director in the automotive and industrial practice at AlixPartners, a consulting firm. “But the reality is that’s not the case, and it’s a smart move to make sure you’re not losing market share in internal combustion.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    U.A.W. Monitor Reveals Details About Investigation Into Union Leader

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    A court-appointed monitor said he was looking into allegations that a union official was punished for resisting actions that would have benefited the union president’s partner and her sister.A court-appointed monitor disclosed on Monday that he was investigating accusations that the president of the United Automobile Workers union retaliated against a vice president for resisting actions that would have benefited the president’s domestic partner and her sister.The monitor made the disclosure in a court filing seeking access to internal union documents as part of an investigation that began in February into potential financial misconduct.Since then, the monitor and the union have clashed over how much access the monitor should have to union documents, and the pace at which the union has produced them. In Monday’s filing, the monitor, Neil Barofsky, sought an order granting him extensive access.The union declined to comment.The monitor was appointed as part of a 2021 consent decree that ended a federal corruption case against the union. It concerned 11 top officials who were convicted of felonies, including two former U.A.W. presidents.The U.A.W.’s current president, Shawn Fain, was an obscure union official before winning the top job in March 2023 on a platform of reforming the union, getting tough with large U.S. automakers and organizing nonunion companies.Under Mr. Fain, the union waged a set of six-week-long strikes last year that won members substantial wage and benefit increases. The union then capitalized on the momentum of the strike by unionizing a Volkswagen plant in Chattanooga, Tenn., this April — the first foreign-owned plant in the South to be unionized — before losing another high-profile election in May at two Mercedes plants in Alabama.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Tesla Sales Down, GM and Toyota Up Slightly in 2nd Quarter

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    High interest rates, economic uncertainty and a cyberattack appear to have dampened sales in the three months through June.Much of the auto industry, with the notable exception of Tesla, reported modest sales growth in the three months through June as high interest rates, high vehicle prices and uncertainty about the economy weighed on consumers.Sales in late June were also slowed by disruptions at car dealers stemming from a cyberattack on a company that supplies software and data services to dealerships.Cox Automotive, a market research firm, estimated on Tuesday that 4.1 million new cars and trucks were sold in the second quarter in the United States, up a little from the period in 2023. That’s a marked slowdown from the year’s first three months, when sales grew 5 percent. In the first six months of 2024, 7.9 million new vehicles were sold, an increase of 3 percent from the first half of last year, Cox said.Slow growth is likely to continue through the end of the year, said Jonathan Smoke, Cox’s chief economist. “The market is roiled by uncertainty,” he said. “We probably can’t quite keep the pace of sales of the first half, but we aren’t expecting a collapse in sales.”Cox has forecast that 15.9 million new cars and trucks will be sold in the United States this year. That would be an increase from the 15.5 million sold last year, but still well below the 17 million vehicles sold annually before the pandemic.General Motors said on Tuesday that it sold nearly 700,000 cars and light trucks in the United States in the second quarter, an increase of less than 1 percent from the period last year. The company said it was its best performance since the fourth quarter of 2020.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Car Deals Vanished During the Pandemic. They’re Coming Back.

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    Automakers and dealers are starting to offer discounts, low-interest loans and other incentives to lure buyers as the supply of cars grows.For much of the last four years, automakers and their dealers had so few cars to sell — and demand was so strong — that they could command high prices. Those days are over, and hefty discounts are starting a comeback.During the coronavirus pandemic, auto production was slowed first by factory closings and then by a global shortage of computer chips and other parts that lasted for years.With few vehicles in showrooms, automakers and dealers were able to scrap most sales incentives, leaving consumers to pay full price. Some dealers added thousands of dollars to the manufacturer’s suggested retail price, and people started buying and flipping in-demand cars for a profit.But with chip supplies back to healthy levels, auto production has rebounded and dealer inventories are growing. At the same time, higher interest rates have dampened demand for vehicles. As a result, many automakers are scrambling to keep sales rolling.Wes Lutz, owner of Extreme Dodge in Jackson, Mich., said he had several Dodge Challengers and Chargers that were eligible for $11,000 discounts from Stellantis, the manufacturer of Dodge, Chrysler, Jeep and Ram models. The automaker is also offering discounts of up to $3,600 on certain versions of the Dodge Durango sport utility vehicle.“It seems like we may be headed back toward incentives and overproduction,” Mr. Lutz said. “It’s not there yet, but it’s getting close.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    U.S. Accuses Hyundai and Two Other Companies of Using Child Labor

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    The Labor Department filed a lawsuit accusing Hyundai, one of its suppliers and a staffing company of jointly employing a 13-year-old on an auto body parts assembly line in Alabama.The Labor Department on Thursday sued Hyundai over the use of child labor in Alabama, holding the car manufacturer liable for the employment of children in its supply chain, including a 13-year-old girl who worked up to 60 hours per week making car parts.In the suit, filed in a federal court in Montgomery, Ala., the department said Hyundai was responsible for the employment of children at a Smart Alabama factory in Luverne, Ala., which produces parts like body panels that are shipped to a Hyundai factory in Montgomery. The suit also claimed a staffing agency, Best Practice Service, recruited the children to work at the supplier’s plant.In a statement, Hyundai said child labor was “not consistent with the standards and values we hold ourselves to as a company.” It added that the Labor Department used “an unprecedented legal theory that would unfairly hold Hyundai accountable for the actions of its suppliers.”Smart did not immediately respond to a request for comment. Representatives of Best Practice Service, which is no longer in business, could not be reached for comment.From July 2021 to February 2022, a 13-year-old girl worked at the Smart plant, where she was recruited to work by Best Practice Service, the suit claimed. The suit also contended that two other children were employed at the plant.The Labor Department said that through the employment of children at its supplier, Hyundai was in violation of the “hot goods” provision of the Fair Labor Standards Act, which prevents the interstate commerce of goods “that were produced in violation of the minimum wage, overtime or child labor provisions” of that law.“Companies cannot escape liability by blaming suppliers or staffing companies for child labor violations when they are in fact also employers themselves,” said Seema Nanda, the Labor Department’s chief legal officer, in a statement Thursday.The suit comes after investigations by Reuters and The New York Times documented the use of child labor by the suppliers of car companies. In 2022, Reuters found that Smart Alabama had used child labor at its facility, and that Kia, which is part of the same South Korean conglomerate as Hyundai, had also used child labor in the South. A 2023 investigation by The Times found children employed at the suppliers of General Motors and Ford Motor.Hyundai imports many of its vehicles from South Korea but has made big investments in factories in the South, spending nearly $8 billion on an electric vehicle plant in Georgia. The United Automobile Workers union has said it hopes to organize workers at Hyundai’s Montgomery plant. More

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    Teamsters Struggle to Unionize Amazon and FedEx Delivery Workers

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    The Teamsters union has made little headway in organizing workers at Amazon and FedEx despite wage and other gains it secured at UPS last year.Last year, two unions representing workers at three large automakers and UPS negotiated new labor contracts that included big raises and other gains. Leaders of the unions — the United Automobile Workers and the Teamsters — hoped the wins would help them organize workers across their industry.The U.A.W. won one vote to unionize a Volkswagen factory in Tennessee last month and lost one this month at two Mercedes-Benz plants in Alabama. The Teamsters have made even less progress at UPS’s big nonunion rivals in the delivery business, Amazon and FedEx.Polling shows that public support for unions is the highest it has been in decades. But labor experts said structural forces would make it hard for labor groups to increase their membership, which is the lowest it has been as a percentage of the total work force in decades. Unions also face stiff opposition from many employers and conservative political leaders.The Teamsters provide an instructive case study. Many of the workers doing deliveries for Amazon and FedEx work for contractors, typically small and medium-size businesses that can be hard to organize. And delivery workers employed directly by FedEx in its Express business are governed by a labor law that requires unions to organize all similar workers at the company nationally at once — a tougher standard than the one that applies to organizing employees at automakers, UPS and other employers.Some labor experts also said the Teamsters had not made as forceful a push as the U.A.W. to organize nonunion workers after securing a new contract with UPS.“You didn’t have that energy that you saw with the U.A.W.’s leaders,” said Jake Rosenfeld, a sociologist who studies labor at Washington University in St. Louis.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Senate Inquiry Finds BMW Imported Cars Tied to Forced Labor in China

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    The report also found that Jaguar Land Rover and Volkswagen bought parts from a supplier the U.S. government had singled out for its practices in Xinjiang.A congressional investigation found that BMW, Jaguar Land Rover and Volkswagen purchased parts that originated from a Chinese supplier flagged by the United States for participating in forced labor programs in Xinjiang, a far western region of China where the local population is subject to mass surveillance and detentions.Both BMW and Jaguar Land Rover continued to import components made by the Chinese company into the United States in violation of American law, even after they were informed in writing about the presence of banned products in their supply chain, the report said.BMW shipped to the United States at least 8,000 MINI vehicles containing the part after the Chinese supplier was added in December to a U.S. government list of companies participating in forced labor. Volkswagen took steps to correct the issue.The investigation, which began in 2022 by the chairman of the Senate Finance Committee, Ron Wyden of Oregon, a Democrat, highlights the risk for major automakers as the United States tries to enforce a two-year-old law aimed at blocking goods from Xinjiang. The Uyghur Forced Labor Prevention Act bars goods made in whole or in part in Xinjiang from being imported to the United States, unless the importer can prove that they were not made with forced labor.In a statement, Mr. Wyden said that “automakers are sticking their heads in the sand and then swearing they can’t find any forced labor in their supply chains.”“Somehow, the Finance Committee’s oversight staff uncovered what multibillion-dollar companies apparently could not: that BMW imported cars, Jaguar Land Rover imported parts, and VW AG manufactured cars that all included components made by a supplier banned for using Uyghur forced labor,” he added. “Automakers’ self-policing is clearly not doing the job.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    A Loss at Mercedes-Benz Slows U.A.W.’s Southern Campaign

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    After Mercedes workers voted against joining the United Automobile Workers, the union will have less momentum as it campaigns to organize Southern factories.After suffering a setback at two Mercedes-Benz plants in Alabama on Friday, the United Automobile Workers union’s efforts to organize other auto factories in the South is likely to slow and could struggle to make headway.About 56 percent of the Mercedes workers who voted rejected the U.A.W. in an election after the union chalked up two major wins this year. In April, workers at a Volkswagen plant in Tennessee voted to join the union, the first large nonunion auto plant in the South to do so. Weeks later, the union negotiated a new contract bringing significant pay and benefit improvements for its members at several North Carolina factories owned by Daimler Truck.“Losing at Mercedes is not death for the union,” said Arthur Wheaton, director of labor studies at Cornell University School of Industrial and Labor Relations. “It just means they’ll have less confidence going to the next plant. The U.A.W. is in it for the long run. I don’t think they’re going to stop just because they lost here.”Since its founding in 1935, the U.A.W. has almost exclusively represented workers employed by the three Michigan-based automakers: General Motors, Ford Motor, and Chrysler, now part of Stellantis. And it has long struggled to make headway at plants owned by foreign manufacturers, especially in Southern states where anti-union sentiment runs deep.Workers at the Volkswagen plant had voted against being represented by the U.A.W. twice by narrow margins before the recent union win there. An effort a decade ago to organize one of the Mercedes plants failed to build enough support for an election.Harley Shaiken, a professor emeritus at the University of California, Berkeley, noted that broad union organizing efforts seldom proceeded smoothly. In the 1930s, the U.A.W. won recognition at G.M. and Chrysler but struggled at Ford, which continued employing nonunion workers for a few years.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Few Chinese Electric Cars Are Sold in U.S., but Industry Fears a Flood

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    Automakers in the United States and their supporters welcomed President Biden’s tariffs, saying they would protect domestic manufacturing and jobs from cheap Chinese vehicles.The Biden administration’s new tariffs on Chinese electric vehicles won’t have a huge immediate impact on American consumers or the car market because very few such cars are sold in the United States.But the decision reflects deep concern within the American automotive industry, which has grown increasingly worried about China’s ability to churn out cheap electric vehicles. American automakers welcomed the decision by the Biden administration on Tuesday to impose a 100 percent tariff on electric vehicles from China, saying those vehicles would undercut billions of dollars of investment in electric vehicle and battery factories in the United States.“Today’s announcement is a necessary response to combat the Chinese government’s unfair trade practices that endanger the future of our auto industry,” Senator Gary Peters, a Michigan Democrat, said in a statement. “It will help level the playing field, keep our auto industry competitive and support good-paying, union jobs here at home.”On Tuesday, President Biden announced a series of new and increased tariffs on certain Chinese-made goods, including a 25 percent duty on steel and aluminum and 50 percent levies on semiconductors and solar panels. The tariff on electric vehicles made in China was quadrupled from 25 percent. Chinese lithium-ion batteries for electric cars will now face a 25 percent tariff, up from 7.5 percent.The United States imports only a few makes — electric or gasoline — from China. One is the Polestar 2, an electric vehicle made in China by a Swedish automaker in which the Chinese company Zhejiang Geely has a controlling stake. In a statement, Polestar said it was evaluating the impact of Mr. Biden’s announcement.“We believe that free trade is essential to speed up the transition to more sustainable mobility through increased E.V. adoption,” the company said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More