A new op-ed has blasted President Joe Biden’s alleged risk to the auto industry.
In the op-ed published with Fox News on Wednesday, Liz Peek discusses the potential harm to the U.S. auto industry due to President Joe Biden’s push for electric vehicles (EVs).
The Fox News contributor and former partner of major bracket Wall Street firm Wertheim & Company summarizes the ongoing negotiations between the United Auto Workers (UAW) and the Big Three automakers, where a strike looms as a result of difficult demands from the UAW, including a 46% pay hike over four years.
Peek points out that the battle between auto companies and the UAW could be detrimental to Biden as it may lead to an embarrassing strike. This could also harm Michigan’s economy, impacting Democrat prospects in a swing state that supported Biden in the 2020 election. Furthermore, a substantial settlement to prevent a strike could raise concerns about inflation.
Chinese Competitors
However, Peek’s main concern is Biden’s promotion of electric vehicles.
She notes that Biden’s proposed emissions standards would require 67% of all cars sold in the U.S. to be electric by 2032. She emphasizes that China currently dominates the EV industry, accounting for 60% of global sales.
She cites UAW concerns about potential layoffs and the shrinking of their union due to the shift to EVs.
At the same time, automakers fear UAW demands will reduce their profitability, making them less competitive against cheaper EVs made outside the U.S., especially in China.
Peek also mentions that demand for EVs in the U.S. has been slower than expected, citing affordability and the lack of charging stations as key factors. She warns that a strike, combined with the economic challenges of transitioning to EVs, could further harm the industry.
She also highlights the increasing competition from Chinese imports in the EV market and its potential impact on the U.S. auto industry, which accounts for around 3% of GDP. She warns that the U.S. cannot afford to let its auto industry lose out to China.
Does Joe Biden Have A Union Problem?
Despite garnering endorsements from influential union leaders and prominent labor unions like the AFL-CIO, SEIU, and the International Brotherhood of Electrical Workers, his standing among rank-and-file union members has recently seen some erosion, with a few swayed by his predecessor.
The United Auto Workers (UAW) has thus far refrained from endorsing Biden in his bid for reelection in 2024, partly due to an ongoing dispute with major automakers that could potentially lead to a damaging strike. The White House is said to be carefully navigating this situation to facilitate an agreement between both sides.
Biden sought to downplay the possibility of a strike, stating before the event, “I’m not concerned about a strike unless it materializes.”
“I don’t believe it’s going to happen,” Biden added confidently during his speech.
In response to Biden’s remarks, UAW President Shawn Fain expressed surprise and remarked, “He might be privy to information we don’t have.” Fain underscored that there is still a considerable distance to cover in the negotiations.
The UAW, which endorsed Joe Biden in 2020, has expressed reservations about the administration’s stance on electric vehicles. Fain indicated that endorsements would be granted when candidates demonstrate a commitment to the needs of their members and the broader working class.
While Biden enjoys robust support within organized labor, his involvement in averting a potential rail strike in 2022 has left some union members apprehensive. They fear that he might intervene in future strikes, a perception that senior administration officials have refuted.
Nevertheless, Biden has positioned himself as the “most pro-union president ever” and consistently emphasizes his pro-labor credentials in his economic speeches. Since taking office, he has taken steps to support labor unions, including firing Trump-appointed National Labor Relations Board general counsel Peter Robb on Inauguration Day. He also voiced support for Amazon workers seeking to unionize in Alabama and held meetings with various union organizers.
Georgia Gilholy is a journalist based in the United Kingdom who has been published in Newsweek, The Times of Israel, and the Spectator. Gilholy writes about international politics, culture, and education.
