What the UAW strike means for the Musk-Biden tug of war

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Tesla’s continued dominance on electric cars would undermine Biden’s hopes of basing the next generation of cars and trucks on unionized labor.

under last year’s Inflation Reduction Act, at least for customers who earn less than the law’s income caps.

That’s especially true if the Detroit-based auto giants end up making big concessions on wages and benefits, some of the companies argued this week. Internally, Ford estimates that its labor costs are already 25 percent higher than Tesla’s, when accounting for wages and benefits. Under the UAW proposal, that gap would grow to 67 percent, according to people at Ford who were granted anonymity to discuss internal projections.aggressively lowered its prices this yearTyson Jominy, vice president of data and analytics at J.D. Power, said Tesla is already “operating on a different plane” when it comes to pricing of its electric vehicles.

Jominy projects that with a six-week strike — the length of the last strike against GM in 2019 — the Big Three automakers would lose 200,000 sales to their competitors and be forced to raise prices by 2 to 5 percent, at least in the short term. Even if electric models are likely to be somewhat insulated from those effects because of abundant inventory, the strike could also slow the rollout of new models.

 

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