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Increased labor costs are potentially insurmountable and uncontrollable challenges facing the automobile industry for the government mandates in wealthy countries for lower emission EV’s.
Published September 15, 2023 at Heartland Institute
Ronald Stein is an engineer, senior policy advisor on energy literacy for Heartland, and co-author of the Pulitzer Prize nominated book “Clean Energy Exploitations.”
The UAW strike that began September 15th by 146,000 UAW union members seeking a 46 percent pay raise, and a 32-hour week with 40 hours of pay, and restoration of traditional pensions, will most likely have one of two outcomes, both of which may perpetuate the death spiral for the automobile industry.
- Increased cost of American manufacturing which will further increase the cost of EV’s that are already unaffordable to most, and/or,
- Increasing the cost of U.S. manufacturing, may result in more offshore manufacturing needed which may decimate U.S. stateside manufacturing.
The UAW members are not fazed by death spiral already mandated for the automobile industry. The few healthy and wealthy countries of the United States of America, Germany, the UK, and Australia representing 6 percent of the world’s population (505 million vs 7.8 billion) are mandating social changes to achieve zero emissions via EV’s that may be fueling (no pun intended) a death spiral for the automobile industry.
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