Automakers are taking the plunge with President Joe Biden, committing billions to produce electric vehicles (EVs) as part of labor contracts with the United Auto Workers (UAW) despite consumer trends showing Americans are largely uninterested.
Since the UAW announced deals with General Motors (GM), Ford, and Stellantis following its six-week-long strike against the Big Three, details have now emerged regarding the tentative contracts which are expected to be approved by auto workers.
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RSBN / RumbleAccording to Fortune, as part of the agreements with GM, Ford, and Stellantis, each automaker is committing billions to manufacture EVs despite consumer data showing Americans are sticking with gas-powered cars now more than ever.
At GM, auto executives have agreed to continue producing the all-electric Cadillac LYRIQ while adding another EV to its product line out of the Spring Hill Assembly Plant in Tennessee.
GM is also committing to producing an EV in partnership with another automaker, an EV SUV at its Factory Zero in Detroit, Michigan, and more EVs at its plants in Orion Township, Michigan; Kansas City, Kansas; and Lansing, Michigan.
Meanwhile, Ford is betting billions on a number of new EVs — including a new all-electric truck — that it will produce at its plants in Dearborn, Michigan; Louisville, Kentucky; Sheffield, Ohio; and Flat Rock, Michigan.
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Stellantis, likewise, is planning to build an EV battery plant in Belvidere, Illinois, which executives have said will create about 1,300 American jobs. At its plants in Toledo, Ohio; Warren, Michigan; Sterling Heights, Michigan; and Detroit, Michigan, the automaker will produce a handful of all-electric versions of many of its existing models.
The billions in investment will come even as consumer trends continuously have shown Americans are not interested in EVs because of their high cost, unfamiliarity, and, most significantly, their general perception of being unreliable.
Data from Edmunds.com found in September 2022, EVs sat on dealership lots for just 21 days before they were sold. Today, EVs are sitting on dealership lots for 65 days.
Much of that reluctance among Americans is traced to the high cost of EVs where the average EV, last month, cost nearly $60,000 without Biden’s green energy tax credits — more than $10,000 above the average industry price.
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C-SPANThe big bet on EVs among automakers comes as UAW President Shawn Fain is setting his sights on unionizing American auto workers at Toyota, Tesla, and Honda, whom he calls “the UAW members of the future.”
“… now we’re going to build on it,” Fain told CNBC. “We just went on strike like we’ve never been on strike before and won a historic contract as a result. Now we’re going to organize like we’ve never organized before.”
Fain cited recent announcements from Toyota where auto workers across the United States will see their wages raised as evidence that the UAW’s newest hardline approach has proven beneficial for auto workers — even those not unionized.
“Toyota isn’t giving out raises out of the goodness of their heart. They could have just as easily raised wages a month ago or a year ago,” Fain said. “They did it now because the company knows we’re coming for ’em.”
John Binder is a reporter for Breitbart News. Email him at
