This week we are joined by Tyler Harp, who discusses the future of auto shows, the uphill climb for EVs, and the UAW targeting non-union manufacturers.

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The Future of Auto Shows:   

• What’s next for auto shows? Rescheduled 2025 Detroit show may point the way 

• Detroit auto show will return to former January slot 

• Commentary: CES is expensive, but skipping it could be even more costly for Detroit 3 

• Column: Is CES worth auto industry's time? You better believe it 

• Magna Advances Road Safety with Impaired Driving Prevention Technology 

Tyler’s thoughts:

In an era of declining brand loyalty and a shift of consumer focus toward convenience and safety features (i.e. ADAS), auto shows can play a vital role in showcasing a company’s latest tech. They provide opportunities to engage with car buyers, drumming up brand enthusiasm with interactive exhibits. Opting out will prove costly, especially as competitors take full advantage. There is another marketing benefit in addition to consumer awareness – talent attraction. The EV transition, SDV evolution, and drive towards autonomy mean that automakers are competing with Silicon Valley and big tech for talent. These events provide a platform for automakers and suppliers to show the world, and future STEM graduates, that automotive is a “sexy” industry to be in.  

The Uphill Climb for EVs: 

• House votes down Biden ‘Buy America’ waiver for EV chargers 

• U.S. on track to ‘meet and exceed' goal of 500,000 public EV chargers 

• China’s EV stocks start 2024 in reverse gear as price wars pressure profitability 

• Hertz Will Shrink Electric Fleet After Being Burned by Tesla’s Price Cuts

• Remarkable' surge in auto insurance costs fans US inflation 

Tyler’s thoughts:
I had the good fortune to attend the 30th Annual Automotive Insights Symposium, held at the 7th District of the Federal Reserve Bank – Detroit Branch. In the opening presentation, a compelling visual of the Moore’s Technology Adoption Life Cycle demonstrated where the EV market may currently be: “The Chasm.” This is the gap between tech enthusiasts and visionaries who make up 16% of the population, and pragmatists who make up 34%. Including hybrids, electrified vehicles represented 16-17% of US light vehicle sales in 2023. This brings us right to the edge of the chasm with practical mainstream adoption on the other side. To make this leap, solid EV infrastructure and affordability are key. Progress is being made, but slowly – potentially too slow to meet EV goals. There are considerable headwinds including political opposition, increasing insurance premiums, and competitive price wars slashing profitability (if there was profitability to be had in the first place). But even with these challenges, record investment by automakers suggests that it is not a question of if, but when EVs will be commonplace. Unlike for Sisyphus, the EV hilltop can be reached.  

UAW Targets Non-Union Manufacturers: 

• UAW Starts Unionizing Largest U.S. Mercedes Plant In Campaign Targeting Non-Union Auto Manufacturers 

• Tesla and the UAW are careening toward a showdown over unionization  

• UAW President Shawn Fain calls Tesla pay raise for its factory workers the 'UAW bump' 

Tyler’s thoughts:

Non-union autoworkers are receiving raises, including at Tesla, Volkswagen, Hyundai, Toyota, and Honda, in what UAW President Shawn Fain would attribute to the “UAW Bump.” Following a very public and dramatic contract negotiation with the Detroit Three, the UAW is attempting to capitalize on its success to unionize 13 other automakers in the US. These raises are likely a ploy aimed to thwart this endeavor, a strategy that has proved successful in the past. However, after winning record contracts, it could be argued that the UAW “owes” it to the Detroit Three to go after non-union automakers. The Detroit Three market share has dropped from 90% in the 1960’s to just shy of 40% in 2023. These record contracts could pose a competitive disadvantage in labor cost, even after factoring in the “UAW Bump.” With the latest contract in hand, Shawn Fain has an excellent advert for how the UAW can benefit non-union auto workers. Considering the momentum already seen in Tennessee and Alabama, his message seems to be carrying weight. 

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