Wall Street Journal (August 1)
“There is an irony in Detroit right now: The automaker most reliant on U.S. manufacturing is among the hardest hit by tariffs.” Of any automaker, Ford manufactures the most vehicles in the U.S. “Some 80% of the cars Ford sells in the U.S. are built there,” but Ford is being “put it at a disadvantage with foreign rivals. Those deals now set a 15% tariff rate.” Ford which paid $800 million for tariffs in Q2 has been particularly hard hit as it “faces steeper tariffs on many parts as well as higher costs for imported aluminum, which is subject to 50% duties.”
Tags: $800 million, 15%, 50, Aluminum, Automaker, Detroit, Disadvantage, Ford, Foreign rivals, Irony, Manufacturing, Parts, Q2, Reliant, Tariffs, U.S., Vehicles
New York Times (July 8)
“China has overtaken Detroit as the center of the global auto industry. America can embark on an all-out push to rebuild world-class manufacturing and supply chains, or our carmakers can hide behind tariffs, continue making gas-powered trucks and S.U.V.s and fade into irrelevance.”
Tags: Auto industry, Carmakers, Center, China, Detroit, Gas-powered, Manufacturing, Overtaken, S.U.V.s, Supply chains, Tariffs, Trucks, U.S.
AP (May 13)
“The rapid emergence of low-priced EVs from China could shake up the global auto industry in ways not seen since Japanese makers exploded on the scene during the oil crises of the 1970s. BYD, which stands for ‘Build Your Dreams,’ could be a nightmare for the U.S. auto industry.” So far tariffs have shielded the U.S. market, but “Detroit needs to quickly re-learn a lot of design and engineering to keep up while shedding practices from a century of building vehicles.”
Tags: 1970s, BYD, China, Design, Detroit, Emergence, Engineering, EVs, Global auto industry, Japanese makers, Low-priced, Nightmare, Oil crises, Rapid, Shielded, Tariffs, U.S. market
Wall Street Journal (August 26)
“Workers at the Detroit automakers voted overwhelmingly in favor of a measure that authorizes the United Auto Workers leadership to call for a strike as talks between the union and companies continue…. The negotiations are among a wave of protracted labor talks this year that have vexed companies and at times threatened to spill over into work stoppages. The International Brotherhood of Teamsters recently reached a five-year contract agreement with United Parcel Service, dodging a potential standoff that could have rippled across the U.S. supply chain.”
Tags: Automakers, Contract, Detroit, Labor, Negotiations, Protracted, Strike, Teamsters, UAW, Union, UPS, Voted, Work stoppages, Workers
New York Times (August 30)
“The iconic American worker of the 20th century—a man making cars in a Detroit factory—remains the focus of political debate about work in America. But the real face of the modern working class is a woman caring for that retired autoworker somewhere in the suburban Sun Belt. Half of the 10 fastest growing jobs in America are low-paid variants of nursing.”
Tags: Autoworker, Debate, Detroit, Factory, Nursing, Real face, Retired, Suburban, Sun Belt, U.S., Woman, Worker, Working class
Bloomberg (August 1)
“After earnings carnage at global auto rivals,” Toyota is in the “spotlight.” From Detroit to Seoul, Toyota’s global rivals “fell short of estimates and warned of more pain from the trade war.” In contrast, “the world’s most valuable automaker will likely report modest sales and earnings growth for the most recent quarter.” But going forward the automaker still “faces a fight on every front. Potential U.S. tariffs threaten to cripple demand in its biggest market, rivals continue to pull ahead in China, and at home, the top-selling Prius is suffering a slump in popularity.”
Tags: Auto rivals, Carnage, China, Detroit, Earnings, Estimates, Growth, Prius, Sales, Seoul, Tariffs, Toyota, Trade war, U.S.
CNBC (April 27)
“So is it really the end of the American car on its home turf? From the way Detroit’s major executives are talking, it would seem so. Ford said Wednesday it will only offer two new cars in North America over the coming years…. GM is moving along the same lines.”
Bloomberg (December 22)
Rather than a battle to the death between “lumbering” automakers and disruptive Silicon Valley, the deal between Google and Ford proves “that Detroit and Silicon Valley are increasingly likely to collaborate rather than compete” to realize autonomous vehicles. Ford’s decision to collaborate “may accelerate the decline of the traditional industry, but by taking an early seat at the table right next to Google, the firm has secured a position of relevance in the new mobility paradigm.”
Tags: Automakers, Autonomous vehicles, Collaborate, Compete, Detroit, Disruptive, Ford, Google, Lumbering, New mobility paradigm, Relevance, Silicon Valley
Detroit Free Press (December 3, 2013)
Detroit became the biggest municipality—in fact the biggest public entity of any type—to file for bankruptcy in the U.S. after a federal judge approved the city’s application. With estimated debts of $18 billion, the city is hardly functioning. It takes nearly an hour for police to respond to calls, versus about six times longer than the national average. For many, the bankruptcy filing marks the first painful step to a comeback. Detroit’s Emergency Manager Kevyn Orr hopes to achieve improvements in basic services and the removal of 78,000 blighted homes and structures within three years. “That may sound like elementary stuff to people who are used to living in less-dysfunctional cities. In Detroit after decades of distress, however, it’s what dreams are made of.”
Tags: Bankruptcy, Basic services, Blight, Comeback, Debts, Detroit, Distress, Dreams, Dysfunction, Kevyn Orr, Police, U.S.
Detroit Free Press (July 19)
Detroit became the largest U.S. city to file for bankruptcy, hoping to escape nearly $20 billion in debt. “The word bankruptcy provokes an intense emotional response. Instinctively, many Detroiters feel the news is horrible and is synonymous with defeat. Fear kicks in as we envision our city being shut down and sold for scrap…. In fact, it is the exact lifeline we need to unshackle our town from the mismanagement, corruption and incompetence of the past in order to get on with the real work of rebuilding Detroit.”
Tags: Bankruptcy, Corruption, Debt, Detroit, Incompetence, Lifeline, Mismanagement, Rebuilding, U.S.
