Image: Baciero, 2023/Reproduction
The automakers’ strike in the United States is intrinsically related to the fierce competition in the electric vehicle market, a scenario in which the Tesla plays a central role.
Below, we will explore this connection and the complexities involved in the case in detail.
The context of technological transformation
The auto industry, a pillar of the American economy, is facing one of the biggest technological transformations in its history.
The shift from gasoline-powered vehicles to electric vehicles poses a significant challenge for traditional automakers such as General Motors (GM), Ford and Stellantis (formerly known as Fiat Chrysler).
This transformation is seen as comparable in magnitude to the revolution initiated by Henry Ford with the assembly line in the early 20th century.
Tesla’s role in this dispute
Tesla, led by CEO Elon Musk, has emerged as a disruptive force in the electric vehicle sector. With a strategy focused on technological innovation, high-performance electric vehicles and a loyal fan base, Tesla has challenged traditional automakers.
The company has not only proven that electric vehicles can be desirable, but has led the way toward autonomous driving and the production of high-performance batteries.
Pressure on traditional automakers
Tesla’s entry into the electric vehicle market has forced traditional automakers to adapt quickly. As a result, they are spending billions of dollars on research and development to create their own competitive electric vehicles and charging infrastructure.
However, the transition is complex as these companies have historically built their operations around internal combustion engines and a combustion-oriented supply chain. technology.
Considering this complex scenario, the transition to electric vehicles poses significant challenges to traditional automakers. That’s because they need to redesign factories, train employees and build partnerships to acquire or develop advanced battery technologies.
Furthermore, the production of electric vehicles tends to be more automated and requires less labor compared to the production of internal combustion vehicles. This raises concerns among workers regarding their job security.
What are the strikers’ demands, anyway?
Faced with the changes brought about by the introduction of electric cars into the market, around 12,700 workers represented by the Automotive Workers Union are on strike for the various reasons we saw previously in this matter.
Among their demands, they seek a significant salary increase of 40% over four years, an offer that automakers consider unsustainable, proposing around half that amount.
However, the strike is not limited to salary issues; Workers are also worried about the future of their jobs as the production of electric vehicles requires less labor. The simplicity of parts in electric vehicles raises fears of mass layoffs.
In addition, they want employees at new electric car factories, installed in the USA, to be covered by the automakers’ national employment contracts. Automakers argue that this is not viable, due to the nature of joint ventures of these factories.
Position of the American government regarding the strike
The United States government, led by President Joe Biden, has a strong policy of supporting the electrification of vehicles as part of its climate agenda.
Billions of dollars are being allocated to programs to promote electric vehicles and charging infrastructure. For its part, the government is interested in boosting the adoption of electric vehicles as part of its strategy to tackle climate change.
Therefore, the American authorities are concerned about any delay in automakers’ operations due to the strike, as this could negatively affect their efforts to promote electric vehicles.
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