UAW warns of strike at Stellantis, auto industry supports inflation reduction law, Ford revises EV strategy

Earlier this week: The UAW threatened to strike at Stellantis over delays at the Belvidere assembly plant. The auto industry lobbied ahead of the election to preserve the Inflation Reduction Act. Ford has refocused its electric car strategy, discontinued its electric SUV and focused on profitability. Record second-quarter electric car sales as new models boost competition and drive down prices. Trump considers eliminating the electric car tax credit, praises Musk for a possible Cabinet post and threatens tariffs on cars made in Mexico. DMS outage causes volatility in used car market as inventories fall and prices rise. Wholesale used car prices rose 0.5% in early August.

Here's a closer look at these top stories and other headlines to keep up with this week's automotive industry Industry News.

1. UAW threatens strike at Stellantis due to delays at Belvidere assembly plant.
The United Auto Workers (UAW) has set the stage for a possible strike at Stellantis plants, with the timeline suggesting workers could strike as early as mid-October. The union's complaints stem from the automaker's delays in reopening its Belvidere Assembly Plant in Illinois, a facility that was scheduled to close in early 2023. Read more

2. Automotive industry campaigns for preservation of Inflation Reduction Act ahead of elections.
With the U.S. presidential election looming, the auto industry is urging lawmakers to retain the Inflation Reduction Act (IRA), a key piece of legislation that has spurred billions in investments in electric vehicle (EV) assembly, battery manufacturing, and parts production. This two-year-old law is a cornerstone of the industry's efforts to make the U.S. more competitive in the global EV market. Read more

3. Ford is recalibrating its electric vehicle strategy, stopping production of the electric SUV and focusing on profitability.
Ford is adjusting its electrification strategy and scrapping plans for an all-electric SUV, which could cost the automaker around $1.9 billion. The decision represents a significant shift for Ford, which is reassessing its approach to electric vehicles amid falling demand and increasing competition. To read More

4. Electric vehicle sales hit record levels in the second quarter as new models boost competition and drive down prices.
According to a recent study by Kelly Blue Book, electric vehicle (EV) sales in the U.S. reached new highs in the second quarter of 2024, with 320,463 units sold—a notable 23% increase from the previous quarter and an 11% increase from the same period last year. Despite discussions about a possible slowdown in the EV market, more models are hitting the road, increasing competition and significantly lowering prices. Read more

5. Trump considers eliminating the electric vehicle tax credit, praises Musk for possible Cabinet role and threatens tariffs on cars made in Mexico.
At a campaign rally in Asheville, North Carolina, Republican presidential candidate Donald Trump said he might eliminate the $7,500 tax credit for electric vehicle purchases if elected. Trump expressed skepticism about tax incentives, pointing out that they are generally not beneficial. He also revealed that he would be open to appointing Tesla CEO Elon Musk to a cabinet or advisory role, praising Musk as a “brilliant guy.” Read more

6. DMS failure causes volatility in the used car market as inventories fall and prices rise.
The dealer management system (DMS) outage that impacted sales and inventory reports last month continues to cause volatility in the auto market. As of August 1, 2024, the total inventory of used cars on dealer lots in the United States was 2.17 million units, down 3% year-over-year and down from 2.22 million units at the beginning of July.. Read more

7. Wholesale prices for used cars rose by 0.5% in early August.
Wholesale used car prices rose 0.5% in the first half of August from July, while the Manheim Used Vehicle Value Index rose to 202.6. Despite the month-on-month growth, the index fell 4.5% compared to the entire month of August 2023. Read more

8. Industry experts share legal tips for successfully selling your car dealership – Dave Cantin, Stephen Dietrich
In the complex world of auto trading, preparing for a successful transition involves more than just listing your business for sale. Dave Cantin, a well-known M&A expert, and Stephen Dietrich, an M&A attorney and author of Fear dynamicsJoin us for the latest episode of Inside M&A to shed light on key legal and strategic factors that dealers should consider before deciding to sell. Their combined expertise offers invaluable advice for anyone looking to navigate this high-stakes process with confidence and clarity. Watch the full segment Here.

9. How top dealers increase profits with synergistic R&I and sales strategies
In this exciting episode of Training Camp with Adam Marburger, we explore how top dealers are increasing profits with synergized F&I and sales strategies. Industry leaders Chris Saraceno – VP and Partner at Kelly Automotive Group; Mickey Seelye – Dealer Operator and President of Seelye Auto Group; and Rob Ruth – President and Owner of Bob Ruth Ford – share the strategies that drive success in their dealerships. Watch the full episode. segment Here.

10. Dave Anderson reveals how traders can turn ordinary actions into extraordinary results
Whether you are striving for personal growth or professional success, going the extra mile can be crucial. In today's episode of Inside Automotive, he shares insights from his latest book, Increase your excellence: The power to do ordinary things extraordinarily well, is an author, speaker, host of the hugely popular podcast The Game Changer Life and President of Learn to Lead, Dave Anderson. Watch the whole segment Here.