AUTOMOTIVE INDUSTRY

U.S. Government Orders Air Bag Fixes Immediately
National Highway Traffic and Safety Administration (NHTSA) on October 20, 2014 ordered air bags manufactured by Takata Corp., a Tokyo-based supplier of air bags, steering wheels and other auto parts, for more than 4.7 million vehicles on the US roads to be fixed with immediate effect.

Air Bag Recall Largest in the US History
The recall announced on May 19, 2015 for air bags manufactured by Takata Corporation and being driven by nearly 34 million vehicles will easily overshadow the degree of any previous recalls. The defective air bag is linked to six deaths and more than 100 injuries.

Air Bag Recall Volume Expanded
The chief of NHTSA, Mark Rosekind, on May 4, 2016 expanded the recall volume by up to 40 million additional vehicles over Takata Corporation's faulty airbags that had killed scores of people on America's roads. On the day, Mr. Rosekind faced the reporters at nation's capital and ordered recall of up to 40 million additional vehicles, report of two more deaths due to defective airbags came to light.

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The Obama administration on November 16, 2011 officially proposed boosting average fuel economy from the current 27.5 miles per gallon to 54.5 miles per gallon for model-year 2025. The standards will cost up to $157 billion while the benefits will accrue up to $515 billion. The Environmental Protection Agency and the National Highway Traffic Safety Administration are jointly writing the standards, and according to their estimates, the price tag for 2025 model-year will go up by an average of $2,000 due to increased CAFE. However, according to the EPA and NHTSA, consumers will save up to $6,600 over the 2025 model-year's lifetime.

Under already a finalized rule by the Obama administration, the fuel economy will rise to 35.5 miles per gallon in 2016.

Obama Administration Issues Fuel Economy Standards for Heavy-Duty Vehicles
Obama administration on August 16, 2016 issued a stringent rule for corporate average fuel economy (CAFE) for heavy-duty trucks and somewhat milder rule for delivery trucks, school buses and other large carriers. The fuel efficiency of the heavy-duty trucks will increase from the current level of 6 miles per gallon by up to 25 percent by 2027, leaving leeway for the engine and vehicle manufacturers to work on the potential scale of fuel efficiency improvement. According to Transportation Secretary Anthony Foxx, the potential savings stemming from improved fuel economy will be about $170 billion in fuel savings through 2027. Although big rigs are only 5 percent of traffic on America's roads, the pollutants they emit constitute almost 20 percent of annual greenhouse gas emissions. The fuel efficiency of the passenger cars is to rise to 54.5 mpg by 2025, and Obama administration has recently affirmed its progress to meet that goal by aforementioned date.

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Four Automakers Sign Efficiency Standards Deal with California
Illustrating the might of California as the state accounts for 30 percent of total auto sales, four automakers bypassed Trump administration and on July 25, 2019 signed a compromise deal with California Air Resources Board to raise the CAFE for the new vehicle produced 2022 through 2025 to have an estimated 36 mpg beginning 2026. Trump administration froze the industry standard at 2021 levels of 30 mpg, reversing Obama-era rules. Ford, Honda, BMW and Volkswagen see the California agreement as "insurance" against regulatory uncertainty.

23 States Sue Trump Administration for Abrogating Stricter State Standards
On September 19, 2019, Department of Transportation and Environmental Protection Agency jointly announced taking away the waiver to California that had let the state to set stricter fuel efficiency standards. The September 19, 2019, Trump administration move came after a July 25, 2019, historic agreement between California and four automakers to adhere to Golden State's stricter emission standards, rattling the federal officials. California and 22 other states on September 20, 2019 sued the Trump administration in a court challenge.

Trump Administration Ends Antitrust Investigation into California, Four Automakers
Trump administration's Department of Justice that had launched in Fall 2019 an investigation into whether there was any antitrust law violation when California and four automakers--Ford, Honda, BMW and Volkswagen--had agreed in the summer of 2019 to uphold a stricter fuel efficiency standard than what Trump administration had proposed decided to end the investigation on February 7, 2020 after finding no wrongdoing. California Governor Gavin Newsom panned Trump administration, saying the February 7, 2020, ending of the investigation was "a big loss for the president and his weaponization of federal agencies".

GM Reverses Its Stand, saying that It Will Not Oppose CA in Imposing Stricter Standards

General Motors CEO Mary Barra on November 23, 2020 said in a letter written to environmental groups that the automaker would drop out of Trump administration’s lawsuit that had challenged the authority of California in formulating stricter emission standards in collaboration with five automakers—BMW, Honda, Volvo, Ford and Volkswagen—throwing its support for President-elect Joe Biden’s plan to improve the fuel efficiency of future vehicles. Trump administration’s lawsuit includes Fiat Chrysler, Toyota, and ten other smaller auto companies—Hyundai, Nissan, Kia, Subaru, Isuzu, Suzuki, Maserati, McLaren, Aston-Martin and Ferrari—in addition to GM. Trump administration’s war on California over fuel-efficiency standards is set to wind down as it’s nearing exit on January 20, 2021 and incoming Biden administration is friendlier to setting stricter emissions standards.

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Obama-era Fuel Efficiency Rules Rolled Back

In an effort to take a stab at another Obama legacy, Trump administration on March 31, 2020 issued a set of new rules to reverse many of the stricter fuel efficiency standards implemented by Obama administration. Under the new EPA rules, the fuel efficiency standards will increase at an annual rate of 1.5% through 2026 instead of Obama administration-proposed 5%.   

Automakers not Party to CA Agreement Wants to Boost Auto Mileage, but Less than CA Deal

The Associated Press reported on March 12, 2021 that many of the so called non-five automakers have opened negotiation with Biden administration and presented a proposal to increase fuel efficiency more than that of Trump-era rules, but short of a more ambitious deal that California has reached with five big automakers--BMW, Honda, Volvo, Ford and Volkswagen-- in 2019. In exchange, the proposal states, the automakers will get a "multiplier" and receive credits to manufacture more electric vehicles. Under Obama-era rules, automakers of model year 2021 through 2026 are required to increase fuel efficiency by 5%. Trump rolled that back. setting a very meager 1.5% increase in fuel efficiency. California deal will aim to increase annual fuel efficiency by 3.7%. If the proposal is accepted and implemented by Biden administration, there will be one set of fuel efficiency rule for the states which follow the California model and a second set of rule for the rest of the nation.

California, Other States Ask EPA to Rescind Trump Era Rule

In a virtual meeting on June 2, 2021, California, New York, at least 18 other states and District of Columbia petitioned Biden administration's Environmental Protection Agency to reverse a Trump-era rule that revoked California's special waiver that allowed the Golden State to set stricter tailpipe emissions standards. Trump administration revoked the waiver in 2019. Biden administration vowed to rescind Trump's 2019 revocation of the waiver. California Attorney-General Rob Bonta, during the virtual session, called the state's higher standards as critical to fighting climate change. 

Up to Half of U.S. Cars to be Sold are EV by 2030, Biden Announces

President Joe Biden on August 5, 2021 signed an executive order at a White House ceremony participated by the car industry executives, incorporating non-binding pledges made by the car companies to manufacture electric cars 40% to 50% of the total cars by 2030. Separately, the August 5, 2021, executive order includes rules for gas mileage increase and reduction of tailpipe emissions. 

Biden Administration Raises Corporate Average Fuel Economy, or CAFE

Biden administration's Environmental Protection Agency on December 20, 2021 issued the final rule for gas mileage standards that would reverse the Trump-era rules in an effort to fight climate change and as part of President Joe Biden's signature goal to achieve a carbon-neutral economy. Under the new rules unveiled as a final administrative edict on December 20, 2021, the vehicle mileage standard will rise to 40 miles per hour by 2026, an improvement of 25% compared to Trump-era rules that would have dictated 32 miles per hour vehicle mileage standard by 2026 and even a slight improvement from the administration's own August 2021 target of 38 miles per hour. EPA Administrator Michael Regan called the rules "robust and rigorous standards that will aggressively reduce pollution" and "save families money at the same time". 

Another component of Biden administration's policy is to increase the share of electric vehicles and plug-in hybrids from 7% of all new vehicles in 2023 to 17% in 2026. 

New Fuel Efficiency Standards Unveiled

The National Highway Traffic Safety Administration (NHTSA) on April 1, 2022 unveiled new fuel efficiency standards, rolling back Trump-era fuel efficiency rules that had undone the Obama-era rules. For the 2026 model year, the new fuel efficiency standard will be raised to 40 miles per gallon from the current standard of 28 miles per gallon. The heightened fuel standard will save consumers a collective total of 220 billion gallons of fuel over the car's life span. 

Biden Admin Lowers the Fuel Economy Targets

Conflicted between political reality and environmental obligation, President Joe Biden took a more nuanced and balanced road that's still historically ambitious, but falls short of aspirations of higher standards in fuel economy that environmentalists have sought after. On June 7, 2024, the National Highway Traffic Safety Administration, or NHTSA, lowered the Corporate Average Fuel Economy, or CAFE, standard from 57.8 mpg by 2032 as proposed last year to 53.5 mpg. 

The 2023 new CAFE standard for vehicles is 53.5 mpg, with cars72.3 mpg and trucks 47.3 mpg. Transportation Secretary Pete Buttigieg said that the benefit of higher CAFE would entail two major benefits: reduced (1) fuel costs for the drivers and (2) footprint of carbon emissions into air. NHTSA Deputy Administrator Sophie Shulman gave a historic perspective of how improved CAFE had led to less fossil fuel consumption: in 1970s when CAFE into existence, the fuel efficiency was 13 mpg, one-fourth of what's now. 

With final CAFE standards published on June 7, 2024, Biden administration published all three standards: CAFE by NHTSA, tailpipe emissions by Environmental Protection Agency, or EPA, and an important calculation for fuel economy scores for EVs by Department of Energy. 

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Auto Workers' Contract Negotiation

Chrysler Workers Okay 4-Year Agreement
The United Auto Workers said in an e-mailed statement on October 22, 2015 that workers of the Fiat Chrysler Automobiles NV had approved a 4-year contract union leaders agreed with the company by an overwhelming margin with 77 percent favoring it. Union leaders had to re-negotiate the contract after an earlier one reached between union officials and the company was rejected by the rank and file members. The latest contract includes a path for new hires to get into higher pay scale tier, thus establishing a mechanism aimed at bridging the opportunity gap between the lower tier ($19.28 per hour pay scale) and the upper tier ($29 per hour). The 4-year-agreement also includes:
* A ratification bonus of $3,000 for lower level workers and $4,000 for the upper level workers
* A pledge by CFA to invest $5.3 billion in the USA

UAW Reaches Agreement with GM
On October 26, 2015, UAW disclosed that it had reached a similar 4-year contract with General Motors.

UAW Finalizes a Four-Year Contract with GM
UAW national officials on November 20, 2015 announced that it had hashed out with the company some of the sticking points that skilled trade workers had issues with. Although the production workers ratified the deal with 55.4 percent vote earlier this month, company's skilled trade workers voted down the agreement. After the sticking provisions in the deal were sorted out amicably, UAW on November 20, 2015 heaved a sigh of relief with a revised deal that had satisfied both production and trade workers. Under the deal, the largest U.S. automaker will invest $8.3 billion over the next four years.

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Auto Workers Begin Strike
After the contract between GM and its workers expired midnight on September 14, 2019, it was all but clear that UAW would resort to the first strike since 2007. At the midnight of September 16, 2019, tens of thousands of auto-workers walked out of their jobs at 33 manufacturing sites and 22 parts warehouses across the U.S. The United Auto Workers targeted General Motors for this cycle's bargaining. About 49,000 workers, under the fold of UAW, are demanding better work rules, pension, wages and benefits as the automotive sector is going through transformational changes with focus on autonomous vehicle technology and Next Generation technology upgrade in the vehicle.

After a Month, Tentative Deal Emerges
After a month of crippling walkout by about 49,000 United Auto Workers-affiliated workers that had idled 33 manufacturing plants and 22 warehouses and cost the automaker a record $2 billion in lost businesses, a tentative agreement between the UAW national negotiating team and the General Motors management emerged on October 16, 2019. UAW local leaders will meet on October 17, 2019, and they will send the deal to the local chapters where rank-and-file members will cast their votes either for or against the deal. Another wildcard in the deal is the ongoing Feds investigation into corruption implicating UAW President Gary Jones.

UAW Signs Tentative Deal with Fiat Chrysler
After signing similar agreements with General Motors and Ford, United Auto Workers on November 30, 2019 announced that it had reached a similar deal with Fiat Chrysler Automobile. Now, it's the turn of 47,000 unionized workers to vote on this deal.
******************************** UAW STRIKE AT GM ****************************

EPA Issues Emission Reduction Rules for Tractor-Trailers 

Environmental Protection Agency on March 7, 2022 unveiled stricter rules to cut down the emissions of smog-and-soot-forming Nitrogen Oxide from diesel-operated rigs. Under the Biden administration's proposed plan, the new tractor-trailers are required to cut Nitrogen Oxide emissions by up to 90% by 2031. The rules will go into effect in 2027. The plan will not achieve the net-zero emissions, but allow rig operators continue using diesel-operated tractor-trailers with equipment fitted to cut down the Nitrogen Oxide emissions. However, many rig makers are already planning to manufacture hybrid, battery-electric and hydrogen fuel cell powertrains. The stronger rules will not apply to existing fleet. 

California to Require Automakers to Stop Selling All Gas Vehicles by 2035

Setting a historic and forward-looking trend aimed at cutting the imprimatur of Greenhouse Gas Emissions, California Air Resources Board on August 25, 2022 issued a directive for automakers to sell all vehicles which would be only powered by electricity or hydrogen by 2035. The state regulatory board's rules came two years after Governor Gavin Newsom called for such dramatic ramp-up in producing and selling EV and hydrogen-powered vehicles in California. If implemented, California will halve the vehicle emissions by 2040. 

EV Charging Stations to Dot U.S. Highways 

With the September 27, 2022, approval for EV charger station plan from 17 states, U.S. now has approved charging station plan for all 50 states and District of Columbia. 33 states and D.C. received approval for their charger station plan earlier in September 2022. Under the plan, $1.5 billion over the next two years, or $5 billion over the next five years, will be invested to build new stations and upgrade the existing stations. Under the National Electric Vehicle Infrastructure Formula Program, a network of 500,000 EV charging stations will either be constructed or upgraded along 75,000 miles of highway over the next two years. 

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GENERAL MOTORS

GENERAL MOTORS to Name the First Female as Chief
General Motors became the first major automobile company to name a female at the helms of affair as it announced on December 10, 2013 that Mary Barra, Senior Vice President of Global Product Development, would become CEO on January 15, 2014 as Dan Akerson would leave early for family reasons. Mary Barra will become the first engineer to be CEO since Bob Stempel has left GM in 1992. The next two GM CEOs--Rick Wagoner and Fritz Henderson--were finance executives with the Detroit giant. During bankruptcy, the federal government brought outside expertise to run the company: first, Ed Whitacare with telecom background, and second, Dan Akerson with finance industries background.


General Motor's Recall Reaches Record High in 2014
For the first three months of the year (2014), GM has recalled a total of 4.8 million vehicles, six times higher than that for the whole year of 2013. The ignition-switch problem, which the automaker knew since 2004 but withheld the information, already led to recall of 2.2 million earlier model cars, including Chevrolet Cobalt. The faulty ignition-switch is already blamed for 13 deaths. On March 28, 2014, GM expanded the recall for the later model cars. On March 29, 2014, GM also recalled 2014 Chevrolet Silverado, 2014 GMC Sierra 1500, Chevrolet Suburban and Tahoe, and the GMC Yukon and Yukon XL for loose fitting of transmission oil cooler.

GM Chief Grilled by Lawmakers
General Motors' new CEO Mary Barra faced an unfriendly audience during a House of Representative testimony on April 1, 2014 during which lawmaker after lawmaker quizzed Barra on why the Detroit giant didn't take any step to recall vehicles although it knew about faulty ignition switch since 2004. Since February 2014, GM recalled 2.6 million cars, mostly Chevrolet Cobalt and Saturn Ion, over the faulty ignition switch which cost 57 cents as parts. The problem was blamed for 13 deaths. Even the National Highway Traffic Safety Administration chief David Friedman said during April 1, 2014, House testimony, where Ms. Barra--the first ever female CEO of any major automakers--had also testified, that GM knew about this problem back in 2004 and could have helped in a recall long ago, but preferred to sit on the information over a decade and shared with the agency only in February 2014.


General Motors Fined for Ignition Switch Problems
On May 16, 2014, the National Highway Traffic Safety Administration slapped a $35 million fine, the maximum under the rule, for derelict in responsibility and delay in recalling to fix ignition switch problem. The problem is linked to at least 13 deaths. In February 2014, GM issued recall for 2.6 million vehicles of Chevrolet Cobalt, Saturn Ion and other small cars with the ignition switch problems although the automaker knew about the problem since 2004.

GM Fires 15 Employees over Ignition Switch Problem
Anton Valukas, a former federal prosecutor hired by the automaker to conduct an inquiry of the ignition switch problem possibly tied to at least 13 deaths, issued a 315-page report on June 5, 2014. After the report that was very critical of work and culture at the automaker was submitted to the management, GM fired 15 on June 5, 2014.

GM Issues another Recall for a Separate Ignition Switch Problem
On June 16, 2014, General Motors issued another recall of an additional 3.16 million cars with potential ignition switch problems, which were different from the ones that triggered February recall and was responsible for 13 deaths and 54 accidents since 2004.

GM Recalls more Cars
On June 30, 2014, General Motors recalled more than 8.4 million cars, raising the total number of recalls this year to more than 28 millions. The new recalls cover ignition defects that have caused so far seven crashes, eight injuries and three fatalities. The cars to be recalled range from 1997 to 2014 years of make and of models Cadillac CTS and SRX; Chevrolet Malibu, Monte Carlo and Impala; Oldsmobile Intrigue and Alero; Pontiac Grand Am and Grand Prix.

GM Recalls More than 220,000 Impala, Cadillac
As if the earlier recall of millions of cars were not enough, there came another recall, this time because of parking-brake defect. General Motors on September 20, 2014 announced recall of more than 220,000 Chevrolet Impala and Cadillac XTS cars.

GM Settles Ignition Switch-related Case for $900 Million
General Motors on September 17, 2015 agreed to a $900 million settlement with DOJ over its ignition switch scandal that was tied to at least 169 deaths. As a result, the Obama administration decided that the government would drop two charges--wire fraud and scheming to conceal information from government--after two years given the automaker's progress over compliance of terms of settlement. Separately, GM on September 17, 2015 unveiled a $575 million to settle all court cases related to the ignition switch problems. With these pair of settlements, GM will spend over $5.3 billion to address one of the worst safety problems ever to hit the company and tarnished the image of its CEO Mary Barra.

GM to Stop Selling Gas, Diesel Cars by 2035

In a historic first step for an American automaker, General Motors will stop selling light-duty vehicles with tailpipe emissions by 2035, implying a future for passenger cars and light-duty SUVs running on electricity. GM CEO Mary Barra, who antagonized environmentalists and climate activists by aligning with Trump administration's continuous effort to undermine the fuel efficiency standards, has stated in a LinkedIn post on January 28,2021 that as "one of the world's largest automakers, we want to set an example of responsible leadership in a world that is faced with climate change". The GM's goal of eliminating cars with tailpipe emissions will not include medium- and heavy-duty vehicles. 

MITSUBISHI

Japanese Auto Maker Admits Cheating on Fuel Economy
Mitsubishi President Tetsuro Aikawa on April 20, 2016 bowed his head at a press conference in Japan and apologized for his company's intentional tweaking of the fuel economy tests for the company-made cars. Mitsubishi's cheating came on the heels of a swirling and scandalous manipulation on emission tests for European carmaker Volkswagen.

Nissan to Give Lifeline to Mitsubishi
Mitsubishi, the Japanese automaker in the midst of a gas mileage cheating scandal, on May 12, 2016 received a much needed financial lifeline from Nissan as its executive Carlos Ghosn pledged to provide $2.18 billion for a 34 percent stake. The deal was seen much like an earlier template of alliance between French automaker Renault and Nissan, and the turnaround of Nissan was swift and smart under the leadership of Renault executive Ghosn.


TAKATA

National Highway Traffic and Safety Administration (NHTSA) on October 20, 2014 ordered air bags manufactured by Takata Corp., a Tokyo-based supplier of air bags, steering wheels and other auto parts, for more than 4.7 million vehicles on the US roads to be fixed with immediate effect.

Air Bag Recall Largest in the US History
The recall announced on May 19, 2015 for air bags manufactured by Takata Corporation and being driven by nearly 34 million vehicles will easily overshadow the degree of any previous recalls. The defective air bag is linked to six deaths and more than 100 injuries.

Air Bag Recall Volume Expanded
The chief of NHTSA, Mark Rosekind, on May 4, 2016 expanded the recall volume by up to 40 million additional vehicles over Takata Corporation's faulty airbags that had killed scores of people on America's roads. On the day, Mr. Rosekind faced the reporters at nation's capital and ordered recall of up to 40 million additional vehicles, report of two more deaths due to defective airbags came to light.

Air Bag Maker Files for Bankruptcy in U.S., Japan
Takata Corp. in the early hours of June 26, 2017 filed for bankruptcy in Japan and the USA. Takata is responsible for at least 16 deaths and 180 injuries, leading to recall of 100 million inflators, including 69 million in the USA that involved 42 million vehicles. Now, a rival, U.S.-based Key Safety Systems agreed to buy Takata's assets for $1.6 billion that included seat belts, air bags and others. According to the National Highway Traffic Safety Administration, by the end of April 2017, only 22 percent of 69 million airbags in the USA had been replaced.

TESLA

Settlement with SEC Costs Elon Musk Chairmanship
A tweet message in August 2018 that he had secured funding to take Tesla private led to investigation by Securities and Exchange Commission and a settlement in September 2018. Under the settlement, Elon Musk had to step down as the Chairman of the company and three independent directors would be appointed to the board.

A Bumper Quarter for Tesla

Elon Musk's car company blew past all the expectations in a green tidal wave to sell a record number of 308,600 vehicles in the last quarter of 2021. Tesla released its sales numbers on January 2, 2022. Tesla achieved another jewel in its crown during the last quarter of 2021 by becoming a $1 trillion + company. 

Musk's Bid to Own 25% of the Carmaker Receives Setback by Judge's Ruling on Comp Package

A Delaware judge on January 30, 2024 ruled in favor of a plaintiff who argued for the "recission" of a 2018 compensation package that had made Tesla CEO Elon Musk richest man of the world with a $56 billion stock options. Chancellor Kathaleen McCormick of the Delaware Chancery Court ruled that plaintiff Richard Tornetta had presented sufficient evidence showing the electric carmaker having failed to meet key benchmarks and goals that had been set as conditions for $56 billion bumper payout. The Delaware ruling came at a critical juncture of Tesla when its earnings remained subpar and Musk had sought to own 25% of the firm. 

Shareholders Vote to Restore Musk's Compensation Package

On June 13, 2024, Tesla's general counsel said that Tesla shareholders voted to restore Elon Musk's $55.8 billion package and incorporate the company in Texas. 


TOYOTA

Hefty Fine for Toyota; Similar Fate Hanging in Balance for GM
Eric Holder's Justice Department may be setting new trends for punitive measures for auto industry which is used to get away of paying few cents of pocket change for hiding information related to auto safety. On March 19, 2014, US DOJ announced a whopping $1.2 billion fine for carmaker Toyota for initially withholding the information from National Highway Traffic Safety Administration about problems of floor mats that can suddenly accelerate the car and sticky gas pedals acceleration. The defects came to light after a much publicized car crash in 2009 that had killed a California Highway Patrol Officer and three family members. Before that accident, Toyota was known for its reliability and safety. The crash led to recall of more than 10 million Toyota cars, and NHTSA slapped a total fine of $66 million between 2010 and 2012 in safety related issues against the Japanese automaker. The US DOJ's involvement doesn't bode well for GM as the Detroit carmaker knew the ignition-switch problem since 2004, but failed to issue a recall for nearly 1.6 million of its affected vehicles until last month (February 2014).

VOLKSWAGEN

VW's "Defeat Device" Scandal Forces CEO out
As the German automaker was coming to grips on the swirling and sweeping scandal that the world's one of the biggest automakers had cheated the regulators on emission tests for its diesel-powered cars, Volkswagen's CEO Martin Winterkorn resigned in the week of September 20, 2015. Days later, on September 25, 2015, VW's Board of Directors named Matthias Muller, current Chairman of Porsche AG, to work as interim CEO. VW's engineers implanted so-called "defeat devices" in company's diesel engine vehicles, including Audi, that would cheat on emission tests by covering up emission with up to 40 times of the EPA limit. VW's 11 million vehicles, including 500,000 in the USA, fall in this category, and the company has allocated nearly $7 billion to remedy the problems.

Judge Blesses the Preliminary Settlement
A federal judge on July 26, 2016 okayed a preliminary $10 billion settlement that German automaker Volkswagen had reached with U.S. authorities in recent days in the emission cheating scandal. Speaking for the positive sides of the settlement, the U.S. District Judge Charles Breyer appealed the consumers to consider the pro-environment component of the deal. As part of the deal, $10 billion will be allocated for buying back, or repairing, 475,000 Volkswagen and Audi vehicles with 2-litre diesel engines and giving additional compensations between $5,100 and $10,000 to their owners. An additional $2.7 billion will be allocated to an unspecified environmental mitigation program while an extra $2 billion will be used to promote zero-emissions vehicles.

Six Volkswagen Employees Indicted
The U.S. DOJ on January 11, 2017 indicted six high-level Volkswagen employees in emission-cheating scandal. The indictment was separate from a record $10 billion settlement that a federal judge approved on July 26, 2016. Since all six employees are based out of Germany and German laws usually do not allow extradition, there is no realistic chance of those employees facing justice anytime soon on the U.S. soil.

Appeals Court Upholds the Settlement
A three-judge panel of the 9th U.S. District Court of Appeals on July 9, 2018 upheld a lower court ruling in July 2016 that had blessed a $10 billion settlement between Volkswagen and its consumers.

UAW Wins First Unionization Vote in the South

United Auto Workers President Shawn Fain on April 19, 2024 was relishing as the election results from a Volkswagen plant in Chattanooga gave an impressive victory in favor of a YES vote to bring the workers under the UAW umbrella. The workers of the same Volkswagen plant rejected twice--in 2014 and again in 2019--the unionization drive. Addressing the workers at a union hall in Chattanooga on April 19, 2024 night, UAW chief Shawn Fain said the 73% vote was a stunning blow to the theory that the South was averse to unionization. 

UAW's next step will be another litmus test as a five-day unionization vote will be held at two Mercedes-Benz plants in Tuscaloosa, Alabama beginning May 13, 2024. 

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California to Ramp up EV or Hybrid Sales 

California Governor Gavin Newsom is angling for the coveted position of a transformative evangelist who has embraced the net-zero emissions as a goal to fight against the climate change. According to the proposal formulated by the California Air Resources Board, the EV or plug-in hybrid share of all new vehicles of the model year 2026 will be 35%, compared to 2021 sales of 12% of all new vehicles. The proposal unveiled by the CARB on April 13, 2022 will now go through the months-long review process and requires blessing from the EPA.  The CARB proposal unveiled on April 13, 2022 will help the state accomplish Governor Newsom's stated goal of achieving net-zero emissions standards by 2035. In ideal sense, there will not be a net-zero emissions equilibrium possible by 2035 as part of the plug-in hybrids are dependent on fossil fuel too. 

Biden Urges Congress to Act to Suspend Federal Gas Tax for Three Months

As Americans are paying hefty amounts at pumps to fill their tanks, President Joe Biden wants to minimize the impact of high gas price tags on people's wallet. On June 22, 2022, President Biden asked Congress to take immediate action to suspend 18.4 cents per gallon federal gas tax for the next three months. He also asked Congress to waive 24.4-cent federal tax on diesel. Besides, President Joe Biden is urging the states to suspend the state gas tax which may be as high as 25 cents a gallon. Biden administration projected that suspension of federal gas tax for three months would entail to a loss of almost $10 billion in Highway Trust Fund. 

Seven Automakers Launch Joint Action to Build Tens of Thousands of EV Plugs

General Motors, BMW, Honda, Hyundai, Kia, Mercedes and Stellantis on July 26, 2023 jointly announced that they would build "high power" charging stations with 30,000 plugs in urban areas along key corridors. Under the plan, there will be 10 to 20 chargers per charging station, implying that there will be between 1,500 and 3,000 high-power charging stations. Fast chargers can get battery 80% charged in 20 minutes to 1 hour, faster than 240-volt "Level 2" chargers. 

There are currently 8,700 direct-current fast charging stations with 36,000 charging plugs, according to the Department of Energy, in the U.S. and Canada. Tesla accounts for 2,050 high-power charging stations and 22,000 plugs in the U.S. and Canada. 

The National Renewable Energy Laboratory estimates that there will be need for 182,000 fast chargers by 2030. 

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UAW Begins Targeted Strikes at Three Plants, Each for A Big Three

United Auto Workers on September 15, 2023 resorted to strike at three plants, but did it in an innovative way. For the first time in its 88-year history, UAW targeted all three domestic automakers. Usually, it targets one automaker, tries to arrive at an agreement with that automaker and use that agreement as a template to strike deals with the other two domestic automakers. This time, though, after the current contract expired at 11:59PM on September 14, 2023, UAW struck at a GM plant in Wentzville, Missouri; a Ford plant in Wayne, Michigan; and a Jeep plant run by Stellantis in Toledo, Ohio. These three plants account for 13,000 of 146,000 unionized workers. UAW President Shawn Fain took a more aggressive stand, demanding higher wage boost for the unionized workers averaging 36% over a four-year contract period. The Big Three are counter-offering with more moderate wage-increase proposals, ranging 17.5% to 20%. The UAW has a strike fund of nearly $825 million. However, that strike fund is expected to be depleted soon as the UAW expands its strike plants in coming weeks absent any meaningful negotiation.

Meanwhile, President Joe Biden, throwing his support for the union, on September 15, 2023 sent his Labor Secretary Julie Su and Gene Sperling, a senior aide, to Detroit to give a push to the negotiation process. 

UAW Expands the Reach of Strike

UAW on September 22, 2023 expanded the scope of strike to include circa 5,600 additional workers at 38 GM and Stellantis plants across the nation. UAW President Shawn Fein said in a defiantly fiery speech over Facebook Live that it was time to ramp up the strike as the negotiation had yet to yield any fruitful path forward. Ford is excluded from the strike's expansion as the Ford management has put some substantive offer on the table. 

Biden Walks Picket Line

In the first ever act by a sitting president, President Joe Biden on September 26, 2023 walked a picket line at a GM parts plant west of Detroit. He used a bullhorn to urge the striking workers to stick together. UAW President Shawn Fain, who accompanied the president, thanked Biden for showing up at the picket line at the Willow Run Redistribution Center in Van Buren Township, Michigan. 

Additional 7,000 Union Workers Join Strike

On September 29, 2023, about 7,000 UAW members joined the strike, marking an expansion of the strike coverage as the union lowered its target wage increase to 30% instead of its original demand for 40% wage growth. UAW members from a Ford plant in Chicago and a GM plant near Lansing, Michigan joined about 18,000 strikers across the nation. 

Most Profitable Ford Plant Ceases Operation as UAW Expands Its Weeks-long Strike

United Auto Workers on October 11, 2023 shuttered the most profitable Ford plant in the world as 8,700 union workers from a Ford truck plant near Louisville, Kentucky struck at 6:30PM. The strike at the Kentucky plant came as bolt from the blue for many Ford executives. 

Arlington Assembly Plant Joins in the UAW Strike

Hours after General Motors reported a bumper profit in the recently concluded quarter, UAW members at the General Motors plant in Arlington walked out on October 24, 2023, joining tens of thousands of UAW members nationwide who had resorted to strike at seven assembly plants and 38 parts distribution centers in 22 states. Arlington plant is one of the most profitable plants among any automaker in North America, and in a Facebook Live message to autoworkers on October 6, 2023, UAW President Shawn Fain said since GM had extended the union contract to cover the future EV battery plant workers, the union would for the time being exclude the Arlington plant from the purview of strike. That had changed on October 24, 2023 morning as the GM reported a quarterly profit of $3.1 billion. As of October 24, 2023, 32% of UAW's 146,000 members are on strike. 

UAW, Ford Reach a Tentative Agreement

United Auto Workers said on October 25, 2023 that they had reached a tentative agreement with Ford that would raise the wage on average by 25% for the union workers. Including cost of living adjustments, the worker wage will rise 30%, a trend-setting wage growth that will work as a template for the other two domestic automakers. 

Stellantis, UAW Reported to Have a Deal on Hand

The Associated Press reported on October 28, 2023 that Jeep maker Stellantis and United Auto Workers had reached a tentative deal by using the same template that had been provided from a similar deal with Ford. Like Ford, Stellantis' unionized workers will receive a 25% wage boost over the length of the contract ending on April 30, 2028. With cost-of-living adjustment, the comprehensive wage increase will be about 30%. An 11% wage growth will come right at the corner as soon as the deal is ratified. On the top, a Stellantis plant at Belvidere, Illinois that had been idled since Spring 2023 will be transformed into an EV plant and battery facility. 

GM, UAW Reach Tentative Deal

The hardball tactic of UAW President Shawn Fain has paid off as UAW members in the Big Three are expected to receive pay boost as high as more than 30% over the length of the contract. General Motors and UAW reached a tentative deal on October 30, 2023. 

UAW Members Ratify Deals for All Three Automakers 

Concluding a bright chapter of the trade union movement, UAW members of GM, Stellantis and Ford approved their respective agreements reached in October 2023. The Dallas Morning News reported on November 19, 2023 that the final official tally showed Stellantis workers voted 68.8% in favor of the deal, while the approval rate at Ford was about 69.3% and GM about mid-50s. The agreements with all three automakers follow an industry trend-setter template that UAW President Shawn Fain and the leadership have pushed aggressively. The intensity and strategy of UAW action were not only effective at the Domestic Three, they worked even at three non-unionized foreign automakers as Toyota, Hyundai and Honda increased the wages and other benefits for their own workers too.

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Cruise Suspends Operation Nationwide

Days after California Department of Motor Vehicles revoked its license and many reported cases of near-accidents, Cruise, owned by the General Motors, on October 27, 2023 suspended its operation nationwide to "examine our processes, systems, and tools and reflect on how we can better operate" efficiently and safely. Cruise is running a pilot near Downtown Dallas. 

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EPA Finalizes Rules to Cut Tailpipe Greenhouse Emissions

On March 20, 2024, the EPA published final rules that would slow down EV production for the model years 2027 through 2029, but eventually would pick up the pace and attain the high threshold proposed by Biden administration in April 2023 by the model year 2032. Last year, the EPA called for 67% of the new vehicles to be made on EV platform by 2032. The final rules published on March 20, 2024 envision 56% of all new vehicles for the model year 2032 electric, along with at least 13% pug-in hybrid or other partially electric cars, as well as more [fuel] efficient fossil fuel-based models. 

EV Battle between EU and China Likely to Lead to a Decisive Vote on Tariffs

That the European Union is not taking the flooding of the European market with cheap Chinese electric vehicles lightly is amply clear as the EU is planning to have a vote on potential tariffs on Chinese EV imports, most likely, on September 25, 2024, according to the September 13, 2024, edition of the Bloomberg News. The vote will pave the way, unless opposed by 15 nations with at least 65% of the EU's population, for additional tariffs of up to 36.3%, 19.3%, and 17% on imports from SAIC Motor Corp., Volvo Car AM parent company Geely and BYD Co., respectively, on the top of existing tariffs of 10%. European Commission President Ursula von der Leyen launched the investigation last year. 

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