Americans already losing jobs to tariffs – 900 laid off as Stellantis idles plants
Stellantis has paused production at two assembly plants in Canada and Mexico in response to tariffs, leaving thousands of Americans and Canadians out of their jobs while the company figures out what to do next. The idled plants produce both the Dodge Charger Daytona EV and Jeep Wagoneer S EV, among other vehicles.
In the aftermath of yesterday’s Inflation Day announcements by Mr. Trump, the fallout has been swift – and perhaps swifter than expected.
To set the stage for this article: tariffs do not work. There are some potential benefits or situations that they can be used in, but when they are decided on haphazardly, not targeted towards any particular industry or country, not accompanied by onshoring incentives, and not done in concert with allies to produce a desired effect, they tend to just be bad for the country imposing them.
Instead, what they do – particularly when implemented in the idiotic way that these have been announced – is push ally countries away, encourage countries to find other global consumers for their exports, induce retaliation, and cause inflation for the country imposing them.
That last inflation point is especially direct and easy to understand, so lets explain how it works.
Imagine that you are one of two companies making a product, which you can sell profitably for $11, but your overseas competitor can sell for $10. Then, your country adds a 50% tariff to your competitor in order to make your product more competitive. Now, your competitor sells their product for $15 – but you’re a business, and your interest is in making money, and you now know that nobody can compete with your $11 price… or $12, $13, or even $14 for that matter.
So you set your price to $14.50, still undercutting your competition, making yourself more profit, and causing 45% inflation for everyone who had previously bought your competitor’s $10 product.
In this way, tariffs are a direct shock to prices for consumers. And when those tariffs are broad across all industries, they mean that consumers will pay more for everything.
This is just an extremely simplified example of only one way in which tariffs negatively affect consumers in the country implementing them, but it is widely held by anyone who studies economics that tariffs are generally harmful.
It is possible for tariffs to reduce offshoring of jobs, or at least, those who believe in their use tend to consider this as their primary purpose. This is why labor unions generally support protectionist policy, as they generally consider that free trade agreements have resulted in offshoring of jobs from advanced economies, and therefore a lowering of overall global labor standards as companies flee countries with higher wage or labor standards.
But we’ve seen attempts at protectionist tariffs in the auto industry fail before when we tried to implement tariffs on Japanese steel and autos in the 1970s, and all it did was give 50 years of global export dominance to the Japanese (as I went over in this article, or you can read about in this union publication).
More proximately, the last round of tariffs implemented by the exact same person who has somehow been allowed to wander into the White House for a second time (despite there being a clear Constitutional remedy for this crisis) were shown to harm the US economy. Mr. Trump’s tariffs didn’t lead to an increase in American jobs in targeted industries, and retaliatory tariffs led to great harm for American industry, especially farmers, due to targeted retaliatory tariffs by China.
But now, not content to just harm the US economy and instead apparently wanting to destroy it wholesale, Mr. Trump’s new tariff announcement yesterday is much broader than his comparatively small-scale tariffs of yesteryear. The previous salvo just managed to shatter the US soybean industry, whereas this one stands to harm all US industries and consumers.
And today we’re already seeing the first effect: job losses in American manufacturing, the very sector that Mr. Trump’s lies claim he’s trying to save.
Stellantis announced today that it will idle some plants in Canada and Mexico, leading to job losses for Americans. It directly implicated the tariffs as its reason for these plant idlings.
Those job losses total 4,500 for our erstwhile Canadian allies, and 900 for workers in the US in associated plants. A Mexican plant will be idled, but due to the strength of the Mexican workers’ contract, Mexican auto workers will still report to work and be paid while the plant is idle.
The plants chosen for idling produce several vehicles, including the Dodge Charger Daytona EV and Jeep Wagoneer S EV, but also the Chrysler Pacifica and Jeep Compass. They are supported by US plants that provide parts for those vehicles.
US workers at stamping plants in Michigan and transmission and casting plants in Indiana will be the ones to lose their jobs during the pause.
Stellantis said that it is still figuring out what the long-term effects of the tariffs will be, but that these immediate actions are a direct response to the tariffs while they figure things out. It will continue to determine if further action is necessary.
An email sent by North American COO Antonio FIlosa said “We understand the current environment creates uncertainty. Be assured that we are very engaged with all of our key stakeholders, including top government leaders, unions, suppliers and dealers in the U.S., Canada, and Mexico, as we work to manage and adapt to these changes.”
Uncertainty is something that all businesses, but especially the auto business, abhors. Automotive manufacturing is a complex process requiring coordination of suppliers across thousands of parts produced across many countries.
Cars are planned and produced on long timelines, with lead times of some ~7 years on average from concept to production. As a result, tariff policy that changes day by day can make it difficult for any complex manufacturing, especially automotive, to plan around.
In those situations, sometimes a manufacturer will just throw their hands up and say “we give up, we’ll find someone else to sell to instead.”
And it looks like today’s move by Stellantis is just the first company to do that. Expect more.
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Last week, Parker Hannifin launched what they’re calling the industry’s first certified Mobile Electrification Technology Center to train mobile equipment technicians make the transition from conventional diesel engines to modern electric motors.
The electrification of mobile equipment is opening new doors for construction and engineering companies working in indoor, environmentally sensitive, or noise-regulated urban environments – but it also poses a new set of challenges that, while they mirror some of the challenges internal combustion faced a century ago, aren’t yet fully solved. These go beyond just getting energy to the equipment assets’ batteries, and include the integration of hydraulic implements, electronic controls, and the myriad of upfit accessories that have been developed over the last five decades to operate on 12V power.
At the same time, manufacturers and dealers have to ensure the safety of their technicians, which includes providing comprehensive training on the intricacies of high-voltage electric vehicle repair and maintenance – and that’s where Parker’s new mobile equipment training program comes in, helping to accelerate the shift to EVs.
“We are excited to partner with these outstanding distributors at a higher level. Their commitment to designing innovative mobile electrification systems aligns perfectly with our vision to empower machine manufacturers in reducing their environmental footprint while enhancing operational efficiency,” explains Mark Schoessler, VP of sales for Parker’s Motion Systems Group. “Their expertise in designing mobile electrification systems and their capability to deliver integrated solutions will help to maximize the impact of Parker’s expanding METC network.”
The manufacturing equipment experts at Nott Company were among the first to go through the Parker Hannifin training program, certifying their technicians on Parker’s electric motors, drives, coolers, controllers and control systems.
“We are proud to be recognized for our unwavering dedication to advancing mobile electrification technologies and delivering cutting-edge solutions,” says Nott CEO, Markus Rauchhaus. “This milestone would not have been possible without our incredible partners, customers and the team at Nott Company.”
In addition to Nott, two other North American distributors (Depatie Fluid Power in Portage, Michigan, and Hydradyne in Fort Worth, Texas) have completed the Parker certification.
Electrek’s Take
With the rise of electric equipment assets like Bobcat’s T7X compact track loader and E10e electric excavator that eliminate traditional hydraulics and rely on high-voltage battery systems, specialized electrical systems training is becoming increasingly important. Seasoned, steady hands with decades of diesel and hydraulic systems experience are obsolete, and they’ll need to learn new skills to stay relevant.
Certification programs like Parker’s are working to bridge that skills gap, equipping technicians with the skills to maximize performance while mitigating risks associated with high-voltage systems. Here’s hoping more of these start popping up sooner than later.
SOURCE | IMAGES: Parker Hannifin.
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Based on a Peterbilt 579 commercial semi truck, the ReVolt EREV hybrid electric semi truck promises 40% better fuel economy and more than twice the torque of a conventional, diesel-powered semi. The concept has promise – and now, it has customers.
Austin, Texas-based ReVolt Motors scored its first win with specialist carrier Page Trucking, who’s rolling the dice on five of the Peterbilt 579-based hybrid big rigs — with another order for 15 more of the modified Petes waiting in the wings if the initial five work out.
The deal will see ReVolt’s “dual-power system” put to the test in real-world conditions, pairing its e-axles’ battery-electric torque with up to 1,200 miles of diesel-extended range.
ReVolt Motors team
The ReVolt team starts off with a Peterbilt, then removes the transmission and drive axle, replacing them with a large genhead and batteries. As the big Pete’s diesel engine runs (that’s right, kids – the engine stays in place), it creates electrical energy that’s stored in the trucks’ batteries. Those electrons then flow to the truck’s 670 hp e-axles, putting down a massive, 3500 lb-ft of Earth-moving torque to the ground at 0 rpm.
The result is an electrically-driven semi truck that works like a big BMW i3 or other EREV, and packs enough battery capacity to operate as a ZEV (sorry, ZET) in ports and urban clean zones. And, more importantly, allows over-the-road drivers to hotel for up to 34 hours without idling the engine or requiring a grid connection.
That ability to “hotel” in the cab is incredibly important, especially as the national shortage of semi truck parking continues to worsen and the number of goods shipped across America’s roads continues to increase.
And, because the ReVolt trucks can hotel without the noise and emissions of diesel or the loss of range of pure electric, they can immediately “plug in” to existing long-haul routes without the need to wait for a commercial truck charging infrastructure to materialize.
“Drivers should not have to choose between losing their longtime routes because of changing regulatory environments or losing the truck in which they have already made significant investments,” explains Gus Gardner, ReVolt founder and CEO. “American truckers want their trucks to reflect their identity, and our retrofit technology allows them to continue driving the trucks they love while still making a living.”
If all of that sounds familiar, it’s probably because you’ve heard of Hyliion.
Hyliion electric semi truck
Before it changed its focus to develop Carnot-cycle generators and gensets, Austin-based Hyliion built a number of EREV Peterbilts using the then-new 15L Cummins diesel as a generator and employing the same sort of battery and e-axle-arrangement as ReVolt.
In addition to being located in the same town and employing the same idea in the same Peterbilt 579 tractor, ReVolt even employs some of the same key players as Hyliion: both the company’s CTO, Chandra Patil, and its Director of Engineering, Blake Witchie, previously worked at Hyliion’s truck works.
Still, Hyliion made their choice when they shut down their truck business. ReVolt seems to have picked up the ball – and their first customer is eager to run with it.
“Our industry is undergoing a major transition, and fleet owners need practical solutions that make financial sense while reducing our environmental impact,” said Dan Titus, CEO of Page Trucking. “ReVolt’s hybrid drivetrain lowers our fuel costs, providing our drivers with a powerful and efficient truck, all without the need for expensive charging infrastructure or worrying about state compliance mandates. The reduced emissions also enable our customers to reduce their Scope 2 emissions.”
Page Trucking has a fleet of approximately 500 trucks in service, serving the agriculture, hazardous materials, and bulk commodities industries throughout Texas. And, if ReVolt’s EREV semis live up to their promise, expect them to operate a lot more than 20 of ’em.
SOURCES | IMAGES: ReVolt; via Power Progress, TTNews.
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With 272 miles of range and more room inside its walls than your first apartment, GM’s Chevy Brightdrop electric van is one of the best commercial EVs you can buy. And if you’re a Costco Executive member, you can get one for yourself or your business with an absolutely incredible $31,500 discount. (!)
Fleet electrification expert Tony Nisam took to LinkedIn yesterday to post a deal that he ran across at a Washington State Costco that stacks a $25,500 manufacturer rebate with $3,000 in “regular” Costco Member Savings, $2,750 in “LIMITED-TIME” Manufacturer to Member Incentives, plus an additional $250 for Costco Executive members.
Do a bit of math (add up 25,500 + 3,000 + $2,750 + 250), and you’ll calculate an almost unheard of $31,500 discount on one of the best, most capable commercial vans on the market – ICE or electric. And that’s before you factor in the 0% interest financing (72 mo.) being advertised at Blade Chevrolet, the Mount Vernon, Washington, where VIN 2G58J2TY6S9104313 (the exact van shown, below) is shown as stock number 16757.
If you’re not a Costco member yet and you’re looking for a new truck for your business or even a unique #vanlife ride with zero emissions, modern tech, and a nationwide dealer network, GM makes that $130 Executive membership seem like a no-brainer.
Kind of a big deal
“But wait,” says the floating, disembodied ghost of the great Billy Mays. “There’s more!” In addition to the $31,500 worth of discounts Costco Executive members get, there are deals to be had on chargers AND a number of other state and local utility incentives your business might qualify for, bringing the cost of adding a new Chevy Brightdrop to your fleet even lower. In northern Illinois, for example, ComEd commercial customers can get up to $7,500 in rebates for a new Brightdrop Zevo van.
Is a $39,000 price cut enough to get you to take a look at a new Brightdrop? At $45,235 (from a starting price of $84,235), can you afford not to? Head down to the comments and let us know.
SOURCE | IMAGES: Tony Nisam.
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