2023-09-21 17:42:51
A strike by the American Auto Workers Union might increase costs by $80 billion over 4 years
Dubai – Al Arabiya.net
Published on: September 21, 2023: 07:53 PM GST Last updated: September 21, 2023: 09:42 PM GST
The traditional automobile industry in the United States faces great challenges, at a moment of pivotal transformation that the sector is experiencing. The UAW strike in the three largest automakers in America, namely Ford, GM, and Stellantis, will lead to a significant increase in costs in the coming years, estimated by some authorities at regarding $80 billion over 4 years, which may lead to a blow to the competitiveness of the industry in America. .
The rise in costs comes at a time when car manufacturers need to pump huge investments to shift towards the electric car industry, and to be able to compete with the companies that preceded them in this field, especially Tesla.
Another challenge is competition with China, the rising power in the automobile industry, whether traditional, hybrid, or electric. All of this puts the traditional automobile industry in America facing major challenges.
In this context, the Regional Marketing Director at SMA Solar Technology, Moatasem Al-Bitar, said in an interview with “Energy Future” on Al-Arabiya channel, that most of the lithium exports used in the renewable energy industry come from China.
He explained that there are companies that have integration into the industry system, such as the Chinese “BYD”, which possesses resources for lithium used in the manufacture of batteries for the company’s cars, and also “Tesla” that relies on Chinese companies to supply lithium.
He pointed out that traditional car manufacturers face a challenge in entering the electric car industry.
He stated that the Chinese market has an advantage in the supply chains of metals for the manufacture of electric cars, and here we find that Tesla, for example, relies in manufacturing its cars on lithium imported from China, adding: “The American automobile industry depends on Chinese companies in the supply chains.”
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