Auto industry

In June 2019, then-presidential candidate Joe Biden tweeted: “Trump doesn’t get the basics. He thinks his tariffs are being paid by China. Any freshman econ student could tell you that the American people are paying his tariffs.” Fast-forward five years to May 2024, and President Biden has announced a hike in tariffs on a variety of Chinese imports, including a 100% tariff that would significantly increase the price of Chinese-made electric vehicles. For a nation committed to reducing greenhouse gas emissions, efforts by the U.S. to block low-cost EVs might seem counterproductive. At a price of around US$12,000, Chinese automaker BYD’s Seagull electric car could quickly expand EV sales if it landed at that price in the U.S., where the cheapest new electric cars cost nearly three times more. As an expert in global supply chains, however, I believe the Biden tariffs can succeed in giving the U.S. EV industry room to grow. Without the tariffs, U.S. auto sa...

Panasonic’s new US$4 billion battery factory in De Soto, Kansas, is designed to be a model of sustainability – it’s an all-electric factory with no need for a smokestack. When finished, it will cover the size of 48 football fields, employ 4,000 people and produce enough advanced batteries to supply half a million electric cars per year. But there’s a catch, and it’s a big one. While the factory will run on wind and solar power much of the time, renewables supplied only 34% of the local utility Evergy’s electricity in 2023. In much of the U.S., fossil fuels still play a key role in meeting power demand. In fact, Evergy has asked permission to extend the life of an old coal-fired power plant to meet growing demand, including from the battery factory. With my students at Wellesley College, I’ve been tracking the boom in investments in clean energy manufacturing and how those projects – including battery, solar panel and wind turbine...

The U.S. Environmental Protection Agency released strict new emissions limits on March 20, 2024, for cars built from 2027 through 2032. The final rule for Multi-Pollutant Emissions Standards caps a process that started almost a year earlier, when the Biden administration first proposed groundbreaking regulations that would essentially require automakers to make a substantial pivot toward electrification. The original proposal met significant pushback from carmakers and unions, who argued that the industry needed more time to switch from gas-powered cars to EVs. As a result, while the final target that this rule sets is very similar to the one that was initially proposed, the timetable in the final rule – especially in the earlier years – is relatively relaxed. That means more carbon emissions in the short run. Politics is inevitably an important consideration in regulating major industries. The new rule is projected to cut carbon dioxide emissions from passenger ca...