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Watch Rep. Stevens: No EV Transition Without Autoworkers - Bloomberg

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00:00Demand for EVs is slumping. U.S. carmakers are responding by cutting production and prices. Congresswoman Haley Stevens of Michigan spoke to David Westin on Wall Street Week and said that the fluctuations not surprising. We were never expecting a linear trajectory of growth. We've certainly seen big numbers coming out 18%, a million EVs sold. Very pleased to see where we are this year, technically over the last year and the year before that. But we realize it's it's going to be a little bit more of a curve than just that straight linear line. And in part, David, we know we're living in inflationary times. We know we're still working on the infrastructure piece of this. Interest rates are up. How many Americans are racing to buy a new car right now? That's what's on my mind. That's where I'm pushing the trade groups and trade associations and the conversations I'm certainly having with the dealers. But the key thing is, is that the United States of America, under Joe Biden's leadership, passed a very large industrial policy bill known as the Inflation Reduction Act to ensure that the U.S. could lead with the supply chain for battery electric vehicles as well as potentially hydrogen. We we certainly saw those investments come out in the infrastructure bill, and we didn't want to be left out of the global marketplace. Our automakers asked us to do something to enable them to lead and develop in this area of technology and innovation progress. And I am so thrilled as a member of Congress for Michigan to see what from the supplier to the original equipment manufacturer, what these folks have been able to do during unbelievable times, a global pandemic and then coming out of it. And we've led every step of the way. One of the things we hear about is affordability. As you know, some of the big auto manufacturers in your home state of Michigan mine as well, by the way, started sort of the top end of the price point rather than down mid range. And we may be leaving behind some of the mass market consumer. Do we need to make them cheaper and does the Inflation Reduction Act do enough to allow auto manufacturers to price these electric vehicles so people can afford them? Well, certainly we're thrilled that we got the tax credit piece done. And I think if it was solely up to Democratic lawmakers from Michigan, we would have done more. And we hear that from those who are in the intersection between distribution and the dealership world, that more tax credits might be desirable here. And we'll also reflect that when Tesla was exclusively in this marketplace and they've got a very vertical integrated supply chain, obviously not using a unionized workforce and they put a huge price tag on their vehicle and made made themselves a little bit of an enigma in the marketplace. And now we are seeing, for instance, as Stellantis start to roll out better electric vehicles that are beautiful, that are much lower cost. GM is doing the same thing here. And so, look, the American Sumer we know is being stretched. We've got people paying more for food than they have any time in 30 years out of their salary. This is something that the Biden administration with the FTC is working on every single day. We've got to have some accountability on costs and the holding of account of other large producers and whatnot with food. But in terms of cars, we have so much to be optimistic about in the United States of America. Look what happened with chips and microchips. Not only did we pass a chips manufacturing bill, we are going to be the only country in the United States of America that leads from the standpoint of design, production and shipment. So I'm overall optimistic, but I'm listening to the consumer. I'm recognizing that people have large car payments with high interest rates, engaging the Treasury Department, making sure that they've got trust and leadership here in the United States Capitol where we can assist with these rising costs across the board. How popular are electric vehicles in Michigan with the workers? Because this was an issue that came up in the UAW negotiation, a lot of concern that you don't need as many workers when it comes to EVs. What is your sense of your home state and the workers there and how enthusiastic they are about EVs coming? Well, I'll certainly say that my building trades are very enthusiastic to see new plants being built, being rehabbed. Every time I talk to our building trades union, they are unions, they are busy, they are at max employment and they're working many long hours. And so that's an exciting piece on the infrastructure side and the manufacturing side we got with the Inflation Reduction Act also in investment dollars to rehabbing manufacturing shops and salves for this energy transition. But we can't be naive to how we need to responsibly deal workers in. There was certainly, as we saw in the fall, large discussion, a strike that occurred around safety, around record profits needing to increase worker pay, get rid of the tiered structure. A lot of the concessions that were made during the auto rescue period that I worked out with Steve Rattner, when General Motors and Chrysler were staring off the ledge of bankruptcy and they didn't liquidate. They rebounded, as we do in Michigan. But we cannot have an electric vehicle revolution without the auto workers. And we will have it with the the auto workers. And then lastly, as a government actor, it is not my responsibility to shove things down the consumer's throat. We are setting up the environment and the climate, but car makers sell cars and I know they are working on this every day. And each time I get a chance to talk to Ford Motor Company, for instance, I'm asking them, what are your Consumer Reports saying? What are your market indicators saying?

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Rep. Stevens: No EV Transition Without Autoworkers

Rep. Haley Stevens, Democrat of Michigan, talks about the bumpy trajectory of electric vehicle demand in the US and the role of labor in the energy transition. (Source: Bloomberg)

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