• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

JPMorgan Chase, Goldman Sachs, Bank of America

July 13, 2026

Ex-PM Rajoy Under Fire for Saying France Soccer Team has ‘No Frenchmen’

July 13, 2026

Syria Arrests ‘ISIS-Linked’ Suspects in Damascus Bombings

July 13, 2026
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Monday, July 13
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Texas Hispanics swung hard to Trump. A new poll shows they’re furious at his deportations.

    July 12, 2026

    The high-stakes, battleground Senate race that no one is talking about

    July 12, 2026

    Lindsey Graham’s Passing Is Another Stage In The Death Of Trumpism

    July 12, 2026

    How ICE melted from view at the World Cup

    July 12, 2026

    The secret to becoming a sporting superpower

    July 12, 2026
  • Health

    Eyes On Elevance Health, UnitedHealth For Continued Insurer Rebound

    July 13, 2026

    Kennedy presses ahead with plans to reduce antidepressant use

    July 13, 2026

    Lindsey Graham Cause Of Death, Aortic Dissection. An ER Doc Explains

    July 13, 2026

    Supporting Science Is An Act Of Patriotism

    July 13, 2026

    AAIC 2026: Researchers focus on tau, target blood-brain barrier

    July 12, 2026
  • World

    Syria Arrests ‘ISIS-Linked’ Suspects in Damascus Bombings

    July 13, 2026

    Kim Jong-un Leads Meeting on Growing ‘Quality and Quantity’ of North Korea Nuclear Force

    July 13, 2026

    Iran Ceasefire is Over, But Talks to Continue

    July 13, 2026

    Texas Man Gets 40 Years for Leading Violent Online Child Exploitation Ring

    July 13, 2026

    Colombia’s Incoming Conservative Admin to Close Its Embassy in Cuba

    July 13, 2026
  • Business

    ATF Rule Could Cause Classic Showdown Between Mom And Pop Shops Versus Online Retailers

    July 10, 2026

    Costco Shows That You Can Build A Thriving Business With One Simple Trick (Pay Your Workers)

    July 9, 2026

    The Agency Elizabeth Warren Built Now Advances Trump’s Agenda

    July 9, 2026

    Meta To Shell Out Billions For New AI Data Center Outside US

    July 9, 2026

    How Big Banks Are Scheming To Jack Up Your Fees

    July 8, 2026
  • Finance

    JPMorgan Chase, Goldman Sachs, Bank of America

    July 13, 2026

    Dellia Group mulls options after interest in fruit-snacks firm

    July 13, 2026

    He works two hours a month to make six figures a year — why he says ditching the 9-to-5 is ‘the ultimate power’

    July 13, 2026

    Mark Cuban has strong words on AI companies and job losses

    July 13, 2026

    Spectrum makes significant decision as customer losses mount

    July 13, 2026
  • Tech

    LAPD Cuts Ties with License-Plate Camera Vendor over ‘Who Owns the Data’

    July 12, 2026

    Apple Lawsuit Accuses OpenAI of Stealing Trade Secrets in Massive Scheme

    July 11, 2026

    Bloomberg Claims Startup Co-Founded by Bill Gates’ Daughter Cheats on Sales Credit

    July 11, 2026

    Nobel Prize-Winning Chemist Leaves U.S. to Join Chinese AI Project

    July 11, 2026

    European Commission Finds Meta Violated Digital Services Act with Addictive Design Features

    July 11, 2026
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Business»‘Big Trouble’: Here’s How Newsom’s California Is Killing The American Auto Industry
Business

‘Big Trouble’: Here’s How Newsom’s California Is Killing The American Auto Industry

December 15, 2023No Comments6 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Second Republican Primary Debate Held At Ronald Reagan Presidential Library
Share
Facebook Twitter LinkedIn Pinterest Email
  • Stellantis plans to lay off thousands of workers in Detroit and Ohio in 2024 in order to adjust to California’s strict emission standards, raising concerns that other automakers may have to do the same, experts told the Daily Caller News Foundation. 
  • California has the strictest environmental standards in the country for vehicles and can use its dominant market share to influence broader U.S. trends, coercing automakers to design more expensive cars to fit that market, the experts said.
  • “Considering the losses and layoffs we’ve already seen, the effects on the auto industry could be devastating,” Marlo Lewis, senior fellow at the Competitive Enterprise Institute, told the DCNF. “Millions of middle-income households are already priced out of the market for new motor vehicles.”

California’s strict emission standards are poised to move the entire auto market towards more expensive, lower-emission vehicles, endangering the American auto industry, which is already posting huge losses in the electric vehicle market, experts told the Daily Caller News Foundation.

Top U.S. car manufacturer Stellantis sent notices to 2,455 workers in Detroit and 1,225 workers in Ohio on Dec. 8, notifying employees of possible layoffs to come in February in a move to shift its production to comply with California’s regulations that are increasingly cracking down on internal combustion engine vehicles, according to Barron’s. The projected layoffs from Stellantis could be one of many in the auto industry as California’s environmental regulations shift markets across the country, despite electric vehicles still not being affordable for many Americans and profitable for automakers, according to experts who spoke to the DCNF. (RELATED: Elon Musk’s Tesla Issues Recall For Almost All US Vehicles After Government Probe)

See also  Luxury slowdown further challenges Gucci revival

“The California standards have a huge impact,” Marlo Lewis, senior fellow at the Competitive Enterprise Institute, told the DCNF. “Both the [Environmental Protection Agency] in its proposed greenhouse gas motor vehicle standards and the National Highway Traffic Safety Administration (NHTSA) in its proposed corporate average fuel economy (CAFE) standards cite California’s [zero-emission vehicle] mandate as driving vehicle electrification in the U.S. Moreover, under Clean Air Act Section 177, other states may opt into California’s ZEV and [greenhouse gas] standards — if those policies are lawful in the first place, which of course California and its state and federal agency allies claim is the case.”

California is emboldened by the Environmental Protection Agency’s current standards under the Clean Air Act, which dictates that states must follow the federal government’s vehicle emission standards or opt into California’s more restrictive requirements. California has passed restrictions facilitating the switch away from traditional vehicles, requiring that all new cars, pickups and SUVs be electric or hydrogen-powered by 2035.

“The standards have a large effect because automakers don’t want to make different cars for different states,” Diana Furchtgott-Roth, director of the Center for Energy, Climate and Environment at the Heritage Foundation, told the DCNF. “That is why California affects the rest of the country. In addition, another 16 states have voluntarily said they will copy California’s laws.”

NEW:

The Biden administration has highlighted an EV charging company as evidence that its climate agenda is working. Now, the company’s stock is tanking, and the firm faces a class action lawsuit. @DailyCaller News Foundationhttps://t.co/XWSUXbA3IK

— Nick Pope (@realnickpope) December 12, 2023

California Gov. Gavin Newsom has previously touted the “California Effect,” which dictates that because of the state’s size and market share, it can dominate national trends and influence manufacturers, forcing them to tailor products to the standards or risk missing out on the market entirely, according to The New York Times. The state has the fifth-largest economy in the world.

See also  San Francisco Police Make Arrest In Killing Of Cash App Founder

“Considering the losses and layoffs we’ve already seen, the effects on the auto industry could be devastating,” Lewis told the DCNF. “Millions of middle-income households are already priced out of the market for new motor vehicles. Ford’s F-150 Lightning costs about $14,000 more than the comparable internal combustion engine (ICE) model. Energy analyst Robert Bryce reports that during second quarter 2023, Ford lost $72,762 for every EV it sold, and that in July, Ford projected $4.5 billion in EV-related losses by year’s end—more than double the company’s $2.1 billion EV business losses in 2022.”

Following the losses, Ford sent out a memorandum on Tuesday to suppliers that it was cutting production of its F-150 lightning pickups in 2024 from a weekly target of 3,200 to 1,600 units.

As losses mount for automakers, the Biden administration is pushing for even greater production with subsidies to the EV industry. The Biden administration, through the Inflation Reduction Act, has instituted a $7,500 tax credit per EV in an attempt to make the cars more affordable.

“The standards will raise the costs of transportation, disproportionately hurting poor people, small businesses and farmers,” Furchtgott-Roth told the DCNF. “Some people like EVs, but others find them to be more expensive, inconvenient to charge, and difficult in cold climates because they lose range. Plus, these EVs make America depend on China. The auto industry is losing money trying to comply with the standards because people are not buying electric vehicles in sufficient quantities.”

While the number of people buying EVs is growing, not enough people are opting into buying an EV to keep up with the rising supply following the regulations and subsidies in the industry. The total volume of EVs sold in January was 3% of new cars, making up 3% of market share, but as of September, volume has risen to 6%, while sales have only risen to 4%.

See also  US Black Friday sales rise 2.5% -Mastercard Spendingpulse

The current production of EVs requires the use of rare earth minerals, specifically in the vehicle’s battery, with China currently controlling around 87% of the world’s refining capacity for the components. The U.S. has so far been unable to compete in the market, but the Department of Defense has committed millions of dollars to cultivating domestic ventures.

“This agenda is a massive threat to consumer welfare,” Lewis told the DCNF. “In the short term, some automakers may profit from government handouts and the narrowing of competition. In the long term, an industry that does not produce what consumers want at prices they can afford is in big trouble.”

The California governor’s office did not immediately respond to a request to comment from the DCNF.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

American Auto big California Heres Industry Killing Newsoms Trouble
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Big fast-food burger chain franchisee files Chapter 11 bankruptcy

July 12, 2026

Trump Threatens Iran After Ali Khamenei’s Funeral Saw Open Calls For His Killing

July 11, 2026

Shocking Final American Viewership Numbers for US-Belgium Revealed

July 11, 2026

ATF Rule Could Cause Classic Showdown Between Mom And Pop Shops Versus Online Retailers

July 10, 2026
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Harvard’s Laurence Tribe Spots 1 Major Flaw In Case Against Trump

August 2, 2023

China Attacks Philippine Supply Vessel in South China Sea

August 10, 2023

Dozens Of States Sue Meta Over Children’s Mental Health

October 24, 2023

England’s Unions Split On Healthcare Pay Deal

May 1, 2023
Don't Miss

JPMorgan Chase, Goldman Sachs, Bank of America

Finance July 13, 2026

(L-R) Brian Moynihan, Chairman and CEO of Bank of America; Jamie Dimon, Chairman and CEO…

Ex-PM Rajoy Under Fire for Saying France Soccer Team has ‘No Frenchmen’

July 13, 2026

Syria Arrests ‘ISIS-Linked’ Suspects in Damascus Bombings

July 13, 2026

Eyes On Elevance Health, UnitedHealth For Continued Insurer Rebound

July 13, 2026
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,399)
  • Entertainment (5,647)
  • Finance (4,168)
  • Health (2,462)
  • Lifestyle (1,897)
  • Politics (3,861)
  • Sports (4,853)
  • Tech (2,371)
  • Uncategorized (4)
  • World (5,622)
Our Picks

China’s Markets Throw Off Gloom for Now as Xi Offers Lifeline

July 25, 2023

Pakistan posts highest-ever annual inflation; stampedes for food kill 16

April 3, 2023

Elon Musk Warns His Best Friends in Communist China that AI Could Usurp Their Dictatorship’s Power

July 17, 2023
Popular Posts

JPMorgan Chase, Goldman Sachs, Bank of America

July 13, 2026

Ex-PM Rajoy Under Fire for Saying France Soccer Team has ‘No Frenchmen’

July 13, 2026

Syria Arrests ‘ISIS-Linked’ Suspects in Damascus Bombings

July 13, 2026
© 2026 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.