manufacturing
Newsletter
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Ford shifts to smaller EVs, but will Americans follow?
Ford's new strategy of focusing on smaller electric vehicles challenges America's long-standing preference for larger cars, raising questions about consumer acceptance and the company's future profitability.
In short:
- Ford's pivot to smaller EVs is driven by the high cost of large electric vehicles, which require expensive batteries.
- American car buyers have traditionally favored bigger vehicles, complicating the shift toward compact EVs.
- Competition from smaller, affordable Chinese EVs could force U.S. automakers to adapt quickly.
Key quote:
“If we cannot make money on EVs, we have competitors who have the largest market in the world, who already dominate globally, already setting up their supply chain around the world. If we don’t make profitable EVs in the next five years, what is the future?”
— Jim Farley, CEO of Ford
Why this matters:
The success of Ford’s strategy could reshape the U.S. auto industry, influencing job markets, environmental outcomes and America's position in the global EV race.
Related:
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Chip manufacturing expansion in the West requires careful resource management
The Biden administration’s CHIPS Act is set to transform the Western U.S. into a semiconductor hub, but it poses significant challenges related to water and energy resources.
In short:
- The CHIPS Act will provide $29.5 billion to support semiconductor production in the U.S., with a focus on the Western states, to reduce dependency on foreign supply chains.
- New semiconductor factories, such as those planned by TSMC and Intel in Arizona, require substantial water and energy resources, raising concerns in drought-prone areas like Arizona.
- TSMC’s facilities are expected to create 6,000 permanent jobs, and Intel’s expansion could add 700 jobs in New Mexico, leading to significant economic growth and increased housing demand.
Key quote:
“Energy, climate tech, batteries, EVs, quantum computing, health-care diagnostics—at the center of all of this are (semiconductor) chips.”
— Chris Camacho, president and CEO of the Greater Phoenix Economic Council
Why this matters:
The push to increase U.S. semiconductor production aims to bolster national security and economic resilience, but it may exacerbate resource strains in regions already facing environmental challenges. Balancing industrial growth with sustainable resource management is crucial to ensure the long-term viability of these initiatives.
Related: Biden aims to transform US with historic $1.6 trillion investment
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Trump vows to dismantle Biden’s electric vehicle policies
Former President Donald Trump has pledged to dismantle President Biden's electric vehicle policies if re-elected, threatening tariffs and policy reversals.
Coral Davenport and Jack Ewing report for The New York Times.
In short:
- Trump has criticized electric vehicles and plans to impose tariffs and repeal Biden's E.V. incentives.
- Analysts believe the E.V. market may continue growing despite potential policy rollbacks.
- Automakers have invested heavily in E.V. production, which may temper the impact of policy changes.
Key quote:
“Our time frame as a company, our planning time frame, is a lot longer than election cycles. When we’re whipsawed back and forth by politicians that becomes really difficult for us.”
— William Clay Ford Jr., executive chair of Ford Motor
Why this matters:
Potential policy reversals raise questions about the future of the U.S. automotive industry, which has seen a substantial shift toward electrification in recent years. Major car manufacturers have invested billions in EV technology, aligning their strategies with Biden's vision for a greener economy. Rolling back these policies could not only disrupt these plans but also slow progress towards reducing greenhouse gas emissions, a critical component in addressing global warming.
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American solar firms request federal action against Asian competitors
American solar manufacturers are calling for the U.S. government to impose measures against Asian countries allegedly dumping subsidized panels into the market, arguing this threatens the domestic industry.
In short:
- U.S. manufacturers argue that solar panels subsidized by China, but manufactured in other Asian countries, are damaging the U.S. market.
- The petition targets imports from Cambodia, Malaysia, Vietnam and Thailand, which represent 84% of U.S. solar panel imports in the last quarter of 2023.
- The controversy stirs debate within the solar sector, with some warning that tariffs could disrupt growth and escalate costs for consumers.
- China responded that their leading place in the global solar panel market is attributable to "strong performance and full-on market competition, nut subsidies."
Key quote:
"We are seeking to enforce the rules, remedy the injury to our domestic solar industry and signal that the U.S. will not be a dumping ground for foreign solar products."
— Tim Brightbill, attorney for the American Alliance for Solar Manufacturing Trade Committee, the group that filed the petition.
Why this matters:
American firms often argue that Chinese and other Asian manufacturers benefit from significant government subsidies, lower labor costs and less stringent regulations. This can result in lower production costs and cheaper products, making it difficult for American manufacturers to compete on price.
Be sure to listen to Agents of Change senior fellow Azmal Hossan as he talks about an ambitious effort he’s part of to get the U.S. and China working together on climate change.
Visit EHN's energy section for more top news about energy, climate and health.
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Photo by Ella Ivanescu on Unsplash
Senate Republicans introduce a climate bill — aimed at China
The legislation aims to protect U.S. companies from cheap imports from countries that lack robust greenhouse gas regulations.
Newsletter
Photo by Manny Becerra on Unsplash
Can the U.S. make solar panels? This company thinks so
First Solar kept producing them in Ohio after most of the industry moved to China. President Biden wants many more domestic manufacturers.
Image by Peter Dargatz from Pixabay
The Inflation Reduction Act is reducing U.S. reliance on China
Don’t get fooled by a common myth. The reality: The landmark IRA includes provisions to incentivize domestic clean energy manufacturing and reduce U.S. dependence on China.
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