EV Tensions Shake Detroit

Detroit automakers are now facing obstacles after enjoying relief from pandemic-induced obstacles. Inventory levels for Detroit 3 brands are higher than the national average, and dealers are unhappy with increased costs and diminishing incentives. The electric vehicle market is particularly strained, with tension rising due to dealers' large investments in EV infrastructure without quick returns. A UAW strike could have significant financial consequences, impacting earnings by billions of dollars and affecting automakers and suppliers. The challenges extend to parts suppliers, who struggle with the transition to electrification, resource allocation, inflationary costs, and debt due to fixed contracts with automakers.