The Ramifications of the UAW’s Victory at Volkswagen’s Chattanooga, Tennessee Assembly Plant

White Paper

This white paper examines the implications of the UAW’s historic unionization vote at Volkswagen’s Chattanooga plant.

Here’s a glimpse of what you’ll learn:

• How the UAW victory could reshape the landscape of auto manufacturing.
• Key challenges in negotiating a labor contract that benefits both workers and Volkswagen.
• An analysis of wage disparities between the Chattanooga plant and the Detroit Three.
• The potential impact on production costs and future investment in the Chattanooga plant.

Gain valuable insights into the future of the U.S. auto industry with this analysis.

Revision note: An earlier version of the white paper discussed temporary workforce wages. According to a Volkswagen Group of America spokesperson, Volkswagen does not employ a temporary workforce. Therefore, comparing the wages of part-time/temporary workers between VW Chattanooga and the Detroit Three plants is irrelevant to the total labor cost analysis.

UAW’s Next Frontier: Mercedes-Benz in Alabama

White Paper

This white paper examines the upcoming unionization vote at the Mercedes-Benz U.S. International (MBUSI) plant in Tuscaloosa, Alabama, scheduled for May 13-17, 2024. The paper explores the significance of this vote for both the United Auto Workers (UAW) and Mercedes-Benz, considering the recent changes within the UAW and the potential impact on labor relations in the South.

Key points explored in the white paper:

• The UAW’s recent leadership changes and renewed focus on organizing.
• Mercedes-Benz’s Tuscaloosa plant as a strategic asset and its current labor practices.
• Potential benefits and challenges of unionization for both the UAW and Mercedes-Benz.
• The broader implications of the vote for the future of labor relations in the U.S. automotive industry.

Partner Whitepaper: Automotive Digital Transformation in Uncertain Times 

The automotive industry is experiencing a profound CASE (Connected, Autonomous, Shared, and Electrified) driven transformation, leading to changes in virtually every aspect of the business. In addition to this CASE-related disruption, several macro factors add to the overall uncertainty, requiring a rethinking of traditional strategies to survive and thrive during this transition.

Developing an agile, resilient organization with a focus on people, processes, and technology is key to addressing uncertainty and mitigating risk. From a people perspective, as the industry becomes more technology-centric, the demand—and competition—for digital talent will only intensify. OEMs and suppliers must become employers of choice, competing with Silicon Valley for the cream of the hi-tech talent pool.

From a process perspective, winning companies must develop the ability to anticipate and respond to an increasingly complex and disrupted ‘normal’ and, more so than ever, place the customer experience at the center of their strategies, look beyond their four walls for operational excellence, and respond to opportunities with laser-like precision and speed.

Finally, organizations must implement an information technology architecture centered on a data-driven, cloud-based digital operating platform capable of providing scalability, agility, resilience, and actionable insights to achieve competitive advantage.

It may be cliché to say that the auto industry stands at a historic crossroads—but this reality also brings an unparalleled opportunity for exponential growth while building a foundation for the next 100 years.

Recycling, Jobs, R&D & Scope 3 Carbon Emissions

The concept of a circular economy for Lithium-Ion batteries (LiBs), along with its drivers, barriers and enablers has been studied recently (NREL 2021) with a view to inform public policy at the federal, state, and local levels and associated government initiatives and related goal setting. More recently, estimates on the monetary value generated per ton of battery recycling material have begun to appear [McKinsey 2023], as private investors and public sector agencies look for strategic and operational guidance. At Center for Automotive Research (CAR) we have observed an accelerated investment in electric-vehicle (EV) assembly plants, EV LiB manufacturing and related research & development (R&D) in the North America – primarily in the United States (U.S.), followed by Canada and Mexico.

With the intention of looking ahead and informing automotive policy makers, investors, manufacturers and suppliers, and communities, including the state and local economic developers, CAR has summarized our initial observations in this whitepaper. We begin with an overview of the U.S. battery recycling plant locations and capacities, as they stand in mid-2023. This is followed by our observation of the U.S. market demand for battery recycling jobs, skills, and roles. Next, we outline the U.S. battery R&D outlay and then conclude with an early observation of the growing urgency to help the auto investors and communities with Scope 3 Reporting. Keywords: Circularity, batteries, Lithium-ion, recycling, emissions, Scope 3, electric vehicles, EVs, inflation reduction act, IRA.

The Center for Automotive Research is committed to informing the public about the current state of vehicle technologies. In 2017, 2019, and 2020, CAR published roadmaps describing the current and likely future state of vehicle technologies. To ensure the information forecasted by CAR remained current and reflected the latest in vehicle technologies, trends, and expectations, CAR conducted ongoing research and moderated industry roundtables. Industry roundtable experts included auto manufacturers, parts suppliers, technology providers, data providers, autonomous platforms providers, and technology investors. Following the roundtables, CAR developed an updated roadmap and white paper reflecting industry trends and expectations. This paper summarizes critical issues involving the development and deployment of technology in advanced driver assistance systems (ADAS), autonomous vehicles (AV), and vehicle connectivity.

This research addresses the U.S. segment mix, the impact of CAV on personal vehicle ownership, the tension between consumer demand and regulatory mandates on EVs, and the implication for the nation’s engineering and skilled talent development institutions and the overall technological leadership of the United States.

To better understand opportunities to enhance the region’s connected and automated vehicle (CAV) environment and explore ways the defense and automotive sectors can achieve greater collaboration in this space, the Advance Michigan Defense Collaborative , through funding from a Department of Defense Office of Economic Adjustment Defense Industry Adjustment Grant, funded the Center for Automotive Research (CAR) to develop a plan to strengthen the region’s CAV ecosystem. This Strategic Growth Plan for Connected and Automated Vehicle Assets in Southeast Michigan contains key findings from three parts of the project: a benchmarking exercise that compares southeast Michigan with four other regions on a variety of CAV technology topics, maps of regional CAV assets, and a SWOT analysis.

Combined with lower labor costs, Mexico’s unique free trade position with 40 countries and access to 47 percent of the world’s automotive market provides a significant competitive edge to attract automotive investment that the United States and Canada do not have. Growth in Mexican production volumes, however, can still result in new business for U.S. and Canadian suppliers. Due to well-integrated North American supply chains, vehicles produced in Mexico may be comprised of up to 40 percent U.S. content. In fact, U.S. exports of parts and components to Mexico more than doubled between 2005 and 2014 to a level of $18.4 billion.

Download the 20 page White Paper HERE >

Download the Full Report HERE >