Isn’t it fascinating every time that reality tells you, “Donald Trump was right again?” Earlier this year, Trump was criticized for saying there was going to be a bloodbath in the American auto industry if strict protective tariffs were not imposed against China’s cheap electric vehicles (EVs). Volkswagen in Germany has just learned that lesson in the most difficult possible way.
The European Union has allowed China to dump millions of EVs in the marketplace there. The parking lots near every port are now clogged with EVs because they can’t get them moved to the dealerships.
Here’s a comparison that should quickly help most people understand the significance of what’s happening.
The cheapest EV that Volkswagen manufactures, because they pay their German autoworkers a fair wage, is $42,000. That’s for the base model of a Volkswagen ID.4. The cheapest Chinese EV available in Europe, the BYD Dolphin, starts at $21,000. That’s because the Chinese employ slave labor and are willing to take a massive loss on their cheap products if it means crushing Western automakers.
Volkswagen is expected to announce tremendous third-quarter losses for this year. Ahead of that expected report, the company announced that it would be closing three of its manufacturing plants in Germany. Tens of thousands of auto workers are about to lose their good-paying jobs in a bloodbath.
Even the workers that Volkswagen keeps will be getting a 10% pay cut and reduced hours. All because the leaders in the EU believe in “free trade” instead of protecting the workers there. This is exactly what Donald Trump has predicted will happen in America starting next year if Kamala Harris is elected president. Trump was right again.
