Americans Who Need A New Car Come Last After Bidenomics Drives Up Prices And The White House Sides With Big Unions

Research | The Leader Board | THE NEWSROOM | Republican LeaderSkip to primary navigation Skip to content×Close THE NEWSROOMRemarks Press Releases The Leader Board Op-Eds Videos SENATE RESOURCESRepublican Senators Committees Congressional Record Congress.gov Senate Floor Webcast ABOUT LEADER McCONNELL×Close THE NEWSROOMRemarks Press Releases The Leader Board Op-Eds Videos SENATE RESOURCESRepublican Senators Committees Congressional Record Congress.gov Senate Floor Webcast ABOUT LEADER McCONNELLxxsearchxMENUFacebookTwitterInstagramFacebookTwitterInstagramVisit Senator McConnell's site here THE NEWSROOMRemarks Press Releases The Leader Board Op-Eds Videos SENATE RESOURCESRepublican Senators Committees Congressional Record Congress.gov Senate Floor Webcast ABOUT LEADER McCONNELLxxsearchxMENUHomeTHE NEWSROOMThe Leader Board09.20.23Americans Who Need A New Car Come Last After Bidenomics Drives Up Prices And The White House Sides With Big UnionsPresident Biden’s Inflationary Economic Policies Have Relentlessly Driven Up The Prices Of New And Used Cars As High Interest Rates Making Buying A Car Even More Costly, And Now The UAW Strike Could Raise Costs For Consumers Even Further As Biden Sides With The Union Over Ordinary Americans‘It’s Not A Great Time To Be In The Market For A New Car. Prices Are Rising, Options Are Limited And Interest Rates Are Higher Than They’ve Been In Over 20 Years’“It’s not a great time to be in the market for a new car. Prices are rising, options are limited and interest rates are higher than they’ve been in over 20 years. A targeted U.A.W. strike began at three plants in the Midwest at midnight Thursday, and if it lasts long enough, it could cut the supply of vehicles and push prices even higher.” (“A Rise In Car Prices Would Hit Consumers Already Facing Higher Payments,” The New York Times, 9/15/2023)Inflation Under Bidenomics Caused Prices For New And Used Cars To Jump By 20-30% Over The Last Two YearsSince President Biden took office, prices for new vehicles have increased 20% and prices for used cars and trucks have increased 33%. (Bureau of Labor Statistics, Accessed 9/13/2023)STEVEN RATTNER, Former Obama Administration Counselor to the Treasury Secretary: “This is Biden’s inflation and he needs to own it.” (Steve Rattner, @SteveRattner, Twitter, 3/10/2022)RATTNER: “The original sin was the $1.9 trillion American Rescue Plan, passed in March [2021]. The bill — almost completely unfunded — sought to counter the effects of the Covid pandemic by focusing on demand-side stimulus rather than on investment. That has contributed materially to today’s inflation levels.” (Steven Rattner, Op-Ed, “I Warned the Democrats About Inflation,” The New York Times, 11/16/2021)“The average price for a new vehicle jumped from $39,919 in 2020 to $48,798 so far this year, according to Kelley Blue Book. Cheap cars have all but disappeared, and consumers are forced into ever-longer loans to limit their monthly payments. Prices for used cars rose sharply in 2021 and 2022 …” (The Associated Press, 9/16/2023)“The high new-car prices are the result of a shortage of new-vehicle inventory across most automakers in recent months. That dearth has helped to support sky-high Manufacturer’s Suggested Retail Prices with many dealerships charging above sticker price in recent years.” (“Record Number Of Car Buyers Paying $1,000+ Per Month Amid Low Vehicle Inventory,” Detroit Free Press, 7/03/2023)“Five years ago, there were a dozen models of new cars that sold for less than $20,000. In 2023, there was only one …” (“Car Prices Might Be Unsustainable for Buyers,” The Wall Street Journal, 8/21/2023)“Bargains have been hard to come by on the used-car lot as well, where the average vehicle listed for about $27,000—up more than 30% from prepandemic levels, according to [Cox Automotive’s] data.” (“Car Prices Might Be Unsustainable for Buyers,” The Wall Street Journal, 8/21/2023)WALL STREET JOURNAL REPORTER RYAN FELTON: “There’s going to be a new normal in the sense that cars, at least for the near future, the next few years, they are just more expensive.” (The Wall Street Journal’s “Your Money Briefing,” 8/08/2023)To Combat Biden’s Inflation, The Federal Reserve Was Forced To Raise Interest Rates, Resulting In A ‘Double Whammy Of Relentlessly High Vehicle Pricing And Daunting Borrowing Costs’“The Federal Reserve started raising interest rates in March last year to combat inflation, eventually pushing its benchmark rate to the highest level since 2001. That has had an effect on rates for auto loans, which are now about 7.4 percent on average for new cars and 11.2 percent for used cars, according to Edmunds. ‘You’re going to get sticker shock in two different ways: the actual sticker price, and the cost of financing that purchase,’ said Greg McBride, chief financial analyst for Bankrate, an online service that compares the interest rates of various financial products.” (“A Rise In Car Prices Would Hit Consumers Already Facing Higher Payments,” The New York Times, 9/15/2023)“Just when you thought the cost to get into a new car couldn’t go any higher, it has — and it will likely continue to rise, car-buying experts at Edmunds said [in July]. The number of car buyers paying $1,000 or more a month to finance a new vehicle is creeping higher, closing in on nearly one-fifth of new-car buyers — an all-time high.” (“Record Number Of Car Buyers Paying $1,000+ Per Month Amid Low Vehicle Inventory,” Detroit Free Press, 7/03/2023)“Higher interest rates have made the situation more difficult for buyers. Today’s average new car loan has a monthly payment north of $750, with an interest rate of 9.5%. For used cars, the average rate is above 13.7%, according to Cox.” (“Car Prices Might Be Unsustainable for Buyers,” The Wall Street Journal, 8/21/2023)“‘The double whammy of relentlessly high vehicle pricing and daunting borrowing costs is presenting significant challenges for shoppers in today’s car market,’ said Ivan Drury, Edmunds’ director of insights. ‘The Federal Reserve’s recent pause in interest rate hikes, unfortunately, didn’t offer much relief for consumers, and hints at further raises later this year mean auto loan rates could even continue to increase.’” (“Record Number Of Car Buyers Paying $1,000+ Per Month Amid Low Vehicle Inventory,” Detroit Free Press, 7/03/2023)At The Same Time, Costly New Climate Mandates, Which Biden Touts As A Key Part Of ‘Bidenomics,’ Are Also Working To Increase The Price Of Vehicles“President Joe Biden pointed to federal investments in clean energy and climate technologies as key components of his economic agenda during a speech in Chicago …”  (“Climate Response Key To ‘Bidenomics,’” E&E News PM, 6/28/2023)PRESIDENT BIDEN: “Bidenomics…. We’re supporting targeted investments. We’re strengthening America’s economic security … and our climate security.” (President Biden, Remarks, 6/28/2023)THE WALL STREET JOURNAL EDITORIAL BOARD: “The U.S. auto industry is nominally still privately owned, but it is slowly becoming a de facto state-directed utility. That’s the meaning of the Environmental Protection Agency’s proposed new vehicle-emissions standards Wednesday that will force-feed the production of electric vehicles, whether or not consumers want them. The EPA is using its authority under the Clean Air Act to regulate tailpipe pollutants. But make no mistake this isn’t about clean air. This is about forcing auto makers to produce more EVs that consumers will have no choice but to buy since there will be few gas-powered vehicles left. The EPA lacks the legal authority to mandate EVs, but it will do so indirectly by setting CO2 emissions standards for 2027 through 2032. The standards are so strict that auto makers must electrify their fleets to meet them…. Auto makers such as Ford and Stellantis have recently announced layoffs owing to rising EV costs. They are shifting investment to EVs from internal-combustion engines, meaning fewer gas-powered cars for sale with higher prices. Gas-powered cars are subsidizing EVs, which aren’t profitable though they cost 10% to 40% more than alternatives.” (Editorial, “Biden’s EPA Remakes the Auto Industry,” The Wall Street Journal, 4/12/2023)THE WALL STREET JOURNAL EDITORIAL BOARD: “The Transportation Department on [July 28th] proposed a 696-page rule raising corporate average fuel economy (Cafe) standards that would effectively require 100% of new cars to be electric by 2032. This is even more aggressive than California’s EV mandate, which wouldn’t ban the sale of new gas-powered cars until 2035…. Here’s the kicker: The Energy Department is also proposing to reduce the “miles per gallon equivalent” for EVs. For example, the F-150 Lightning’s rating would decline to 67 mpg from 237 mpg. This means auto makers will have to produce even more EVs to meet Cafe mandates. They’ll be fined if they fall short. A GM presentation to the White House estimated that industry penalties could total $300 billion, or about $4,300 per vehicle, from 2027 to 2031. Consumers and workers will pay the cost …” (Editorial, “Biden’s Summer Regulatory Onslaught,” The Wall Street Journal, 8/01/2023)‘Car Shoppers Are Heading For A New Round Of Sticker Shock If The Strike By The United Auto Workers Doesn’t End Soon’“Car shoppers are heading for a new round of sticker shock if the strike by the United Auto Workers doesn’t end soon, particularly for popular vehicles that are already in short supply. The number of vehicles on dealer lots will shrink the longer the walkout goes on. Dealers are likely to lose incentives that the manufacturers pay them to boost sales by cutting prices.” (The Associated Press, 9/16/2023)“If the strike isn’t ended soon, however, there could be shortages of some makes and models –big sellers or vehicles that are already in short supply, such as Chevrolet Silverado and Tahoe, GMC Sierra and Ford F-Series pickups.” (The Associated Press, 9/16/2023)“For consumers, a prolonged work stoppage could mean fewer options for new and used cars, higher prices and long waits for repairs that depend on specialty parts.” (“What The UAW Strike Means For Car Buyers,” The Wall Street Journal, 9/15/2023)“Some dealerships will be less likely to work with out-of-state counterparts to get customers exactly what they’re looking for. Popular used car models could shoot up in price. And repairs may take longer, if shops can get necessary manufacturer-supplied parts at all.” (“What The UAW Strike Means For Car Buyers,” The Wall Street Journal, 9/15/2023)Importantly, ‘Prices Are Almost Certain To Rise Even If The Strike Is Settled Quickly, Because The Auto Makers’ Labor Costs Will Increase’“Prices are almost certain to rise even if the strike is settled quickly, because the auto makers’ labor costs will increase.” (The Associated Press, 9/16/2023)And Yet The Biden Administration Is Siding With Its Big Union Benefactors, Ensuring That Car Prices Will Be Driven Even Higher“On Friday, Biden sided clearly with the union, telling automakers to concede more to workers who walked off the job at Detroit’s largest car companies …” (“Sidelined On UAW Strikes, Biden White House Talks Economic Aid,” Reuters, 9/19/2023)PRESIDENT BIDEN: “I believe they [the U.S. auto companies] should go further to ensure record corporate profits mean record contracts for the UAW.” (President Biden, Remarks, 9/15/2023)REPORTER: “The President’s remarks today were seen as a pretty firm endorsement of the workers’ position. Previously, the White House had avoided taking sides, encouraging both parties to stay at the table. What changed?”WHITE HOUSE PRESS SECRETARY KARINE JEAN-PIERRE: “I don’t think anything has changed. I mean, the President has always been a pro-union president. I mean, you have heard to say that he is seen as the most pro-union president that we’ve had thus far.” (White House Press Briefing, 9/15/2023)PRESIDENT BIDEN: “I meant what I said when I said I’m going to be the most pro-union president in American history. And I make no apologies for it.” (President Biden, Remarks, 6/28/2023)Biden Wants To Send Acting Secretary Of Labor Julie Su To Work On Resolving The Strike, But She Is An Outspoken Union PartisanBIDEN: “I’m dispatching two members of my team to Detroit, Acting Labor Secretary Julie Su and White House Senior Advisor Gene Sperling … to offer their full support for the parties in reaching a contract.” (President Biden, Remarks, 9/15/2023)Su Said ‘Sign Me Up’ To Biden’s Declaration That He Would Be ‘The Most Pro-Worker, Pro-Union President In History’DEPUTY SECRETARY OF LABOR JULIE SU: “Mr. President, when you said you wanted to be the most pro-worker, pro-union President in history and restore decency and build the middle class, I said, ‘Sign me up for that.’ I want to help do that.” (Deputy Sec. Su, Remarks, 3/01/2023)SU in 2005: “The very definition of a corporation as an entity that is created to permit maximum income and designed to insulate the individuals who will profit from liability for the acts of that entity, seems to promote and perpetuate economic injustice. … But executive salaries are only a small part of the problem.  The real problem, and the larger challenge, is the growing ability of corporations to use, abuse, and exploit poor people anywhere in the world, and do this through subcontracting for labor.” (Julie Su, “The Progressive Crtitique of the Current Socia-legal Landscape Corporations and Economic Justice Corporations and Economic Justice,” Seattle Journal for Social Justice, 11/2005)THE WALL STREET JOURNAL EDITORIAL BOARD: “President Biden’s legislative agenda has little chance in the current Congress, but that means he’ll try to govern even more through regulation. It also means his regulatory and Cabinet nominees deserve extra scrutiny, and an example is Julie Su, his choice to run the Department of Labor. Currently the deputy secretary, Ms. Su has a record of putting union interests above those of individual workers or flexible business models that workers like but unions oppose… In the top job she’d be in a position to intervene on behalf of unions in looming labor negotiations that could have a major economic impact. Maritime employers and longshoremen are sparring over a new contract, while UPS and the Teamsters began negotiating a new contract this week. The country needs a Labor secretary who is a credible arbiter, not a union partisan.” (Editorial, “A Big Labor Partisan Named Julie Su,” The Wall Street Journal, 4/18/2023)Shawn Fain, The UAW Boss Leading The Strike Julie Su Is Ostensibly Working To Resolve, Signed A Letter With Other Big Union Bosses Calling On The Senate To Make Su Secretary Of Labor“The undersigned national and international unions strongly urge you to support the confirmation of acting Secretary of Labor Julie Su to serve as the next secretary of labor…. She is an ideal candidate for labor secretary, and we urge you to support her confirmation. In solidarity, … Shawn Fain, UAW …” (Elizabeth H. Shuler, AFL-CIO President, Letter to Senators, 6/07/2023)President Biden And Julie Su Are Looking Out For The Big Unions And Far-Left Climate Activists, But Who Is Looking Out For Ordinary Americans Who Need To Buy A Car And Are Confronted With Sky-High Prices And Interest Rates?THE WALL STREET JOURNAL: ‘Car Prices Might Be Unsustainable for Buyers’ (The Wall Street Journal, 8/21/2023)CONSUMER REPORTS: ‘Used-Car Prices Remain High, Making Buying a Challenge’ (Consumer Reports, 8/29/2023)THE ASSOCIATED PRESS: “Car shoppers are heading for a new round of sticker shock … Prices are almost certain to rise …” (The Associated Press, 9/16/2023)“Mark Scarpelli, the owner of Raymond Chevrolet in Antioch, Ill., said few people who buy cars from his dealership pay in cash … Still, some buyers cannot wait. ‘Our folks are needing that vehicle to get to their jobs, support their families, pick up their son or daughter from day care,’ he said. ‘While, in some cases cars and trucks may be a novelty or third or fourth vehicle, 99 percent of the vehicles we sell are for necessity.’” (“A Rise In Car Prices Would Hit Consumers Already Facing Higher Payments,” The New York Times, 9/15/2023)###SENATE REPUBLICAN COMMUNICATIONS CENTERRelated Issues: Inflation, Labor, EconomyPrintEmailTweetPreviousTHE NEWSROOMSENATE RESOURCESABOUT LEADER McCONNELLFacebookTwitterInstagram