UAW President Highlights ‘Excess Capacity’ in US Auto Industry Amid Tariffs and Layoffs

The president of the United Auto Workers (UAW), Shawn Fain, discussed the issue of “excess capacity” in the US auto industry in light of recent tariffs imposed by President Trump and ongoing layoffs at various automakers, the Hill reports.

Fain’s comments came during an appearance on CNN’s “The Source” on Thursday, following the announcement of the tariffs and news that Stellantis would be halting production at plants in Canada and Mexico while laying off 900 workers in the United States.

Fain argued that there is significant excess capacity in the U.S. auto industry, including at Stellantis’ facilities. He specifically mentioned Warren, Michigan, where the company has production capabilities but is still laying off workers. Fain suggested that Stellantis could move Ram truck production to the Michigan plant, using the available capacity to boost production and avoid the layoffs.

Stellantis, which manufactures brands like Ram, Jeep, and Chrysler, has faced challenges amid the tariffs. Fain also pointed to other automakers, such as Volkswagen, which produces a significant percentage of its vehicles in Mexico, as an example of excess capacity within the US.

Fain noted that while he traditionally supports Democratic candidates, he has backed Trump’s tariff plan due to his belief that it could help bring manufacturing jobs back to the US. He stressed, however, that this support does not extend to endorsing all policies of the Trump administration, particularly in terms of union and labor rights, which remain a priority for him.

In the wake of Stellantis scaling back operations, Fain acknowledged that some US automakers, such as Ford, have taken steps to mitigate the impact of the tariffs by reducing vehicle prices and offering extended discounts. Additionally, General Motors (GM) has indicated plans to “bring some work back” to the United States, furthering the trend of reshoring manufacturing jobs.