California
Jeep maker blames California for job cuts in their Midwest plants
By Keith Laing and Gabrielle Coppola | Bloomberg
Stellantis NV is eliminating a shift at a Jeep plant in Detroit and cutting jobs at its Toledo, Ohio, Jeep assembly complex, a move the company blamed on strict emissions standards adopted by California and more than a dozen other states in 2019.
Stellantis announced Thursday it will temporarily cut a shift at its Mack Avenue plant in Detroit, which makes two- and three-row Jeep Grand Cherokee sport utility vehicles and hybrids, and trim jobs in Toledo, which produces the Wrangler SUV and Jeep Gladiator pickup.
Stellantis said it was cutting Jeep production in anticipation of potentially lower sales of gas-powered vehicles in California and other states. The company filed a petition against California regulators Wednesday arguing the state’s rules put the company at a disadvantage versus competitors.
The moves come as automakers are pushing back on the Biden administration’s efforts to increase fuel economy and spur faster adoption of electric vehicles. Automobile industry trade groups have said stricter rules would cost them billions in fines, while dealers warn that EV demand is softening.
Stellantis’ predecessor, Fiat Chrysler Automobiles NV, sided with the Trump administration it its fight to take away California’s legal right to set its own emissions standards. That position resulted in it being left out of the less stringent deal the California Air Resources Board, or CARB, struck with four carmakers — Ford Motor Co., Volkswagen AG, Honda Motor Co. and BMW AG.
Layoff Notices
Stellantis said it would file notices Thursday to state and local governments under the federal WARN Act, which requires employers with 100 or more workers give 60 days’ notice of plant closings or mass layoffs. The company declined to specify how many jobs would be affected; the two plants combined employ just over 10,000 people.
Stellantis’s Wednesday petition alleged that California improperly adopted a 2019 deal negotiated by state regulators and four carmakers that allowed those manufacturers to voluntarily increase the average fuel economy of their fleets to about 50 miles per gallon (80 kilometers) by the end of the 2026 model year.
While Stellantis has lagged behind other automakers in the conversion to EVs, its Jeep Wrangler 4xe hybrid is the fourth best-selling electrified vehicle in California this year through September, and its Chrysler Pacifica hybrid is 13th on the list.
At the same time, all three big Detroit automakers are looking to cuts costs after they agreed to contracts with record pay increases following the United Auto Workers’ strikes this year.
Lys Mendez, communications director for CARB, said the agency expects California’s Office of Administrative Law would recognize the agreements with the carmakers “for the settlements that they are” and dismiss Stellantis’ petition. The UAW did not immediately respond to a request for comment.
Sales Slump
Stellantis is also wrestling with shrinking sales at its prized Jeep brand as high interest rates put its premium SUV out of reach for more consumers.
Jeep brand sales fell 4% in the third quarter, the ninth consecutive quarterly decline, Stellantis reported in October. Sales were down 9% this year through September. Jeep named a new head of North America and picked a new global brand head last month.
The 2019 emission deal between California and the four carmakers is widely seen as a model for a subsequent Biden administration rule adopted in 2022. That rule now requires carmakers to increase their average fuel economy to about 49 miles per gallon by 2026.
Despite the fact that the national rules will require roughly the same fuel economy as California’s standards, Stellantis says manufacturers in the 2019 deal can meet the standards based on their nationwide sales, while excluded automakers are measured by sales in the states that follow the California rules. This, a company spokesperson said, necessitated the moves announced on Thursday.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
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How California’s high-speed rail line will advance in 2025
California’s high-speed rail project, which aims to connect San Francisco and Los Angeles with a 494-mile route capable of speeds up to 220 mph, aims to continue construction in 2025.
Phase 1 of the project focuses on linking San Francisco in the north to Anaheim via Los Angeles in the south, with plans to extend the line north to Sacramento and south to San Diego in Phase 2.
The California High-Speed Rail Authority, which is overseeing the project says it has already generated significant economic benefits, including creating over 14,000 construction jobs and involving 875 small businesses.
But despite its transformative goals, the project remains politically contentious, with critics questioning its costs and viability. It has been in development since voters approved funding in 2008 and has faced delays, cost increases, and shifting timelines.
Work Planned for 2025
In a statement to Newsweek, the California High-Speed Rail Authority outlined its planned work for 2025, which focuses on continuing construction in the Central Valley between Merced and Bakersfield.
The 171-mile segment between Merced and Bakersfield will be the first part of the line to be operational, with services expected to start between 2030 and 2033. Of that section, 119 miles are currently under construction.
Of the planned structures in the Central Valley section, 85 are underway or completed out a total of 93 on the segment. Work will continue on these structures as well as on the tracks capable of handling high-speed trains.
By the end of 2025, civil construction on the 119-mile segment currently underway is expected to be completed and construction will begin on the next stretches to Merced and Bakersfield.
In 2025, the authority also plans to advance design and begin construction on its stations in the Central Valley. It also expects to select a manufacturer for the trains.
Although the initial operating segment will only run 171 miles from Merced to Bakersfield, environmental clearances have been obtained for 463 miles of the 494-mile Phase 1 route, completing the stretch between San Francisco and Los Angeles. Only the Los Angeles-to-Anaheim section is still awaiting approval.
The Authority said it plans to publish its draft environmental impact report for the Los Angeles-to-Anaheim section in 2025, a key milestone for the eventual full-approval of Phase 1.
More than $11 billion has been invested to date, with funding sources including state bonds, federal grants, and proceeds from California’s carbon emission trading auctions.
The authority has not yet received funding to construct the segments westwards from the Central Valley to the Bay Area or southwards to Los Angeles.
Despite this, the authority said it was committed to pushing on.
“California is the first in the nation to build a true high-speed rail system with speeds capable of reaching 220 mph,” the Authority told Newsweek. “The Authority remains committed and aggressive in moving this historic project forward while actively pursuing additional funding.”
Political Opposition to the Project
Despite ongoing progress, the high-speed rail project continues to face political opposition, particularly from Republican leaders.
While President Joe Biden’s administration has invested billions in it since 2021, the incoming Republican administration, which will control the House of Representatives, the Senate, and the presidency, is unlikely to continue funding it at the same level.
Representative Sam Graves of Missouri, who chairs the House Transportation and Infrastructure Committee, has criticized the project’s costs and funding strategies.
In a statement to Newsweek, Graves described the rail line as a “highly troubled project” and raised concerns about its reliance on government subsidies.
He pointed out that the current funding supports only a limited segment between Merced and Bakersfield, which he estimated will cost $35 billion.
“Full cost estimates [for Phase 1, between San Francisco and Anaheim] now exceed $100 billion and growing,” Graves said, calling for a comprehensive review of the project before any additional funding is allocated.
“California high-speed rail must have a plan and prove that it can wisely and responsibly spend government money—something it’s failed to do so far.”
The congressman stated that over the next four years, he would oppose any further federal funding for the California high-speed rail project.
Instead, Graves advocated for efforts to redirect unspent funds and focus on improving existing transportation infrastructure, such as Amtrak.
Graves also emphasized the need for private-sector involvement in future rail projects, citing Brightline’s operations in Florida and Las Vegas as a successful example of private investment.
While Graves acknowledged the potential of high-speed rail, he argued that the California project has failed to meet the necessary criteria for viability and local demand.
The authority told Newsweek it would engage with the federal government to seek other funding sources.
“We continue to explore strategies aimed at stabilizing funding, potentially allowing the program to draw private financing and/or government loans,” it said.
California
Hawaii resident flies to California to clear name from identity theft
HONOLULU (HawaiiNewsNow) – A Honolulu man who had his identity stolen had to fly to California to clear his name. He acted quickly to stop his bank account from being completely drained.
Jamie Dahl said he’s speaking out because identity theft can happen to anyone and he’s not sure how his personal information was stolen.
“I’m still mystified how he pulled it off,” Dahl said.
In late November, Dahl found some fraudulent charges on his credit card so he ordered a replacement card.
Two weeks later, he says went to his online bank account with Bank of America and discovered his identity had been stolen. The hacker had account access for instant money transfers.
“My phone number is missing, my email is missing, my mailing address. I live in Honolulu. It’s Mililani,” Dahl said.
He knew he was in trouble.
Dahl said two days after his discovered his identity had been stolen, he had to fly to California to clear his name because there are no Bank of America branches in Hawaii.
He brought several forms of ID to re-authenticate himself.
“It was just an incredible ordeal,” he said.
“The bad guys are shopping just like everybody else for Christmas,” said former HPD Deputy Chief John McCarthy, who investigated cybercrime.
McCarthy says check your bank account daily and having a local bank is helpful.
“If you don’t have a local bank, you are that much father away. I’ve had problems with banks that are on the East Coast,” he said.
“It takes a day to communicate with them, a day to get a response. That’s a lot of damage you can do in 24, 48, 72 hours,” McCarthy added.
McCarthy says most banks have streamlined their re-authentification process so you don’t have to see them in person.
Hawaii News Now contacted Bank of America to find out their process and are waiting to hear back.
Copyright 2024 Hawaii News Now. All rights reserved.
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