Labor Showdown, VW Dealer Markup Warnings, One Player To Rule The MLS

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It’s a beautiful Thursday to be in Retail Auto. Today we’re discussing the upcoming UAW labor negotiations around EV joint-ventures as well as VW of America CEOs warning to Dealers. We also talk about the insane buzz around the highest paid athlete in the world. 

• In what could be a drawn out fight,  the United Auto Workers (UAW) labor union prepares for negotiations with Detroit automakers GM, Ford, and Stellantis. The conflict is regarding pay for 18,000 future workers at their electric-vehicle battery plants. These workers, hired through a myriad of joint ventures, are not covered by existing labor contracts, posing complexities for the UAW in ensuring equitable wages and conditions.
  • The Ultium Cells LLC plant, a joint venture between GM and LG Energy, is an example of the complexity, with the UAW trying to establish a unique deal for its 1,100 workers there who aren't covered by the master labor contract.
  • While UAW aims to put all battery workers under its master contract, manufacturers argue the joint ventures are about accessing battery production and knowledge rather than compensation issues.
  • “The transition from internal combustion to electric has to be a just transition,” said Mike Booth, a UAW vice president who will lead talks with GM this year. “We have to make sure no one is left behind.” 
    
    
• As the long anticipated electric microbus readies for release, Volkswagen of America's CEO, Pablo Di Si, warns dealers against price gouging, recognizing the potential for excessive markups, Di Si emphasized the need for a fair pricing system for both consumers and dealers, but has yet to propose a specific solution.
  • The CEO also opposes introducing a First Edition of the ID.Buzz, a common strategy used by automakers to boost demand and dealer profit, as he believes customers should not pay more.
  • “We cannot make a mistake [with] this vehicle with respect to the customer. We cannot have markups.” 
    
    
• In an absolute coup for Major League Soccer and Apple, Lionel Messi has announced that he will be joining the American soccer club Inter Miami later this year. The winner of 7 Ballon d’Ors, 4 Champions Leagues and the 2022 World Cup will likely receive a cut of Apple’s MLS streaming revenue, Adidas profit-sharing and a chance at club ownership in the future.
  • Apple signed a 10 year / $2.5B streaming deal with MLS, available through Apple TV plus, and Messi’s presence makes it much more appealing to a global audience.
  • Ticket prices for Inter Miami’s games have skyrocketed by 1,034%, with the lowest tickets for Messi’s first potential game with the club jumping from $29 to $339.
  • David Beckham, who famously moved from Europe to MLS in 2007, leads Miami’s ownership team. Messi recorded a video when Beckham’s ownership was announced in 2018 saying, “Maybe you’ll call me in a few years.”
  • Other potential landing spots included a reunion at Barcelona, and Sa

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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