UAW Wants The U.S.-Canada Trade War To End

Happy Friday! It's August 28, 2026, and this is The Morning Shift — your daily roundup of the top automotive headlines from around the world, in one place. This is where you'll find the most important stories that are shaping the way Americans drive and get around.

In this morning's edition, we're looking at the UAW's opposition to our trade war against Canada, and railroads raking in cash from fuel fees. We'll also look at Lucid's latest recall, and Porsche's plans to downsize. 

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The United States' latest dumb trade war is against our friend and neighbor, Canada. Pretty much no one is happy with this arrangement, perhaps least of all the United Auto Workers members whose jobs rely on cross-border production. From Automotive News: 

The United Auto Workers is calling for restraint in the escalating Canada-U.S. trade dispute, arguing that Canada, with its strong labour standards and union presence, should not be treated as a target of punitive tariffs.

The UAW's position comes as trade tensions between the two countries intensify following the collapse of negotiations and the United States' imposition of 50 per cent tariffs on about US$20 billion of Canadian goods. Canada has announced matching countermeasures on selected U.S. products, effective Sept. 8.

The U.S. is also threatening 50-per-cent tariffs on Canadian cars, trucks and auto parts, effective Jan. 1.

"The UAW rejects any escalation on Canada, a country with strong unions and labor standards," the union said in a statement.

I know we talk a lot about making Canada the 51st state, but has Canada ever considered just making New York City into a sixth province? 

Fuel prices have surged for everyone, and railroads are no exception. Shippers looking to move freight via rail are paying fuel surcharges to make up for the raised prices, but they've discovered a problem: Railways like Union Pacific are raking in cash from those fees. From Reuters:

LOS ANGELES, Aug 28 (Reuters) – U.S. retailers, manufacturers and small businesses are paying hefty fuel surcharges to ship their goods, not only as the U.S.-Israeli war on Iran boosts fuel costs but ‌also as some shippers profit from the fees.

The charges have become a growing source of tension across supply chains, with customers arguing that some companies are using them to boost profits rather than simply recover higher fuel costs. Ultimately, those extra costs can be passed on to inflation-weary consumers.

The surcharges have generated tens of millions of dollars in profit for railroad operator Union Pacific and provided a modest earnings boost for UPS, the companies said.

In the clearest publicly available ​example, Union Pacific collected $91.1 million more in fuel surcharge revenue than it paid for fuel during the second quarter, boosting profits by $83.2 million, or 14 cents per share.

Union Pacific's result far ​outpaced rivals, spurring concerns that fuel recovery charges are generating profit.

You're telling me that companies took advantage of a situation, and used it to charge their customers more than their own costs and pocket extra profit? Well, I'm stunned. I gotta lie down. 

Things have gone pretty smoothly for Lucid, all things considered, but the brand isn't without hitches. Today, the new hitch is a lighting circuit that can catch fire. From Reuters: 

Electric vehicle maker Lucid is recalling 27,185 of its ​flagship Air luxury sedans in the U.S., ‌because an exterior lighting circuit could overheat and increase the risk of a fire, the National ​Highway Traffic Safety Administration said on Friday.

Here ​are some details:

- The NHTSA recall notice asked ⁠owners to park their vehicles outside ​and away from structures until a remedy is ​deployed.
- The overheated circuit could also cause loss of exterior lighting, which could, in turn, increase the risk ​of a crash, according to the NHTSA.
- Lucid ​has released an over-the-air software update to fix the issue ‌and ⁠has already determined that 20,719 vehicles have received the update, the NHTSA added.

It's amazing that something like this, a problem that ten years ago would've been an issue with wire gauges, is not something resolvable via software update. Welcome to the future. 

Automakers have been trimming down recently, shedding workers and factories in a bid to maintain their profits in the face of Chinese competition. Porsche is doing the same, though its reasoning is a bit cleaner than most. From Automotive News: 

Porsche CEO Michael Leiters has moved aggressively since taking charge by cutting 5,000 jobs, selling noncore businesses and narrowing the sports-car maker's focus. But on the most critical question investors want answered — what Porsche will actually sell in the years ahead — Leiters has yet to provide clarity.

Porsche is still on its summer shutdown, but Leiters is continuing to push ahead. In Mumbai this week, he announced the sale of Porsche's management and IT consulting subsidiary MHP to Tata Consultancy Services for an enterprise value of €320 million.

The deal transfers more than 4,500 employees to the Indian technology company and is part of a broader five-year strategic partnership between TCS and Porsche. The agreement is intended to preserve MHP's role in Porsche's digital transformation while allowing the automaker to focus on its core business.

When Volkswagen and Nissan go shuttering factories, I get concerned for the future of their brands. When Porsche stops making e-bikes, I'm not at all concerned. Why was Porsche making e-bikes anyway?

Can't Hollywood come up with anything new?

Down a cent! Rejoice. 

H.O.M.E.S.