The Indicator from Planet Money Let's 'TACO' 'bout General Motors gassing up V-8s and golden shares
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May 30, 2025 Discover General Motors' surprising investment in V-8 engines despite the electric vehicle trend. Explore the thrill of gas engines and the challenges electric vehicles face. Delve into the potential acquisition of U.S. Steel by Nippon Steel, featuring the intriguing concept of a 'golden share' for national security. Unpack the unpredictable world of Trump's tariffs, where negotiations take center stage over genuine policies. It's a fascinating look at how corporate strategies and market sentiment collide.
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GM's Big Bet on V8 Engines
- General Motors is investing $888 million in a new generation of V8 engines, signaling a shift from electric vehicles to traditional gas engines.
- This reflects slower electric vehicle sales and political challenges to EV incentives and regulations.
Golden Share Ensures U.S. Control
- Nippon Steel's proposed acquisition of U.S. Steel involves a golden share giving the U.S. government control over key decisions.
- This rare arrangement ensures national security interests in critical industry despite foreign ownership.
TACO: Trump Always Chickens Out
- The acronym TACO highlights market expectations that Trump will back down on high tariffs to protect companies.
- Tariffs are seen as negotiation tactics, with actual implementation likely to be less severe to avoid market damage.