August 30, 2010 online at www.uawlocal2250.com
From the Detroit Free Press: Thousands of people in downtown Detroit made their way from Jefferson Avenue to Grand Circus Park in what was billed as a march to rebuild America for jobs, justice and peace. The march and rally were organized by the Rainbow PUSH Coalition and the UAW. Among the marchers were the Rev. Jesse Jackson; Bob King, UAW president; Detroit Mayor Dave Bing; U.S. Rep. John Conyers, D- Mich. and U.S. Rep. Maxine Waters, D-Calif. “We're not here to tear anybody down ... to divide anybody. We care about all the unemployed in America," King said. "We have to put Americans to work.”
From the Detroit News: Ford Motor Co. is recalling nearly 463,000 1998-2003 Ford Windstar minivans in the U.S. over concerns that rear axles could corrode and fail. The recall covers vans sold or registered in 21 "Salt Belt" states -- including Missouri and Illinois -- and Washington, D.C., over concerns that after years on the road, corrosion can weaken the rear axle and crack it, possibly resulting in a crash. It's the second recall for the Windstar vehicles over the last year; in October, Ford recalled 1995-2003 Windstars to fix a speed control deactivation switch. In May, the National Highway Traffic Safety Administration opened an investigation into the Windstar after receiving 234 complaints alleging rear axle failure in 1999-2003 models, including two alleging that the failures resulted in minor crashes. More than half of the complaints claimed a complete fracture of the axle. About a quarter said that the axle failed at speeds of 40 miles per hour or greater.
The Japanese yen continues to strengthen, putting a further squeeze on export manufacturers like Toyota. The yen has strengthened from almost 124 per dollar in June of 2007 to just above 84 now, strongest in 15 years. Some analysts are saying it will continue to strengthen to 80 or even 70, and one analyst said 55 is not out of the question. How much does this hurt Toyota? A vehicle sold for $20,000 here in 2007 brought 2.48 million yen home. Now that vehicle returns 1.68 million yen, a difference of 800,000 yen or $9500 dollars. Yet the cost of producing that vehicle has either not changed or gone up. Honda, for instance, is less affected by the yen value because they import far fewer vehicles to the U.S. than does Toyota. For the record, Toyota imports accounted for 384,680 sales, or nearly 40% of Toyota’s total. Honda sold 115,142 imports, or around 18% or their total.
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