August 31, 2010 online at www.uawlocal2250.com
From the Wall Street Journal: An independent health-care trust for retired auto workers will place $6 billion in the hands of two investment firms, one of the first steps in the trust's move to shift part of its billions of dollars into more-passive investing. The Retiree Medical Benefits Trust for the United Auto Workers union will divide the $6 billion equally between Boston-based State Street Corp. and BlackRock Inc. of New York, according to Eric Henry, the trust's chief investment officer. Mr. Henry said in an interview in his Ann Arbor, Mich., office this week that the money overseen by the investment firms would be placed into global equity index funds by year-end. The decision on the stock is controlled by an independent fiduciary and won't necessarily mirror any decision by the U.S. government over its controlling stake in GM, according to Mr. Henry. The trust is also in the midst of a new asset and liability study to estimate the money it will need to have to provide health-care services for retirees and their spouses. "It's a difficult question to answer," Mr. Henry said, whose funding need has been earlier estimated at $57 billion. The fund expects significant cost savings from its ability to exact discounts from health-care providers based on its buying power. Mr. Henry said the trust anticipates that it has enough assets to cover its current liabilities.
From the Fort Worth Star-Telegram: General Motors intends to keep its Arlington truck assembly plant working long hours through the rest of the year. The facility will continue to work five-day weeks and two Saturdays a month through December, GM told employees last week. It produces full-size sport utility vehicles, which have come back in consumer favor after being hammered by high gasoline prices two years ago. "We continue to have strong demand for the vehicles we produce," said Donna McLallen, a plant spokeswoman. The plant has about 2,500 employees, including 2,300 production workers.
From Automotive News: Falling demand for the Smart two-seater in the United States means Daimler AG’s microcar brand likely will sell fewer than 100,000 units of the microcar globally this year, down from 114,000 in 2009, a German magazine reported this past weekend. According to Daimler numbers, U.S. sales of Smart cars fell nearly 70 percent to just under 4,000 in the first seven months. July sales were 560, down 60.5 percent compared with July 2009. Smart sales globally fell just over 20 percent to 8,400 in July, with volume down 17.4 percent to 59,100 in the first seven months.
Rebuild America: A Program for Jobs, Justice and Peace August, 2010
The magnitude of today’s job crisis cries out for bold action to put Detroit – and America – back to work. Our country’s “jobs deficit” – the number of jobs we need to return to the 5 percent unemployment rate that prevailed before the recession began, factoring in labor force growth – stands at 11.5 million. If we’re to return to 5 percent unemployment within 3 years, we need to be creating, on average, nearly 450,000 jobs per month. Returning to a truer “full employment” level of 4 percent unemployment would take even more.
So far this year, monthly job growth has averaged just over 90,000. In Detroit, almost 90,000 men and women are officially unemployed, a staggering 24 percent of the workforce. But that’s just the tip of the iceberg. Thousands more want to work, but have despaired of finding employment and given up looking. Others are working short hours, or have had to settle for part-time jobs because full-time work was unavailable. Including these discouraged and underutilized workers, a conservative estimate of the real level of unemployment in the city of Detroit would be 157,000.
At the same time, America has at least $2.2 trillion in unmet infrastructure needs, even after the modest $130 billion in infrastructure spending that was included in the American Recovery and Reinvestment Act. Investing just $220 billion (a tenth of the need identified by the American Society of Civil Engineers) in renewing and modernizing our nation’s infrastructure would increase GDP by $345 billion and add roughly 1.7 million much-needed jobs nationally.
Urban areas have a special stake in infrastructure investment – and any serious program to modernize our country’s infrastructure has a special stake in urban areas. Targeting urban areas for major infrastructure investments makes good economic sense. If we are to close our 11.5 million job deficit, job creation must be focused where joblessness is concentrated. More profoundly, the density of population, cultural resources and economic activity within urban areas makes their revitalization key to broader regional growth.
Our program to rebuild Detroit and America includes initiatives to help struggling families; investments in our cities, infrastructure, industries and people; guarantee justice for workers; and end the wars in Iraq and Afghanistan.
Tuesday, August 31, 2010
Monday, August 30, 2010
State of the Union August 30, 2010
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.
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.
Friday, August 27, 2010
State of the Union August 27, 2010
August 27, 2010 online at www.uawlocal2250.com
The Women’s Committee could still use another team for the golf tournament tomorrow. Start time is 1:30 at Bear Creek golf course in Wentzville. Cost is $70 per person/$210 per team.
Tuesday of this week it was announced at Ft. Wayne (Silverado) that production for this Saturday would be canceled. Yesterday they received the news that they would be down the week of November 8 (Ft. Wayne’s daily production schedule is 1408 for three shifts). A look at field supplies for pickups shows a net field stock of 117,610 units, up 7400 from the end of June and up nearly 21,000 units from the end of July 2009 (Net field stock for the van is 10,063).
From the Detroit News: A recovery in auto sales in the past year seems to be losing steam, with forecasters expecting August sales to show a continuation of the uncertain trend seen since March. Compared with last August, when the government's cash for clunkers program fueled a spike in demand, monthly sales are likely to be down sharply. But some forecasters believe the selling pace may have slowed even since July, when the seasonally adjusted annualized rate of sales totaled 11.54 million cars and light trucks.
From Detroit Free Press: Toyota recalled 1.33 million Corolla sedans and Matrix hatchbacks in the U.S. and Canada on Thursday because their engines may stall, the latest in a string of quality problems at the Japanese automaker. The recall covers vehicles from the 2005-08 model years sold in the U.S. and Canada. The automaker has now recalled more than 10 million vehicles (in 15 separate recalls) worldwide for problems that run from faulty gas pedals and floor mats that can trap accelerators, to problems with its Prius hybrid. The engine-control module with the possible defect was manufactured by Delphi. “The ECM's supplied to Toyota were designed and validated in accordance with specifications provided to us by Toyota,” said Delphi spokesman Lindsey Williams.
The Women’s Committee could still use another team for the golf tournament tomorrow. Start time is 1:30 at Bear Creek golf course in Wentzville. Cost is $70 per person/$210 per team.
Tuesday of this week it was announced at Ft. Wayne (Silverado) that production for this Saturday would be canceled. Yesterday they received the news that they would be down the week of November 8 (Ft. Wayne’s daily production schedule is 1408 for three shifts). A look at field supplies for pickups shows a net field stock of 117,610 units, up 7400 from the end of June and up nearly 21,000 units from the end of July 2009 (Net field stock for the van is 10,063).
From the Detroit News: A recovery in auto sales in the past year seems to be losing steam, with forecasters expecting August sales to show a continuation of the uncertain trend seen since March. Compared with last August, when the government's cash for clunkers program fueled a spike in demand, monthly sales are likely to be down sharply. But some forecasters believe the selling pace may have slowed even since July, when the seasonally adjusted annualized rate of sales totaled 11.54 million cars and light trucks.
From Detroit Free Press: Toyota recalled 1.33 million Corolla sedans and Matrix hatchbacks in the U.S. and Canada on Thursday because their engines may stall, the latest in a string of quality problems at the Japanese automaker. The recall covers vehicles from the 2005-08 model years sold in the U.S. and Canada. The automaker has now recalled more than 10 million vehicles (in 15 separate recalls) worldwide for problems that run from faulty gas pedals and floor mats that can trap accelerators, to problems with its Prius hybrid. The engine-control module with the possible defect was manufactured by Delphi. “The ECM's supplied to Toyota were designed and validated in accordance with specifications provided to us by Toyota,” said Delphi spokesman Lindsey Williams.
State of the Union August 26, 2010
August 26, 2010 online at www.uawlocal2250.com
From Chairman Mike Bullock: We have been informed that Friday, September 24, will not be a production day as previously scheduled. This schedule change is being done to provide some relief and shift production from this year into the first part of next year, which is traditionally a slow time of year for van sales/production.
Reminder: The Chaplaincy Committee invites you to attend the 75thAnniversary celebration of the International Union UAW today. There will be a ceremony at lunch at the chassis chapel, column C-42, and another at 2nd break at the pre-trim chapel, column S-40. Come on over to hear guest speakers and have some cake.
For those of you who know retirees, let them know that there is a new and improved website for all U.S. GM Retirees: www.gmretiree.com
On this site you can:
o Access “Marketplace” for discounts on products and services
o Check “GM Family First” for vehicle incentive deals and purchase authorizations
o Get the latest on important GM news
o Review benefit updates and link to www.gmbenefits.com
o Obtain contact information for retiree clubs throughout the U.S.
o And now… print a GM Retiree ID card to help you make discounted purchases
Much of the site is secured, so they are encouraged to register as soon as possible to view all of the information and print their GM Retiree ID Card. They should go to www.gmretiree.comand login or click on “REGISTER (NEW USER)” in the upper right hand corner. They will enter the last four digits of their Social Security number, birth month and day, zip code and follow the steps to complete the registration process. Once registered, they will be able to login with their email address and password.
They can check www.gmretiree.com often for frequent updates.
From Chairman Mike Bullock: We have been informed that Friday, September 24, will not be a production day as previously scheduled. This schedule change is being done to provide some relief and shift production from this year into the first part of next year, which is traditionally a slow time of year for van sales/production.
Reminder: The Chaplaincy Committee invites you to attend the 75thAnniversary celebration of the International Union UAW today. There will be a ceremony at lunch at the chassis chapel, column C-42, and another at 2nd break at the pre-trim chapel, column S-40. Come on over to hear guest speakers and have some cake.
For those of you who know retirees, let them know that there is a new and improved website for all U.S. GM Retirees: www.gmretiree.com
On this site you can:
o Access “Marketplace” for discounts on products and services
o Check “GM Family First” for vehicle incentive deals and purchase authorizations
o Get the latest on important GM news
o Review benefit updates and link to www.gmbenefits.com
o Obtain contact information for retiree clubs throughout the U.S.
o And now… print a GM Retiree ID card to help you make discounted purchases
Much of the site is secured, so they are encouraged to register as soon as possible to view all of the information and print their GM Retiree ID Card. They should go to www.gmretiree.comand login or click on “REGISTER (NEW USER)” in the upper right hand corner. They will enter the last four digits of their Social Security number, birth month and day, zip code and follow the steps to complete the registration process. Once registered, they will be able to login with their email address and password.
They can check www.gmretiree.com often for frequent updates.
Wednesday, August 25, 2010
State of the Union August 25, 2010
August 25, 2010 online at www.uawlocal2250.com
•From Automotive News: Federal regulators have opened an investigation into 3 million Jeep Grand Cherokees to determine whether more than a dozen post-crash fires and deaths are connected to the placement of the SUV's fuel tank. The National Highway Traffic Safety Administration said today its preliminary examination of 1993-2004 Jeep models found 13 deaths in 10 crashes “most likely associated with the alleged defect.” The nonprofit Center for Auto Safety alleges the Grand Cherokee features a fuel tank that extends below the rear bumper, behind the rear axle, and lacks adequate protection in crashes and rollovers. The tank's fuel filler neck also tears off in crashes, the group contends in a petition to the federal agency. The 1993-2004 Jeep Grand Cherokee has a fatal-crash-with-fire rate that is quadruple that of SUVs made by other companies, the petition contends. When DaimlerChrysler owned the Jeep brand, it moved the Grand Cherokee's fuel tank beginning with 2005 models and shielded it, the petition said. Since that change, only one crash resulting in a fatal fire has occurred.
•From the AP: A trade war continues as the U.S. continues to forbid cross-border operations for selected Mexican trucks. Last week, Mexico added tariffs to 99 more products imported from the U.S. in retaliation for the American stance against opening up its southern border to cross-border trucking operations as called for in the North American Free Trade Agreement (NAFTA). According to the Associated Press, Mexico’s latest step will affect about $2.5 billion worth of trade involving agricultural and industrial products from 43 U.S. states. In May 2009, Mexico put $2.4 billion worth of tariffs on 90 productsafter the U.S. canceled a pilot program that allowed some cross-border operations by select Mexican carriers. “Instead of slapping additional tariffs on U.S. goods, Mexico should be living up to its end of the bargain by making sure its drivers and trucks are safe enough to use our highways,” Jim Hoffa, general president of the International Brotherhood of Teamsters, said in a statement.
International Union UAW press release
Citing the need to rebuild the American auto manufacturing sector by building more efficient vehicles, the UAW today announced it would join the BlueGreen Alliance, a fast-growing labor-environmental partnership dedicated to expanding the number and quality of jobs in the green economy.
With the addition of UAW, the BlueGreen Alliance now unites nine major U.S. labor unions and two of America’s largest environmental organizations in pursuit of good jobs, a clean environment and a green economy.
“UAW members produce best-in-class cars and trucks, key vehicle components, and top-quality, heavy-duty trucks, and we know that we can rebuild the American auto industry by building cleaner, more efficient vehicles — and developing the technologies that will get us there,” said UAW President Bob King. “We have enormous opportunities to revitalize this industry, and the American economy, by embracing the clean energy economy of the future.”
“We are thrilled to become part of this unique partnership of working people and environmentalists who are striving to build a cleaner, more efficient and more prosperous American economy,” continued King.
The UAW — the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America — is one of the largest and most diverse unions in North America, and brings to the BlueGreen Alliance 390,000 men and women employed by multinational corporations, small manufacturers and state and local governments to colleges and universities, hospitals and private non-profit organizations.
“The American auto industry is poised to lead the world in the production of cleaner, more fuel-efficient cars and advanced vehicle technologies,” said Leo W. Gerard, international president of the United Steelworkers, a founder of the BlueGreen Alliance. “The members of UAW, working people who make America’s vehicles, are a welcome addition to our effort to create millions of good jobs while protecting the environment for future generations.”
“Clean transportation is a critical element to reducing the emissions that cause global warming,” said Carl Pope, chairman of the Sierra Club, a founder of the BlueGreen Alliance. “UAW members are a critical voice to add to the ranks of millions of BlueGreen Alliance members and supporters who are working to rebuild the American economy by making it cleaner, more efficient and more prosperous for future generations.”
“The UAW’s commitment to energy-efficient transportation will strengthen the voice of our labor-environmental partnership as we work to help build a clean energy economy that benefits working and middle-class families. That means quality jobs, sustainable communities and accessible and affordable technology, like high-speed broadband, that will spur needed economic growth in the U.S.,” said Larry Cohen, president of the Communications Workers of America, a member of the BlueGreen Alliance.
The BlueGreen Alliance was launched in 2006 by the Sierra Club and the United Steelworkers, and has since grown to include nine major U.S. labor unions and two of America’s largest environmental organizations — bringing together nearly 9 million members and supporters — in pursuit of good jobs, a clean environment and a green economy.
“The BlueGreen Alliance and UAW share the goal of rebuilding the American auto industry, creating and saving the good jobs that come along with it, and reducing pollution and our dependence on foreign oil through more efficient transportation,” said David Foster, executive director of the Blue Green Alliance. “We are pleased to welcome the UAW to the ranks of our union members and environmentalists working together to build a revitalized clean energy economy.”
•From Automotive News: Federal regulators have opened an investigation into 3 million Jeep Grand Cherokees to determine whether more than a dozen post-crash fires and deaths are connected to the placement of the SUV's fuel tank. The National Highway Traffic Safety Administration said today its preliminary examination of 1993-2004 Jeep models found 13 deaths in 10 crashes “most likely associated with the alleged defect.” The nonprofit Center for Auto Safety alleges the Grand Cherokee features a fuel tank that extends below the rear bumper, behind the rear axle, and lacks adequate protection in crashes and rollovers. The tank's fuel filler neck also tears off in crashes, the group contends in a petition to the federal agency. The 1993-2004 Jeep Grand Cherokee has a fatal-crash-with-fire rate that is quadruple that of SUVs made by other companies, the petition contends. When DaimlerChrysler owned the Jeep brand, it moved the Grand Cherokee's fuel tank beginning with 2005 models and shielded it, the petition said. Since that change, only one crash resulting in a fatal fire has occurred.
•From the AP: A trade war continues as the U.S. continues to forbid cross-border operations for selected Mexican trucks. Last week, Mexico added tariffs to 99 more products imported from the U.S. in retaliation for the American stance against opening up its southern border to cross-border trucking operations as called for in the North American Free Trade Agreement (NAFTA). According to the Associated Press, Mexico’s latest step will affect about $2.5 billion worth of trade involving agricultural and industrial products from 43 U.S. states. In May 2009, Mexico put $2.4 billion worth of tariffs on 90 productsafter the U.S. canceled a pilot program that allowed some cross-border operations by select Mexican carriers. “Instead of slapping additional tariffs on U.S. goods, Mexico should be living up to its end of the bargain by making sure its drivers and trucks are safe enough to use our highways,” Jim Hoffa, general president of the International Brotherhood of Teamsters, said in a statement.
International Union UAW press release
Citing the need to rebuild the American auto manufacturing sector by building more efficient vehicles, the UAW today announced it would join the BlueGreen Alliance, a fast-growing labor-environmental partnership dedicated to expanding the number and quality of jobs in the green economy.
With the addition of UAW, the BlueGreen Alliance now unites nine major U.S. labor unions and two of America’s largest environmental organizations in pursuit of good jobs, a clean environment and a green economy.
“UAW members produce best-in-class cars and trucks, key vehicle components, and top-quality, heavy-duty trucks, and we know that we can rebuild the American auto industry by building cleaner, more efficient vehicles — and developing the technologies that will get us there,” said UAW President Bob King. “We have enormous opportunities to revitalize this industry, and the American economy, by embracing the clean energy economy of the future.”
“We are thrilled to become part of this unique partnership of working people and environmentalists who are striving to build a cleaner, more efficient and more prosperous American economy,” continued King.
The UAW — the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America — is one of the largest and most diverse unions in North America, and brings to the BlueGreen Alliance 390,000 men and women employed by multinational corporations, small manufacturers and state and local governments to colleges and universities, hospitals and private non-profit organizations.
“The American auto industry is poised to lead the world in the production of cleaner, more fuel-efficient cars and advanced vehicle technologies,” said Leo W. Gerard, international president of the United Steelworkers, a founder of the BlueGreen Alliance. “The members of UAW, working people who make America’s vehicles, are a welcome addition to our effort to create millions of good jobs while protecting the environment for future generations.”
“Clean transportation is a critical element to reducing the emissions that cause global warming,” said Carl Pope, chairman of the Sierra Club, a founder of the BlueGreen Alliance. “UAW members are a critical voice to add to the ranks of millions of BlueGreen Alliance members and supporters who are working to rebuild the American economy by making it cleaner, more efficient and more prosperous for future generations.”
“The UAW’s commitment to energy-efficient transportation will strengthen the voice of our labor-environmental partnership as we work to help build a clean energy economy that benefits working and middle-class families. That means quality jobs, sustainable communities and accessible and affordable technology, like high-speed broadband, that will spur needed economic growth in the U.S.,” said Larry Cohen, president of the Communications Workers of America, a member of the BlueGreen Alliance.
The BlueGreen Alliance was launched in 2006 by the Sierra Club and the United Steelworkers, and has since grown to include nine major U.S. labor unions and two of America’s largest environmental organizations — bringing together nearly 9 million members and supporters — in pursuit of good jobs, a clean environment and a green economy.
“The BlueGreen Alliance and UAW share the goal of rebuilding the American auto industry, creating and saving the good jobs that come along with it, and reducing pollution and our dependence on foreign oil through more efficient transportation,” said David Foster, executive director of the Blue Green Alliance. “We are pleased to welcome the UAW to the ranks of our union members and environmentalists working together to build a revitalized clean energy economy.”
Tuesday, August 24, 2010
State of the Union August 24, 2010
August 24, 2010 online at www.uawlocal2250.com
From President Dan Howell:
The UAW is in the process of rolling out the GimmeFIVE program both regionally and locally. Briefly, this program is designed to sign up and encourage members to volunteer five hours in various activities such as voter registration and other election initiatives, community charity work, and labor related activities like boycotts and strike support. If you are already doing volunteer work, you can receive credit if it is an approved organization – and if not we can seek to get the organization approved. This program will hopefully raise public awareness of the positive things the UAW does. There will be more information as this is rolled out through our local Union organization. You can also go to www.uaw.organd click on the GimmeFIVE link at the right.
If you and your spouse work for General Motors, one of you can declare coverage for the Legal Services Plan for both of you for tax purposes (you pay taxes on the imputed income value of the plan). To provide notice of dual coverage or to delete or reinstate coverage, call 800-521-7818, ext. 517 and indicate you are calling regarding dual Plan coverage. Deadline is Sept. 24.
From Automotive News: Federal regulators have upgraded an investigation of as many as 1.2 million Toyota Corollas for possible engine stalling. Consumers have filed 1,101 complaints about Corollas and Corolla Matrixes for 2005-07 models, the National Highway Traffic Safety Administration said in a filing on its Website. “The engine can stall at any speed without warning and not restart,” NHTSA said in describing the problem. In a March 2 letter to NHTSA, Toyota official Chris Santucci in Washington said, “Toyota does not believe that the alleged defect creates an unreasonable risk to motor vehicle safety.” (sleep tight Toyota owners)
More Automotive News: It's a puzzling refrain heard across the industry. While most dealers and automakers struggle with soft sales, many dealers say they could sell many more vehicles if the automakers would produce them. A handful of hard-to-get vehicles, such as the GMC Terrain, accounts for much of the problem. And many of the complaints are from General Motors Co., Ford Motor Co. and Chrysler Group dealers. Those automakers are determined to boost profits with lean inventory. In an Automotive Newsinformal online survey last week, 73 percent of the 244 dealer respondents, representing nearly all brands, reported they had too few new vehicles in inventory. And 77 percent of those respondents said they thought they had lost vehicle sales as a result.
International Union UAW
From the International Union UAW: On Aug. 24, UAW President Bob King will join the Rev. Jesse Jackson, founder and president of the Rainbow Push Coalition, elected officials and community leaders on a statewide bus tour in advance of the Rebuild America: Jobs, Justice and Peace march on Aug. 28, which stops at two Detroit-area auto plants. The Rebuild America: Jobs, Justice and Peace campaign calls on national leaders to:
Rebuild America by enacting industrial and trade policies that will create jobs, encourage manufacturing in America and put workers first.
Enforce the law regarding workers' rights, civil rights, industrial regulation, and creation of fair and just educational, economic and health policies.
End the ongoing wars in the Middle East and redirect the war budget to rebuilding America.
Also, the campaign focuses on home foreclosures and calls for a moratorium on the practice that forces hard-working Americans from their homes while at the same time bailing out Wall Street executives and paying them million-dollar bonuses. "UAW members and their families are proud to be a part of this massive campaign to refocus our national priorities on jobs, justice and peace," said King. "Every community has in some way witnessed the affects of the nation's economic meltdown on working men and women. We need industrial and employment policies that work to keep jobs and manufacturing in the United States. Workers need to earn decent wages to provide for their families and help keep their neighborhoods and communities viable."
From President Dan Howell:
The UAW is in the process of rolling out the GimmeFIVE program both regionally and locally. Briefly, this program is designed to sign up and encourage members to volunteer five hours in various activities such as voter registration and other election initiatives, community charity work, and labor related activities like boycotts and strike support. If you are already doing volunteer work, you can receive credit if it is an approved organization – and if not we can seek to get the organization approved. This program will hopefully raise public awareness of the positive things the UAW does. There will be more information as this is rolled out through our local Union organization. You can also go to www.uaw.organd click on the GimmeFIVE link at the right.
If you and your spouse work for General Motors, one of you can declare coverage for the Legal Services Plan for both of you for tax purposes (you pay taxes on the imputed income value of the plan). To provide notice of dual coverage or to delete or reinstate coverage, call 800-521-7818, ext. 517 and indicate you are calling regarding dual Plan coverage. Deadline is Sept. 24.
From Automotive News: Federal regulators have upgraded an investigation of as many as 1.2 million Toyota Corollas for possible engine stalling. Consumers have filed 1,101 complaints about Corollas and Corolla Matrixes for 2005-07 models, the National Highway Traffic Safety Administration said in a filing on its Website. “The engine can stall at any speed without warning and not restart,” NHTSA said in describing the problem. In a March 2 letter to NHTSA, Toyota official Chris Santucci in Washington said, “Toyota does not believe that the alleged defect creates an unreasonable risk to motor vehicle safety.” (sleep tight Toyota owners)
More Automotive News: It's a puzzling refrain heard across the industry. While most dealers and automakers struggle with soft sales, many dealers say they could sell many more vehicles if the automakers would produce them. A handful of hard-to-get vehicles, such as the GMC Terrain, accounts for much of the problem. And many of the complaints are from General Motors Co., Ford Motor Co. and Chrysler Group dealers. Those automakers are determined to boost profits with lean inventory. In an Automotive Newsinformal online survey last week, 73 percent of the 244 dealer respondents, representing nearly all brands, reported they had too few new vehicles in inventory. And 77 percent of those respondents said they thought they had lost vehicle sales as a result.
International Union UAW
From the International Union UAW: On Aug. 24, UAW President Bob King will join the Rev. Jesse Jackson, founder and president of the Rainbow Push Coalition, elected officials and community leaders on a statewide bus tour in advance of the Rebuild America: Jobs, Justice and Peace march on Aug. 28, which stops at two Detroit-area auto plants. The Rebuild America: Jobs, Justice and Peace campaign calls on national leaders to:
Rebuild America by enacting industrial and trade policies that will create jobs, encourage manufacturing in America and put workers first.
Enforce the law regarding workers' rights, civil rights, industrial regulation, and creation of fair and just educational, economic and health policies.
End the ongoing wars in the Middle East and redirect the war budget to rebuilding America.
Also, the campaign focuses on home foreclosures and calls for a moratorium on the practice that forces hard-working Americans from their homes while at the same time bailing out Wall Street executives and paying them million-dollar bonuses. "UAW members and their families are proud to be a part of this massive campaign to refocus our national priorities on jobs, justice and peace," said King. "Every community has in some way witnessed the affects of the nation's economic meltdown on working men and women. We need industrial and employment policies that work to keep jobs and manufacturing in the United States. Workers need to earn decent wages to provide for their families and help keep their neighborhoods and communities viable."
Monday, August 23, 2010
State of the Union August 23, 2010
August 23, 2010 online at www.uawlocal2250.com
The Women’s Committee is still accepting teams for the golf tournament Saturday, Aug. 28. This is a three person scramble with a 1:30 pm shotgun start at Bear Creek golf course in Wentzville. Cost is $70 per player/$210 per team. Entry forms available at the entrances.
From the Detroit News: Toyota Motor Corp. officials bragged in late 2007 that they saved more than $100 million by deterring U.S. safety officials from ordering costly repairs to prevent runaway vehicles, e-mails obtained by The Detroit News show. The communications suggest some executives knew of the situation nearly two years earlier than was acknowledged in a July 2009 internal company document that surfaced this year. In addition to the financial savings, the newly released e-mails indicate for the first time that senior Toyota executives were worried they'd be forced to take additional action. In the newly surfaced e-mails dated Sept. 14, 2007, Chris Tinto, Toyota's vice president for technical and regulatory safety, contacted Josephine Cooper, the automaker's vice president of public policy and government/industry affairs. "NHTSA feels they have too many complaints on this one vehicle to drop the issue," Tinto wrote. "The results of a stuck throttle are 'catastrophic.' " Tinto also downplayed the floor mat recall, saying it was the product of talks with NHTSA. "We will 'recall' the '07 ES and Camry floor mat, however we will NOT declare that a 'safety defect' exists," Tinto wrote. "Of course the owner letter will say that a defect WAS found in the mat, to ensure that owners pay attention to the notice and secure the mats correctly."
From Automotive News: On July 23, when Ford announced second-quarter net income of $2.6 billion, CFO Lewis Booth sounded one cautionary note: Ford's ability to pay off $7 billion in debt was "one of the high points of the quarter." He added that reducing debt continues to be "very urgent" for Ford. Now that both Ford's and General Motor’s second-quarter numbers are out, a little basic math shows why.
-- In the second quarter, Ford sold 1.418 million vehicles. It paid $1.636 billion in interest. That's $1,154 in interest expense per vehicle sold.
-- GM sold 2.153 million vehicles and paid $250 million in interest expenses. That's a mere $116 per vehicle.
-- The key number: Ford had $1,038 more interest cost per vehicle than GM.
The Women’s Committee is still accepting teams for the golf tournament Saturday, Aug. 28. This is a three person scramble with a 1:30 pm shotgun start at Bear Creek golf course in Wentzville. Cost is $70 per player/$210 per team. Entry forms available at the entrances.
From the Detroit News: Toyota Motor Corp. officials bragged in late 2007 that they saved more than $100 million by deterring U.S. safety officials from ordering costly repairs to prevent runaway vehicles, e-mails obtained by The Detroit News show. The communications suggest some executives knew of the situation nearly two years earlier than was acknowledged in a July 2009 internal company document that surfaced this year. In addition to the financial savings, the newly released e-mails indicate for the first time that senior Toyota executives were worried they'd be forced to take additional action. In the newly surfaced e-mails dated Sept. 14, 2007, Chris Tinto, Toyota's vice president for technical and regulatory safety, contacted Josephine Cooper, the automaker's vice president of public policy and government/industry affairs. "NHTSA feels they have too many complaints on this one vehicle to drop the issue," Tinto wrote. "The results of a stuck throttle are 'catastrophic.' " Tinto also downplayed the floor mat recall, saying it was the product of talks with NHTSA. "We will 'recall' the '07 ES and Camry floor mat, however we will NOT declare that a 'safety defect' exists," Tinto wrote. "Of course the owner letter will say that a defect WAS found in the mat, to ensure that owners pay attention to the notice and secure the mats correctly."
From Automotive News: On July 23, when Ford announced second-quarter net income of $2.6 billion, CFO Lewis Booth sounded one cautionary note: Ford's ability to pay off $7 billion in debt was "one of the high points of the quarter." He added that reducing debt continues to be "very urgent" for Ford. Now that both Ford's and General Motor’s second-quarter numbers are out, a little basic math shows why.
-- In the second quarter, Ford sold 1.418 million vehicles. It paid $1.636 billion in interest. That's $1,154 in interest expense per vehicle sold.
-- GM sold 2.153 million vehicles and paid $250 million in interest expenses. That's a mere $116 per vehicle.
-- The key number: Ford had $1,038 more interest cost per vehicle than GM.
Friday, August 20, 2010
State of the Union August 20, 2010
August 20, 2010 online at www.uawlocal2250.com
The Women’s Committee is still accepting teams for the golf tournament Saturday, Aug. 28. This is a three person scramble with a 1:30 pm shotgun start at Bear Creek golf course in Wentzville. Cost is $70 per player/$210 per team. Entry forms available at the entrances.
With the announcement of GM’s filing of Form S-1with the SEC, there are certain rules employees must abide by. From GM CFO Chris Liddell: “Now that GM has filed the S-1, the company and our employees are subject to specific SEC regulations, which prohibit us from referencing the IPO through written communications. While we can continue to discuss our business as we always have internally and externally, any written communications, including emails to outside parties regarding the IPO, are prohibited. Because the SEC broadly defines ‘written communications’ to include events where verbal conversations may subsequently be published, the safest course is to refrain from discussion about an IPO in any context. Consequences to GM for violating the SEC regulations can be severe – up to and including delaying the IPO indefinitely”
Recent reports from the government and Toyota are indicating that data from the “black boxes” of wrecked Toyotas show driver error to be the culprit. However, these bold proclamations based on this data stand in contrast to Toyota’s own assessment of these data recorders (EDRs) just a couple of years ago. In a court filing from 2008, Toyota said, “The data retrieved from the EDR is far from reliable. The EDR was not intended to be used a reconstruction tool in the field. It has not been validated as a reliable reconstruction tool or crash data recorder for crash events in the field." In 2007, a driver was killed when he hit a tree after running off of a rural road in his new Tundra. The man’s family, with the help of a US Senator, finally got Toyota to read the data on the EDR. The data indicated the truck had been going 177 mph when it hit the tree, much faster than what the pickup possibly could go, safety experts said. Yet a separate reading from the recorder put the speed at 75 mph before impact. And in a Q & A on its own website, Toyota claimed that he tool for reading the data has not been "scientifically validated," adding, “At this time, Toyota does not have confidence that the readout reports it generates are accurate”.
Important Safety message from UAW Leadership on back:
An Important Safety Message from Your UAW Leadership
Safety awareness is learned, not instinctive. We are taught how to perform work, and this education comes as a result of our UAW brothers and sisters who sacrificed and fought for a higher standard and greater protection of workers.
UAW members have rights to information and receive jointly developed health and safety training on key issues like chemical hazards, lockout, powered industrial vehicles and ergonomics, and the negotiated programs to control these hazards. Hourly workers and management counterparts typically deliver this training.
The UAW believes the best way to prevent injuries and illness on the job is to provide workers with information about hazards and procedures to get these hazards corrected. An educated, empowered worker who has the right to act on what he or she knows is the best line of defense against workplace hazards.
We focus on the principle of “fix the work, not the worker.” That means reducing indoor pollution instead of handing out respirators; reducing the use of toxic chemicals instead of treating people after they get sick, and changing the design of jobs to eliminate strains, sprains and heavy lifting instead of passing out back braces. We learn through various means. Some learn by doing, others by observation, and some by reading. Others learn by their mistakes or the mistakes of others; this is one reason we post and talk about near misses and injuries on a daily basis.
If you observe a hazard, report it. Notify your Team Leader, Group Leader, or contact your UAW Health & Safety representatives Bob Boatwright or Rich Jollenbeck. When it comes to safety there is no compromise. Safety is our value and you should “Speak Up for Safety.”
It is not okay for anyone to get injured on the job. Too many of our brothers and sisters have given their lives, or sustained life-changing injuries to teach the rest of us how to avoid similar injuries. We can never relax when it comes to safety. It is our goal to ensure that each and every employee leaves work at the end of the day exactly the same as they were when they reported to work.
The Women’s Committee is still accepting teams for the golf tournament Saturday, Aug. 28. This is a three person scramble with a 1:30 pm shotgun start at Bear Creek golf course in Wentzville. Cost is $70 per player/$210 per team. Entry forms available at the entrances.
With the announcement of GM’s filing of Form S-1with the SEC, there are certain rules employees must abide by. From GM CFO Chris Liddell: “Now that GM has filed the S-1, the company and our employees are subject to specific SEC regulations, which prohibit us from referencing the IPO through written communications. While we can continue to discuss our business as we always have internally and externally, any written communications, including emails to outside parties regarding the IPO, are prohibited. Because the SEC broadly defines ‘written communications’ to include events where verbal conversations may subsequently be published, the safest course is to refrain from discussion about an IPO in any context. Consequences to GM for violating the SEC regulations can be severe – up to and including delaying the IPO indefinitely”
Recent reports from the government and Toyota are indicating that data from the “black boxes” of wrecked Toyotas show driver error to be the culprit. However, these bold proclamations based on this data stand in contrast to Toyota’s own assessment of these data recorders (EDRs) just a couple of years ago. In a court filing from 2008, Toyota said, “The data retrieved from the EDR is far from reliable. The EDR was not intended to be used a reconstruction tool in the field. It has not been validated as a reliable reconstruction tool or crash data recorder for crash events in the field." In 2007, a driver was killed when he hit a tree after running off of a rural road in his new Tundra. The man’s family, with the help of a US Senator, finally got Toyota to read the data on the EDR. The data indicated the truck had been going 177 mph when it hit the tree, much faster than what the pickup possibly could go, safety experts said. Yet a separate reading from the recorder put the speed at 75 mph before impact. And in a Q & A on its own website, Toyota claimed that he tool for reading the data has not been "scientifically validated," adding, “At this time, Toyota does not have confidence that the readout reports it generates are accurate”.
Important Safety message from UAW Leadership on back:
An Important Safety Message from Your UAW Leadership
Safety awareness is learned, not instinctive. We are taught how to perform work, and this education comes as a result of our UAW brothers and sisters who sacrificed and fought for a higher standard and greater protection of workers.
UAW members have rights to information and receive jointly developed health and safety training on key issues like chemical hazards, lockout, powered industrial vehicles and ergonomics, and the negotiated programs to control these hazards. Hourly workers and management counterparts typically deliver this training.
The UAW believes the best way to prevent injuries and illness on the job is to provide workers with information about hazards and procedures to get these hazards corrected. An educated, empowered worker who has the right to act on what he or she knows is the best line of defense against workplace hazards.
We focus on the principle of “fix the work, not the worker.” That means reducing indoor pollution instead of handing out respirators; reducing the use of toxic chemicals instead of treating people after they get sick, and changing the design of jobs to eliminate strains, sprains and heavy lifting instead of passing out back braces. We learn through various means. Some learn by doing, others by observation, and some by reading. Others learn by their mistakes or the mistakes of others; this is one reason we post and talk about near misses and injuries on a daily basis.
If you observe a hazard, report it. Notify your Team Leader, Group Leader, or contact your UAW Health & Safety representatives Bob Boatwright or Rich Jollenbeck. When it comes to safety there is no compromise. Safety is our value and you should “Speak Up for Safety.”
It is not okay for anyone to get injured on the job. Too many of our brothers and sisters have given their lives, or sustained life-changing injuries to teach the rest of us how to avoid similar injuries. We can never relax when it comes to safety. It is our goal to ensure that each and every employee leaves work at the end of the day exactly the same as they were when they reported to work.
Thursday, August 19, 2010
State of the Union August 19, 2010
August 19, 2010
Online at www.uawlocal2250.com
From Automotive News: General Motors Co., moving to unwind itself from government control, yesterday filed plans to go public and begin selling common shares as early as this fall. The filing -- anticipated for weeks -- came just 13 months after GM was restructured in bankruptcy with $50 billion in direct aid from the U.S. government. GM said the amount of securities offered will be determined by market conditions and other factors at the time of the offering. The number of shares to be sold and the price range for the offering have not been determined, the automaker added. GM hopes to raise $12 billion to $16 billion with the stock sale, Bloomberg News reported, making it among the biggest initial public offerings ever. To make the offering appeal to a wider group of investors, including hedge funds, GM said it may also issue preferred shares. In a bid to preserve cash, the automaker said it does not plan to pay a dividend on the common shares after the initial offering. In the filing, GM said weak sales, underfunded pensions and the success of its restructuring efforts in Europe pose risks for the automaker. While the auto industry has recovered this year, GM said "there is no assurance that this recovery in vehicle sales will continue or spread across all our markets." Still, the automaker said it expects its global market share to rise to 12.4 percent by 2014 from 11.9 percent this year.
Q. When will these shares actually go on sale?
A: The IPO dealmay not be completed for two or three months.
Q: Who are the likely buyers of most of the shares?
A: The big kids on the block -- major institutional investors -- buy up most of these initial public offerings. Jay R. Ritter, Cordell professor of finance the University of Florida in Gainesville, said buyers for a GM IPO would likely include mutual funds and hedge funds representing their limited partners. But there will also be a retail piece of this pie, perhaps up to 30%. Talk to your broker or financial adviser. People who do not have brokerage accounts won't be able to get in on it.
Q: I never sold my shares in the old GM. Will that entitle me to any special chance to buy shares in the new GM?
A: No
Q: Is there another way to get a piece of the GM action?
A: Yes. Some investors might consider buying into a few mutual funds, such as the Direxion Long/Short IPO Fund, that invest in stocks that are part of various offerings.
Q: I buy and sell stocks online. Will I have a chance to buy shares of the new GM?
A: This is a huge offering, so it's possible that Charles Schwab and other discount brokers could have some shares to allocate to account-holders.
Q: Will GM shares again be part of the major stock indices?
A: GM was removed from the 30-stock Dow Jones IndustrialAverage in June 2009 when it filed for Chapter 11 bankruptcy. It's unlikely to be added back in the foreseeable future. The company has a better chance of eventually being added to the far larger S&P 500. Being part of one of the major indices is important because there are thousands of index funds that must buy a certain number of shares in each company that is part of that index.
From the UAW Website – Bob King letter (edited to fit page):
Dear Mr. Dornbrook:
Thank you for covering the signing of the Missouri Automotive Manufacturing Jobs Act. It’s an important measure for the overall health of American automotive manufacturing and for workers who depend on good jobs at auto plants, their suppliers and other businesses dependent on these plants and the revenue and tax dollars they generate. We are sorry you were inconvenienced and had to worry about where your car was parked while you covered the signing. The UAW member you encountered in the UAW Local 249 parking lot meant no personal disrespect to you. Accommodating vehicles not made by UAW brothers and sisters is a passionate subject for our members. Here are some facts you may want to consider about the domestic auto industry:
• The U.S.-based automakers directly employ nearly 300,000 employees – about two-thirds of all American auto workers.
• Nearly three million U.S. workers are directly or indirectly dependent on the U.S.-based automakers in jobs in the automotive parts industry, automotive research, design and engineering, and in jobs created by money spent on goods and services from the automotive industry and its workers.
•Ford, GM and Chrysler sell less than half the cars bought in the United States, but they buy about two-thirds of the parts made in the United States.
• U.S.-based automakers buy much of the steel, rubber and semiconductors made in the United States; conduct more R&D than any other industry and have invested more than $230 billion in new plants and infrastructure over the past 25 years.
• Investment in R&D has a big impact on whether tomorrow’s best jobs remain in the United States. In 2009, U.S.-based automakers spent $17.5 billion on R&D and 80 cents of every dollar was spent in the United States. U.S.-based automakers do the bulk of their research, design and engineering in the United States, unlike the foreign automakers.
• From 2001 to 2005, the U.S.-based automakers invested more in U.S. plants and infrastructure than all the foreign automakers together invested over the past 25 years. Eighty-six cents of every dollar automakers invested in America came from Ford, GM or Chrysler; the remaining 14 cents came from all the foreign automakers combined.
• Unionization of the U.S.-based automakers by the UAW was a major factor in the creation of the post-war middle class in the United States. Unionization gave workers the right to bargain for fair wages and benefits, giving them the means to buy a house, send their children to college and have a secure retirement. Workers need a voice on the job and a place at the table with employers. Union representation provides that and gives workers a ladder to economic stability. The foreign-owned automakers in the United States are mostly nonunion and resist attempts by workers to organize.
• And quite honestly, all workers’ (union and non-union, manufacturing and service, professional and non-professional) wages and benefits rose when union manufacturing workers raised their wages and benefits through collective bargaining. Health care benefits, pensions, vacations, holidays, and many other benefits and improvements in working conditions were first won in union contracts that later became standard benefits for all workers. And you may have noticed as union workers have been losing some or a portion of these benefits, so have all workers. It is no coincidence.
• Chrysler, Ford and GM manufacture vehicles with more domestic content across their fleets than the foreign brands. As an example, averaged across fleets, Chrysler’s domestic content is 76 percent; Ford, 64 percent; GM, 64 percent; Honda, 63 percent; Toyota 46 percent and Nissan, 31 percent. If the U.S.-based automakers’ domestic content shrank to the same level as the foreign automakers, it would mean $49 billion less spent in the United States, costing more than 1 million U.S. jobs.
• U.S.-based automakers have consistently been ranked high, if not the highest, in several quality categories in the esteemed, annual J.D. Power vehicle quality studies. In fact, in the 2010 J.D. Power Quality study results, U.S.-based automakers' cars ranked in the top three of 12 categories and ranked first over foreign-company brands in six of the 12 categories. Buying a U.S./UAW vehicle does make a difference.
Online at www.uawlocal2250.com
From Automotive News: General Motors Co., moving to unwind itself from government control, yesterday filed plans to go public and begin selling common shares as early as this fall. The filing -- anticipated for weeks -- came just 13 months after GM was restructured in bankruptcy with $50 billion in direct aid from the U.S. government. GM said the amount of securities offered will be determined by market conditions and other factors at the time of the offering. The number of shares to be sold and the price range for the offering have not been determined, the automaker added. GM hopes to raise $12 billion to $16 billion with the stock sale, Bloomberg News reported, making it among the biggest initial public offerings ever. To make the offering appeal to a wider group of investors, including hedge funds, GM said it may also issue preferred shares. In a bid to preserve cash, the automaker said it does not plan to pay a dividend on the common shares after the initial offering. In the filing, GM said weak sales, underfunded pensions and the success of its restructuring efforts in Europe pose risks for the automaker. While the auto industry has recovered this year, GM said "there is no assurance that this recovery in vehicle sales will continue or spread across all our markets." Still, the automaker said it expects its global market share to rise to 12.4 percent by 2014 from 11.9 percent this year.
Q. When will these shares actually go on sale?
A: The IPO dealmay not be completed for two or three months.
Q: Who are the likely buyers of most of the shares?
A: The big kids on the block -- major institutional investors -- buy up most of these initial public offerings. Jay R. Ritter, Cordell professor of finance the University of Florida in Gainesville, said buyers for a GM IPO would likely include mutual funds and hedge funds representing their limited partners. But there will also be a retail piece of this pie, perhaps up to 30%. Talk to your broker or financial adviser. People who do not have brokerage accounts won't be able to get in on it.
Q: I never sold my shares in the old GM. Will that entitle me to any special chance to buy shares in the new GM?
A: No
Q: Is there another way to get a piece of the GM action?
A: Yes. Some investors might consider buying into a few mutual funds, such as the Direxion Long/Short IPO Fund, that invest in stocks that are part of various offerings.
Q: I buy and sell stocks online. Will I have a chance to buy shares of the new GM?
A: This is a huge offering, so it's possible that Charles Schwab and other discount brokers could have some shares to allocate to account-holders.
Q: Will GM shares again be part of the major stock indices?
A: GM was removed from the 30-stock Dow Jones IndustrialAverage in June 2009 when it filed for Chapter 11 bankruptcy. It's unlikely to be added back in the foreseeable future. The company has a better chance of eventually being added to the far larger S&P 500. Being part of one of the major indices is important because there are thousands of index funds that must buy a certain number of shares in each company that is part of that index.
From the UAW Website – Bob King letter (edited to fit page):
Dear Mr. Dornbrook:
Thank you for covering the signing of the Missouri Automotive Manufacturing Jobs Act. It’s an important measure for the overall health of American automotive manufacturing and for workers who depend on good jobs at auto plants, their suppliers and other businesses dependent on these plants and the revenue and tax dollars they generate. We are sorry you were inconvenienced and had to worry about where your car was parked while you covered the signing. The UAW member you encountered in the UAW Local 249 parking lot meant no personal disrespect to you. Accommodating vehicles not made by UAW brothers and sisters is a passionate subject for our members. Here are some facts you may want to consider about the domestic auto industry:
• The U.S.-based automakers directly employ nearly 300,000 employees – about two-thirds of all American auto workers.
• Nearly three million U.S. workers are directly or indirectly dependent on the U.S.-based automakers in jobs in the automotive parts industry, automotive research, design and engineering, and in jobs created by money spent on goods and services from the automotive industry and its workers.
•Ford, GM and Chrysler sell less than half the cars bought in the United States, but they buy about two-thirds of the parts made in the United States.
• U.S.-based automakers buy much of the steel, rubber and semiconductors made in the United States; conduct more R&D than any other industry and have invested more than $230 billion in new plants and infrastructure over the past 25 years.
• Investment in R&D has a big impact on whether tomorrow’s best jobs remain in the United States. In 2009, U.S.-based automakers spent $17.5 billion on R&D and 80 cents of every dollar was spent in the United States. U.S.-based automakers do the bulk of their research, design and engineering in the United States, unlike the foreign automakers.
• From 2001 to 2005, the U.S.-based automakers invested more in U.S. plants and infrastructure than all the foreign automakers together invested over the past 25 years. Eighty-six cents of every dollar automakers invested in America came from Ford, GM or Chrysler; the remaining 14 cents came from all the foreign automakers combined.
• Unionization of the U.S.-based automakers by the UAW was a major factor in the creation of the post-war middle class in the United States. Unionization gave workers the right to bargain for fair wages and benefits, giving them the means to buy a house, send their children to college and have a secure retirement. Workers need a voice on the job and a place at the table with employers. Union representation provides that and gives workers a ladder to economic stability. The foreign-owned automakers in the United States are mostly nonunion and resist attempts by workers to organize.
• And quite honestly, all workers’ (union and non-union, manufacturing and service, professional and non-professional) wages and benefits rose when union manufacturing workers raised their wages and benefits through collective bargaining. Health care benefits, pensions, vacations, holidays, and many other benefits and improvements in working conditions were first won in union contracts that later became standard benefits for all workers. And you may have noticed as union workers have been losing some or a portion of these benefits, so have all workers. It is no coincidence.
• Chrysler, Ford and GM manufacture vehicles with more domestic content across their fleets than the foreign brands. As an example, averaged across fleets, Chrysler’s domestic content is 76 percent; Ford, 64 percent; GM, 64 percent; Honda, 63 percent; Toyota 46 percent and Nissan, 31 percent. If the U.S.-based automakers’ domestic content shrank to the same level as the foreign automakers, it would mean $49 billion less spent in the United States, costing more than 1 million U.S. jobs.
• U.S.-based automakers have consistently been ranked high, if not the highest, in several quality categories in the esteemed, annual J.D. Power vehicle quality studies. In fact, in the 2010 J.D. Power Quality study results, U.S.-based automakers' cars ranked in the top three of 12 categories and ranked first over foreign-company brands in six of the 12 categories. Buying a U.S./UAW vehicle does make a difference.
Wednesday, August 18, 2010
State of the Union August 18, 2010
online at www.uawlocal2250.com
From Chairman Mike Bullock:
Due to the end of the prime time vacation period, we have been informed that, unfortunately, 57 members will be laid off by Sept. 10. That would make the seniority date to hold the plant 11-2-1998 with a last four of 8000. This is a tentative number and could change based on manpower requirements such as covering sick leaves or paragraph 78s. The people being laid off are prime time vacation replacements and extras.
Reminder: Union meeting is Wednesday, Aug. 18 at 1 pm, 3 pm and 15 minutes after the longest first shift line time.
From the AP: The potential buyer of a General Motors stamping plant in Indianapolis is appealing to union members to allow a vote on a proposed contract that could keep the factory open. Members of United Auto Workers Local 23 decided over the weekend not to hold a scheduled Monday vote among the 650 workers on the offer from Addison, Ill.-based JD Norman Industries. Union leaders said the offer cut base wages of $29 an hour nearly in half. Company president Justin D. Norman said in a full-page advertisement Tuesday in The Indianapolis Star that the contract offer was the only way to keep the factory open and that it protected the GM transfer rights of the employees. GM announced last year it planned to close the plant in 2011.
From the Detroit News: The United Auto Workers has put a hold on trying to sell its $33 million Black Lake retreat in northern Michigan. The Walter and May Reuther Family Education Center was taken off the market at the request of UAW President Bob King and the union's new executive board, said John Karver, a senior vice president at CB Richard Ellis, the real estate firm handling the listing. "I understand it's simply a matter of the new board reviewing previous policy decisions," Karver said. There has been interest by more than one potential buyer, he said. The property had no listing price, Karver said. It's not clear when or what the new UAW leaders may decide about the property, Karver said. UAW officials did not return calls and e-mails for this report.
Part 2 of Wall Street Journal article about new GM CEO Dan Akerson on back:
Mr. Akerson often clashed with managers in a way that was counterproductive to getting work done, Mr. Ruelle who was a managing director of MCI Inc. when Mr. Akerson was the chief operating officer of the telephone company said in an interview. Around 1990, he recalled, top MCI executives were considering a major increase in the budget for the company's "Friends and Family" advertising campaign.
If the plan failed, Mr. Akerson told the group, "I'm going to have my eyes on you,' " Mr. Ruelle recalled Mr. Akerson saying. "If you were fighting the Taliban, he'd rip their back ends off."
Mr. Akerson said he doesn't recall the incident specifically, but said it was a major decision to spend that much on Friends and Family, which he helped conceive. As for his style, he said he uses colorful language and is direct.
Many on Wall Street regard Mr. Akerson as the right kind of executive to reassure investors that GM will continue making tough decision and avoid reverting to its plodding, spendthrift ways. Mr. Akerson, 61 years old and a former chief executive of cellphone company Nextel, was brought to GM's board by President Obama's auto task force, which liked his reputation and thought he could be a good option if a new CEO were needed at some point.
"He cuts right to the heart of an issue," said Mark LaNeve, GM's former sales and marketing chief, who was among the slew of executives ushered out as Mr. Whitacre built a new management team.
Mr. LaNeve said Mr. Akerson often pressed GM executives in meetings to justify strategies and initiatives, and didn't back down when he was told that matters were "complicated. "He'd say, 'It shouldn't be complicated,' " Mr. LaNeve said. "He'd say, 'We need to simplify the issue."
The lack of simple, direct leadership, Mr. Akerson said in the interview, was at the core of his displeasure with GM's old executive ranks. Too often, he said, executives would manage functions they didn't fully understand or take on too much responsibility.
At other stops in his career, Mr. Akerson has shown an ability to move quickly when the stakes are high. When he became CEO of General Instrument Corp. in the 1990s, the cable-TV equipment maker was under fire from John Malone, then CEO of cable systems owner Tele-Communications Inc. Mr. Malone had complained publicly about General Instrument's delay in developing digital set-top boxes.
The boxes were an innovative technology designed to handle 500 channels for cable and satellite TV. To address the delay, Mr. Akerson cut R&D outlays to free up funds needed to build the boxes and laid off some underperforming engineers, said a person familiar with the situation.
Then he flew to see Mr. Malone and apologized for the delay. "He said, 'We are behind. Here's what we are going to do about it,' '' the person recalls. "John respected that and did hang in there."
A graduate of the U.S. Naval Academy, Mr. Akerson served on the destroyer U.S.S. DuPont from 1970 to 1975. He said playing a role in GM's turnaround fulfills a sense of duty. If the company succeeds, he said, "I can make a bigger contribution to the country than I did with my time in the Navy."
Harvey Golub, a former chairman and CEO of American Express Co., remembers Mr. Akerson as a tough member of Amex's board, on which Mr. Akerson has served since 1995. "You couldn't B.S. him," Mr. Golub said last week. "If something wasn't clear, he asked questions until it was. And they were good questions."
From Chairman Mike Bullock:
Due to the end of the prime time vacation period, we have been informed that, unfortunately, 57 members will be laid off by Sept. 10. That would make the seniority date to hold the plant 11-2-1998 with a last four of 8000. This is a tentative number and could change based on manpower requirements such as covering sick leaves or paragraph 78s. The people being laid off are prime time vacation replacements and extras.
Reminder: Union meeting is Wednesday, Aug. 18 at 1 pm, 3 pm and 15 minutes after the longest first shift line time.
From the AP: The potential buyer of a General Motors stamping plant in Indianapolis is appealing to union members to allow a vote on a proposed contract that could keep the factory open. Members of United Auto Workers Local 23 decided over the weekend not to hold a scheduled Monday vote among the 650 workers on the offer from Addison, Ill.-based JD Norman Industries. Union leaders said the offer cut base wages of $29 an hour nearly in half. Company president Justin D. Norman said in a full-page advertisement Tuesday in The Indianapolis Star that the contract offer was the only way to keep the factory open and that it protected the GM transfer rights of the employees. GM announced last year it planned to close the plant in 2011.
From the Detroit News: The United Auto Workers has put a hold on trying to sell its $33 million Black Lake retreat in northern Michigan. The Walter and May Reuther Family Education Center was taken off the market at the request of UAW President Bob King and the union's new executive board, said John Karver, a senior vice president at CB Richard Ellis, the real estate firm handling the listing. "I understand it's simply a matter of the new board reviewing previous policy decisions," Karver said. There has been interest by more than one potential buyer, he said. The property had no listing price, Karver said. It's not clear when or what the new UAW leaders may decide about the property, Karver said. UAW officials did not return calls and e-mails for this report.
Part 2 of Wall Street Journal article about new GM CEO Dan Akerson on back:
Mr. Akerson often clashed with managers in a way that was counterproductive to getting work done, Mr. Ruelle who was a managing director of MCI Inc. when Mr. Akerson was the chief operating officer of the telephone company said in an interview. Around 1990, he recalled, top MCI executives were considering a major increase in the budget for the company's "Friends and Family" advertising campaign.
If the plan failed, Mr. Akerson told the group, "I'm going to have my eyes on you,' " Mr. Ruelle recalled Mr. Akerson saying. "If you were fighting the Taliban, he'd rip their back ends off."
Mr. Akerson said he doesn't recall the incident specifically, but said it was a major decision to spend that much on Friends and Family, which he helped conceive. As for his style, he said he uses colorful language and is direct.
Many on Wall Street regard Mr. Akerson as the right kind of executive to reassure investors that GM will continue making tough decision and avoid reverting to its plodding, spendthrift ways. Mr. Akerson, 61 years old and a former chief executive of cellphone company Nextel, was brought to GM's board by President Obama's auto task force, which liked his reputation and thought he could be a good option if a new CEO were needed at some point.
"He cuts right to the heart of an issue," said Mark LaNeve, GM's former sales and marketing chief, who was among the slew of executives ushered out as Mr. Whitacre built a new management team.
Mr. LaNeve said Mr. Akerson often pressed GM executives in meetings to justify strategies and initiatives, and didn't back down when he was told that matters were "complicated. "He'd say, 'It shouldn't be complicated,' " Mr. LaNeve said. "He'd say, 'We need to simplify the issue."
The lack of simple, direct leadership, Mr. Akerson said in the interview, was at the core of his displeasure with GM's old executive ranks. Too often, he said, executives would manage functions they didn't fully understand or take on too much responsibility.
At other stops in his career, Mr. Akerson has shown an ability to move quickly when the stakes are high. When he became CEO of General Instrument Corp. in the 1990s, the cable-TV equipment maker was under fire from John Malone, then CEO of cable systems owner Tele-Communications Inc. Mr. Malone had complained publicly about General Instrument's delay in developing digital set-top boxes.
The boxes were an innovative technology designed to handle 500 channels for cable and satellite TV. To address the delay, Mr. Akerson cut R&D outlays to free up funds needed to build the boxes and laid off some underperforming engineers, said a person familiar with the situation.
Then he flew to see Mr. Malone and apologized for the delay. "He said, 'We are behind. Here's what we are going to do about it,' '' the person recalls. "John respected that and did hang in there."
A graduate of the U.S. Naval Academy, Mr. Akerson served on the destroyer U.S.S. DuPont from 1970 to 1975. He said playing a role in GM's turnaround fulfills a sense of duty. If the company succeeds, he said, "I can make a bigger contribution to the country than I did with my time in the Navy."
Harvey Golub, a former chairman and CEO of American Express Co., remembers Mr. Akerson as a tough member of Amex's board, on which Mr. Akerson has served since 1995. "You couldn't B.S. him," Mr. Golub said last week. "If something wasn't clear, he asked questions until it was. And they were good questions."
Monday, August 16, 2010
State of the Union August 16, 2010
August 16, 2010 online at www.uawlocal2250.com
State of the Union will return on Wednesday.
Union meeting is Wednesday, Aug. 18 at 1 pm, 3 pm and 15 minutes after the longest first shift line time.
Reminder: There will be an informational meeting Tuesday, Aug. 17 at the Union Hall covering the Worker-to-Worker and Region 5-Gimme 5 programs. The meeting will be 15 minutes after the longest first shift line time.
The Women’s Committee is asking that any golf teams for the tournament Aug. 28 be entered today so they can work on arrangements for dinner. The tournament is a 3-person scramble with a 1:30 pm shotgun start. The cost is $70 per person or $210 per team and includes dinner and beer after the tournament, which will be held at Bear Creek in Wentzville. Entry forms are at the entrances.
Apparently not content with catching would-be suicide jumpers with nets, Apple supplier Foxconn is attempting to get ahead of the curve. According to Secutimes.com, Foxconn is requiring applicants to its Zhengzhou factory in central China to undertake psychological evaluations and stress tests, job seekers are saying. The test comprises 70 questions, including evaluations of the effects of sleep deprivation, depression and loneliness, the Chinese newspaper said.
From Automotive News: Mazda Motor Co. is recalling more than 200,000 Mazda3 and Mazda5 vehicles from the 2007-2009 model years because of faulty power-assist steering pumps and pipes. The recall comes after NHTSA opened an investigation in June into power steering failures in the Mazda3 from the 2007-2009 model years. NHTSA received 33 complaints of power-assist steering failures in Mazda3 vehicles from the 2007-2009 model years, and loss of steering control was reported as the cause of three crashes, according to NHTSA investigation documents.
Wall Street Journal article about new GM CEO Dan Akerson on back:
Part one:
Last fall, some General Motors Co. directors were surprised when they learned that the car maker had lost more than $1 billion betting on Korean currency earlier in 2009, just before the company slid into bankruptcy-court protection. In a meeting, one of the directors, Daniel Akerson, demanded an explanation from then-Chief Executive Frederick "Fritz" Henderson. The loss, in Mr. Akerson's view, was a serious issue, especially because it had happened when GM's top executives were supposed to be hoarding every dollar they could find.
"I said, 'Look, we just lost $1 billion and I'm asking you how this happened,' " Mr. Akerson recalled asking Mr. Henderson, speaking in his first interview since he was named to the GM CEO post Thursday. "It was a little bit disturbing that a remote part of the organization could make a bet of that magnitude and no one on the board or senior management was aware of it," he said. After the tense exchange, GM's finance executives were required to give updates on risk-management moves to several directors, giving the board a larger role in what had previously been management's job. In the weeks that followed, Mr. Akerson and other board members became increasingly critical of Mr. Henderson, and on Dec. 2 Mr. Henderson resigned.
Now, Mr. Akerson is about to take the top job himself. GM Chairman Edward E. Whitacre Jr., who succeeded Mr. Henderson, is set to give up the CEO post to Mr. Akerson on Sept. 1. A former telecommunications CEO with a reputation for tough, decisive leadership and colorful language, Mr. Akerson will face the task of keeping GM on the course Mr. Whitacre has charted in the last nine months, and selling the company to Wall Street as it prepares for an initial public offering of its stock.
"The board was criticized before for doing nothing," Mr. Akerson said. "As a board member, I have the responsibility to ask questions. As I become management, I want a board that challenges me, that challenges management." The IPO is a crucial step not only for GM but for the U.S. government, which is hoping to recoup most or all of the $43 billion of GM shares it holds.
For the government to recoup its investment, GM must achieve a stock market value of $70 billion—10 times GM's market capitalization before it headed into Chapter 11, and at least $30 billion more than the market value of Ford Motor Co. After slashing its debt, shedding brands and shuttering plants in bankruptcy, GM is now making money—it reported $1.3 billion in net income for the second quarter. Ford, by contrast, earned $2.6 billion.
State of the Union will return on Wednesday.
Union meeting is Wednesday, Aug. 18 at 1 pm, 3 pm and 15 minutes after the longest first shift line time.
Reminder: There will be an informational meeting Tuesday, Aug. 17 at the Union Hall covering the Worker-to-Worker and Region 5-Gimme 5 programs. The meeting will be 15 minutes after the longest first shift line time.
The Women’s Committee is asking that any golf teams for the tournament Aug. 28 be entered today so they can work on arrangements for dinner. The tournament is a 3-person scramble with a 1:30 pm shotgun start. The cost is $70 per person or $210 per team and includes dinner and beer after the tournament, which will be held at Bear Creek in Wentzville. Entry forms are at the entrances.
Apparently not content with catching would-be suicide jumpers with nets, Apple supplier Foxconn is attempting to get ahead of the curve. According to Secutimes.com, Foxconn is requiring applicants to its Zhengzhou factory in central China to undertake psychological evaluations and stress tests, job seekers are saying. The test comprises 70 questions, including evaluations of the effects of sleep deprivation, depression and loneliness, the Chinese newspaper said.
From Automotive News: Mazda Motor Co. is recalling more than 200,000 Mazda3 and Mazda5 vehicles from the 2007-2009 model years because of faulty power-assist steering pumps and pipes. The recall comes after NHTSA opened an investigation in June into power steering failures in the Mazda3 from the 2007-2009 model years. NHTSA received 33 complaints of power-assist steering failures in Mazda3 vehicles from the 2007-2009 model years, and loss of steering control was reported as the cause of three crashes, according to NHTSA investigation documents.
Wall Street Journal article about new GM CEO Dan Akerson on back:
Part one:
Last fall, some General Motors Co. directors were surprised when they learned that the car maker had lost more than $1 billion betting on Korean currency earlier in 2009, just before the company slid into bankruptcy-court protection. In a meeting, one of the directors, Daniel Akerson, demanded an explanation from then-Chief Executive Frederick "Fritz" Henderson. The loss, in Mr. Akerson's view, was a serious issue, especially because it had happened when GM's top executives were supposed to be hoarding every dollar they could find.
"I said, 'Look, we just lost $1 billion and I'm asking you how this happened,' " Mr. Akerson recalled asking Mr. Henderson, speaking in his first interview since he was named to the GM CEO post Thursday. "It was a little bit disturbing that a remote part of the organization could make a bet of that magnitude and no one on the board or senior management was aware of it," he said. After the tense exchange, GM's finance executives were required to give updates on risk-management moves to several directors, giving the board a larger role in what had previously been management's job. In the weeks that followed, Mr. Akerson and other board members became increasingly critical of Mr. Henderson, and on Dec. 2 Mr. Henderson resigned.
Now, Mr. Akerson is about to take the top job himself. GM Chairman Edward E. Whitacre Jr., who succeeded Mr. Henderson, is set to give up the CEO post to Mr. Akerson on Sept. 1. A former telecommunications CEO with a reputation for tough, decisive leadership and colorful language, Mr. Akerson will face the task of keeping GM on the course Mr. Whitacre has charted in the last nine months, and selling the company to Wall Street as it prepares for an initial public offering of its stock.
"The board was criticized before for doing nothing," Mr. Akerson said. "As a board member, I have the responsibility to ask questions. As I become management, I want a board that challenges me, that challenges management." The IPO is a crucial step not only for GM but for the U.S. government, which is hoping to recoup most or all of the $43 billion of GM shares it holds.
For the government to recoup its investment, GM must achieve a stock market value of $70 billion—10 times GM's market capitalization before it headed into Chapter 11, and at least $30 billion more than the market value of Ford Motor Co. After slashing its debt, shedding brands and shuttering plants in bankruptcy, GM is now making money—it reported $1.3 billion in net income for the second quarter. Ford, by contrast, earned $2.6 billion.
Thursday, August 12, 2010
State of the Union August 12
August 12, 2010 online at www.uawlocal2250.com
This morning’s gate drive for SOS (Support our Soldiers) collected $2004.04. This is another tremendous result from just a one-shift operation! Thanks to all who donated their money and time to this great cause.
General Motors Company today announced its second quarter 2010 results, marked by revenue of $33.2 billion and net income attributable to common stockholders of $1.3 billion, resulting in earnings per share on a diluted basis of $2.55. GM's second quarter earnings before interest and tax (EBIT) was $2.0 billion. GM North America had EBIT in the second quarter 2010 of $1.6 billion, up from $1.2 billion in the first quarter. GM Europe had a loss before interest and taxes of $0.2 billion, an improvement of $0.3 billion from the first quarter. GM International Operations posted EBIT of $0.7 billion, down from $1.2 billion in the first quarter. Cash flow from operating activities was $3.9 billion and after adjusting for capital expenditures of $1.1 billion, free cash flow was $2.8 billion. GM ended the second quarter with $32.5 billion in cash and marketable securities, including funds in the Canadian Health Care Trust escrow. "I am pleased with our progress on achieving our business objectives,” said Chris Liddell, vice chairman and chief financial officer. “We have delivered strong product, maintained cost discipline, progressed strategic initiatives such as restructuring Europe and acquiring AmeriCredit, and delivered two consecutive quarters of profitability and positive cash flow."
From Automotive News: GM has secured a $5 billion credit facility, two people briefed on the bank deal said Wednesday. GM now plans to file a registration for its IPO on Friday according to these sources. The GM IPO, expected to be the largest ever for the U.S. market, is likely before the U.S. Thanksgiving holiday, one of the sources said.
Future product plans for GMC from Automotive News are on the back:
Here are GMC's plans for the 2011-13 model years.
Terrain: The five-seat crossover may get a high-end Denali version in the 2012 model year. A freshening will come in the 2013 model year. The Terrain may receive a hybrid version around the 2014 model year.
Acadia: This crossover gets a freshening in the 2012 model year, along with a 3.0-liter V-6 engine instead of its current 3.6-liter version.
Yukon, Yukon XL: GM has decided to introduce a next-generation, truck-based Yukon SUV, rather than put the vehicle on its Lambda crossover platform. The next generation will appear in the 2014 model year, likely sharing some sheet metal with the Sierra pickup to cut costs.
Around that time, GM may upgrade the Yukon's two-mode hybrid -- whose planetary gears and two electric motors save fuel -- to a four-mode version, which would improve efficiency in a wider range of driving and towing situations.
Canyon: GM will idle its plant in Shreveport, La., by June 2012, discontinuing the Canyon. A decision to reintroduce a compact pickup isn't expected for at least a couple of years after that.
GM will sell a next-generation global Chevrolet Colorado -- the Canyon's current sibling -- outside the United States, and that vehicle could come here. But GM is leaning toward an even smaller design.
Sierra 1500: A compressed natural gas version probably will appear in 2012, and the pickup will be re-engineered and restyled for the 2014 model year.
Sierra 2500, 3500: GM re-engineered its heavy-duty pickups for the 2011 model year. A restyle is expected in the 2014 or 2015 model year. These pickups also will get compressed natural gas versions in about two years.
Savana: The van gets compressed natural gas capability in the 2011 model year.
This morning’s gate drive for SOS (Support our Soldiers) collected $2004.04. This is another tremendous result from just a one-shift operation! Thanks to all who donated their money and time to this great cause.
General Motors Company today announced its second quarter 2010 results, marked by revenue of $33.2 billion and net income attributable to common stockholders of $1.3 billion, resulting in earnings per share on a diluted basis of $2.55. GM's second quarter earnings before interest and tax (EBIT) was $2.0 billion. GM North America had EBIT in the second quarter 2010 of $1.6 billion, up from $1.2 billion in the first quarter. GM Europe had a loss before interest and taxes of $0.2 billion, an improvement of $0.3 billion from the first quarter. GM International Operations posted EBIT of $0.7 billion, down from $1.2 billion in the first quarter. Cash flow from operating activities was $3.9 billion and after adjusting for capital expenditures of $1.1 billion, free cash flow was $2.8 billion. GM ended the second quarter with $32.5 billion in cash and marketable securities, including funds in the Canadian Health Care Trust escrow. "I am pleased with our progress on achieving our business objectives,” said Chris Liddell, vice chairman and chief financial officer. “We have delivered strong product, maintained cost discipline, progressed strategic initiatives such as restructuring Europe and acquiring AmeriCredit, and delivered two consecutive quarters of profitability and positive cash flow."
From Automotive News: GM has secured a $5 billion credit facility, two people briefed on the bank deal said Wednesday. GM now plans to file a registration for its IPO on Friday according to these sources. The GM IPO, expected to be the largest ever for the U.S. market, is likely before the U.S. Thanksgiving holiday, one of the sources said.
Future product plans for GMC from Automotive News are on the back:
Here are GMC's plans for the 2011-13 model years.
Terrain: The five-seat crossover may get a high-end Denali version in the 2012 model year. A freshening will come in the 2013 model year. The Terrain may receive a hybrid version around the 2014 model year.
Acadia: This crossover gets a freshening in the 2012 model year, along with a 3.0-liter V-6 engine instead of its current 3.6-liter version.
Yukon, Yukon XL: GM has decided to introduce a next-generation, truck-based Yukon SUV, rather than put the vehicle on its Lambda crossover platform. The next generation will appear in the 2014 model year, likely sharing some sheet metal with the Sierra pickup to cut costs.
Around that time, GM may upgrade the Yukon's two-mode hybrid -- whose planetary gears and two electric motors save fuel -- to a four-mode version, which would improve efficiency in a wider range of driving and towing situations.
Canyon: GM will idle its plant in Shreveport, La., by June 2012, discontinuing the Canyon. A decision to reintroduce a compact pickup isn't expected for at least a couple of years after that.
GM will sell a next-generation global Chevrolet Colorado -- the Canyon's current sibling -- outside the United States, and that vehicle could come here. But GM is leaning toward an even smaller design.
Sierra 1500: A compressed natural gas version probably will appear in 2012, and the pickup will be re-engineered and restyled for the 2014 model year.
Sierra 2500, 3500: GM re-engineered its heavy-duty pickups for the 2011 model year. A restyle is expected in the 2014 or 2015 model year. These pickups also will get compressed natural gas versions in about two years.
Savana: The van gets compressed natural gas capability in the 2011 model year.
Wednesday, August 11, 2010
State of the Union August 11, 2010
August 11, 2010 online at www.uawlocal2250.com
From Chairman Mike Bullock: Last night the plant sustained damage from the storm that came through Wentzville. Fortunately no one was hurt as a result. A 40’ by 60’ section of siding was ripped off of the SE corner of stamping, along with a 20’ by 20’ section of roof in the same area. Fan shrouds were damaged on the powerhouse cooling tower and siding was blown off of the west side of the tower. The powerhouse roof was also damaged. A perimeter fence was blown over. A number of plant skylights were broken. Several vans had windows blown out and some had paint damage from rocks blown off of the roof of the plant. Production is not expected to be impacted.
There will be a gate drive tomorrow to support the SOS (Support our Soldiers) ride that will be this Saturday. Once again, the proceeds will benefit Care Packages by DRU and Operation Undergarment.
There will be a Women’s Committee meeting Thursday, Aug. 12 after first shift line time at the Union Hall.
Last week GM announced a $5 million investment in Anderson, Indiana based Bright Automotive, a startup company with plans to build a plug-in hybrid electric van. Bright is considering sites in Indiana and other states for a potential 1,000-worker factory to build up to 50,000 vans a year, company Chairman Reuben Munger said. The vehicle would be targeted for use as delivery or repair vans by companies and use both gasoline and electric engines. Delays in arranging financing have forced Bright to reduce staff and delay its planned 2012 start of mass production by perhaps two years, Munger said. GM Ventures President Jon Lauckner said the Bright van could fill a market niche for a vehicle smaller than the conventional Chevrolet Express. General Motors executives will consider the van, called the Bright Idea, down the road for possible sale through GM's dealer network. Idea would have GM's four-cylinder engine and transmission powering the front axle. An electric motor and lithium-based battery would power the rear axle. When asked how this would affect Wentzville, GM spokesperson Kim Carpenter said, “Not at all”, pointing out that it was a small investment and the company was “very much a startup.” You can go to www.brightautomotive.comfor information about the van.
Future product plans for Cadillac from Automotive News are on the back:
Here's what to expect in Cadillac's 2011-13 model years.
ATS: Cadillac probably will launch its compact car in the 2013 or 2014 model year. The line, based on the new rwd Alpha platform, will have a two-door coupe and four-door sedan at launch, and a convertible is possible nine months later.
The ATS will launch with a 3.0-liter V-6 and will have an available 3.6-liter V-6. All-wheel drive will be an option. A four-cylinder is probable.
CTS: Dealers got the coupe in July. A redesign will be for the 2014 model year at the earliest, when the CTS will move to the rwd Alpha platform from the current Sigma. The next-generation CTS will be shorter.
DTS: This sedan dies after the 2011 model year.
STS: Production ends next year.
XTS: The sedan, larger and more luxurious than the CTS, will debut in the 2012 model year on the front-wheel-drive platform shared with the Buick LaCrosse.
The XTS will launch with a 3.0-liter V-6, but GM may choose to debut its twin-turbocharged V-6 as an option.
Rear-drive flagship: This sedan, aimed at the Mercedes-Benz S class, Audi A8 and BMW 7 series, probably would have available awd. If built, the car could use some parts from the Sigma platform.The earliest the new flagship would debut would be the 2014 model year, one source says.
SRX: The crossover gets freshened for the 2013 model year, with an updated grille and the 3.6-liter, direct-injection V-6 engine currently used by the Chevrolet Camaro.
Large crossover: Cadillac may get a Lambda-based crossover the size of the Chevrolet Traverse or GMC Acadia for the 2013 model year.
Escalade: Cadillac's SUV is due for a redesign in 2013. The next generation will be a 2014 model.
From Chairman Mike Bullock: Last night the plant sustained damage from the storm that came through Wentzville. Fortunately no one was hurt as a result. A 40’ by 60’ section of siding was ripped off of the SE corner of stamping, along with a 20’ by 20’ section of roof in the same area. Fan shrouds were damaged on the powerhouse cooling tower and siding was blown off of the west side of the tower. The powerhouse roof was also damaged. A perimeter fence was blown over. A number of plant skylights were broken. Several vans had windows blown out and some had paint damage from rocks blown off of the roof of the plant. Production is not expected to be impacted.
There will be a gate drive tomorrow to support the SOS (Support our Soldiers) ride that will be this Saturday. Once again, the proceeds will benefit Care Packages by DRU and Operation Undergarment.
There will be a Women’s Committee meeting Thursday, Aug. 12 after first shift line time at the Union Hall.
Last week GM announced a $5 million investment in Anderson, Indiana based Bright Automotive, a startup company with plans to build a plug-in hybrid electric van. Bright is considering sites in Indiana and other states for a potential 1,000-worker factory to build up to 50,000 vans a year, company Chairman Reuben Munger said. The vehicle would be targeted for use as delivery or repair vans by companies and use both gasoline and electric engines. Delays in arranging financing have forced Bright to reduce staff and delay its planned 2012 start of mass production by perhaps two years, Munger said. GM Ventures President Jon Lauckner said the Bright van could fill a market niche for a vehicle smaller than the conventional Chevrolet Express. General Motors executives will consider the van, called the Bright Idea, down the road for possible sale through GM's dealer network. Idea would have GM's four-cylinder engine and transmission powering the front axle. An electric motor and lithium-based battery would power the rear axle. When asked how this would affect Wentzville, GM spokesperson Kim Carpenter said, “Not at all”, pointing out that it was a small investment and the company was “very much a startup.” You can go to www.brightautomotive.comfor information about the van.
Future product plans for Cadillac from Automotive News are on the back:
Here's what to expect in Cadillac's 2011-13 model years.
ATS: Cadillac probably will launch its compact car in the 2013 or 2014 model year. The line, based on the new rwd Alpha platform, will have a two-door coupe and four-door sedan at launch, and a convertible is possible nine months later.
The ATS will launch with a 3.0-liter V-6 and will have an available 3.6-liter V-6. All-wheel drive will be an option. A four-cylinder is probable.
CTS: Dealers got the coupe in July. A redesign will be for the 2014 model year at the earliest, when the CTS will move to the rwd Alpha platform from the current Sigma. The next-generation CTS will be shorter.
DTS: This sedan dies after the 2011 model year.
STS: Production ends next year.
XTS: The sedan, larger and more luxurious than the CTS, will debut in the 2012 model year on the front-wheel-drive platform shared with the Buick LaCrosse.
The XTS will launch with a 3.0-liter V-6, but GM may choose to debut its twin-turbocharged V-6 as an option.
Rear-drive flagship: This sedan, aimed at the Mercedes-Benz S class, Audi A8 and BMW 7 series, probably would have available awd. If built, the car could use some parts from the Sigma platform.The earliest the new flagship would debut would be the 2014 model year, one source says.
SRX: The crossover gets freshened for the 2013 model year, with an updated grille and the 3.6-liter, direct-injection V-6 engine currently used by the Chevrolet Camaro.
Large crossover: Cadillac may get a Lambda-based crossover the size of the Chevrolet Traverse or GMC Acadia for the 2013 model year.
Escalade: Cadillac's SUV is due for a redesign in 2013. The next generation will be a 2014 model.
Tuesday, August 10, 2010
State of the Union August 10, 2010
August 10, 2010 online at www.uawlocal2250.com
Reminder: The Women’s Committee Annual Golf Tournament will be Saturday, Aug. 28 at Bear Creek Golf Course in Wentzville. This is a 3-person scramble with a 1:30 shotgun start. The cost is $70 a person or $210 a team and includes food and beer served after the tournament, longest drive and closest to the pin prizes. Proceeds from the tournament will be donated to “Village of the Blue Rose”, an organization that provides job training for special needs teens and young adults. Deadline for signups is Aug. 16. Entry forms are available at the entrances.
From Automotive News: After stumbling badly in 2009, fleet sales soared to about 1.6 million units in the first seven months from fewer than 1 million a year earlier. Daily rental companies, contractors and other fleet operators that deferred vehicle purchases last year are more confident -- or are forced to replace worn-out vehicles. GM sales Vice President Don Johnson said dealers are telling him that contractors are returning to showrooms. Rebecca Lindland, head of North American auto research at IHS Automotive, said there is pent-up demand in fleet, but not necessarily any on the retail side. "Rental fleets are investing now because they bought very little last year and their vehicles are old," Lindland said.
Fleet's contribution
Fleet as percentage of U.S. sales, Jan. through July
Chrysler Group 39%
Ford Motor 35%
General Motors 31%
Hyundai brand 16%
Nissan North America 15%*
Toyota Motor Sales 9%
American Honda 2%*
*Automotive News estimate
Buick future product information from Automotive News on back:
Here are highlights of Buick’s product plan for the 2011-13 model years:
Verano: This compact sedan is the next-generation Opel Astra in Europe and the Buick Excelle GT in China. General Motors Co. will market the car here as the 2012 Buick Verano and probably will build it in Orion Township, Mich., or Lordstown, Ohio.
GM developed the car on its front-wheel-drive Delta platform, which is shared with the Chevrolet Cruze. Look for a turbocharged high-performance engine as an option.
Regal: GM has confirmed it will build the sporty Regal GS concept it unveiled at the Detroit auto show in January. It is expected for the 2012 model year.
The Regal GS will have a turbocharged four-cylinder engine, which is expected to come to market with a bit more power than the 255 hp and 295 pounds-feet of torque advertised in January at the Detroit show. An adaptive all-wheel-drive system will include an electric limited slip rear differential. The car will have all the performance upgrades offered on the Opel Insignia OPC. The Regal is essentially a rebadged Insignia.
In addition, a wagon version of the Insignia has been spotted at GM's proving grounds in Milford, Mich. Before deciding on U.S. sales of the wagon, GM probably will observe sales of the 2011 Acura TSX Sport Wagon, which launches in October. If the Regal wagon gets the green light, it could appear in the 2012 or 2013 model year.
LaCrosse: A hybrid version of the sedan is under strong consideration for the 2012 model year, and a reskin could come as early as that model year. The next generation is expected for the 2016 model year.
Lucerne: The sedan dies after the 2011 model year.
Encore: The "Baby Enclave" compact crossover, tentatively called the Encore, will arrive in the 2013 model year. The five-seater is built on the Delta compact-car platform.
Enclave: GM will freshen or reskin this three-row crossover for the 2012 model year and add a 3.0-liter V-6. The automaker will drop the current 3.6-liter V-6.
Reminder: The Women’s Committee Annual Golf Tournament will be Saturday, Aug. 28 at Bear Creek Golf Course in Wentzville. This is a 3-person scramble with a 1:30 shotgun start. The cost is $70 a person or $210 a team and includes food and beer served after the tournament, longest drive and closest to the pin prizes. Proceeds from the tournament will be donated to “Village of the Blue Rose”, an organization that provides job training for special needs teens and young adults. Deadline for signups is Aug. 16. Entry forms are available at the entrances.
From Automotive News: After stumbling badly in 2009, fleet sales soared to about 1.6 million units in the first seven months from fewer than 1 million a year earlier. Daily rental companies, contractors and other fleet operators that deferred vehicle purchases last year are more confident -- or are forced to replace worn-out vehicles. GM sales Vice President Don Johnson said dealers are telling him that contractors are returning to showrooms. Rebecca Lindland, head of North American auto research at IHS Automotive, said there is pent-up demand in fleet, but not necessarily any on the retail side. "Rental fleets are investing now because they bought very little last year and their vehicles are old," Lindland said.
Fleet's contribution
Fleet as percentage of U.S. sales, Jan. through July
Chrysler Group 39%
Ford Motor 35%
General Motors 31%
Hyundai brand 16%
Nissan North America 15%*
Toyota Motor Sales 9%
American Honda 2%*
*Automotive News estimate
Buick future product information from Automotive News on back:
Here are highlights of Buick’s product plan for the 2011-13 model years:
Verano: This compact sedan is the next-generation Opel Astra in Europe and the Buick Excelle GT in China. General Motors Co. will market the car here as the 2012 Buick Verano and probably will build it in Orion Township, Mich., or Lordstown, Ohio.
GM developed the car on its front-wheel-drive Delta platform, which is shared with the Chevrolet Cruze. Look for a turbocharged high-performance engine as an option.
Regal: GM has confirmed it will build the sporty Regal GS concept it unveiled at the Detroit auto show in January. It is expected for the 2012 model year.
The Regal GS will have a turbocharged four-cylinder engine, which is expected to come to market with a bit more power than the 255 hp and 295 pounds-feet of torque advertised in January at the Detroit show. An adaptive all-wheel-drive system will include an electric limited slip rear differential. The car will have all the performance upgrades offered on the Opel Insignia OPC. The Regal is essentially a rebadged Insignia.
In addition, a wagon version of the Insignia has been spotted at GM's proving grounds in Milford, Mich. Before deciding on U.S. sales of the wagon, GM probably will observe sales of the 2011 Acura TSX Sport Wagon, which launches in October. If the Regal wagon gets the green light, it could appear in the 2012 or 2013 model year.
LaCrosse: A hybrid version of the sedan is under strong consideration for the 2012 model year, and a reskin could come as early as that model year. The next generation is expected for the 2016 model year.
Lucerne: The sedan dies after the 2011 model year.
Encore: The "Baby Enclave" compact crossover, tentatively called the Encore, will arrive in the 2013 model year. The five-seater is built on the Delta compact-car platform.
Enclave: GM will freshen or reskin this three-row crossover for the 2012 model year and add a 3.0-liter V-6. The automaker will drop the current 3.6-liter V-6.
Monday, August 9, 2010
State of the Union August 9, 2010
August 9, 2010 online at www.uawlocal2250.com
Reminder: The 5th annual "Support our Soldiers" or SOS motorcycle ride will be this Saturday, Aug. 14. Registration begins at 9 am at the Union Hall and the last bike will be out by 11 am. Cost is $20 per bike, $5 per passenger and $5 for each extra hand. The proceeds will benefit Care Packages by DRU and Operation Undergarment. For more information contact Mike Goodin at 636-327-5796.
Toyota North American Executive VP Steve St. Angelo was asked about the UAW’s renewed desire to organize the transplants. St. Angelo said the company would “abide by all the laws” in terms of letting organizers from the United Auto Workers solicit Toyota production employees to join the union, but he does not expect to allow the UAW access to lobby Toyota's workers. "I really doubt it, because we have a no-solicitation policy at our plants (yeah, that’s it). It’s not up to us if our members unionize, it’s up to our team members,” he told reporters. The UAW has “held many rallies at our plants, but only very few people show up.” UAW organizers aren’t likely to be let into Toyota factories to discuss union membership with workers, St. Angelo said. “Our team members like it the way it is, and quite frankly I like it too,” he said.
From Bloomberg: General Motors Co. is studying several possible additions to its vehicle lineup, including a new midsize pickup and a stretched version of its European minivan, said three people familiar with the process. GM isn’t looking at a traditional North American-style minivan, said two of the people. The company is studying whether it can increase the size of its Opel Zafira van sold in Europe, the people said. That model is built on the platform of GM’s Chevrolet Cruze compact car. GM is also looking at a new midsize pickup entry. The company sells the ChevroletColorado and GMC Canyon now, which are scheduled to be phased out in 2012. GM is looking at making a new model based on a pickup the company sells in emerging markets, one of the people said. One challenge is making a pickup that is cheap enough to lure buyers. The Colorado starts at $16,765, or $580 cheaper than the full-size Silverado pickup.
You will find Chevrolet’s future model plans from Automotive News on the back:
Here are Chevrolet's 2011-13 model year highlights:
Spark: This minicar will enter the United States as a 2013 model with three- and four-cylinder engines. General Motors Co. is expected to build the first Sparks for this market in South Korea, home of the Spark's sibling, the five-door Daewoo Matiz hatchback. Spark production may move to Mexico later. The Spark already is on sale in Europe, South Africa and other markets. Expect midcycle updates in time for the U.S. model's debut.
Aveo: GM will start producing the redesigned subcompact in mid-2011 at Orion Township, Mich. The car will be longer and wider than the current Aveo and have a five-door hatchback and four-door sedan. Production is expected to reach 60,000 to 70,000 annually.
Cruze: The 2011 Cruze will reach U.S. showrooms in September, replacing the Cobalt. The four-door compact car went on sale in Europe and Asia last year.
HHR: GM will discontinue this retro-styled wagon at the end of the 2011 model year.
Volt: The plug-in hybrid launches in October or November. Sales will start in New York City, Michigan, California, Washington and Austin, Texas, and then expand to all 50 states within 12 to 18 months. GM has said it will build 10,000 Volts by the end of 2011 and 45,000 in 2012.
Malibu: The restyled, re-engineered Malibu will debut in 2012 as a 2013 model. It will have the new, direct-injection, four-cylinder engine promised to GM's plant in Tonawanda, N.Y. The sedan will lose 4 inches off its wheelbase and have a larger trunk, because it's moving from the longer version of GM's Epsilon platform to the shorter version.
Camaro: The Camaro convertible arrives early next year, likely as a 2012 model. A Camaro redesign is planned for the 2015 model year, switching the car from its current Zeta platform to the smaller Alpha platform.
Impala: The upcoming redesign, timed for the 2014 model year, will move this full-sized car to the longer version of the Epsilon platform, which the current Buick LaCrosse uses. The Impala's current platform dates back to the mid-1990s. The 2014 Impala will have shorter front and rear overhangs to save weight and fuel and will feel roomier inside. A four-cylinder engine will come standard, with an optional six-cylinder and possibly a hybrid.
Corvette: GM would like to launch the redesigned Corvette in the 2013 model year, timed with the sports car's 60th anniversary. But introducing the car so soon is a stretch, so the new version is more likely to come in the 2014 model year. A turbocharged V-6 may join GM's next-generation V-8s on the next version of the Corvette. The company is working on a twin-turbocharged V-6 that could show up here.
Compact crossover: Chevrolet is considering a five-seat compact crossover smaller than the Equinox for the 2013 model year.
Equinox: The Equinox will get a freshening in the 2013 model year. It also may receive a hybrid version around the 2014 model year.
Traverse: This crossover gets a freshening in the 2013 model year, along with a 3.0-liter V-6 engine instead of its current 3.6-liter version.
Tahoe, Suburban: GM was looking at putting the Tahoe on the Lambda crossover platform. But now GM will keep the Tahoe and Suburban SUVs on the next-generation large-truck platform. The redesigned Tahoe and Suburban will appear in the 2014 model year, and they probably will share more front-end sheet metal with the Silverado pickup to cut costs.
Avalanche: GM probably will kill the pickup by the 2013 model year.
Colorado: GM will idle its plant in Shreveport, La., by June 2012, discontinuing the Colorado. A decision to reintroduce a compact pickup could come a couple of years later. GM will sell a next-generation global Colorado outside the United States. That vehicle could come here. But GM is leaning toward an even smaller design, such as a version of Brazil's Chevrolet Montana. Whatever the decision, GM will have to decide whether to assemble the pickup in the United States or use cheaper labor elsewhere and pay the 25 percent "chicken tax" on imported pickups.
Silverado 1500: A natural-gas-powered version probably will appear in 2012. The pickup will be re-engineered and restyled for the 2014 model year.
Silverado 2500, 3500: GM re-engineered its heavy-duty pickups for the 2011 model year. A restyle is expected in the 2014 or 2015 model year. These pickups also will get compressed-natural-gas versions in about two years.
Express: The van gets natural-gas capability in the 2011 model year.
Reminder: The 5th annual "Support our Soldiers" or SOS motorcycle ride will be this Saturday, Aug. 14. Registration begins at 9 am at the Union Hall and the last bike will be out by 11 am. Cost is $20 per bike, $5 per passenger and $5 for each extra hand. The proceeds will benefit Care Packages by DRU and Operation Undergarment. For more information contact Mike Goodin at 636-327-5796.
Toyota North American Executive VP Steve St. Angelo was asked about the UAW’s renewed desire to organize the transplants. St. Angelo said the company would “abide by all the laws” in terms of letting organizers from the United Auto Workers solicit Toyota production employees to join the union, but he does not expect to allow the UAW access to lobby Toyota's workers. "I really doubt it, because we have a no-solicitation policy at our plants (yeah, that’s it). It’s not up to us if our members unionize, it’s up to our team members,” he told reporters. The UAW has “held many rallies at our plants, but only very few people show up.” UAW organizers aren’t likely to be let into Toyota factories to discuss union membership with workers, St. Angelo said. “Our team members like it the way it is, and quite frankly I like it too,” he said.
From Bloomberg: General Motors Co. is studying several possible additions to its vehicle lineup, including a new midsize pickup and a stretched version of its European minivan, said three people familiar with the process. GM isn’t looking at a traditional North American-style minivan, said two of the people. The company is studying whether it can increase the size of its Opel Zafira van sold in Europe, the people said. That model is built on the platform of GM’s Chevrolet Cruze compact car. GM is also looking at a new midsize pickup entry. The company sells the ChevroletColorado and GMC Canyon now, which are scheduled to be phased out in 2012. GM is looking at making a new model based on a pickup the company sells in emerging markets, one of the people said. One challenge is making a pickup that is cheap enough to lure buyers. The Colorado starts at $16,765, or $580 cheaper than the full-size Silverado pickup.
You will find Chevrolet’s future model plans from Automotive News on the back:
Here are Chevrolet's 2011-13 model year highlights:
Spark: This minicar will enter the United States as a 2013 model with three- and four-cylinder engines. General Motors Co. is expected to build the first Sparks for this market in South Korea, home of the Spark's sibling, the five-door Daewoo Matiz hatchback. Spark production may move to Mexico later. The Spark already is on sale in Europe, South Africa and other markets. Expect midcycle updates in time for the U.S. model's debut.
Aveo: GM will start producing the redesigned subcompact in mid-2011 at Orion Township, Mich. The car will be longer and wider than the current Aveo and have a five-door hatchback and four-door sedan. Production is expected to reach 60,000 to 70,000 annually.
Cruze: The 2011 Cruze will reach U.S. showrooms in September, replacing the Cobalt. The four-door compact car went on sale in Europe and Asia last year.
HHR: GM will discontinue this retro-styled wagon at the end of the 2011 model year.
Volt: The plug-in hybrid launches in October or November. Sales will start in New York City, Michigan, California, Washington and Austin, Texas, and then expand to all 50 states within 12 to 18 months. GM has said it will build 10,000 Volts by the end of 2011 and 45,000 in 2012.
Malibu: The restyled, re-engineered Malibu will debut in 2012 as a 2013 model. It will have the new, direct-injection, four-cylinder engine promised to GM's plant in Tonawanda, N.Y. The sedan will lose 4 inches off its wheelbase and have a larger trunk, because it's moving from the longer version of GM's Epsilon platform to the shorter version.
Camaro: The Camaro convertible arrives early next year, likely as a 2012 model. A Camaro redesign is planned for the 2015 model year, switching the car from its current Zeta platform to the smaller Alpha platform.
Impala: The upcoming redesign, timed for the 2014 model year, will move this full-sized car to the longer version of the Epsilon platform, which the current Buick LaCrosse uses. The Impala's current platform dates back to the mid-1990s. The 2014 Impala will have shorter front and rear overhangs to save weight and fuel and will feel roomier inside. A four-cylinder engine will come standard, with an optional six-cylinder and possibly a hybrid.
Corvette: GM would like to launch the redesigned Corvette in the 2013 model year, timed with the sports car's 60th anniversary. But introducing the car so soon is a stretch, so the new version is more likely to come in the 2014 model year. A turbocharged V-6 may join GM's next-generation V-8s on the next version of the Corvette. The company is working on a twin-turbocharged V-6 that could show up here.
Compact crossover: Chevrolet is considering a five-seat compact crossover smaller than the Equinox for the 2013 model year.
Equinox: The Equinox will get a freshening in the 2013 model year. It also may receive a hybrid version around the 2014 model year.
Traverse: This crossover gets a freshening in the 2013 model year, along with a 3.0-liter V-6 engine instead of its current 3.6-liter version.
Tahoe, Suburban: GM was looking at putting the Tahoe on the Lambda crossover platform. But now GM will keep the Tahoe and Suburban SUVs on the next-generation large-truck platform. The redesigned Tahoe and Suburban will appear in the 2014 model year, and they probably will share more front-end sheet metal with the Silverado pickup to cut costs.
Avalanche: GM probably will kill the pickup by the 2013 model year.
Colorado: GM will idle its plant in Shreveport, La., by June 2012, discontinuing the Colorado. A decision to reintroduce a compact pickup could come a couple of years later. GM will sell a next-generation global Colorado outside the United States. That vehicle could come here. But GM is leaning toward an even smaller design, such as a version of Brazil's Chevrolet Montana. Whatever the decision, GM will have to decide whether to assemble the pickup in the United States or use cheaper labor elsewhere and pay the 25 percent "chicken tax" on imported pickups.
Silverado 1500: A natural-gas-powered version probably will appear in 2012. The pickup will be re-engineered and restyled for the 2014 model year.
Silverado 2500, 3500: GM re-engineered its heavy-duty pickups for the 2011 model year. A restyle is expected in the 2014 or 2015 model year. These pickups also will get compressed-natural-gas versions in about two years.
Express: The van gets natural-gas capability in the 2011 model year.
Friday, August 6, 2010
State of the Union August 6, 2010
August 6, 2010 online at www.uawlocal2250.com
Yesterday GM Europe announced that, starting immediately, all buyers of Opel and Vauxhall passenger models will receive a lifetime warranty on their new cars. The warranty is valid for the first owner who purchases any new Opel or Vauxhall passenger car starting now and is open to private as well as businesses needing a small fleet. A second owner can assume the warranty up to six years after the first registration and maximum 100,000 km (62,137 miles) as long as the first owner has paid the annual activation fee and kept up the maintenance of the car as required. The lifetime warranty covers all labor costs. Parts are completely covered in the first two years under the manufacturer’s warranty or up to 50,000 km. After that, the owner is paid on a graduated scale for the fair value of parts according to the number of kilometers driven. The warranty is limited to the current value of the car at the time of a claim.
From the Detroit News: General Motors Co. will end the year with a dealer network of 4,500 -- about 400 more than the company envisioned in bankruptcy, the automaker said Thursday. GM said it has concluded the dealer arbitration process and has shed 1,564 dealers during the past year. The Detroit automaker initially wanted to cut 2,064 Chevrolet, Buick, GMC and Cadillac dealers from its network as part of its restructuring.
The final part of UAW President Bob King’s speech:
While the UAW strongly supports the Employee Free Choice Act, we will not passively sit and wait for its passage. In our strongest historical traditions we will take direct action now in every way we can to protect all workers in exercising their First Amendment rights. The UAW does believe in the principle of a fair secret-ballot election in which workers can decide freely whether or not to join the union.
Therefore, we are crafting a set of guidelines called the UAW Principles for Fair Union Elections. These principles are being adapted from guidelines developed by the labor/management Institute for Employee Choice. They include requirements such as equal access to the employees for both union and management and prohibition of making derogatory, insulting or untruthful statements about the other party. The UAW principles ban any threats or pressure by either the union or management. We will soon be unveiling these principles, and we will present them to the executives within the industry who are not currently unionized. We will ask them to sign on to these principles. If a company agrees to adopt the UAW Principles, and then abides by these principles, we will respect the decision of their workers whether they vote to join the union or not. However, if companies do not agree to these principles, and instead engage in threatening behavior towards workers who want to organize a union, or fire workers who try to organize, or close down facilities to thwart union activity, then the UAW will not tolerate the violation of workers’ First Amendment rights. I want to clarify this point. There has been some misunderstanding that the UAW will “pound” on companies that do not recognize the UAW. This is not correct. Our position is that we will demand that companies respect the rights of their workers to decide freely whether or not to join the UAW. If companies violate workers' rights, if companies take vicious anti-union actions, we will expose those companies in any and every way we can until they agree to respect workers' rights and to rectify their anti-union actions. Let me be clear, our goal is not to force auto companies to unionize. This is not about our institutional self-interest; it is not about getting dues money. It is about democracy, and goes to our fundamental mission and the reason for our existence: to protect the right of workers to organize unions and collectively bargain for fairness, dignity, and a democratic voice. If companies choose not to respect the rights of American workers – whether those companies are American or foreign-owned – then the UAW will use every resource at our disposal to convince those companies to abide by our democracy. It is particularly disturbing and unacceptable for a corporation to allow unionization in other countries, but treat American workers as second-class citizens who are not entitled to unionize. We are advocating for a high road of common interests, shared strategies and shared success, but if we must fight, then we will fight with all our strength. In the tradition of Dr. Martin Luther King Jr., Archbishop Oscar Romero, and Archbishop Desmond Tutu, our goal is NOT revenge or retaliation. Our goal is to achieve democratic values and principles.
So, any company that does not agree to the UAW Principles is essentially declaring war on freedom of speech and assembly, and it is our duty and mission to enforce that right. Let me be clear, the UAW does not want to go to war with any company — we are advocating for the opposite. Conflict and prolonged fights are not good for the UAW and will not be good for the company. It is not a good business model for any company to be in a battle with the UAW. We want to be responsible partners who add value and who help companies succeed and grow. We offer respect, and we expect respect in return. The choice will be up to the non-union companies, and I suggest that the best business practice, the best way to deliver shareholder value, is to partner with the UAW on quality, productivity, attendance, employee morale, and the overall goal of providing the best product at the best price to the customer. In today's extremely intense competitive global marketplace, I guarantee that employers with UAW partnerships are going to outperform non-union employers in every key measurable! The UAW has embraced fundamental, radical change. We call upon the business community to also embrace change. We challenge you to respect the right of workers to organize unions globally. We challenge you to help build a better world. We challenge you to adopt a global trade agenda that does not exploit workers but rather lifts them out of poverty. We challenge you to join us in a global vision of a common humanity with an end to hunger, disease, and strife, that finds new, green sources of energy to meet the transportation needs of future generations, that reduces the intolerable cruelty of poverty.
When Cesar Chavez was organizing farmworkers in the 1960s, Walter Reuther marched by his side. I conclude with words of Cesar Chavez that embody the values of the UAW of the 21st century:
"We cannot seek achievement for ourselves and forget about progress and prosperity for our community. ... Our ambitions must be broad enough to include the aspirations and needs of others, for their sakes and for our own."
I look forward to working with all of you to achieve progress and prosperity for all.
Yesterday GM Europe announced that, starting immediately, all buyers of Opel and Vauxhall passenger models will receive a lifetime warranty on their new cars. The warranty is valid for the first owner who purchases any new Opel or Vauxhall passenger car starting now and is open to private as well as businesses needing a small fleet. A second owner can assume the warranty up to six years after the first registration and maximum 100,000 km (62,137 miles) as long as the first owner has paid the annual activation fee and kept up the maintenance of the car as required. The lifetime warranty covers all labor costs. Parts are completely covered in the first two years under the manufacturer’s warranty or up to 50,000 km. After that, the owner is paid on a graduated scale for the fair value of parts according to the number of kilometers driven. The warranty is limited to the current value of the car at the time of a claim.
From the Detroit News: General Motors Co. will end the year with a dealer network of 4,500 -- about 400 more than the company envisioned in bankruptcy, the automaker said Thursday. GM said it has concluded the dealer arbitration process and has shed 1,564 dealers during the past year. The Detroit automaker initially wanted to cut 2,064 Chevrolet, Buick, GMC and Cadillac dealers from its network as part of its restructuring.
The final part of UAW President Bob King’s speech:
While the UAW strongly supports the Employee Free Choice Act, we will not passively sit and wait for its passage. In our strongest historical traditions we will take direct action now in every way we can to protect all workers in exercising their First Amendment rights. The UAW does believe in the principle of a fair secret-ballot election in which workers can decide freely whether or not to join the union.
Therefore, we are crafting a set of guidelines called the UAW Principles for Fair Union Elections. These principles are being adapted from guidelines developed by the labor/management Institute for Employee Choice. They include requirements such as equal access to the employees for both union and management and prohibition of making derogatory, insulting or untruthful statements about the other party. The UAW principles ban any threats or pressure by either the union or management. We will soon be unveiling these principles, and we will present them to the executives within the industry who are not currently unionized. We will ask them to sign on to these principles. If a company agrees to adopt the UAW Principles, and then abides by these principles, we will respect the decision of their workers whether they vote to join the union or not. However, if companies do not agree to these principles, and instead engage in threatening behavior towards workers who want to organize a union, or fire workers who try to organize, or close down facilities to thwart union activity, then the UAW will not tolerate the violation of workers’ First Amendment rights. I want to clarify this point. There has been some misunderstanding that the UAW will “pound” on companies that do not recognize the UAW. This is not correct. Our position is that we will demand that companies respect the rights of their workers to decide freely whether or not to join the UAW. If companies violate workers' rights, if companies take vicious anti-union actions, we will expose those companies in any and every way we can until they agree to respect workers' rights and to rectify their anti-union actions. Let me be clear, our goal is not to force auto companies to unionize. This is not about our institutional self-interest; it is not about getting dues money. It is about democracy, and goes to our fundamental mission and the reason for our existence: to protect the right of workers to organize unions and collectively bargain for fairness, dignity, and a democratic voice. If companies choose not to respect the rights of American workers – whether those companies are American or foreign-owned – then the UAW will use every resource at our disposal to convince those companies to abide by our democracy. It is particularly disturbing and unacceptable for a corporation to allow unionization in other countries, but treat American workers as second-class citizens who are not entitled to unionize. We are advocating for a high road of common interests, shared strategies and shared success, but if we must fight, then we will fight with all our strength. In the tradition of Dr. Martin Luther King Jr., Archbishop Oscar Romero, and Archbishop Desmond Tutu, our goal is NOT revenge or retaliation. Our goal is to achieve democratic values and principles.
So, any company that does not agree to the UAW Principles is essentially declaring war on freedom of speech and assembly, and it is our duty and mission to enforce that right. Let me be clear, the UAW does not want to go to war with any company — we are advocating for the opposite. Conflict and prolonged fights are not good for the UAW and will not be good for the company. It is not a good business model for any company to be in a battle with the UAW. We want to be responsible partners who add value and who help companies succeed and grow. We offer respect, and we expect respect in return. The choice will be up to the non-union companies, and I suggest that the best business practice, the best way to deliver shareholder value, is to partner with the UAW on quality, productivity, attendance, employee morale, and the overall goal of providing the best product at the best price to the customer. In today's extremely intense competitive global marketplace, I guarantee that employers with UAW partnerships are going to outperform non-union employers in every key measurable! The UAW has embraced fundamental, radical change. We call upon the business community to also embrace change. We challenge you to respect the right of workers to organize unions globally. We challenge you to help build a better world. We challenge you to adopt a global trade agenda that does not exploit workers but rather lifts them out of poverty. We challenge you to join us in a global vision of a common humanity with an end to hunger, disease, and strife, that finds new, green sources of energy to meet the transportation needs of future generations, that reduces the intolerable cruelty of poverty.
When Cesar Chavez was organizing farmworkers in the 1960s, Walter Reuther marched by his side. I conclude with words of Cesar Chavez that embody the values of the UAW of the 21st century:
"We cannot seek achievement for ourselves and forget about progress and prosperity for our community. ... Our ambitions must be broad enough to include the aspirations and needs of others, for their sakes and for our own."
I look forward to working with all of you to achieve progress and prosperity for all.
Thursday, August 5, 2010
State of the Union August 5, 2010
August 5, 2010 online at www.uawlocal2250.com
Here is the monthly sales report from Marketing Manager Andrew Reyntjes:
We exceeded our targets thanks to a very strong Fleet month for Express. Our Express Fleet performance made up for the 612 unit miss in our Retail objectives. This really isn't that surprising as the order banks have been filled with sold Fleet orders for a few months now and pretty-much only Retail Sold orders have made it to dealers. Dealers have been having trouble getting stock units for their dealership either through lack of allocation through the turn and earn process or availability of timely production due to the back up of profitable commercial Fleet orders. Shortly we are going to see our new diesel engine reach customers after the majority are transformed into Ambulances and Shuttle Buses. We are hopeful that this environmentally friendly segment exclusive will help us conquest additional sales particularly with first responders and various local and municipal governments. Our plans for the rest of the year will look to grow sales to small businesses (Retail Sales) as we expect some seasonal decline in Fleet orders. We have a number of initiatives planned to target specific vocational groups as well as allow many dealers the opportunity to obtain an allocation of a van for their dealerships stock. We are also fortunate to be involved with a variety of Chevrolet events and initiatives that will help Express benefit from the divisional halo. Our recent participation in the Chevrolet display at the Brickyard 400 was very successful. Gradually we are closing the share gap to Ford this year as the impact of the large U-Haul win for Ford at the beginning of the year dilutes over time. We have made some significant Fleet deals with large commercial customers and continue to do so in a profitable manner.
Part 3 of UAW President Bob King’s speech:
The 21st-century UAW also has adopted a more constructive and positive approach to the issue of global trade. Many people forget that Walter Reuther was an internationalist who favored trade, but who also stressed the need for trade to take place on an equitable basis, so that corporations could not use low wages, poor working conditions and repression of unions to their competitive advantage.
Our once-vibrant cities have felt the pain and dislocation of globalization, and the needs of our communities are legitimate and must be addressed. We can only address these needs effectively if we have strategies that fit the new global world we live in. Looking back and wishing for days gone by is a road to nowhere. We must engage constructively and creatively with the realities of globalization. Our commitment to our core values has not changed. Our strategies to achieve these core values must change to be effective in the new world we live in. Globalization has improved the living standards of hundreds of millions of people in developing countries. As evidenced by the recent labor actions in China, Mexico, and Bangladesh, workers around the world want the same thing — a decent wage, good working conditions, and the right to organize free unions. The interests of American workers are intricately interwoven with the aspirations of the world’s poor. Just as the 20th-century UAW helped build the American middle class, the 21st-century UAW must contribute to the goal of creating a global middle class. This is the essence of our heritage of fighting for social justice. It is also our core belief that unions are an essential feature of every democratic society. Secretary of State Hillary Clinton recently delivered an important policy address on the subject of civil society. She pointed out that democracy is a three-legged stool, the three legs of which are elections, free markets, and civil society. Civil society includes such institutions as the free press and free labor unions. Elections alone, and capitalism alone, do not ensure democracy, for corporate actions left unchecked by a free press or by free unions can result in corporate domination of the political process and massive, destabilizing divisions between rich and poor. No democracy on Earth can thrive and prosper without democratic unions. The notion of huge multinational corporations with carte blanche — no union to hold them accountable, no union to enforce safety and environmental standards, no union to speak for workers on the job or in the public arena — raises the specter of an Earth laid waste for the benefit and profit of a privileged few who can dominate not only the marketplace but also the political process. Both the free press and free unions depend upon the right of free speech and freedom of association, which in this country are enshrined in the First Amendment to the Constitution. The right to organize unions is the First Amendment for workers. In the United States, this right does not exist for private sector workers. Many corporations in this country beginning in the 1970s adopted a scorched earth policy to destroy unions. Their clearly stated aim was to operate "union-free", to rid this nation of this critical leg of democracy. They began hiring anti-union consultants who with very little effort found ways to render the National Labor Relations Board election process a complete farce and sham. Labor Board elections bear no resemblance to real democratic elections. Management fires or threatens to fire workers who get involved in union organizing campaigns. Workers are required to attend mandatory meetings where they are told that their company is likely to close if they choose to unionize. Supervisors apply pressure to individuals, making sure that people know their jobs and futures are at stake. Derogatory, divisive and inflammatory comments about unions are constant. It doesn’t matter whether these threats are legal or not, since there are no meaningful penalties in the law. The entire goal is to create insecurity and a climate of fear.
Democracy cannot coexist with fear.
(fourth and final part tomorrow)
Here is the monthly sales report from Marketing Manager Andrew Reyntjes:
We exceeded our targets thanks to a very strong Fleet month for Express. Our Express Fleet performance made up for the 612 unit miss in our Retail objectives. This really isn't that surprising as the order banks have been filled with sold Fleet orders for a few months now and pretty-much only Retail Sold orders have made it to dealers. Dealers have been having trouble getting stock units for their dealership either through lack of allocation through the turn and earn process or availability of timely production due to the back up of profitable commercial Fleet orders. Shortly we are going to see our new diesel engine reach customers after the majority are transformed into Ambulances and Shuttle Buses. We are hopeful that this environmentally friendly segment exclusive will help us conquest additional sales particularly with first responders and various local and municipal governments. Our plans for the rest of the year will look to grow sales to small businesses (Retail Sales) as we expect some seasonal decline in Fleet orders. We have a number of initiatives planned to target specific vocational groups as well as allow many dealers the opportunity to obtain an allocation of a van for their dealerships stock. We are also fortunate to be involved with a variety of Chevrolet events and initiatives that will help Express benefit from the divisional halo. Our recent participation in the Chevrolet display at the Brickyard 400 was very successful. Gradually we are closing the share gap to Ford this year as the impact of the large U-Haul win for Ford at the beginning of the year dilutes over time. We have made some significant Fleet deals with large commercial customers and continue to do so in a profitable manner.
Part 3 of UAW President Bob King’s speech:
The 21st-century UAW also has adopted a more constructive and positive approach to the issue of global trade. Many people forget that Walter Reuther was an internationalist who favored trade, but who also stressed the need for trade to take place on an equitable basis, so that corporations could not use low wages, poor working conditions and repression of unions to their competitive advantage.
Our once-vibrant cities have felt the pain and dislocation of globalization, and the needs of our communities are legitimate and must be addressed. We can only address these needs effectively if we have strategies that fit the new global world we live in. Looking back and wishing for days gone by is a road to nowhere. We must engage constructively and creatively with the realities of globalization. Our commitment to our core values has not changed. Our strategies to achieve these core values must change to be effective in the new world we live in. Globalization has improved the living standards of hundreds of millions of people in developing countries. As evidenced by the recent labor actions in China, Mexico, and Bangladesh, workers around the world want the same thing — a decent wage, good working conditions, and the right to organize free unions. The interests of American workers are intricately interwoven with the aspirations of the world’s poor. Just as the 20th-century UAW helped build the American middle class, the 21st-century UAW must contribute to the goal of creating a global middle class. This is the essence of our heritage of fighting for social justice. It is also our core belief that unions are an essential feature of every democratic society. Secretary of State Hillary Clinton recently delivered an important policy address on the subject of civil society. She pointed out that democracy is a three-legged stool, the three legs of which are elections, free markets, and civil society. Civil society includes such institutions as the free press and free labor unions. Elections alone, and capitalism alone, do not ensure democracy, for corporate actions left unchecked by a free press or by free unions can result in corporate domination of the political process and massive, destabilizing divisions between rich and poor. No democracy on Earth can thrive and prosper without democratic unions. The notion of huge multinational corporations with carte blanche — no union to hold them accountable, no union to enforce safety and environmental standards, no union to speak for workers on the job or in the public arena — raises the specter of an Earth laid waste for the benefit and profit of a privileged few who can dominate not only the marketplace but also the political process. Both the free press and free unions depend upon the right of free speech and freedom of association, which in this country are enshrined in the First Amendment to the Constitution. The right to organize unions is the First Amendment for workers. In the United States, this right does not exist for private sector workers. Many corporations in this country beginning in the 1970s adopted a scorched earth policy to destroy unions. Their clearly stated aim was to operate "union-free", to rid this nation of this critical leg of democracy. They began hiring anti-union consultants who with very little effort found ways to render the National Labor Relations Board election process a complete farce and sham. Labor Board elections bear no resemblance to real democratic elections. Management fires or threatens to fire workers who get involved in union organizing campaigns. Workers are required to attend mandatory meetings where they are told that their company is likely to close if they choose to unionize. Supervisors apply pressure to individuals, making sure that people know their jobs and futures are at stake. Derogatory, divisive and inflammatory comments about unions are constant. It doesn’t matter whether these threats are legal or not, since there are no meaningful penalties in the law. The entire goal is to create insecurity and a climate of fear.
Democracy cannot coexist with fear.
(fourth and final part tomorrow)
Wednesday, August 4, 2010
State of the Union August 4, 2010
August 4, 2010 online at www.uawlocal2250.com
From Chairman Mike Bullock:
Management requested of the union to approve three more production Fridays over and above the 12 that are already scheduled between September 7 and December 23, 2010. The union has agreed to this proposal. The three additional Fridays, 9/24, 11/5, and 12/17 will be tentatively scheduled as 8 hours.
The scheduled Fridays will be September 10,17,24, October 1,8,22,29, November 5,12,19, December 3,10,17.
Management has agreed to add one additional employee per group leader’s area in trim, chassis, body, paint, final, quality, and material. These 24 additional employees will allow more or our membership excused time off during the “off peak” period.
This decision does not come lightly. I want to thank you for your input and your patience in resolving this important decision. Keeping more of our members working has been the primary goal of this committee, now all we need is additional orders to secure our 2nd shift.
Here are van sales numbers and industry results for July:
2010 2009 Change Share
Ford Econoline 8649 7792 +11% 52.1%
GM 7272 5471 +33% 43.8%
Ford Transit 2633 417 +531%
Mercedes Sprinter 684 --- 4.1%
(click for larger image)
Part 2 of UAW President Bob King’s speech:
At Ford, GM, and Chrysler, we have already demonstrated this new vision and achieved important, dramatic improvements in quality. We now produce the highest quality vehicles in the world. In productivity we have made just as important and dramatic improvements achieving billions of dollars of annual cost savings and global competitiveness. We achieved global best in quality and productivity by working in creative partnership with management using innovative problem solving discipline.
When it became necessary for the companies to consolidate, we took a strong proactive role in making sure that quality did not suffer from the workforce reductions and churning. At Ford, for example, the UAW raised strong concerns about quality and persuaded management to work together aggressively on quality training and discipline to process and as a result quality not only did not suffer, it actually improved even when 30,000 members left Ford and 30,000 members had to learn new jobs! We also launched a joint UAW Ford Lean Suppler Optimization Team, through which we were able to find millions of dollars of annual savings in numerous supplier facilities. We also began to work as a team on long-term product development, contributing to finding ways to keep costs down and find workforce solutions to efficiently produce innovative products. As the auto industry moves towards green technology and electrification, we are committed to contributing our creativity, our initiative and our dedication to the new world of cars of the future.
And we are not just global leaders in quality and productivity; we are working together and setting new standards in attendance and knowledge driven workforces. Highly trained certified black belts and Quality Operating System Operators — hourly UAW members — drive quality in our products.
I truly believe that employers would be wise to re-examine their instinctive resistance to the notion of unionization, and consider some of the advantages of a positive, productive relationship with a union. Unions can and should play a positive role — and the results show the UAW is doing exactly that! Union workers feel secure enough to speak up when they have an idea of how to improve a process. Unions improve morale and reduce absenteeism. They support, rather than obstruct, accountability from both management and the workforce. The UAW of the 21st century is a force for innovation; we are committed to the success of the employers who are our partners. Making the best product or providing the best service at the best price is a primary mission of the union in the interests of our members.
The UAW and our members have a moral obligation to our customers to build the best vehicles at the best price. Our first loyalty is ultimately to our customers. If we have to we will fight for the highest quality and highest customer safety for the customer as strongly as we fight for our own safety and well being!
This commitment to fundamental change is not just a tenet of the new administration, but is permeating the entire culture of the union. I can tell you that there is no group of people more committed to the success of the auto industry than the union and our members. Our members know that the success of their employers is in their own essential long-term interest. They won’t be jumping ship to grab onto a golden parachute. They are in this for the long haul. They are ready, willing and able to do what it takes to make their companies successful.
So the keywords of the 21st-century UAW are flexibility, innovation, quality, teamwork, productivity, continuous cost-savings, and respect. The rigid demarcation between management and labor that was so entrenched in the old model is discarded. Layers of management can be eliminated because the workers are dedicated to managing their own processes.
From Chairman Mike Bullock:
Management requested of the union to approve three more production Fridays over and above the 12 that are already scheduled between September 7 and December 23, 2010. The union has agreed to this proposal. The three additional Fridays, 9/24, 11/5, and 12/17 will be tentatively scheduled as 8 hours.
The scheduled Fridays will be September 10,17,24, October 1,8,22,29, November 5,12,19, December 3,10,17.
Management has agreed to add one additional employee per group leader’s area in trim, chassis, body, paint, final, quality, and material. These 24 additional employees will allow more or our membership excused time off during the “off peak” period.
This decision does not come lightly. I want to thank you for your input and your patience in resolving this important decision. Keeping more of our members working has been the primary goal of this committee, now all we need is additional orders to secure our 2nd shift.
Here are van sales numbers and industry results for July:
2010 2009 Change Share
Ford Econoline 8649 7792 +11% 52.1%
GM 7272 5471 +33% 43.8%
Ford Transit 2633 417 +531%
Mercedes Sprinter 684 --- 4.1%
(click for larger image)
Part 2 of UAW President Bob King’s speech:
At Ford, GM, and Chrysler, we have already demonstrated this new vision and achieved important, dramatic improvements in quality. We now produce the highest quality vehicles in the world. In productivity we have made just as important and dramatic improvements achieving billions of dollars of annual cost savings and global competitiveness. We achieved global best in quality and productivity by working in creative partnership with management using innovative problem solving discipline.
When it became necessary for the companies to consolidate, we took a strong proactive role in making sure that quality did not suffer from the workforce reductions and churning. At Ford, for example, the UAW raised strong concerns about quality and persuaded management to work together aggressively on quality training and discipline to process and as a result quality not only did not suffer, it actually improved even when 30,000 members left Ford and 30,000 members had to learn new jobs! We also launched a joint UAW Ford Lean Suppler Optimization Team, through which we were able to find millions of dollars of annual savings in numerous supplier facilities. We also began to work as a team on long-term product development, contributing to finding ways to keep costs down and find workforce solutions to efficiently produce innovative products. As the auto industry moves towards green technology and electrification, we are committed to contributing our creativity, our initiative and our dedication to the new world of cars of the future.
And we are not just global leaders in quality and productivity; we are working together and setting new standards in attendance and knowledge driven workforces. Highly trained certified black belts and Quality Operating System Operators — hourly UAW members — drive quality in our products.
I truly believe that employers would be wise to re-examine their instinctive resistance to the notion of unionization, and consider some of the advantages of a positive, productive relationship with a union. Unions can and should play a positive role — and the results show the UAW is doing exactly that! Union workers feel secure enough to speak up when they have an idea of how to improve a process. Unions improve morale and reduce absenteeism. They support, rather than obstruct, accountability from both management and the workforce. The UAW of the 21st century is a force for innovation; we are committed to the success of the employers who are our partners. Making the best product or providing the best service at the best price is a primary mission of the union in the interests of our members.
The UAW and our members have a moral obligation to our customers to build the best vehicles at the best price. Our first loyalty is ultimately to our customers. If we have to we will fight for the highest quality and highest customer safety for the customer as strongly as we fight for our own safety and well being!
This commitment to fundamental change is not just a tenet of the new administration, but is permeating the entire culture of the union. I can tell you that there is no group of people more committed to the success of the auto industry than the union and our members. Our members know that the success of their employers is in their own essential long-term interest. They won’t be jumping ship to grab onto a golden parachute. They are in this for the long haul. They are ready, willing and able to do what it takes to make their companies successful.
So the keywords of the 21st-century UAW are flexibility, innovation, quality, teamwork, productivity, continuous cost-savings, and respect. The rigid demarcation between management and labor that was so entrenched in the old model is discarded. Layers of management can be eliminated because the workers are dedicated to managing their own processes.
Tuesday, August 3, 2010
State of the Union August 3, 2010
August 3, 2010 online at www.uawlocal2250.com
Reminder: Today is primary election day with many offices up for grabs. Please make an effort to vote.
UAW President Bob King gave what is being called by some a “watershed” speech at the annual Center for Automotive Research Conference. We will run the speech in its entirety here the next three days:
In the past year, we have emerged from the most dramatic and historic crisis that has ever faced the industry and our union. We are deeply grateful to the Obama administration and to the American people for saving the American auto industry. Enabling our companies to survive and turn around has saved hundreds of thousands of good jobs that would have been gone forever. Everyone made enormous sacrifices to emerge from this crisis. UAW members took wage cuts of $7,000 to $30,000 a year. Benefits were also reduced significantly. Restructuring resulted in the loss of nearly 200,000 jobs.
The crisis of 2008-2009 dramatized the necessity of fundamental change in the UAW. Although triggered by the financial meltdown, the crisis in the auto industry also had its roots in behaviors and cultures – both within the companies and within the union – that were outmoded and unsuited for the 21st century. We had already begun to change and to revise our practices, but the crisis proved that we had not moved quickly or dramatically enough.
The UAW of the 21st century must be fundamentally and radically different from the UAW of the 20th century.
This is a new world, and we must reinvent our union with bold new strategies.
Our union began 75 years ago as a movement for social justice for all working people. In the mid-20th century, the UAW played a critical role in building the middle class in this nation. It would be a betrayal of the bold and pioneering heritage of our union if we did not engage in bold and dramatic change to address the challenges of rebuilding a global middle class for the 21st century.
The 20th-century UAW grew in an era of national rather than global economics, where employers did not face the intense pressure of global competition. The 21st-century UAW recognizes that flexibility, innovation, lean manufacturing and continuous cost improvement are paramount in the global marketplace.
The 20th-century UAW was dealing with a market dominated by the Big 3. The 21st-century UAW is dealing with at least the Big 7 and probably more.
The 20th-century UAW joined with the companies in a mindset that it was the company’s job to worry about profits, and the union’s job to worry about getting the workers their fair share. The 21st-century UAW embraces as our own the mission of producing the highest quality, best value products for our customers.
The 20th-century UAW was not primarily focused on the needs of the consumers, and we failed to champion forcefully or effectively enough the goals of preserving our environment for future generations through green manufacturing. The 21st-century UAW makes as a priority the interests of consumer safety, energy efficiency, and environmental protection.
The 20th-century UAW fell into a pattern with our employers where we saw each other as adversaries rather than partners. Mistrust became embedded in our relations, and as a result we signed onto ever more lengthy and complicated contracts with work rules and narrow job classifications that hindered flexibility, hindered the full use of the talents of our members and promoted a litigious and time-consuming grievance culture. The 21st-century UAW has welcomed the openness, collaboration, and creative problem solving partnerships that we have forged with Chrysler, GM, and Ford. Out of the ashes of the cataclysm of 2008 and 2009, a new, more visionary and stronger 21st-century UAW is being born. The 21st-century UAW no longer views these managements as our adversaries or enemies, but as partners in innovation and quality. Our new relationships with these employers are built upon a foundation of respect, shared goals, and a common mission.
The 20th-century UAW tried to find ways to achieve job security, such as job banks, that in the end did not achieve the result we were seeking. The 21st-century UAW knows that the only true path to job security is by producing the best quality product, the safest product and the longest lasting product, at the best price.
The 20th-century UAW reacted with hostility and resistance to the historic changes brought about by the globalization of the economy. The 21st-century UAW is adopting a constructive and positive approach to global trade and global development, and we are committed to being citizens of the world and achieving trade that spreads prosperity and lessens poverty.
Reminder: Today is primary election day with many offices up for grabs. Please make an effort to vote.
UAW President Bob King gave what is being called by some a “watershed” speech at the annual Center for Automotive Research Conference. We will run the speech in its entirety here the next three days:
In the past year, we have emerged from the most dramatic and historic crisis that has ever faced the industry and our union. We are deeply grateful to the Obama administration and to the American people for saving the American auto industry. Enabling our companies to survive and turn around has saved hundreds of thousands of good jobs that would have been gone forever. Everyone made enormous sacrifices to emerge from this crisis. UAW members took wage cuts of $7,000 to $30,000 a year. Benefits were also reduced significantly. Restructuring resulted in the loss of nearly 200,000 jobs.
The crisis of 2008-2009 dramatized the necessity of fundamental change in the UAW. Although triggered by the financial meltdown, the crisis in the auto industry also had its roots in behaviors and cultures – both within the companies and within the union – that were outmoded and unsuited for the 21st century. We had already begun to change and to revise our practices, but the crisis proved that we had not moved quickly or dramatically enough.
The UAW of the 21st century must be fundamentally and radically different from the UAW of the 20th century.
This is a new world, and we must reinvent our union with bold new strategies.
Our union began 75 years ago as a movement for social justice for all working people. In the mid-20th century, the UAW played a critical role in building the middle class in this nation. It would be a betrayal of the bold and pioneering heritage of our union if we did not engage in bold and dramatic change to address the challenges of rebuilding a global middle class for the 21st century.
The 20th-century UAW grew in an era of national rather than global economics, where employers did not face the intense pressure of global competition. The 21st-century UAW recognizes that flexibility, innovation, lean manufacturing and continuous cost improvement are paramount in the global marketplace.
The 20th-century UAW was dealing with a market dominated by the Big 3. The 21st-century UAW is dealing with at least the Big 7 and probably more.
The 20th-century UAW joined with the companies in a mindset that it was the company’s job to worry about profits, and the union’s job to worry about getting the workers their fair share. The 21st-century UAW embraces as our own the mission of producing the highest quality, best value products for our customers.
The 20th-century UAW was not primarily focused on the needs of the consumers, and we failed to champion forcefully or effectively enough the goals of preserving our environment for future generations through green manufacturing. The 21st-century UAW makes as a priority the interests of consumer safety, energy efficiency, and environmental protection.
The 20th-century UAW fell into a pattern with our employers where we saw each other as adversaries rather than partners. Mistrust became embedded in our relations, and as a result we signed onto ever more lengthy and complicated contracts with work rules and narrow job classifications that hindered flexibility, hindered the full use of the talents of our members and promoted a litigious and time-consuming grievance culture. The 21st-century UAW has welcomed the openness, collaboration, and creative problem solving partnerships that we have forged with Chrysler, GM, and Ford. Out of the ashes of the cataclysm of 2008 and 2009, a new, more visionary and stronger 21st-century UAW is being born. The 21st-century UAW no longer views these managements as our adversaries or enemies, but as partners in innovation and quality. Our new relationships with these employers are built upon a foundation of respect, shared goals, and a common mission.
The 20th-century UAW tried to find ways to achieve job security, such as job banks, that in the end did not achieve the result we were seeking. The 21st-century UAW knows that the only true path to job security is by producing the best quality product, the safest product and the longest lasting product, at the best price.
The 20th-century UAW reacted with hostility and resistance to the historic changes brought about by the globalization of the economy. The 21st-century UAW is adopting a constructive and positive approach to global trade and global development, and we are committed to being citizens of the world and achieving trade that spreads prosperity and lessens poverty.
Monday, August 2, 2010
State of the Union August 2, 2010
August 2, 2010 online at www.uawlocal2250.com
Reminder: Tomorrow is primary election day with many offices up for grabs. Please make an effort to vote.
Toyota is using one of their favorite methods to discount vehicles while trying to avoid watering down their value with cash discounts – cut rate leases. With prices like $189 a month for a Corolla, Toyota is banking on that car retaining 63% of its value after the three-year lease is up. But Automotive Leasing Guide, the industry standard, puts the value of that car at 53% (an $1800 difference) and those estimates are being revised downward as the drumbeat of recalls continues to take their toll on Toyota’s image. According to auto pricing information company Edmunds.com, the average transaction price of a used Toyota fell 1% in June to $15,073 compared with an industry average gain of 9%. Meanwhile, the average price of a used Chevrolet rose 12% to $15,452. The average for a used Fordrose 14% to $14,716. And leasing now makes up 30% of Toyota’s business, up from 21%. Ever in denial, Toyota offered this statement: "We believe strongly that our residual numbers are the most accurate, in large part, because we use more refined data than perhaps other sources."
From the Detroit News: Chrysler Group LLC said Friday it will keep its Sterling Heights Assembly Plant operating and add 900 jobs. That plant, which had been scheduled to shut in 2012, makes the Chrysler Sebring sedan and convertible and the DodgeAvenger. Workers from factories that Chrysler is closing in Twinsburg, Ohio; Racine, Wis., near Milwaukee; and in Detroit will be offered jobs in Sterling Heights, Chrysler spokeswoman Jodi Tinson said. "The achievement is due in large part to the tremendous sacrifices and efforts of UAW members to help productivity at the plant," said UAW President Bob King. He added it is more proof the union and Detroit area plants can "compete in the global marketplace," he said.
Reminder: Tomorrow is primary election day with many offices up for grabs. Please make an effort to vote.
Toyota is using one of their favorite methods to discount vehicles while trying to avoid watering down their value with cash discounts – cut rate leases. With prices like $189 a month for a Corolla, Toyota is banking on that car retaining 63% of its value after the three-year lease is up. But Automotive Leasing Guide, the industry standard, puts the value of that car at 53% (an $1800 difference) and those estimates are being revised downward as the drumbeat of recalls continues to take their toll on Toyota’s image. According to auto pricing information company Edmunds.com, the average transaction price of a used Toyota fell 1% in June to $15,073 compared with an industry average gain of 9%. Meanwhile, the average price of a used Chevrolet rose 12% to $15,452. The average for a used Fordrose 14% to $14,716. And leasing now makes up 30% of Toyota’s business, up from 21%. Ever in denial, Toyota offered this statement: "We believe strongly that our residual numbers are the most accurate, in large part, because we use more refined data than perhaps other sources."
From the Detroit News: Chrysler Group LLC said Friday it will keep its Sterling Heights Assembly Plant operating and add 900 jobs. That plant, which had been scheduled to shut in 2012, makes the Chrysler Sebring sedan and convertible and the DodgeAvenger. Workers from factories that Chrysler is closing in Twinsburg, Ohio; Racine, Wis., near Milwaukee; and in Detroit will be offered jobs in Sterling Heights, Chrysler spokeswoman Jodi Tinson said. "The achievement is due in large part to the tremendous sacrifices and efforts of UAW members to help productivity at the plant," said UAW President Bob King. He added it is more proof the union and Detroit area plants can "compete in the global marketplace," he said.
Sunday, August 1, 2010
State of the Union July 30, 2010
July 30, 2010 online at www.uawlocal2250.com
President Obama will visit the Hamtramck (Volt) plant today to tout the progress of GM. White House spokesman Robert Gibbs defended the president’s decision to intervene, saying “The president didn't think that walking away from a million jobs and people in these communities made a lot of sense.” Noting that radio host Rush Limbaugh and other critics had called for letting GM and Chrysler collapse, Gibbs added: "I'll let those that sat in the cheap seats a year ago and wanted to walk away from a million explain to every one of those workers why they made that decision."
UAW President Bob King had these comments concerning the good news regarding the turnaround of the domestic auto industry: “The reports show what is possible with cooperative, collaborative relationships. The commitment, sacrifices and hard work of the men and women at UAW-represented companies is an enormous part of the positive news coming from Ford, GM and Chrysler where UAW members are producing best-in-class quality results and building vehicles that hands-down beat global competition. These achievements are more than news stories. They represent the commitment and hard work that helps our members provide for the families and contribute to the economic stability of their community and our country. Thanks to the Obama administration and leaders who understand how vital auto manufacturing jobs are to every community in this country, these companies and UAW workers can and will continue to succeed.”
From the Detroit Free Press: While auto sales have rebounded since last year's downturn, that surge is being driven by fleet sales to rental companies and other businesses, said Roger Penske, CEO of Penske Automotive Group. Fleet sales were up 60% during the second quarter, compared with the same year-ago period, while retail sales were up only 9%, Penske said in an interview Thursday, after the company reported its second-quarter performance. "We continue to be optimistic about the recovery and our business," Penske said.
President Obama will visit the Hamtramck (Volt) plant today to tout the progress of GM. White House spokesman Robert Gibbs defended the president’s decision to intervene, saying “The president didn't think that walking away from a million jobs and people in these communities made a lot of sense.” Noting that radio host Rush Limbaugh and other critics had called for letting GM and Chrysler collapse, Gibbs added: "I'll let those that sat in the cheap seats a year ago and wanted to walk away from a million explain to every one of those workers why they made that decision."
UAW President Bob King had these comments concerning the good news regarding the turnaround of the domestic auto industry: “The reports show what is possible with cooperative, collaborative relationships. The commitment, sacrifices and hard work of the men and women at UAW-represented companies is an enormous part of the positive news coming from Ford, GM and Chrysler where UAW members are producing best-in-class quality results and building vehicles that hands-down beat global competition. These achievements are more than news stories. They represent the commitment and hard work that helps our members provide for the families and contribute to the economic stability of their community and our country. Thanks to the Obama administration and leaders who understand how vital auto manufacturing jobs are to every community in this country, these companies and UAW workers can and will continue to succeed.”
From the Detroit Free Press: While auto sales have rebounded since last year's downturn, that surge is being driven by fleet sales to rental companies and other businesses, said Roger Penske, CEO of Penske Automotive Group. Fleet sales were up 60% during the second quarter, compared with the same year-ago period, while retail sales were up only 9%, Penske said in an interview Thursday, after the company reported its second-quarter performance. "We continue to be optimistic about the recovery and our business," Penske said.
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