State of the Union January 28, 2011

Jan. 28, 2011 online at www.uawlocal2250.com

From the Detroit News: Ford Motor Co. said today net income totaled $6.6 billion in 2010 — its most profitable year in more than a decade — and it will give 40,600 hourly workers profit-sharing checks of about $5,000 each in March. It was Ford’s second consecutive year in the black after three years of losses. The $6.6 billion net income is Ford's best full-year result since 1999 and is a $3.8 billion increase from a year ago; the operating profit of $8.3 billion was the highest since 2000. Net income in the fourth quarter was $190 million, or five cents per share, down $696 million from a year ago in part due to a one-time charge of $960 million to convert some debt into equity.


Here are some comments from AutoWeek staffers on the Nissan Versa compact car: “The silhouette is simply awkward…The interior is plain, and the wood looks a bit cheesy.” “This Versa is nothing if not basic. It reminds me of cars my friends drove back when I was in high school. I was rolling in a Buick Skyhawk, and I would take that car today over this Versa…. The sheetmetal is nondescript. Inside is about the same, except for the wood-grain trim, which is a joke.” And the best one, “The Nissan Versa does one thing well: disappoint.” FYI – this was an $18,685 vehicle with crank windows.


From Automotive News: Fiat Spa has enough cash to boost its stake in Chrysler Group to 51 percent by the end of this year, CEO Sergio Marchionne said. Today’s statements by Marchionne follow comments earlier this month indicating Fiat is on track to lift its share to 35 percent this year from the current 25 percent. Fiat raised its Chrysler holdings to 25 percent from 20 percent this month after the U.S. automaker won approval to build fuel-efficient engines in Dundee, Mich. That was one of three conditions tied to the deal with the federal government that allowed Fiat to rescue Chrysler from a U.S. steered bankruptcy in 2009. The second test requires Chrysler to record a total of $1.5 billion in sales outside North America and to obtain agreements from 90 percent of its dealers in Latin America to carry Chrysler products. The third requires the development of a compact car on a Fiat platform that will achieve 40 mpg. Marchionne has said he expects all those requirements to be met this year. From there, Fiat has an option to boost the holding to 51 percent -- but only after Chrysler repays U.S. and Canadian government bailout loans.