Wednesday, March 30, 2011

State of the Union March 30, 2011

March 30, 2011 online at www.uawlocal2250.com

•From Chairman Mike Bullock: Management has upped the number of recalls to 41 for Monday April 4. The seniority date for recall is now 6/23/08 SSN 1400. And, if you didn't already have enough reasons NOT to shop at WalMart (union busting, poverty level wages, no health care for the workers) now there is a class action lawsuit filed against them claiming discrimination against women. According to the lawyer for the plaintiffs, "I have been practicing civil rights law for 30 years and I have never seen wage disparity as significant and consistently adverse to women as they are here in every single division of WalMart." If we are truly our brothers and sisters keepers, we need to support these workers who are being singled out by WalMart in this way and not spend our money there.

From the Chaplaincy Committee: There will be a memorial for Tommy Poole on Thursday, March 31 at 6 pm in stamping at column SB-30.

Earthquake update: According to Automotive News, Honda said in a memo that they will be cutting back on production at its US assembly plants by up to 50%. According to the memo to suppliers, Honda will make the following adjustments to output beginning Wednesday: In Marysville, Ohio, Honda said lines 1 and 2 will operate four hours daily for each shift; The automaker's Alliston, Ontario, factory will run four hours daily output for each shift; In Lincoln, Ala., Honda's plant will run four hours daily production for each shift on line one. Line two at the plant was already scheduled to be offline in anticipation of the Honda Ridgeline, which is being relocated to the line; Honda's Greensburg, Ind., plant will operate four hours of production daily. And the automaker's plant in East Liberty, Ohio, will run normally with "slight adjustments," Honda told suppliers. Also, AN reports that Toyota's quake-hammered Miyagi assembly plant, which makes the Yaris small car for export to the United States, is expected to be offline for at least another month. Workers have completed repairs at the factory and restored electricity, but the facility cannot get supplies of natural gas, a person familiar with the situation said. The New York Times said utility experts and economists say it will take many months, possibly into next year, to get anywhere close to restoring full power. Besides the dangerously disabled Fukushima Daiichi nuclear power plant (which authorities are saying is a total loss), three other nuclear plants, six coal-fired plants and 11 oil-fired power plants were initially shut down, according to PFC Energy, an international consulting firm.

From the Detroit News: The auto industry is creating jobs but remains a long way from a healthy recovery, analysts said Tuesday at the Communities and Companies in the Resurging Auto Industry conference here. Employment in the auto industry should increase by about 40,000 to 620,000 this year, said Sean McAlinden, chief economist for the Center for Automotive Research in Ann Arbor, which organized the two-day event. And it will grow by at least 100,000 more by 2013, he said. Automakers have spent $10.8 billion since 2010 upgrading vehicle assembly plants in the Midwest and Ontario, he said. There could also be more investment during the next few years in North America by Japanese companies wanting to source more parts here in the wake of the earthquake that exposed the perils of not diversifying enough, said Dennis DesRosiers, president of DesRosiers Automotive Consultants Inc. near Toronto. "The supply sector knows it needs to increase capacity to meet needs this year alone," McAlinden said. He said the supply base is running at about 62 percent capacity. Money to increase capacity remains difficult to obtain. Ramping up to extraordinary levels because of added pressure from the Japanese crisis will prove impossible for some, McAlinden said. "Many companies will crumble and fail, and there will be production disruptions because they can't ramp up that fast," he said. The Center for Automotive Research forecasts U.S. auto sales this year will be 13.4 million, a forecast unchanged by the Japanese earthquake and tsunami. One factor in the lower sales volume is that new cars have a life expectancy of about 250,000 miles and the scrappage rate is about 5 percent, compared with 8 percent in the 1960s, DesRosiers said. Dropping a percentage point represents about 14 million vehicles a year in lost replacement demand. On a more positive note, population growth creates demand for 2 million vehicles, DesRosiers' data shows.

As we get ready for Easter, that means buying (a lot of) candy. You may be surprised to learn that many or your favorites are Union made. The Unions producing these treats are the Bakery Confectionary, Tobacco Workers and Grain Millers International Union (BCTGM) and United Food and Commercial Workers (UFCW). Here is a partial list of what they produce: Hershey products, Jolly Rancher candies, Pot of Gold chocolates, Ovation mint sticks, Fifth Avenue, Zagnut, York peppermint patties, Nestle Treasures, Baby Ruth, Butterfinger, Chocolate Temptations, Sweet Temptations and the ever popular Jelly Bellies. For more products, you can go to www.lalabor411.org.

Edmunds released their list of the top 10 best looking vehicles, price be damned. Among the usual suspects – Ferrari 458 Italia, Jaguar XKR coupe, Porsche Panamera – there were a few suprises. The Cadillac CTS Wagon made the list, but so did the Kia Optima, the Ford F150 SVT Raptor and the Dodge Challenger SRT8, which was chosen over the Camaro because it is “too much of an exaggeration”.

Tuesday, March 29, 2011

State of the Union March 29, 2011

March 29, 2011 online at www.uawlocal2250.com

•    From Chairman Mike Bullock: There will be 34 employees recalled for return on April 4, all employees up to 6/16/08 - SSN 9635. One more item from the Bargaining Convention. Actor Danny Glover was awarded the UAW Walter Reuther Social Justice Award. Mr. Glover has been on the front lines of civil rights and workers' rights campaigns both in the United States and around the world. In UAW President King's introduction "Whenever there's a fight for workers' rights, he has been there. Whenever workers are oppressed Danny Glover has been there." Mr. Glover referred to Dr. Martin Luther King Jr. who talked about being on the right side of history by what we support and said UAW members must be on the right side of better communities, better wages. He said we must be on the right side of history with all those in the world who are struggling to build better communities.
In the afternoon Ed Schultz from MSNBC's "The Ed Show" spoke. Ed Schultz is an outspoken defender of the American worker and unions. "Right now," he said "we all have to think about the future of this country. You have to take a stand. You have to believe that the American worker is the backbone of this country". He spoke very emotionally of how President Obama fought for National Health Care. "Since when is it wrong that all Americans have health care? The republicans think it is wrong. They want to eliminate National Health Care." I recommend everyone watch or record The Ed Show on MSNBC Monday to Friday at 9pm.

•    From CNNMoney: Volkswagen of America is recalling about 71,000 of the German automaker's new 2011 Jetta sedans for a wiring problem that could cause the car to turn off when the horn is used. Under certain rare circumstances using the horn could cause a short circuit that would, in turn, cause an electronic part called a converter box to disconnect from the car's power supply, a VW spokeswoman said.

•    From the Detroit News: Honda Motor Co. is issuing its second recall in the last week for the 2011 Odyssey minivan over reports faulty front side windows have shattered. Honda said today it was recalling 2,800 2011 Odyssey minivans "to replace the side window glass in one or both of the front doors. Honda is taking this step because there is a potential for one or both windows to become detached from the window regulator, causing the window to become inoperative and preventing it from being rolled up or down." The window issue is the second recall to impact new Odyssey minivans in recent days. Last week, Honda said it was recalling 33,341 2011 Odyssey minivans over windshield wiper defects. The company said if the front windshield wiper blades become frozen to the windshield, the rod may separate from the motor, making the wipers inoperative. That can increase the risk of a crash. Honda received the first reports of an inoperative wiper in Canada and the United States in November. In total, Honda has received 129 warranty claims in North America — most in cold-weather areas — related to the issue.

•    Earthquake update: Reuters is reporting that Toyota will not resume production until after April 11 at the earliest. That would be one month after the earthquake."This is the biggest impact ever in the history of the automobile industry," says Koji Endo, managing director at Advanced Research Japan in Tokyo. Forecasting firm IHS Automotive recently estimated that the quake will cause a loss of production of 450,000 vehicles in Japan by the end of March. On Monday, Deutsche Bank cut its estimate of Toyota's profit in the fiscal year beginning April 1 by 84%. It also cut its forecast for Honda's fiscal 2012 profit by 50%, and Nissan's by 79%. Automotive News reports that Three Hitachi Automotive factories, including a plant that makes lithium-ion battery cells for the Chevrolet Volt, have resumed output after being damaged in Japan's March 11 earthquake. The three factories are: Hitachi Vehicle Energy Ltd. in Ibaraki Prefecture, the supplier of the Volt's battery cells. General Motors had ordered 100,000 battery packs from Hitachi.; Hitachi Automotive Systems' Sawa Works in Ibaraki Prefecture, which makes engine control and fuel system components, as well as motors and inverters for hybrid vehicles; and Hitachi Automotive Systems' Fukushima Works in Fukushima Prefecture, previously known as Tokico, which makes suspension components. Toyota informed their dealers that there would be shortages for 233 different part numbers as replacement part supplies dwindle. Most of the shortages are body panels and shock absorbers, according to Automotive News.

•    From the Detroit Free Press: Automakers are spending more than $50 billion to meet the government's 2016 fuel economy law, but consumers aren't buying enough of the fuel-efficient vehicles necessary to allow automakers to achieve the required 35.5 miles-per-gallon average. The 2010 average of all new vehicles actually slipped to 22.2 m.p.g. from 22.3 m.p.g., according to a report from Ward's Automotive Reports that examined calendar-year sales.

Monday, March 28, 2011

State of the Union March 28, 2011

March 28, 2011 online at www.uawlocal2250.com
•AT&T is putting 101 Chevrolet Express Cargo 2500 vans powered by low-emissions compressed natural gas into its customer service fleet. The purchase is consistent with AT&T’s alternative fuel strategy to reduce its dependence on foreign oil and to support sustainable transportation. CNG-powered vans can produce 25 percent fewer emissions than similar gasoline- and diesel-powered vans. The vans get gasoline-equivalent fuel economy of 11 mpg city and 16 mpg highway. Fuel tank capacity ranges from 15.8 to 23 gasoline-equivalent gallons (there appears to be only one CNG filling station in this area – Laclede in Shrewsbury, $1.89 a gallon).

•Earthquake update: The Shreveport plant (Chevy Colorado) has been restarted. Nissan is saying that they expect to be fully operational in a matter of “weeks, not months”. Honda has informed their North American employees that "there is a likelihood that we will experience some temporary interruptions to North American vehicle production after that date (April 1), until the parts supply issues are resolved." Orders are being suspended from Honda’s U.S. dealers for Japan-built models including the Fit, Insight, CR-Z, Civic Hybrid, Acura TSX and Acura RL. Also affected are a small number of CR-Vs. Research firm IHS Automotive said in a report, "The capability to produce integrated circuits, semi-conductors, LCD displays/films, and sensors is still in question. This is possibly most important to global OEMs — the downstream effects are beginning to influence volume outside Japan." In addition, the quake zone is the home of "gear manufacturing, seal systems, clutch components, specialty bearings, and other capital-intensive, application-specific components, for which alternate supply sources are difficult to find," IHS said. Ford is idling a Belgian plant for 5 days to conserve parts. Nearly all manufacturers are beginning to limit orders for certain vehicle colors like red and black. Automotive News reports that Renesas Electronics Corp., the world's biggest maker of automotive microcontrollers and a key bottleneck in Japan's parts shortage, says one of two auto-related factories damaged by this month's earthquake won't be operational until July. Renesas only recently restored electricity and lighting to its Naka plant in the quake zone and will now start assessing damage to its clean rooms and wafer fabrication lines. "It's a completely unprecedented situation," said UBS auto analyst Tatsuo Yoshida. "Normalizing operations requires not only repairs at the vehicle assembly plants, but also the restoration of facilities at a wide range of parts suppliers, public service companies, and distributors.” Indeed, the machines that produce chip wafers must be able to run uninterrupted, requiring a steady supply of electricity. It can take up to a week to restart a machine that has been idled.

Friday, March 25, 2011

State of the Union March 25, 2011

March 25, 2011 online at www.uawlocal2250.com

•From Chairman Mike Bullock: On the final day of the convention the discussion centered around health and safety issues and social responsibility. Our Union has made enormous gains in the area of health and safety, but there is more that needs to be done to ensure that all employees return home to their families the way you left. We have experienced two major injuries in the last week here at Wentzville. A greater emphasis needs to be put on preventative measures and safeguards to ensure they are not repeated. We as UAW members have a social responsibility to give back to our communities. One way this can be accomplished is through the "GimmeFive Mobilization Program". This program was developed to recruit and engage members to organize, build power and win justice for our Union and community. Our challenge is to show the public that the Union movement is a vital leader for economic change. Learn more about GimmeFive at GimmeFiveUAW.org.

The proposed resolutions for the 2011 Collective Bargaining were overwhelmingly approved by the delegates. After the convention was adjourned Dan Howell and myself participated in a march in Downtown Detroit to the Bank of America. Six Banks, Bank of America, Wells Fargo, Citigroup, JPMorgan Chase, GoldmanSachs and Morgan Stanley together paid income tax at an approximate rate of 11% of their pre-tax US earnings in 2009 and 2010. Had they paid the 35% they are legally mandated to pay, the federal government would have received an additional $13 billion in tax revenue. This would cover more than 2 years of salaries for the 132,000 teacher jobs lost since the economic crisis began in 2008.

Our actions were able to shut down Bank of America and the financial district of Downtown Detroit for about 30 minutes on Thursday.

•Management has informed the Union that they have secured enough parts inventory to keep the plant operating through April 28th. This has been an improvement over the last two updates when management told the Union March 31 and then April 11th. The corporation continues to look for alternative suppliers to provide parts necessary to keep them running. All this is tentative and subject to change as production needs are evaluated. Management has released the April schedule. April 8, 22 and 29 are off Fridays, with the 29th due to the limited parts availability. April 5th, the schedule reflects line time of 9.3, to be able to accommodate our members the ability to vote in the local elections per Missouri state law section 115.639, "any person entitled to vote at any election held within this state shall, on the day of such election, be entitled to absent himself from any services or employment in which he is then engaged or employed, for a period of three hours between the time of opening and the time of closing the polls for the purpose of voting, provided that request shall be made of such leave of absence prior to the day of election". All this is tentative and subject to change.

•Earthquake update: No new schedule changes or statements from GM. Bloomberg reported that Shreveport (Chevy Colorado) was idled so parts could be diverted to Fairfax (Chevy Malibu). Nissan has restarted their 5 Japanese assembly plants using existing parts, but reports significant issues with 40 suppliers as well as a key engine plant. Honda has extended the downtime at two assembly plants into next week. Honda has 10 suppliers within 25 miles of the damaged nuclear plant that may take weeks to reopen. Ikuo Matsuhashi, a Goldman Sachs analyst, said that much of the supply concerns in Japan and abroad involve the semiconductor industry. Damage to a manufacturing facility owned by Renesas Electronics Corp. may preclude deliveries for two and a half months. Renesas is one of the largest suppliers of chips used in navigation products, power windows and seats, engines and digital instrument panels. Michael Robinet, an analyst at IHS Automotive, said a prolonged disruption of supplies of Japanese auto parts could halt global vehicle output by as much as 35 percent. The forecast assumes a disruption in supplies lasting 12 weeks that would spread far beyond Japan's auto sector, leading to lost production of 5 million light vehicles worldwide. "I look at that as the worst-case scenario if it lasts that long," said "The best case could be better," he said. "It's very early. But we've never seen anything like this before." In an odd twist that illustrates just how complicated things could get, Ford is telling dealers to stop taking orders for certain colors of paint like Raven Black because the pigment supplier is located in the quake zone.

•From MSNBC: Now that electric-powered Nissan Leafs have been driven by the first owners for several weeks, Nissan's claimed 100-mile range is being tested in reality. The result? Reports of Leafs running out of juice and stranding drivers with little warning. Although the details in the complaints on the MyNissanLeaf forum differ, the common thread in each is the Leaf suddenly paring back the estimates of its range in the middle of a trip, ending in a brief "turtle" mode — marked by an orange turtle icon on the Leaf's dash — followed by the car shutting down to prevent battery damage. "Went from 17 to -- to turtle to dead in about 5 miles. 2.3 miles from dealer. 4.2 miles from home,” wrote one Leaf owner. Another owner suffered a similar experience, leaving the Seattle airport last month for a 15-mile drive home with the Leaf reporting enough power for 26 miles: "Around downtown the range is down to 8 miles (still plenty to get home, which was by then 5 miles away). At the ship-canal bridge it went into turtle, I barely got off the freeway. 2 Mile from home and after about half the distance it told me I would have from the airport, i.e. 13 actual miles driven, it went dead. I actually managed to drive 400 yards in turtle mode. 10:30 pm, wife and screaming kids in the car (which was blocking the right lane of a busy road), just came back from the east coast, cars zooming by and honking, several near misses.” Nissan provides complimentary towing to Leaf owners for just such events. In the Seattle case, the operators who took the tow-truck call asked if the Leaf just needed a jump start.

Thursday, March 24, 2011

State of the Union March 24, 2011

March 24, 2011 online at www.uawlocal2250.com

•From Chairman Mike Bullock at the Bargaining Convention in Detroit: There are more than 1000 delegates, alternates, and guests at the convention representing 256 Locals throughout the United States, Canada and Puerto Rico. They represent not only auto workers, but gaming, higher education, ag-imp workers, office and clerical, nurses and the list goes on. The purpose of this convention is to discuss issues that cross all the industries and sectors and gives us a unified focus for how the UAW negotiates contracts over the next four years. Vice President Joe Ashton spoke as to the direction of the GM negotiations this fall. "We need to achieve respect, a decent agreement and ensure a decent way of life". The UAW's approach to bargaining over wages and salaries is guided by fundamental principles of justice. In difficult times we bargain to ensure a shared sacrifice. In times of growth, we bargain for a fair share of the upside. At all times we seek to lift all workers into the middle class. VP Ashton predicted that GM will bring about 2000 laid off workers back to plants by September. "We will have full employment this September for the first time in a long time," he said. That means that when the UAW enters contract talks with GM this fall most of its members will be working and few plants in jeopardy.

•UAW-GM LifeSteps will be offering one-on-one sessions with a personal exercise coach next week on March 29, 30 and 31. Included will be advice on individual fitness goals, a personal exercise plan, exercise modification and stretches. Sign-ups are encouraged but walk-ins are welcome. The sessions will be held in the fitness center from 10:30 am to 1 pm and 2 pm to 5:30 pm and will last 10 to 15 minutes. Sign-up sheets are in the cafeteria at the bulletin board.

•From the Women’s Committee: You are invited to the annual Easter Egg Hunt at the Union Hall Saturday, April 9. Doors will open at 10:30 am and the hunt will begin promptly at 12 noon sharp. There will be only one Easter Egg hunt. Bring the children/grandchildren and meet the Easter Bunny. There will also be a balloon artist, face painting, clowns and a craft table. Hot dogs and soda will be provided.

•Earthquake update: As of yesterday, Hamtramck (Chevy Volt) is no longer working daily overtime due to parts shortages. GM Europe has also reduced production at Opel plants in Eisenach, Germany and Zaragos, Spain (both Opel Corsa) due to parts shortages. The Wall Street Journal reports that one part coming under increased scrutiny goes into mass airflow sensors. Made by Hitachi Automotive Systems, a unit of Hitachi Ltd., at a plant north of Tokyo that was damaged by the quake and remains shut down, the electronic part is used by about a dozen auto makers. Hitachi, which has a 60% share of the world's market for airflow sensors, said it hopes to resume operations by Saturday, but isn't sure how much of its capacity will be restored by then. The area is suffering from water and power shortages. The Journal also reports thatin France, Peugeot-Citroën was scheduled to reduce production at most of its European plants from Wednesday due to shortages of the airflow sensor. The reductions are between 40% and 70%. In the meantime, Toyota issued a memo yesterday regarding North American production that read in part: “Today, we communicated to team members, associates and dealers here that some production interruptions in North America are likely. It's too early to predict location or duration.” Mike Goss, spokesman for Toyota Motor Engineering & Manufacturing North America Inc. in Erlanger, Ky., said that the memo was meant only to alert Toyota's employees that work stoppages are now likely in the current situation – not that any are planned. He said Toyota doesn't know when they might occur, at which plant or for how long. "We continue to assess suppliers, and we continue to run normally without overtime," he said. On some Toyota models built in North America, Japan-sourced parts can represent 10 to 15 percent of all content, Goss said, adding that the automaker is particularly concerned about supplies of electronic components and rubber. Toyota has already eliminated overtime throughout its North American manufacturing operations to preserve parts stockpiles. Says Michael Robinet, a senior analyst with market research firm IHS Automotive, "We've only seen the tip of the iceberg. We expect the greatest impact will be felt from the middle to the third week of April. It will be difficult for the world's vehicle manufacturers to escape the impacts by mid-April.”

•From the Detroit News: A dispute between an auto hauler and the automakers whose cars and trucks it delivers spread Wednesday. Chrysler Group LLC announced it is suing Georgia-based Allied Holdings Ltd. in Canada to force the hauler to return 700 new vehicles being held at Allied facilities in Windsor, Ontario. U.S. District Judge Marianne O. Battani set a March 29 hearing in federal court on GM's case. She wants to know why GM shouldn't be given immediate possession of the 1,704 vehicles. GM believes its vehicles are being held in Dearborn and Fort Wayne, Ind., according to the lawsuit.

Wednesday, March 23, 2011

State of the Union March 23, 2011

March 23, 2011 online at www.uawlocal2250.com

•From Chairman Mike Bullock from the Bargaining convention in Detroit: President Bob King was very animated today in his speech when he spoke about the outrageousness of
Ford President Alan Mulally's bonus. "I don't think any human being in the world deserves that much money." He added that, "I think it’s morally wrong". After Mulally’s $50 million bonus, his accumulated compensation package will rise to more than $300 million. "I think it is outrageous" said President King.

The purpose of the three day convention is to set strategy that the UAW can apply to contract talks with companies in all industries that the UAW represents. President King's remarks suggested that one issue that could rise to the top of the bargaining agenda will be two-tier wages. King says he has wrestled in the past with the idea of entry level wages.

"Quality is too important to be left to managers or the bosses alone - we're going to bargain for the right to build the best quality." President King said. We want to build quality in spite of management's desire to focus on quantity. President King spoke at length about the importance of organizing all of the auto sector into the UAW. This will bring those companies that are non-union up to our standard of living rather than us down to them. This is a fight to rebuild the power of the UAW and the middle class. The way out of this situation is to partner with labor allies in this country and across the globe to make sure that workers in low-wage countries have the power to negotiate improved wages and benefits.

We have made many sacrifices to make this company profitable again, now is the time to reward us for those sacrifices. Wages, benefits, health care will all be at the top of the list. Here are the 8 key issues for this year’s bargaining:
o Winning jobs to create job security
o Improving the standard of living
o Winning justice for new hires, temporary and contingent workers
o Advancing the right to organize and bargain
o Defeating attacks on public sector employees
o Providing health care and retirement security
o Making our workplaces safer
o Advancing our social vision

• From the Chaplaincy Committee: There will be an in-plant memorial service for Tommy Poole at lunch time on Thursday, March 24 at the Chassis Chapel, column C-42. All are welcome.

• Automotive News ran a column entitled, “The next sales dogfight? Full sized vans”. Here are some excerpts: “Looks like Ford is planning a commercial van blitz. The automaker’s execs have their eyes focused on the newest competitor in the full-sized van market, the Nissan NV. Sales began last month. This is a real, strong competitor in a field dominated by Ford…..During a dinner earlier this month at the Geneva motor show, Derrick Kuzak, Ford’s global product development chief, said the automaker will do whatever it takes to maintain its leadership. That includes adopting a European model or models for the U.S. market….“Commercial vehicles are really important to us, and commercial vans in particular are really important to us,” Kuzak said. “We intend to be a leader in that market.” Expect the full-sized van business to turn quickly into a real dogfight.

• Earthquake update: No new changes to US production schedules to report. The Wall Street Journal is reporting that The U.S. auto industry is likely to face sporadic production shutdowns for several months because of shortages of microchips and other parts that had already been scarce prior to Japan's earthquake and tsunami. Tight supplies of microchips and other electronics, sensors, rubber and forged metal parts had already caused auto makers to slow or even temporarily halt production lines before the earthquake. "You are going to see a somewhat higher rate of plant shut downs, but I don't think it's going to be widespread," said Craig Fitzgerald, an automotive supplier analyst with accounting and consulting firm Plante & Moran LLP in Southfield, Mich. "It's going to be sporadic and moving around." The Journal goes on to say that Ford has been battling pinches in its supply base in forged parts and electronic chips for months and that the auto industry isn't the top priority for microchip producers and that demands from consumer electronics companies would likely be met first if there was a choice. Nissan Motor Co. Chief Executive Officer Carlos Ghosn said about 40 component suppliers in Japanremain in difficulty after the nation’s record earthquake, complicating automakers’ efforts to restart car production according to Bloomberg. Nissan’s engine factory in Iwaki, located in the same prefecture where Tokyo Electric Power Co. workers are battling to avert a nuclear meltdown, isn’t getting enough water, electricity and gas to operate, Toshitake Inoshita, a Nissan spokesman, said this week. The carmaker is considering shipping engines from Tennessee to Japan.

•From the Detroit News: General Motors accused a car-hauling company Tuesday of holding hostage more than 1,700 vehicles — including brand new Chevrolet Silverado pickup trucks and Camaro coupes worth almost $47 million. The dispute stemmed from a tiff between the hauler and the Teamsters union, the company said. The dispute apparently began when the Teamsters union told Allied it wasn't going to accept wage concessions and Allied then sought to increase by 15 percent the amount it was charging GM. GM declined to pay more.

Tuesday, March 22, 2011

State of the Union March 22, 2011

March 22, 2011 online at www.uawlocal2250.com


Earthquake update: There have been no new announcements of any downtime at any GM facilities in the US because of parts shortages due to the earthquake in Japan. Toyota and Honda announced that all of their plants in Japan would be down through the end of this week. Nissan which still has five plants closed by the quake, said it is aiming for a March 24 restart of all of them. Mitsubishi was able to operate three assembly plants with parts that had been made pre-quake but couldn’t be delivered until now. Ditto for Mazda. A report released Monday by automotive forecasters IHS Global Insight of Northville said that every major automaker worldwide would be affected by the disaster in Japan by mid-to-late-April. "It is not a matter of if, but when," said Michael Robinet, IHS's Director of Automotive Forecast. He said it could take seven weeks of full production, with overtime, for each facility to make up for one week of lost production.

This week is the UAW Bargaining convention in Detroit. Here are some comments from industry watchers:
o David Cole, chairman emeritus of the Center for Automotive Research - Leaders of the UAW “understand that the union’s future is tied to the future success of the industry. The union as an [entity] is not very strong…..Unions aren’t in a position of favor with the American public as they once were, and as a consequence, it’s just a different world they’re working in.”
o Ron Harbour, manufacturing consultant - “There’s more UAW interest in profit-sharing than ever before, because they know they won’t get those old wages and benefits back. You might have the companies push for more than 20 percent (tier two) but agree not to do so if the union would agree not to push for compensation that makes the companies non-competitive. So if the union strikes a bad deal with Chrysler this time, and it drives the share price down because the stock market perceives it as a bad deal, the union has just hurt itself. The union has never been in that position before.”
o Daniel Howes, columnist for the Detroit News – “United Auto Workers bargainers are coming to town to prepare for national contract talks later this year with Detroit's automakers. All you need to remember are three numbers: First, $6.6 billion, the profit Ford Motor Co. booked last year. Second, $4.7 billion, General Motors Co.'s earnings in 2010. And, third, $133 million, the sum total of long-term stock awards Ford granted its top 20 executives — $56.5 million of which, pretax, ended up in CEO Alan Mulally's portfolio. Cash bonuses for last year? Those are still to be released. That sound you hear is the slow-motion crash of the UAW's collective jaw hitting the ground, partly at the size of the executive bonanza and increasingly at the realization of the union's good fortune. I mean, it ain't easy to plead poverty at the bargaining table when the haul of 20 execs leading a single company exceeds — in one year — the endowments of many small colleges. Paint, meet the corner.”

Monday, March 21, 2011

State of the Union March 17, 2011

March 17, 2011 online at www.uawlocal2250.com

From Chairman Mike Bullock: Good news in the stamping department. Last summer Spring Hill Metal Center was unable to make Tahoe "side rings" for Arlington. The corporation brought these dies to Wentzville Stamping for us to make in the interim. Our stamping employees worked tirelessly to get these dies up and running in record time, producing parts for Arlington for the next 6 months. Due to this past success by our stamping department in processing Tahoe sheet metal last summer for Arlington, we will be getting the rear door outers for the Malibu to produce here. These parts were being stamped in Fairfax. This work should start around June 1 and last into 2012. Fairfax will need 900 of these parts per day. There could be additional dies to be shipped here for the Malibu. Congratulations to the stamping department for helping secure this work for Wentzville Assembly.

The annual Easter golf tournament will be held on Good Friday, April 22 at the Warrenton Golf Course. It will be a three-man scramble with an 11 am shotgun start. Entry fee is $50 per player and includes dinner (pork chops or fish). This year you can have your friends on your team. Deadline for signups is April 4. Entry forms are available at the entrances. You can call Bill Chancellor at extension 2350, 636-456-2460 or 636-297-0071.

Earthquake update: GM CEO Dan Akerson issued a statement yesterday regarding the impact to the company. “In addition to the enormous human suffering, the aftermath is sure to be felt across many industries, including automotive. We continue to assess the situation, and I wanted you to know that we are taking precautions in the event our operations are affected. Our goal is to minimize production disruptions while keeping a close eye on costs. We are looking carefully at all discretionary spending and I've given direction to place on hold spending that is not directly related to the customer. If spending is for sales, service parts, or keeping our future products on time, in most cases we should continue to ensure those items are protected. All non-essential travel or spending of any kind should be stopped until further notice.” And GM President Mark Reuss said, "The impact of this has yet to unfold.” He added that the damage to Japan's supplier network could have an effect "bigger than anyone knows today.” Already, Toyota and Subaru have suspended all overtime for their North American plants and Toyota has shut down all Japanese operations through March 22. Lindsay Chappell of Automotive News writes: “To get out of the jam it's in over the disaster in Japan, the world auto industry is certain to do what it always does to overcome supply chain trouble – turn to air freight. Only it's not going to be so easy this time. Why? Because every industry that relies on Japanese-made goods is currently in the same bind right now and thinking the same thought – "Switch to air freight." Japan's crisis is not limited to the auto sector. Toyota and its auto suppliers won't merely be competing with Honda and Mazda and Nissan and Suzuki and their suppliers for airplane cargo space. They will all collectively be competing with companies like Sony, Toshiba, Fujitsu and even big American non-industrials like Walmart and Sears.”

Wednesday, March 16, 2011

State of the Union March 15, 2011

March 15, 2011 online at www.uawlocal2250.com

Union meeting is this Wednesday, March 16, at 1 pm, 3 pm and 15 minutes after the longest first shift line time.

From the Detroit News: Most of the big Japanese auto assembly plants were shielded from the direct devastation of Friday's deadly earthquake and tsunami. But damage at suppliers and power outages resulting from crippled nuclear plants could slow resumption of domestic output and eventually affect U.S. and other overseas operations. Toyota Motor Corp., the world's largest automaker, has suspended operations at all of its Japanese plants at least through Wednesday. Nissan Motor Co., Japan's second-largest carmaker, is halting production at two plants north of Tokyo and close to the hardest-hit region in the northern part of Honshu, Japan's most populous island, until Friday. Operations at four others have been suspended until Wednesday. Honda Motor Co. stopped auto output for the week. It has several operations in the affected region of Tochigi. Damage to parts factories, rail lines and other transportation infrastructure poses the biggest risks to a recovery of Japan's domestic auto industry. Last year, it produced 9.6 million vehicles — half of them for export (the United States produced 7.8 million vehicles in 2010). "Overseas operations could be affected if shutdowns become prolonged, as core components such as engines and transmissions are supplied to overseas vehicle factories from Japan," said Kohei Takahashi, a Tokyo-based analyst at J.P. Morgan. "Given the 20,000 to 30,000 parts that go into making an automobile, and the difficulty of procuring even basic materials, we do not foresee a return to normal production schedules anytime soon," he said.

From Automotive News: Booming February sales lowered the U.S. industry's average supply of new vehicles to 60 days, down from 70 days a month earlier. The days-supply figure was the lowest March 1 level since 2002. The supply of cars fell to 57 days, from 70 days a month earlier. The supply of light trucks declined to 63 days, from 71. Among the Detroit 3, Chrysler Group had both the largest supply and the biggest drop from a month earlier. Supplies fell to 68 days, from 89 days on Feb. 1. Ford had a 63-day supply on March 1, down from 77, and General Motors hit the industry average of 60 days on March 1, compared with 68 days last month.

In the market for maintenance or repair on your vehicle — or know an eligible family member who is? The GM Certified Service Employee Discount Program can save up to $20 on customer pay vehicle maintenance and repairs at your local participating GM Dealer. Here’s all you need to do.

Eligible employees and retirees can retrieve their authorization number at www.gmfamilyfirst.comand will be able to utilize up to three discounts for themselves or immediate family during the promotional period ending Dec. 31.

Once you obtain the authorization number, take it to your local participating GM Dealer, and at the time of service write-up, present the authorization number to your dealership representative. The discount amount will be applied at completion of your transaction. Discount amounts vary depending on your service total (Repair Order Value) before discount, taxes and related shop supplies. The discount is also stackable with current everyday value pricing and all CCA rebate programs.

Your exclusive GM employee discount structure is as follows:
•    $ 25.00 – $49.99 Repair Order Value – receives a $ 5.00 discount
•    $ 50.00 – $74.99 Repair Order Value – receives a $10.00 discount
•    $ 75.00 – $99.99 Repair Order Value – receives a $15.00 discount
•    $100.00+Repair Order Value – receives a $20.00 discount
Note: Minimum Repair Order Value to be eligible for discount is $25.00.
Nothing in this message is intended to constitute an electronic signature unless a specific statement to the contrary is included in this message.

State of the Union March 14, 2011

March 14, 2011 online at www.uawlocal2250.com

From Chairman Mike Bullock: Welcome back today to 6 of our members who are returning to Wentzville from Fairfax and Ft. Wayne. Welcome "home".

Union meeting is this Wednesday, March 16, at 1 pm, 3 pm and 15 minutes after the longest first shift line time.

From Automotive News: The earthquake that hammered Japan on Friday stopped production at several assembly plants that export vehicles to the United States. The shutdowns could affect exports of such cars as the Toyota Yaris and Scion xB and Scion xD, as well as the Honda Fit, Accord sedan and CR-V crossover. The quake also disrupted production of Acura and Infiniti models. Toyota evacuated workers from several factories in the quake zone. Toyota has two parts plants in northern Japan and has two affiliates, Kanto Auto Works Ltd. and Central Motors Co., that assemble small cars in the region. Honda shut down two assembly plants immediately after the quake, spokesman Keitaro Yamamoto said. At Honda's r&d center in Tochigi prefecture, one person died and 30 were injured when the quake toppled a cafeteria wall. No other injuries were reported. Nissan Motor Co. also suspended factory work throughout eastern Japan. Small fires broke out at two assembly plants, including the factory producing the Infiniti M sedan and GT-R sports car. The earthquake-triggered tsunami that ravaged Japan's Pacific coast also damaged at least 2,300 Nissan and Infiniti brand vehicles awaiting shipment to U.S. and Japan showrooms. The cars -- including nearly 1,300 Infiniti M, EX and FX models bound for North America -- were parked at two coastal loading points when the giant waves swept through.

From the Detroit News: General Motors Co. will bring the 2012 Chevrolet Captiva Sport crossover to the United States this year, but only for fleet customers. The Captiva's (think Saturn Vue with a Chevy grille) arrival will help free supplies of Chevy's popular Equinox for retail sales. Both crossovers are similar in size and get about the same fuel economy. The Captiva, a five-seat compact crossover, is already sold in 50 markets, including Europe, Asia, the Middle East and South America. The U.S. version will be sold to government and company fleets, as well as car rental businesses. It will arrive in the fourth quarter, as a 2012 model, Chevrolet said Friday.
For qualified buyers, APR as low as 36 48 60 72 +
Employee Vehicle Allowance Or Total Cash Allowance Plus Employee Vehicle Allowance

Chevrolet Avalanche
0% 0% 0% 0% Plus $2,000 Or $3,000 Plus $2,000
Chevrolet Camaro Coupe
3.9% 3.9% 3.9% - Plus $1,000 Plus $1,000
Chevrolet Colorado Crew Cab
- - - - Plus $1,500 Or $2,000 Plus $1,500
Chevrolet Colorado Extended Cab
0% 0% 0% - Plus $1,500 Or $2,500 Plus $1,500
Chevrolet Colorado Regular Cab
- - - - Plus $1,500 Or $1,000 Plus $1,500
Chevrolet Corvette Convertible
1.9% 1.9% 1.9% - Plus $2,500 Or $3,000 Plus $2,500
Chevrolet Corvette Coupe
1.9% 1.9% 1.9% - Plus $2,500 Or $3,000 Plus $2,500
Chevrolet Corvette Grand Sport Convertible
1.9% 1.9% 1.9% - Plus $2,500 Or $3,000 Plus $2,500
Chevrolet Corvette Grand Sport Coupe
1.9% 1.9% 1.9% - Plus $2,500 Or $3,000 Plus $2,500
Chevrolet Corvette Z06
1.9% 1.9% 1.9% - Plus $2,500 Or $3,000 Plus $2,500
Chevrolet Corvette ZR1
1.9% 1.9% 1.9% - Plus $2,500 Or $3,000 Plus $2,500
Chevrolet Cruze
2.9% 2.9% 2.9% - Plus $750 Plus $750
Chevrolet Equinox
2.9% - - - Plus $250 Plus $250
Chevrolet Express Cargo
0.9% - - - Plus $2,000 Or $1,500 Plus $2,000
Chevrolet Express Cutaway
0.9% - - - Plus $2,000 Or $1,500 Plus $2,000
Chevrolet Express Passenger
0.9% - - - Plus $2,000 Or $1,500 Plus $2,000
Chevrolet HHR LS
0% 0% 0% - Plus $1,000 Or $3,500 Plus $1,000
Chevrolet HHR LT/SS
- - - - Plus $1,000 Or $4,000 Plus $1,000
Chevrolet HHR Panel LS
0% 0% 0% - Plus $1,000 Or $3,500 Plus $1,000
Chevrolet Impala LS
0% 0% 0% 0% Plus $2,500 Or $3,500 Plus $2,500
Chevrolet Impala LT/LTZ
- - - - Plus $2,500 Or $5,000 Plus $2,500
Chevrolet Malibu LS
0% 0% 0% - Plus $1,000 Or $2,500 Plus $1,000
Chevrolet Malibu LT/LTZ
0% 0% 0% - Plus $1,000 Or $3,500 Plus $1,000
Chevrolet Silverado 1500 Crew Cab
0% 0% 0% 0% Plus $1,500 Or $2,500 Plus $1,500
Chevrolet Silverado 1500 Extended Cab
0% 0% 0% 0% Plus $1,500 Or $2,500 Plus $1,500
Chevrolet Silverado 1500 Regular Cab
0% 0% 0% 0% Plus $1,500 Or $2,000 Plus $1,500
Chevrolet Silverado 2500HD
0% 0% 0% - Plus $1,500 Or $2,000 Plus $1,500
Chevrolet Silverado 3500HD
0% 0% 0% - Plus $1,500 Or $2,000 Plus $1,500
Chevrolet Suburban Half Ton
0% 0% 0% - Plus $3,000 Or $2,000 Plus $3,000
Chevrolet Suburban Three Quarter Ton
0% 0% 0% - Plus $3,000 Or $2,000 Plus $3,000
Chevrolet Tahoe
0% 0% 0% - Plus $3,000 Or $2,000 Plus $3,000
Chevrolet Traverse
0% 0% 0% - Plus $1,500 Or $2,000 Plus $1,500

State of the Union March 16, 2011

March 16, 2011 online at www.uawlocal2250.com

Reminder: Union meeting is today at 1 pm, 3 pm and 15 minutes after the longest first shift line time.

There have been questions about the potential of a parts shortage impacting Wentzville because of the devastation in northern Japan. The material department is identifying any parts that might have exposure to suppliers affected by the earthquake/tsunami to determine our coverage for the rest of March. While there are no parts coming directly from that area, there are 2nd, 3rd , and 4th tier suppliers that are sources for parts that go into larger components used by GM and Wentzville that were affected. This situation is changing by the day. We will communicate any information as it becomes available.

From Automotive News: Numerous manufacturers worldwide depend on Japan for everything from memory chips to batteries for hybrid cars. The goal is to avoid parts shortages while Japanese suppliers such as Sanyo Electric Co. and Toshiba Corp. make sure they have access to power, water, transportation and materials. Four days after the magnitude 9.0 earthquake, Germany's BMW AG, truckmaker Volvo AB of Sweden and ON Semiconductor Corp. all say it's too early to know how they'll be affected by their Japanese vendors or customers. One reason is the lack of information flowing from suppliers, and from the suppliers' suppliers. For example, Honda Motor Co. is struggling to make contact with some of its Japanese suppliers, IHS Automotive reported today, citing the automaker. "Honda has disclosed that at least 113 of its suppliers are located in the affected areas and that it has yet to get in touch with more than 40 of them," the IHS report notes. Nissan Motor Co. also faces major hurdles. According to IHS, company CEO Carlos Ghosn told a TV interviewer, "Our best hope is that we start to produce again (in Japan) in two or three days, but not for very long as our supplier network has really been devastated." Electricity shortages caused by a shutdown of nuclear power plants in northern Japan is limiting the ability of suppliers to return to production.

Tim Lee, President of GM International Operations: While GM has no production plants in Japan, we purchase parts and components from Japan-based suppliers. We are evaluating any potential implications on our global production. To date, our operations are running as usual.

Spartan Motors Inc. subsidiary Utilimaster Corp. and Isuzu Commercial Truck of America are getting ready to launch a new cargo van. The companies debuted the "Reach," with a body designed by Utilimaster and a chassis and engine from Isuzu, debuted Tuesday at the National Truck Equipment Association's 2011 Work Truck Show in Indianapolis. It will go into production at Spartan's Utilimaster facility in Wakarusa, Ind., in late summer.Production levels and pricing have not been set.
Spartan, based in Charlotte, and Isuzu Commercial Truck, part of Japan's Isuzu Motors Ltd., are touting the Reach's fuel efficiency, expanded cargo space and driver-friendly features as competitive advantages for the vehicle.
The Reach, with a fuel-efficient diesel engine, an aerodynamic design and a body made of relatively lightweight materials, promises a 35 percent boost to fuel economy compared with traditional commercial vans. The specific fuel economy rating hasn't yet been posted, however. With cargo areas ranging from 10 feet to 14 feet in length and a vertical capacity of six feet, the vehicle also boasts a larger cargo area than its competitors. The Mercedes-Benz Sprinter, Ford E-Series van, Chevrolet Express and GMC Savana have a cargo area of between 225 cubic feet and 318 cubic feet. The Reach's cargo space is as large as 630 cubic feet.

Friday, March 11, 2011

State of the Union March 11, 2011

March 11, 2011 online at www.uawlocal2250.com


From Chairman Mike Bullock: There are numerous Par. 63b postings for vacation relief. They are for Stamping, Body, Paint, DVT, Quality and Material. If you have a transfer on file to one of these departments and you do not want to move, you have until the end of shift on Tuesday March 15 to remove your application. Any questions, ask your committeeman.

Reminder: This weekend daylight savings time begins. Remember to set your clocks forward one hour Sunday morning.

There have been some questions about 2012 pilot builds. We are tentatively scheduled to build non-saleable 2012 models the last two weeks of April as well as two 2013 IVER jobs the third week of April. Model change is tentatively scheduled for the second week of August.

From MSNBC: Honda recalled more than 35,000 Civic hybrids in the United States on Monday to fix a problem with the electrical system that could cause the headlights to turn off or the engine to stall. Separately, Toyota recalled about 22,000 SUVs and trucks to address faulty tire pressure monitoring systems and Chrysler recalled about 20,000 Jeep Wranglers over steering issues. Honda Motor Co. told the government its recall would cover 2006-2007 model year Civic hybrids. The company said the voltage converter that relays power from the motor assist system to the vehicle's electrical components could fail. Honda has received seven reports of stalling engines and 82 warranty claims connected to the problem. Dealers will replace the voltage converter at no charge. Toyota Motor Corp.'s recall includes some versions of the 2008-2011 Toyota FJ Cruiser, Land Cruiser, Sequoia, Tacoma and Tundra. The systems that monitor the vehicles' tire pressure did not comply with federal safety standards. Toyota said the systems didn't illuminate on the dashboard at the minimum activation pressure and needed to be recalibrated.

Here are just a couple of the quotes regarding Wisconsin Gov. Scott Walker’s anti-union attacks: "We should have invited him here today to receive the Mobilizer of the Year award!" - AFL-CIO President Richard Trumka; and "He has sparked the most energized labor movement in decades. He's recruited many people who are angry at what they view as a power grab." – U.C. Berkeley Labor professor Harley Shaiken.

State of the Union March 10,2011

March 10, 2011 online at www.uawlocal2250.com

Reminder: There will be a Women’s Committee and a Veteran’s Committee meeting today after first shift at the Union Hall.

With the addition of the partial crew for 2nd shift in body shop, there will be a lot of job bidding and movement in the coming weeks. This makes now a good time to review the transfers and bids you have on record to avoid any unwanted moves.

From the Detroit Free Press: General Motors is recalling 10,179 of its 2011 Buick LaCrosse sedans and Cadillac SRX crossovers because a software glitch could cause the defrosters to stop working. Actually, the problem in the climate control electronics module would disable control of the whole climate control system, according to federal regulators, but it's the possible loss of window defrost/defog capability that is a violation of federal safety rules on driver visibility. Notification for owners of the affected vehicles will begin this month, and dealers will reprogram the module free of charge.

From Automotive News: Toyota Motor Corp. had its long-term debt rating cut one step by Standard & Poor's, which cited 'weak' profitability at the Japanese company. S&P reduced the rating to "AA-," the fourth-highest investment grade, from "AA," saying the outlook on the debt is "stable," according to a statement from the ratings agency today. Moody's Investors Service rates Toyota's debt "Aa2," the third-highest investment grade. "The downgrade reflects our opinion that Toyota's profitability is unlikely to recover in the next one to two years to a level that we view as appropriate for the rating," S&P said. 'The company's profitability is still weak, its pace of recovery is slower than those of Japanese peers, and its profitability might remain under pressure from higher raw material prices and gasoline prices as well as the strong yen," S&P said in today's statement.

Much has been written and said about GM going back to their old ways of discounting to gain market share. On back is a chart of all automotive brands and their percent of discount of the transaction price courtesy of Edmunds.com:
Discount Percent by Make
Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11
Acura 9.2% 10.4% 10.9% 10.9% 11.2% 12.3% 12.2% 12.1% 11.3% 12.3% 13.0% 12.4% 11.8%
Audi 8.0% 8.0% 7.5% 7.5% 7.6% 7.5% 4.6% 4.5% 5.0% 6.0% 6.8% 6.1% 5.8%
BMW 13.0% 13.7% 12.1% 10.8% 8.9% 9.0% 9.0% 9.1% 9.5% 11.4% 11.4% 10.4% 9.9%
Buick 10.3% 9.7% 10.6% 10.4% 10.8% 11.7% 9.0% 8.6% 8.8% 10.9% 12.5% 13.6% 14.8%
Cadillac 12.4% 11.7% 11.9% 13.1% 15.2% 15.2% 12.9% 10.0% 11.5% 13.2% 13.2% 12.5% 14.5%
Chevrolet 15.6% 14.9% 15.2% 17.4% 17.0% 18.2% 17.3% 13.3% 13.7% 14.0% 13.9% 16.9% 16.7%
Chrysler 16.4% 16.2% 16.5% 16.9% 16.9% 17.4% 18.4% 17.3% 18.2% 20.4% 23.2% 17.2% 10.8%
Dodge 16.1% 14.9% 14.9% 14.8% 15.8% 15.8% 15.6% 15.4% 15.7% 17.2% 19.0% 15.8% 13.2%
Ford 15.8% 16.5% 16.4% 16.1% 15.6% 15.8% 15.7% 15.2% 15.4% 15.4% 15.9% 14.9% 14.8%
GMC 12.8% 14.0% 13.7% 14.3% 14.7% 14.5% 13.2% 11.7% 11.3% 11.0% 12.1% 12.3% 12.7%
Honda 11.6% 12.7% 12.9% 12.0% 12.1% 12.9% 12.8% 13.0% 10.7% 10.7% 12.1% 12.7% 12.7%
Hyundai 11.9% 13.2% 9.6% 11.1% 11.7% 12.3% 11.5% 10.5% 10.3% 10.1% 9.5% 9.3% 8.9%
Infiniti 10.7% 11.1% 11.6% 11.2% 11.7% 13.0% 12.6% 13.2% 14.0% 14.4% 12.9% 12.5% 14.2%
Jeep 13.8% 13.0% 11.4% 11.1% 11.4% 11.4% 12.4% 10.8% 9.2% 8.8% 9.3% 9.8% 10.5%
Kia 9.2% 13.3% 13.5% 13.0% 12.7% 13.3% 11.6% 10.3% 10.3% 10.9% 10.8% 10.7% 10.8%
Lexus 10.4% 11.3% 10.2% 11.9% 10.1% 10.7% 11.2% 11.7% 12.7% 11.9% 10.6% 10.8% 10.4%
Lincoln 16.5% 16.7% 16.6% 16.4% 17.9% 16.6% 16.2% 14.0% 12.7% 14.2% 14.3% 13.7% 12.2%
Mazda 13.4% 14.2% 12.6% 14.2% 13.8% 13.4% 13.2% 14.9% 13.8% 14.1% 15.3% 11.0% 12.7%
Mercedes-Benz 10.3% 11.4% 11.4% 9.8% 9.5% 10.4% 12.1% 8.7% 8.5% 9.7% 9.7% 10.8% 9.9%
Mercury 15.1% 16.0% 16.1% 15.4% 17.3% 17.0% 16.9% 16.3% 21.6% 19.4% 18.4%
MINI 3.9% 3.8% 7.6% 8.9% 9.4% 9.7% 9.3% 8.8% 3.6% 8.1% 8.1% 6.4% 5.5%
Mitsubishi 12.5% 12.7% 12.9% 12.9% 12.8% 14.1% 15.0% 13.9% 13.1% 10.3% 9.1% 13.1% 13.6%
Nissan 13.8% 13.6% 14.0% 14.9% 14.5% 15.8% 15.9% 15.8% 13.2% 12.0% 13.4% 15.3% 17.1%
Scion 2.4% 2.1% 2.2% 3.1% 3.4% 3.7% 3.3% 3.4% 5.0% 5.3% 5.0% 3.4% 4.1%
smart 2.3% 10.0% 16.3% 12.6% 9.8% 7.1% 3.9% 1.7% 4.1% 4.3% 6.1%
Subaru 7.3% 7.5% 7.4% 7.1% 6.2% 5.5% 5.6% 5.8% 5.6% 6.0% 6.7% 6.9% 8.1%
Suzuki 11.5% 12.4% 9.0% 9.1% 9.5% 10.6% 10.7% 11.8% 12.0% 12.3% 13.3% 11.9% 8.8%
Toyota 13.9% 16.7% 14.1% 13.5% 13.4% 13.8% 13.5% 13.5% 12.2% 12.2% 13.6% 13.7% 14.5%
Volkswagen 8.9% 9.0% 8.5% 9.1% 11.2% 10.3% 9.3% 9.6% 10.6% 7.4% 7.2% 7.3% 7.2%
Volvo 5.5% 5.8% 4.9% 9.5% 9.4% 7.8% 9.0% 8.7% 9.3% 8.0% 8.1% 8.3% 7.8%
Industry 13.3% 14.1% 13.5% 13.9% 13.7% 14.1% 13.7% 12.9% 12.4% 12.4% 13.1% 13.3% 13.5%

Wednesday, March 9, 2011

State of the Union March 9, 2011

March 9, 2011 online at www.uawlocal2250.com


From Chairman Mike Bullock: The investigation into the alarm system failure on Friday has been completed. The alarm system is currently fully operational. A test of the system was conducted three times on three different days. It functioned properly each time it was tested. Our skilled trades electricians on 2nd shift have inspected the main security console for problems. They have also inspected the amplifiers for the speaker system. An action plan has been developed in the event of a similar occurrence. Also, starting on March 16 at 10 am a plant wide test of the alarm system will occur. This test will be repeated every Wednesday at 10 am. If you don't hear the test, please notify management. A new alarm system is scheduled to be phased in over the next several months and will replace the old panels and speaker system.

From the Detroit Free Press: General Motors plans to add a second shift worth about 900 to 1,000 jobs to its Detroit-Hamtramck plant late this year, as the automaker prepares to ramp up production of its Chevrolet Volt extended-range electric car. Current plans have second-shift workers arriving for training late this year and starting production in earnest in early 2012, plant manager Teri Quigley told the Free Press Tuesday on the sidelines of an event recognizing the facility as a Michigan Clean Corporate Citizen. The timing for adding the shift could change as GM continues to weigh its Volt production schedule amid rising oil prices. GM is seeking to build more than 25,000 Volts this year, up from the original target of about 10,000, CEO Dan Akerson has said. Executives are debating a decision to produce 120,000 Volts annually starting next year, well above the current estimate of 45,000. The Detroit-Hamtramck plant, which is also slated to help the Fairfax, Kan., factory build the next-generation Chevrolet Malibu when it debuts next year, is expected to stop producing the aged Buick Lucerne and Cadillac DTS sedans this year.

From the Detroit News: A top auto analyst says General Motors Co. may resume paying dividends in 2013. Brian Johnson, an analyst at Barclays Capital, said he doesn't expect GM to pay shareholders until it fully funds its pension plans. GM said last month its U.S. plans are underfunded by $11.5 billion; it invested $6 billion in cash and stock in its pension plans last year. GM spokeswoman Noreen Pratscher declined to comment, but referred to GM's recent earnings presentation in which CEO Daniel Akerson said he expects the Detroit automaker to take "meaningful steps" toward fully funding the pensions in 2011. Separately, thousands of creditors of "old" General Motors — the part of the company that was left behind in bankruptcy — are on track to receive shares in the reborn automaker around April 1 as partial compensation. At current trading prices, creditors could receive around 35 cents on the dollar, but the final amounts won't be known for months.

From Automotive News: To break into the commercial van business in the United States, Nissan North America Inc. plans to do something it rarely does: attack Detroit head-on. That is because there is no way around it. When it comes to workhorse vans -- those large, boxy cargo vehicles favored by house painters, electricians and florists -- there are really only two players: Ford Motor Co. and General Motors Co. Ford and GM together controlled 96 percent of the U.S. full-sized commercial van segment in 2010. Daimler AG holds the remaining fragment with the Sprinter van, which has variously shown up as a Dodge, a Freightliner and now a Mercedes product. As it launches the NV this month at about one-fourth of its 1,100 U.S. retailers, Nissan says it is up for the challenge. The source of its confidence? Nissan's van is a new design, while Ford's and GM's vehicles are using older van platforms. "I will admit that I was skeptical when I heard Nissan was getting into the segment," says Harry Criswell, a third-generation Chevrolet dealer from Gaithersburg, Md., and a Nissan dealer for the past three years. "But they've done this right. They went out and heard every complaint the owners of vans had, and then they fixed them all." Criswell, whose multi-franchise Criswell Automotive sells about 470 Chevrolet Express vans a year, says he believes the NV will take away a little of that business -- "But more than likely, it will take business away from the Sprinter," he speculates. "They're both tall vans. "The Express is a good van, and people like it," Criswell adds. "But they haven't done all the creature-comfort things that Nissan has done. They just haven't faced the competition." Nissan faces another obstacle. Work-van buyers tend to be price sensitive -- especially large fleet buyers, where Nissan hopes to get 40 percent of its volume. And skimping on comfort features can save money. One automaker source who asked not to be named said he had been negotiating recently with a large parcel delivery company to buy a fleet of new commercial vans. The fleet operator allowed its drivers to choose between two feature options: automatic window controls or air conditioning.

Chrysler unveiled their “big announcement” yesterday at the NTEA commercial truck show in Indianapolis. What was it? A cargo version (which has been available for years) of their Dodge Caravan now badged as Ram. With a gutsier V6 and flat aluminum load floor, the van aims to do battle with the Ford Transit Connect. No pricing or volume information was available.

From Automotive News: A global human rights organization wants Ford Motor Co. to compensate a worker injured on the job at one of Ford's Chinese suppliers and to inspect the supplier's factory. According to a report released by the Pittsburgh-based Institute for Global Labour & Human Rights, several Chinese workers were maimed when factory managers disabled critical safety equipment at the Dongguan Yuwei Plastics and Hardware Products Co. in Dongguan, China. The report, called "Dirty Parts/Where Lost Fingers Come Cheap: Ford in China," says that 80 percent of the factory's production is for Ford. In March 2009, a worker's hand was crushed in a stamping machine, the report says. The worker, who was making parts for export to Ford, lost three fingers. The report says management instructed the worker to turn off the infrared safety monitoring system so he could work faster. It says there were at least four similar serious injuries at the company over the last several years. Injured workers often were fired later. "Ford should not be complicit in the payment of below subsistence wages and the suppression of local and internationally recognized worker rights standards," Charles Kernaghan, director of the Institute, wrote in the report.

State of the Union March 8, 2011

March 8, 2011 online at www.uawlocal2250.com

There will be a Women’s Committee meeting and a Veteran’s Committee meeting Thursday, March 10 at the Union Hall after first shift. All are invited to attend.

From Automotive News: UAW President Bob King said last week that statehouse efforts to restrict collective bargaining in Wisconsin, Ohio and Michigan have only strengthened the UAW's resolve to organize workers at the U.S. operations of foreign-owned automakers. "The good thing in all this -- I guess there's always a silver lining -- is that workers understand that we're all tied together, he said, "If we don't stand together and support one another, our middle-class standards will be destroyed." The UAW represents 246,000 public workers in seven states who could lose benefits and bargaining rights. The UAW has begun some field organizing around Toyota, Honda and other nonunion carmakers located largely in right-to-work states.

From the Associated Press: Part of a Michigan auto parts factory that was damaged by fire last week started producing again over the weekend, easing a parts shortage that had forced two auto companies to shut down some assembly lines. GM said Monday that the Cruze plant in Lordstown, Ohio, would be restarted on Tuesday, and workers at an adjoining parts stamping plant would be back Monday night. About half of the Magna plant's production restarted during the weekend, Magna spokeswoman Tracy Fuerst said Monday. Only about 25 percent of the factory space was damaged in the fire, but it burned two large holes in the roof of the building and caused structural damage. Fuerst said some of that damage had been fixed. Firefighters, who poured 1.2 million gallons of water on the plant to put out the blaze, have said its cause was accidental, starting in machinery into which foam was injected to make some of the parts. GM closed its Lordstown, Ohio, assembly plant on Friday and Monday, and at least six other GM factories were affected by the parts shortage. Officials were still assessing the impact at midday Monday.

Here is the February sales report from Marketing Manager Andrew Reyntjes:
On the Retail side we are seeing a gradual improvement in divisional and dealer involvement in the marketing and selling of full-size vans. During the recession we saw, for various reasons, many dealers exit this part of the business. As the economy is improving and as vehicles that have been held beyond the normal lifecycle are being replaced we are seeing a revival in this business. It is vital that we continue to support and encourage our entire Chevrolet and GMC dealer network with appropriate tools. We are continuing to produce new video and still assets for use in web, online, print and other various advertising initiatives. We continue to ensure that vans are included in corporate-wide incentive and sales programs and we are also being very diligent to make sure that our pricing and sales incentives are equal to or better than Ford. We have more work to do to strive to give dealers professional sales tools such as small-business Retail catalogs aimed at the retail small business customer as well as other point of sale material and continuing first-rate Business Choice and Business Central programs. We have had success in utilizing our E-Fleet inventory to inject profitable passenger models into our dealer network. Last year according to R.L Polk registrations we picked up a point of retail market share for the CY.

On the Fleet side we suspect that the massive increase in Ford share this month was due to a very large Fleet deal. Unfortunately we are unable to confirm this hypothesis due to the fact that registrations are not available due to a R.L.Polk lag time of 30-45 days. We do however keep track of the timing of Fleet deals where we were unsuccessful in winning the business. What I will say about our Fleet deals is that we are very mindful of the discounts that we offer to large commercial accounts. We are in business to make money in the Commercial space and we are not looking to buy market share at the expense of profitability. Given the fact that we have been pretty much selling everything we make, sometimes it makes sense to walk away from deals that do not make economic sense and sell to those that strengthens the profits of the new GM. We know that the big miss in GMC Fleet deliveries was due to the fact that bodies are being constructed at upfitters for a significant number of Penske and Budget Truck cutaways. As a result of this we expect strong GMC Fleet deliveries to be reported over the next couple of months.
LPG Cutaways are under development with a prototype being displayed at the NTEA show next week together with CNG cargo vans. This will appeal to businesses and school and shuttlebus customers and upfitters. We are working with industry partners to ensure a successful launch of this offering.

We are winning a good chunk of profitable diesel deals particularly in the ambulance market as we have the new emissions Duramax diesel, the most capable diesel engine in the segment. Ford does not offer a diesel. Our discussions with NHTSA continue on the safety and capability of our Passenger van. We have many competitive advantages in safety and security that have not been evaluated by NHTSA on our 15 Passenger models. Hopefully we can move the stigma of the industry-wide 15 passenger van poor safety perception to a competitive advantage for GM. Our Engineering team is working hard on this relationship and initiative. 2011 is shaping up to be a year of segment growth and we simply need to continue to fight to earn more than our fair share of it.

Monday, March 7, 2011

State of the Union March 7, 2011

March 7, 2011 online at www.uawlocal2250.com

From Chairman Mike Bullock: The UAW Safety Department is investigating the causes for the lack of an audible alarm during Friday's severe weather event. More information to follow.http://www.blogger.com/img/blank.gif

From the Detroit News: About 476 skilled trade workers at General Motors Co. have taken buyout or early retirement packages, far less than the 2,500 to 3,000 highly trained employees the automaker has said it no longer needs. The $60,000 buyout and early retirement offers went out in December to skilled trade workers at 14 plants, including eight in Michigan. Nine of the plants are closed or scheduled to shut; many of those workers have already been laid off. Workers had until March 1 to decide, said GM spokesman Chris Lee. GM didn't target a number of workers to take the buyout or retire early, and it doesn't have plans to expand the offer past the March 1 deadline, Lee said.

From Automotive News: Mazda Motor Corp. is recalling 52,000 Mazda6 vehicles from the 2009-2010 model years over concerns that spider webs in the emissions system could lead to fuel tank cracks and possible leaks. The National Highway Traffic Safety Administration said in a summary of the problem that a certain type of spider may weave a web that restricts a vent line. This could cause the emissions control system to increase pressure inside the fuel tank, leading to cracks and potential fuel leaks and an increased risk of fire.

From the Detroit Free Press: Chrysler is recalling about 250,000 vehicles to fix potential engine stalling. The company says it will recall 2010 Dodge Grand Caravan and Chrysler Town & Country minivans and 2010 Dodge Journey crossovers in the wake of reports that the ignition key could move while driving and cause the engine to shut off. Chrysler says if the engine shuts off while driving, it could increase the risk of a crash. The auto company told the government it had received 32 customer complaints and was aware of two rear-end crashes.

From WLNS News: About 1,000 workers at General Motors Grand River Assembly plant in Lansing will get an extended summer break starting in June. The six-week shutdown will allow the company to bring in equipment to produce the new small Cadillac. When work on the production line is finished, 640 jobs will be added. Production on the new Cadillac, believed to be called the ATS, starts in 2012.

From the Detroit News: Chrysler Group LLC wants to become a player in the recovering commercial van sector. The automaker will use its partnership with Fiat SpA to bring a pair of Italian commercial vans, the Ducato and the smaller Doblo, to North America next year to compete in a segment that is rebounding as businesses start spending again. The plan is to introduce the two vans under the Ram brand next year as 2013 models, said Fred Diaz, Ram president. Nissan Motor Corp. joined the fray this year with its new Nissan NV full-size van, which started production in Canton, Miss., in January. The first 12 deliveries were made in February. The commercial van segment sold more than 325,000 annually until 2007, according to data specialists WardsAuto.com in Southfield. When the bottom fell out of the economy in 2009, sales were cut in half to 168,000, as businesses put off spending on fleets and independent contractors also pulled back on spending. Sales inched back up to 218,170 in 2010 and are on pace to easily exceed 200,000 again this year. Nissan expects the segment to continue to recover to at least 285,000 annual sales by 2013 as businesses satisfy their pent-up demand, said spokesman Brian Brockman. Large vans represented 2 percent of the market for seven years prior to the recession and recovered to 1.6 percent of total sales last year, said John Sousanis, director of information content at WardsAuto.com. "I think there's room for Chrysler here, but the segment isn't going to grow a whole lot," Sousanis said. "Nonetheless, Dodge/Ram has traditionally been a key player in this segment," he said. "The audience for these vehicles overlaps considerably with the truck segment, so they shouldn't have much trouble staking claim to a respectable share of the segment once they get back in." Diaz said he doesn't know which of the two Fiat vans will be launched first. Chrysler is working on modifications necessary to meet North American consumer needs and regulatory requirements. The vehicles will be imported, but Chrysler will look at assembly here if demand grows enough to make a business case.

Tuesday, March 1, 2011

State of the Union March 1, 2011

March 1, 2011 online at www.uawlocal2250.com

From Chairman Mike Bullock: After auditors reviewed General Motor’s 2010 financial results, the maximum profit share payout will be $4790. You must have 1850 or more compensated hours for the maximum payout. To determine what your profit share payment will be if you had fewer hours, you need to multiply the number of compensated hours by $2.58919. Payout will be on the March 25 paycheck. Also, the bargaining committee members want you to know that there are many openings for vacation time in March.

From President Dan Howell: For anyone who is interested in becoming a chairperson or co-chairperson for a standing committee, I am accepting resumes. You can turn them in at the Union Hall.

Consumer Reports released their annual automotive rankings yesterday. To no one’s surprise here, the list of top vehicles in 10 categories is littered with Japanese/Asian brands. The Chevrolet Avalanche did manage to capture the full-size pickup category. Despite record recall numbers, Toyota still had the most winners – three. CR rated GM second from the bottom on its manufacturer scorecard and recommended 46% of its vehicles (by comparison, 76% of Honda’s vehicles are recommended). And just to add insult to injury, CR slammed the Chevy Volt despite its near universal praise from every other automotive publication. Lead tester (and former Nissan engineer) David Champion tested the Volt for range and came up with 26 miles pure electric – driving in the coldest winter weather of the season in Connecticut! Strangely, CR has not yet tested the Nissan Leaf, presumably waiting for ideal weather for testing conditions. GM has said that extreme temperatures can degrade electric range and Champion acknowledged that the car may perform better in temperate climates and in more city-like conditions. Said GM spokesman Greg Martin, "The technical reviews have been positive and it was unusual to have a snapshot under the most cold and snowy conditions this winter in the Northeast." The magazine has put about 2,500 miles on its Volt. It paid $48,700, including a $5,000 markup by a Chevy dealer. As a result, Champion can claim that the Volt is twice as expensive as CR’s green darling, the Toyota Prius. (they get gigged for a 5 grand markup and they’re giving car buying advice to the public?)

Retail Sales Propel General Motors to 49 Percent Gain in February

General Motors total sales in the United States rose 49 percent in February, as dealers reported 207,028 deliveries for the company’s four brands. For the second month in a row, the gain in total sales was driven by soaring retail demand for the company’s products. During the month, retail sales rose 70 percent – the highest year-over-year gain in the company’s history.
For the first two months of the year, GM’s total sales have risen 36 percent, while the company’s retail sales – those to individual consumers – have increased by 52 percent.

Retail sales of GM’s cars, trucks and crossovers all rose at least 59 percent or more during the month, up 76 percent, 74 percent and 59 percent, respectively.
“Our plan was to get off to a quick start this year, and we did just that,” said Don Johnson, vice president, U.S. Sales Operations. “Having the right vehicles in inventory, combined with aggressive advertising and targeted consumer marketing has been the key to our success in the first two months this year.”

Brand Key Facts:

Chevrolet:Chevrolet dealers delivered 142,919 total vehicles in February, a 43-percent increase versus last year. Retail sales for Chevrolet rose 69 percent and were propelled by improving Cruze sales, which were 212 percent higher than the compact car it replaces. Silverado retail sales rose 84 percent, while Equinox posted its best February ever, with retail sales almost doubling, up 98 percent.

Buick: Buick reported 15,807 total sales, a 73-percent increase compared to February 2010. This includes a 90-percent surge in year-over-year retail sales, led by Regal (3,541units), Enclave and LaCrosse, which had retail sales 45 and 28 percent higher than last year, respectively. This marks the 17th consecutive month of year-over-year sales gains for the brand.

GMC: GMC reported total sales of 32,534, a 59-percent increase compared to the same month last year. This marks the 17th consecutive month of year-over-year sales increases. Retail sales were 61 percent higher than last year, spurred by Sierra, Terrain, Yukon and Acadia – up 87 percent, 76 percent, 63 percent and 25 percent, respectively.

Cadillac:Cadillac reported total sales of 15,768 for February – 70 percent higher than last February, with retail sales increasing 83 percent. February was the 13th consecutive month of year-over-year total and retail sales gains. CTS retail sales rose 159 percent, driven by strong demand for the all-new CTS Coupe and Sedan. SRX retail sales were up 62 percent compared to a year ago, and the Escalade family saw retail sale rise 27 percent versus February last year.
Fleet sales for GM’s four brands were 43,900 for the month, a 2-percent increase for the month, with sales to rental fleets down 5 percent during the same period. Sales to commercial customers rose 19 percent for the month, the 11th consecutive month of commercial fleet sales gains. Fleet accounted for 21 percent of GM total sales during the month.

Van sales were 4692 for the month, up 1.6% over last year. More to come tomorrow.