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.