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.

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