State of the Union April 18, 2011

April 18, 2011 online at www.uawlocal2250.com

From Chairman Mike Bullock: Welcome back to the four members who were recalled today. One member – Dawn Loeffler – has yet to be contacted.

Union Meeting is this Wednesday, April 20 at 1 pm, 3 pm and 15 minutes after the longest first shift line time.

Earthquake update: As inventories of Japanese products continue to dry up, Toyota Motor Corp. and Nissan Motor Co. have warned U.S. dealers: Full deliveries from Japan likely won't arrive until July at the earliest, and perhaps as late as September, according to Automotive News. Parts shortages have forced Toyota and Nissan to prepare scenarios in which full production in Japan wouldn't begin until at least 30 to 90 days after the country's upcoming holiday break, said people who have been briefed on the situation. In the best scenario, both automakers will begin full production a month after Japan's Golden Week holiday ending May 9. But Nissan and Toyota have told dealers that if the automakers can't find alternatives for parts, they might not start full production until 90 days after Golden Week. Nissan North America told dealers it is scheduled to receive only 7,500 units in May from Japan and Mexico, down from 40,000 in March. "We're going to get basically nothing," said Bob Page, owner of Page Toyota in Southfield, Mich. "Whatever inventory we have, let's say it carries us 60 days. We'll be pretty much out of product at the end of May." Jay Biggerstaff, general manager at Crown Honda in Pinellas Park, Fla., says vehicle carriers that usually bring 30 units at a time to his dealership now deliver about 10. Since the earthquake in Japan, used-vehicle prices have become so volatile that price experts are scrambling to keep up. Prices rose so quickly in March that NADA Used Car Guide, for the first time, had to update its monthly print guide with an electronic advisory. Its April print guide was completed in early March, before the March 11 quake. NADA Used Car Guide predicts that with incentives scheduled to expire and some automakers announcing sticker-price increases, average transaction prices on new compact cars such as the Honda Civic, Toyota Corolla and Ford Focus will climb about $850 by the end of June. That in turn will add at least $650 to the price of a typical three-year-old compact by July 1.