Thursday, July 28, 2011

State of the Union July 28, 2011

July 28, 2011 online at www.uawlocal2250.com

National contract negotiations between the UAW and GM officiallhttp://www.blogger.com/img/blank.gify kicked off yesterday. Here is a joint press release from the National Parties: The UAW and General Motors opened 2011 contract talks Wednesday together on the factory floor at the Detroit-Hamtramck assembly plant, replacing the traditional formal handshake with a crowd of plant workers and the GM cars they build. "We want the new GM to succeed and when it does, everyone will benefit,” said Chairman and CEO Dan Akerson. “We are playing to win, and we’re counting on our work force -- hourly and salaried -- to take on the challenges together and forge new partnerships as a competitive advantage." UAW President Bob King noted the importance of focusing on products. “Our members bring a lot to any organization – a commitment to quality and producing the best product for the best price,” King said. “Our talks will center on the needs of our members and the need to continue to build great products.” A joint donation of $25,000 to the Wounded Warrior Project extended the ceremonial start of talks. UAW Vice President Joe Ashton, who directs the union's GM Department, and Cathy Clegg, GM vice president of Labor Relations, announced the contribution and recognized other charitable partnerships the UAW-GM team has with non-profit organizations across the country. GM also announced a commitment to increase the number of veterans in the work force as the company prepares for hiring new employees. Military service will be among factors considered in the screening process. On May 10, GM announced $2 billion of investment at 17 plants in eight states, creating or retaining about 4,000 jobs over the next 18 months. “Our work force is dedicated to producing great cars, trucks and crossovers every day,” Clegg said. “We’ll be working with our UAW partners to ensure our team continues to have the tools they need to build quality products and share in the success of the new GM.” Ashton commented on the energy across the UAW and GM team. “GM’s positive momentum has been outstanding,” Ashton said. “I was there when GM started trading again on the New York Stock Exchange and I have participated in many U.S manufacturing announcements. Our membership plays a critical role in the success of this company and I’m proud to represent this work force.”

With the opening of negotiations, many news outlets are reporting on the topic. Here are some of the quotes and comments offered up:

From the Detroit Free Press - “We certainly wish the UAW success in their (organizing) efforts,” Clegg said. “We’ve enjoyed a good partnership and a good relationship and it is going to be a key ingredient to making our company successful for the long term.” UAW Vice President Joe Ashton said the union will ask for cost-of-living increases to be reinstated. “We cannot be successful if we are not competitive,” Akerson said. “The world is quite brutal. It does not tolerate weakness.” However, Akerson said he doesn't expect health care to be a major issue in this year's contract talks. "We have the same challenges and the same opportunities as any company our size," Akerson said of health care for hourly workers. "I would say that is not a major issue in my mind."

From Automotive News: Appearing with GM CEO Dan Akerson, King said these collaborative contract talks with the Detroit 3 will prove that management and the union can work together to improve productivity, quality and competitiveness at transplant operations. "Those managements are going to understand that when they work together with their work forces -- when they treat them with respect and give them fair contracts and a middle-class standard of living -- that's the best way to be the most competitive country in the world," King said. During the ceremony, Akerson said GM now has competitive labor costs. He said he hoped that after negotiations that still would be true.

From Wards Auto: United Auto Workers union chief Bob King says a seat for labor on the board of directors at General Motors will be a key proposal during labor talks with the auto maker. “That is definitely one of our proposals – we think corporate governance is important. Nobody has a stronger long-term interest in the success of a company than the hourly workforce, and really the salary workforce, in the plant,” King said.

From the Detroit News: "We have a sacred obligation, all of us, to deliver on the promise and the helping hand the American public extended to this company," said GM's CEO Dan Akerson, an auto industry newcomer, leading the company through his first round of labor talks. Union and GM officials acknowledged a complicated set of talks ahead, but say it is crucial to forge a contract that keeps them competitive with their nonunion foreign rivals in the South. "I'm sure we won't agree on everything, but I'm sure we can find common ground that will sustain this company for years to come," Akerson said. UAW President Bob King reiterated his pledge to organize the transplant factories, which generally have lower labor costs, and level the competitive playing field for Detroit's Big Three. He cautioned his members that one of the union's most important tools in this organizing effort is to show cooperation. "We're proving that labor and management and government and community can work together," he said.

From Automotive News: Hyundai Motor Co.(which includes Kia) had a 37 percent gain in second-quarter profit as the company increased production to fill the void left by disruptions at Japanese rivals. Net income was 2.3 trillion won ($2.2 billion) in the three months ended June 30, compared with 1.68 trillion won a year earlier, the Seoul-based company said in an e-mailed statement today. Second-quarter sales volume rose 13 percent to 1.04 million units, according to the company's statement. Domestic sales gained 16 percent, and overseas sales rose 12 percent.

From Wards Auto: Negotiations between Kia and its workers union are in limbo after union members rejected a tentative wage agreement reached last week. And bargainers are making no progress in wage talks at sister company Hyundai. Securities analysts in Korea thought the Kia deal, which included record-high bonuses, was extremely generous. But only 47% of voting union members approved it. The pact included record-high bonuses of 7 million won ($6,666) per worker and 80 shares of Kia stock, valued at close to 6.8 million won $6,000). Analysts believe unionists are hoping management will put in an additional sweetener bonus, as has happened in the past when a preliminary wage agreement is rejected. Meanwhile, negotiations between Hyundai and its union broke off in acrimony when dissatisfied union bargainers abruptly ended the session.

From the Wall Street Journal: Volkswagen AG's net profit more than tripled in the second quarter as surging demand for its cars and trucks, particularly in emerging markets, kept the company on track for record sales in 2011. Europe's largest auto maker by sales said net profit in the second quarter rose to €4.67 billion ($6.71 billion) from €1.25 billion in the same period a year earlier, while revenue climbed to €40.3 billion from €33.2 billion. Volkswagen Chief Executive Martin Winterkorn told reporters earlier this month the company could sell eight million vehicles this year. In 2010, Volkswagen sold a record 7.14 million cars and trucks.

Thursday, July 21, 2011

State of the Union July 21, 2011

July 21, 2011 online at www.uawlocal2250.com

From Chairman Mike Bullock: This is a reminder to those who have returned to work in the last 30 days - if you were in a different department when you were laid off in August 2009, you can file a return to former group to that department. Applications are available in personnel. Also, all seniority members have been recalled. There are 27 entry-level workers who have gone time-for-time that have recall rights to permanent positions. There are 25 members who are eligible to return to Wentzville from Fairfax and Ft. Wayne to permanent openings. Regarding the referrals, there were 754 total, and all will be tested, which has already begun. There has been NO official announcement of the return of the second shift, but positive talks are ongoing.

Model change is scheduled for August 16 and there will be 97,107 model year 2011vans produced.

Reminder: You have until 4 pm, July 29 to opt out of the automatic enrollment in the PSP program. You can do so by accessing gmbenefits.com or contacting the GM Benefits & Services Center at 1-800-489-4646. The first payroll deduction into the PSP (3%) will occur on August 5, 2011. Employees who are automatically enrolled in the PSP and do not have an election on record for their investment option will have their contributions invested into the Pyramis Active Lifecycle Comingled Pool with a target retirement date closest to the year that the employee will attain age 65.

Chevrolet sold 2.35 million vehicles globally in the first six months of 2011, the best half-year performance in Chevrolet’s 100-year history. Chevrolet sold 286,499 more vehicles in the first half of 2011 than the same time period of 2010, a 14-percent increase year over year. In addition, Chevrolet set record first-half sales in many countries, including Argentina, Brazil, Chile, China, Colombia, Denmark, Ecuador, France, South Africa, and Turkey. Chevrolet sold more than 330,000 Cruzes worldwide during the first half of 2011, a 132-percent increase over the same time period a year ago. Much of that growth came in China and the United States, where Cruze was the best-selling passenger car in the country in June. Since introduction in early 2009, Cruze has sold more than 800,000 units worldwide and is on track to exceed 1 million before the end of 2012.

From Automotive News: The auto industry is pressing the Obama administration for a promise to reevaluate rules that may more than double U.S. fuel economy standards by 2025 before they become final. The White House agrees that a review during the transition period is needed, said Ellen Gleberman, a vice president of trade group Global Automakers who has participated in talks between the government and industry on the proposed rule, which will set new mileage standards starting in 2017. The administration in June floated a fuel-economy target of 56.2 miles per gallon by 2025, up from 27.3 mpg now. Still under negotiation are details of the midpoint review, including the timing, whether there will be a judicial review and whether the Environmental Protection Agency, the Transportation Department and California’s Air Resources Board will coordinate efforts, Gleberman said. Lobbyists for General Motors Co., Ford Motor Co. and Chrysler Group have pushed for relaxed standards on pickup trucks. That could come by assigning a lower mileage standard for pickups with higher carbon emissions or by making a special exemption just for those trucks, three people said. The auto industry is not allied on the truck issue, they said. Domestic carmakers would be more willing to agree to larger fuel economy increases for passenger cars in exchange for lower increases on trucks, the people said. That concerns some foreign carmakers who don’t sell pickups or get much greater sales from cars, they said. Automakers are also seeking credits for more efficient air conditioning systems, for zero-emission electric cars and for flexible fuel vehicles that can run on ethanol, said Dan Becker of the Safe Climate Campaign.

From Edmunds: The 35 mpg corporate average fuel economy (CAFE) standard required by for the 2016 model year doesn't equate to 35 miles per gallon in real world fuel efficiency. In fact, an analysis by Edmunds' chief test engineer shows that a car -- or truck -- would need only to achieve 26 miles per gallon combined highway and city mileage in the new Environmental Protection Agency fuel economy tests to turn in the equivalent of a 35 mpg CAFE rating. "The two numbers are so far apart that consumers and politicians are speaking different languages when they talk about fuel economy," says Dan Edmunds, director of vehicle testing at Edmunds.com. "The number on the window sticker can't be compared to the CAFE number without two levels of back-calculation that few people can follow." The disconnect occurs because the formula for figuring CAFE mileage hasn't been changed since it was first drafted in 1975. Meantime, the EPA's fuel economy labeling protocols – which started out the same as the CAFE calculations -- have been updated several times as consumers complained that the window sticker didn't accurately predict real-world mileage. Changing the EPA tests kept consumers happy, but applying the same changes to CAFE would have been a de facto boost that would have made the auto industry very unhappy. To avoid a political brouhaha, CAFE was left unaltered. Therefore, a CAFE standard of 56.2 mpg actually roughly translates to an EPA rating of 41 mpg. Even without increasing CAFE standards, car companies have increased their fuel-economy performance. Although CAFE standards for passenger cars stayed the same from 1990 to 2010 at 27.5mpg, actual CAFE performance went from 28.0 mpg to 33.7 mpg in that same period.

Wednesday, July 20, 2011

State of the Union July 20, 2011

July 20, 2011 online at www.uawlocal2250.com

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

From Reuters: The United Auto Workers is talking with "a lot of" foreign automakers about representing their U.S. plants' hourly workers and could see a dealby year-end, top union officials said. UAW President Bob King has staked his reputation and the union's future growth on winning votes to represent workers at foreign auto plants, which are predominately in the southeastern United States. He declined to say how many or with which companies the union is negotiating. "To our pleasant surprise a lot of companies have agreed to confidential discussions with us. What they'll lead to, I don't know," King said in a telephone interview on Tuesday."Some days I'm worried, some days I'm frustrated. Are we putting too much hope into these discussions? I don't know, but we're continuing them and we feel like we're making some progress," he added. The UAW has been actively trying to organize workers at Volkswagen's new Chattanooga, Tennessee plant but the comments by King were the first indication that the UAW has managed to open talks with a several foreign auto companies, which are called "transplants" in industry parlance. While not identifying any of the companies, UAW secretary-treasurer Dennis Williams said this week the union was making "great inroads" in its organizing efforts. "You're going to see before the end of the year a campaign or a plant being organized," he said. On Tuesday, King said the UAW's willingness to cut deals with the U.S. automakers and to work to ensure their success had caught the attention of the foreign companies. "All of these companies have been surprised and impressed by the role we played in the turnaround of the American companies, about the ongoing relationship with the American companies, about the culture we're building of creative problem solving and really a joint approach," he said. Scoring that first deal might break the logjam for the union, King added. "We definitely feel that if we can get one done ... that will open the door wider in the other locations," he said. "All these companies recognize unions in their home countries and we don't want Americans to be second-class citizens." While King said he understood why the foreign automakers resisted the UAW's efforts in the past, he is more focused on the present. "We're saying to them, 'Why would you spend millions and millions of dollars to try and keep a union out when that union can add value,’” he said. The improvements in vehicle quality and corporate profitability by the U.S. automakers only helps the UAW's arguments, King said. "I was down organizing in the South when we didn't have the best quality or we didn't have the best product," he said of the union-represented Detroit automakers. "It's a lot more fun when we can talk to workers and say, 'Look at what UAW members are doing.'"

From the Detroit Free Press: UAW President Bob King is preparing to enter negotiations with GM, Ford and Chrysler next week with a clear bargaining position: No new concessions. King said he understands domestic automakers' need to maintain competitive labor costs. Still, UAW members have made sacrifices in recent years, King said, and the union plans to resist any effort to raise members' health care contributions or cut wages and benefits. "I've said a number of times, there is no justification for any further concessions in this round of bargaining," King said. Under the 2009 deal brokered with the Obama administration's automotive task force, the union agreed to keep GM's and Chrysler's labor costs competitive with U.S. plants operated by Asian automakers. The UAW also agreed not to strike Chrysler or GM through 2015. In return for keeping labor costs competitive, King said it is reasonable for the union to ask for a higher wage for entry-level workers as they replace older workers who retire. He also wants permanent seats on the companies' boards of directors, no increased contributions to health care insurance and tweaks to a profit-sharing formula so workers share more in each company's financial success. "It doesn't do our members any good if we raise fixed costs, and that means our vehicles cost more and we lose market share and then job security is in jeopardy again," King said. Still, King said the UAW wants higher wages for entry-level workers. It is a very legitimate goal that everybody working in the auto industry should be at a middle-class standard of living," King said. "Entry-level, for a family of four, is barely there." King also downplayed concerns that UAW leadership is not in tune with members who are expecting to win back concessions such as annual cost-of-living increases. "Of course people would like to see raises and increases in wages," King said. "But more than that, they want long-term security."

Tuesday, July 19, 2011

State of the Union July 19, 2011

July 19, 2011 online at www.uawlocal2250.comhttp://www.blogger.com/img/blank.gif

Union meeting is Wednesday at 7 am, 1 pm, 3 pm and 15 minutes after the longest first shift line time. Also, the activities that Chrysler workers were allegedly engaged in at lunch time (and one worker before the second shift) were drinking and smoking. From a Chrysler press release: “From the Fox 2 story on Chrysler Group’s Trenton Engine Plant, the Company was able to identify http://www.blogger.com/img/blank.gifnine employees captured on video. To date, all nine employees have been suspended indefinitely without pay pending further investigation. While the evidence seems conclusive, the Company needs to act in accordance with corporate policy and the terms of the collective bargaining agreement before further action is taken. The investigation is ongoing.” You can go to www.myfoxdetroit.com for the story and video.

As expected, General Motors announced yesterday they will invest $328 million to prepare its plant in Flint, Mich. to build the next generation of Chevrolet and GMC full-size pickup trucks, creating or retaining 150 jobs. The plant, which currently has 2,047 employees, builds the heavy-duty versions of the Chevrolet Silverado and GMC Sierra. Sales of the new-for-2011 trucks have increased HD market share 2.4 points to 36 percent. GM’s retail share of the full-size pickup market has grown to 40.4 percent through May compared with 37.7 percent in the first five months of 2010. “Truck sales play an important role in the success of General Motors,” said Joe Ashton, UAW-GM Vice President. “We are confident that the next-generation of trucks will continue to be an important source of revenue for the company and jobs for our members. Our members are ready to use their abundant talents to build high-quality trucks that deliver exceptional value to our customers.”

From the Detroit Free Press: The UAW, along with a coalition of labor unions and environmental groups, wrote to President Barack Obama on Monday throwing their support behind "strong" fuel economy targets for U.S. vehicles. "We have an opportunity to help save consumers money at the gas pump, create new American jobs, and strengthen the economy by setting strong fuel efficiency and greenhouse gas standards," said the coalition, known as the BlueGreen Alliance, in its joint letter. UAW President Bob King told the Free Press on Monday that the union has been careful to avoid supporting a particular number, but that it supports proposals that include different standards for trucksthan for cars. "We support better environmental standards, and we support more jobs in America -- not less. We want standards that do stretch the industry but are feasible," King told the Free Press. "We are going to get hurt competitively if we don't match the environmental standards that the competition is building."

From Wards Auto: United Auto Workers Vice President Joe Ashton, who leads the union into negotiations with General Motors later this month, says he wants the auto maker to return more production to the U.S. from Mexico. “When we sit down at the bargaining table, we look at them bringing work back to this country,” Ashton tells journalists after an event to announce GM’s $328 million investment in an assembly plant here for 2013 production of next-generation of pickups and SUVs. The UAW has been “crunching numbers for the last year” to make a business case for its argument, he adds. The Flint assembly plant, which builds heavy-duty versions of the Chevy Silverado and GMC Sierra pickups, already will take some production from Mexico later this year when the site adds a third shift to meet demand GM’s Mexican operations cannot fill. Cathy Clegg, GM vice president-labor relations, says moving production back to the U.S. is a popular topic in discussions with the UAW. “We talk about that,” says Clegg, also on hand for the announcement. “We talk about our products, our facilities, all of the time.” Neither side elaborates on specific products. GM operates three assembly plants in Mexico – Silao, Ramos Arizpe and San Luis Potosi. Silao makes large pickups and SUVs; Ramos Arizpe produces the Chevrolet HHR, which is in its final year of production, as well as the Cadillac SRX, Saab 9-4X, Chevrolet Captiva and Chevrolet Chevy; while San Luis Potosi builds the Chevy Aveo B-car. GM has two shuttered assembly plants in the U.S. – Janesville, WI, and Spring Hill, TN, – the UAW would like to see back up and running. A third facility at Shreveport, LA, was lumped into a batch of assets slated for liquidation during GM’s 2009 bankruptcy, and the UAW wants GM to take it back. It currently builds small pickups, but has no product scheduled after 2012. Clegg says market demand will determine product allocation. “First off, we need to see some pretty healthy market recovery before we start turning factories back on,” she says. Until then, she says, GM will rely on capacity currently on line. The auto maker’s assembly plants in the U.S. operated at 66% of capacity through the first six months of 2011, according to Ward’sdata. “We certainly are not going to make a decision and make a (product) commitment solely as a way of getting an agreement,” Clegg adds. “If the market doesn’t drive it, we can’t do it. We can’t put the business in that position. We’ve got to be careful.” Ashton reiterates his call earlier this year that talks will focus on winning jobs. “The vast majority of members want jobs. And they want job security,” he says. “They never want to go through what we had to go through in 2009, when they faced bankruptcy and plant closings. There are other things out there, pensions (and) money, but all that goes to the wayside if you do not have a job.” Ashton says he expects a “tough set” of negotiations with GM made doubly difficult by a no-strike clause at the auto maker as part of the taxpayer bailout. “It makes it more difficult,” he says. “But at the same time it’s part of what the government decided on and we’ll work through it.” Says Clegg: “I’m optimistic. We’ve got great problem-solvers on both sides. We know we have to find a way to make GM successful. We’re in a totally different situation, everyone knows that.” Clegg said GM wanted employees to "share in our success." But she also said: "Reconstructing what we were is not in the cards."

Monday, July 18, 2011

State of the Union July 18, 2011

July 18, 2011 online at www.uawlocal2250.com

From Chairman Mike Bullock: Once again, Chrysler workers were allegedly caught “misbehaving” at lunch time by a Fox news crew in the Detroit area – and we all know how Fox News feels about us. The previous incident cost 13 workers their jobs and there could be terminations from this incident as well. Under no circumstances is this alleged behavior condoned by the UAW as it creates unsafe working conditions as well as affecting the quality of the product. Please don’t tarnish our reputation as the best manufacturing workforce in the world.

Union meeting is this Wednesday, July 20 at 7 am, 1pm, 3 pm and 15 minutes after the longest first shift line time.

Here is this week’s build information: 370 slider doors; 114 E-26 models; 80 r/h door deletes; 169 diesels; 264 exports; 106 Onstar; 72 brake deck spare tire; 83.2% white vans; 72 YF7 vans; twelve 15-pass vans.

Lot 4 is closed this week for resealing. All sidewalk and parking lot work is scheduled to be completed this week.

From the Detroit Free Press: Ford could hire more than 400 entry-level workers to in source the assembly of auto parts at a former assembly plant in Wayne to support Focus production at Michigan Assembly Plant, said Bill Johnson, plant chairman for UAW Local 900. “It is rather groundbreaking,” Johnson said. “We opened the door with that entry-level wage, and I hope we can put 400 to 600 workers in that plant.” Ford would not confirm the number of potential jobs that might be created. However, Ford’s commitment to insource — excluding the number of potential jobs — is outlined in a March 1 letter obtained by the Free Press. It’s part of a local labor contract the automaker reached with UAW Local 900 late last year. The work could include the assembly of instrument panels, seats, stampings, sub-assemblies, and parts packaging and sequencing, according to the letter. Ford agreed to add the jobs, the letter says, “if it is established that certain work can be performed competitively.” The agreement also will help to fill Ford’s Wayne Assembly Plant, Johnson said. Wayne Assembly was left without a product earlier this year when more than 3,000 workers moved next door to make the redesigned Ford Focusat the renovated Michigan Assembly Plant.

From the Detroit News: United Auto Workers President Bob King says the upcoming contract talks between his union and Detroit's Big Three can serve as a model of cooperation and compromise for a nation riven by partisan strife. In a wide-ranging interview with The Detroit News on Friday, King said the UAW and the American automakers demonstrated in 2007 and 2009 that they could come together to save a dying industry. Now, he said, the companies need to share their newfound profits with their workers. But King also said the UAW cannot afford to turn back the clock and make General Motors Co., FordMotor Co. and Chrysler Group LLC uncompetitive. Instead, King says workers need to trade wage increases for profit sharing. That would keep the automakers more competitive with the foreign automakers, and insulate them from future market declines. "Do they want base wage increases? Of course," he said of his members. "Anybody does. But that isn't the most important priority. "The single most important thing to our membership is long-term security. People don't want a guillotine hanging over their head. They don't want to have to worry about whether they have a job tomorrow or not, or if their pension is secure, or if their health care is secure." King believes the best way to guarantee (jobs) is by thinking globally. "We're committed to building a global middle class. We want to export that," King said. "But all of my efforts internationally are aimed at protecting jobs here. It's really pragmatic. It stops the race to the bottom." That approach makes sense, says labor expert Harley Shaiken of the University of California, Berkeley. With well below half of all cars and truckssold in America produced by UAW members, he said the only way the union can protect its members from further job loss is by working with its counterparts overseas to raise the standard of living of their members. But Shaiken said King runs the risk of getting out too far ahead of his members on this issue and the issue of wages. But King is confident he can deliver a contract that rewards workers while protecting the companies from any significant additional fixed costs. He says the past few years have taught union members just how dependent their jobs are on the automakers' success. And King said the success GM, Ford and Chrysler now enjoy is relative. All three companies still face stiff competition from foreign competitors — including new entrants from China and India. The economy also remains weak, with auto sales in the United States and Europe well below historic highs. "I think our members are really smart. They understand that," King said. "The hell that we went through over the past few years — nobody wants to see that repeated." King would (also) like to see the UAW given a seat on the boards of all three companies. The union-run trusts that are responsible for retiree health care have seats on GM and Chrysler's boards. But King is talking about direct representation for the UAW itself. German unions enjoy that privilege, and he thinks American unions should, too. "I have a strong optimism based on the excellent leadership we have at all three companies," King said. "All of this polarization that's happening in Washington is crazy. We've got to work together."

Thursday, July 14, 2011

State of the Union July 14, 2011

July 14, 2011 online at www.uawlocal2250.com

Reminder: There are meetings of the Women’s, Veterans, Union Label and Education committees today after first shhttp://www.blogger.com/img/blank.gifift at the Union Hall.

If you happen to spend time with an individual who is a GM retiree, please encourage that person to sign up on www.GMRetiree.com. This is the official company website developed for all U.S. retirees. It features:
o Benefit information
o Company news
o Retiree features
o Pictures and videos
o Hot GM topics
o “Marketplace” discounts
o Clickable links to other relevant pages like Family First
o A personalized GM events calendar

From Automotive News: With high gasoline prices this spring, small cars won more market share. But does that mean that the average transaction price of U.S. vehicles is suffering? No. According to the Power Information Network, the average transaction price June 1-26 was $28,307, up $862 from June 2010. The price includes all consumer incentives. Another data miner, TrueCar.com, put the average transaction price for light vehicles in the United States in June at $30,009, up $845 from June 2010. In June, small cars accounted for 15.6 percent of the U.S. market, up from 13.2 percent in June 2010, according to the Automotive News Data Center.

From the AP: Chrysler is recalling nearly 250,000 Ram pickups because a bad part in the steering system can cause drivers to lose control of the truck. The Ram is Chrysler’s top-selling vehicle. The recall covers 242,780 Ram 1500, 2500 and 3500 pickups from the 2008 to 2011 model years. The National Highway Traffic Safety Administration said today on its Web site that a part near the left front wheel can fracture, and potentially cause crashes. The problem happens mainly at low speeds when drivers are making tight turns. Chrysler says drivers have reported a few minor crashes and one minor injury. Affected models include 2008-2011 Ram 2500 and 3500 four-wheel-drive pickups and 2008-2011 Ram 3500 two-wheel-drive chassis cabs made from Feb. 14, 2008 through March 28, 2011. Also affected is 2008 Ram 1500 mega cab four-wheel-drive models made from Feb. 14, 2008 through Aug. 15, 2008.

From the Detroit Free Press: General Motors intends to announce on Monday $400 million worth of updates for its Flint pickup assembly plant, two people familiar with the planning said, as the automaker prepares to introduce its next-generation Silverado and Sierra pickups, expected in 2013. Some of the factory updates are already in process. For instance, the plant's shutdown during the first two weeks of July allowed some of the work to be done, the people said. Still, the plant will likely close for about eight weeks next year to prepare to build the new trucks. GM has already decided to add a third shift worth about 750 jobs to the Flint factory this year, with the positions going to transfers and laid-off workers. Monday's announcement won't include new jobs, the people said. GM spokeswoman Kim Carpenter declined to comment. The Flint factory is still waiting for GM to green-light a plan to spend $417 million to build a new paint shop for the truck plant by June 2015, which would allow the factory to become more productive and could require the plant to add a few more workers. The Michigan Economic Growth Authority last month approved state tax credits for that proposal.

From the Wall Street Journal: Unionized workers at GM Korea Co., the South Korean unit of General Motors Co., Thursday voted to accept the terms of a wage deal for the year, a little over a week after they went on partial strikes, seeking higher wages and performance-based bonuses. The pact now leaves just two more of the country's top car makers to seal the annual wage deal. Hyundai Motor Co. and Kia Motors Corp., which together form the world's fifth-largest car maker by sales, are still in talks with their unions. Of the five car makers in South Korea, GM Korea is the second company to seal the annual wage deal following SsangYong Motor Co., which inked a 2011 wage deal in May. Union spokesman Chung Hae-chul told Dow Jones Newswires that "55.9% of union members who cast a vote from Wednesday to Thursday stood for the terms." A total 10,045 workers took part in the vote out of the 10,164-strong union, the company said in a statement. Under this year's contract, GM Korea's unionized workers will get a 78,828 won ($75) increase in their basic monthly salary and 3 million won ($2850) in one-off bonuses per employee, as well as 4 million won ($3800) in performance-based pay for the year 2010, the company said. The union had asked for a 150,611 won rise in the basic monthly salary and 30% of the company's 586 billion won net profit last year in profit sharing. The company had offered a 68,828 won rise in basic wages and 2.2 million won per employee in one-time bonuses. GM Korea spokesman Kim Sang-won said: "The company will closely cooperate with the union to help achieve this year's target of a double-digit market share in South Korea." Meanwhile, the two unions at Hyundai Motor and Kia Motors have separately demanded an increase of 150,611 won ($145) in monthly basic salary and performance-based pay equivalent to 30% of full-year net profit for 2010.

State of the Union July 13, 2011

July 13, 2011 online at www.uawlocal2250.com

There are three members up for recall that personnel has not been able to contact. If you know any of these people tell them to call 636-327-2302 as soon as possible. They are David King, Jennifer Tracy, and Rashad Boone.http://www.blogger.com/img/blank.gif

Last Friday we were informed that the schedule for the remainder of the model year would be 10 hours or 441 units per day, as reported here. Unfortunately, since then the 11 hour days have continued. As with the previous schedule of 10.3 or 469 units per day, the daily production number has not been attained in the scheduled line time, resulting in extra overtime. (With a K-line conveyor speed of 51.7 jobs per hour, 441 vans could be built in about 9.7 hours if the line never stopped)

GeneralMotors Powertrain plants in Ohio and Indiana that make transmissions for Buick and Chevrolet models with eAssist fuel-saving technology will get the bulk of a $129 million investment GM announced Tuesday. Toledo, which earlier was targeted for a $204 investment, will get an additional $83 million for enhancements to a six-speed transmission already produced in the plant that will be used in the Buick Lacrosse beginning this fall and the 2013 Chevrolet Malibu debuting early next year. The new money will support addition or retention of 30 jobs at the plant that employs about 1,600. Bedford, which earlier was named for a $49 million investment, is receiving $32 million for enhancements to the die-cast case and torque converter on the six-speed transmission assembled in Toledo. Bedford’s employment of 405 is unchanged by the new investment. Separately, an investment of $15 million to $20 million is planned that will retain 60 jobs at the GM Components Holding plant in Wyoming, Mich. The investment will support various powertrain projects. “Cars that get exceptional gas mileage are selling well in the United States,” added Joe Ashton, vice president of the UAW, GM Department. “Today’s announcement provides an opportunity for our members to build the next generation of vehicles that will offer our customers improved fuel economy. We are proud of the broad array of high mileage, low emission vehicles that UAW members build for GM.”

From WardsAuto: GM Korea’s tentative labor agreement, reached Tuesday and still subject to worker ratification, calls for a basic salary increase of 78,828 won ($75) per month, a 4 million won ($3,800) performance bonus and a 1-time special bonus of 2.5 million won ($2,400), a company spokesman tells Ward’s.“The company also will pay workers a 0.5 million won ($469) lump sum at the end of the year, when quality targets have been met,” he says. “The bonuses proposed by management total 7 million won ($6,565).” The labor agreement is subject to ratification votes at all GM Korea plant locations on Wednesday and Thursday.

From Automotive News: The 750 hourly auto workers assembling Ford Motor Co.'s small pickup truck at a Minnesota plant scheduled to close by year end are hoping for a miracle in the upcoming labor talks between the UAW and the U.S. automaker. However, the members of United Auto Workers Local 879, which represents workers at the Ford plant in St. Paul, are not holding their breath even as they build the Ranger truck. While the St. Paul plant's fate may seem all but sealed, it is among six U.S. auto assembly plants considered "on the bubble" for a change in status. The fate of those plants and their jobs will be a hot topic during the talks, which are scheduled to begin with Ford, General Motors and Chrysler Group LLC the week of July 25. Three of the plants in question, including St. Paul, make vehicles the companies expect to discontinue, two have no product currently to assemble and one is down to a single shift with excess capacity. Three of those plants are owned by GM. Three are owned by Ford. Chrysler, which is managed by Fiat, has no plants likely to be affected by this year's talks. The GM plants are in Spring Hill, Tenn., Shreveport, La., and Janesville, Wis. "The real big deal for the union is going to be jobs," said Art Schwartz, a former GM labor official and now a labor consultant. "They are going to try to keep Shreveport open. They are going to try to get Spring Hill reopened. It's an uphill battle. I don't know how successful they'll be." Schwartz said that GM will put a product in Spring Hill only if demand for the company's vehicles continues to rebound after the recession to the point it can put two shifts at the plant while keeping inventory levels at desirable levels. The large Ford E-Series vans, now made at a plant in Avon Lake, Ohio, are also on the bubble, said Kristin Dziczek, director of labor and industry at the Center for Automotive Research in Ann Arbor, Mich. The Econolines are getting "long in the tooth" and while Ford has not said it will stop making the vans, there is much speculation about their future and that of the plant west of Cleveland, said Dziczek. (there was no mention of Shreveport or the Colorado/Canyon in this article beyond identifying it as a “bubble” plant)

From the Detroit Free Press: The UAW, which is concerned about how automaker profits, jobs and wages could be impacted by higher fuel economy standards, met with Detroit automakers Tuesday to discuss regulations proposed by the Obama administration. The automakers, UAW and the National Automobile Dealers Association have argued that the proposed corporate average fuel economy standard of 56.2 m.p.g. would add thousands of dollars to the cost of vehicles and eliminate jobs assembling larger and heavier vehicles such as full-size pickups and SUVs.

Tuesday, July 12, 2011

State of the Union July 11, 2011

July 11, 2011 online at www.uawlocal2250.com

This week’s build information: 132 E-26; 233 slider doors; 185 diesels; 311 exports; 489 extended vans; 85 r/h door delete; 196 Onstar; 70 Enterprise rent-a-car; 73 15-passenger vans; 20 brake deck sparehttp://www.blogger.com/img/blank.gif tire; 85.9% white vans; .62% tan interior trim.

Reminder: Beginning today the driveway between Lot 4 and Lot 5 will be closed for 3 weeks. You will still be able to park in Lot 4 next week and it is still scheduled to be closed July 19 – 25 for resealing.

From Wards Auto: Chrysler’s Ram brand could see adaptations of two fullsize vans from the Fiat truck family, Ward’s learns. The auto maker’s product plan suggests two Ram vans will launch next year – one based on the small Class 1 Fiat Doblo and another based on either the front-wheel-drive Fiat Ducato or the Ducato’s brawnier, rear-wheel-drive cousin, the Iveco Daily. Refreshed this year, the Ducato boasts a maximum gross-vehicle-weight rating of 8,818 lbs. (4,000 kg), according to Fiat. The Iveco Daily boasts a GVWR of up to 15,000 lbs. (6,804 kg), which tiptoes into Class 4. Through May, Class 2 truck deliveries – including pickups – totaled 637,050, 13.1% ahead of like-2010, according to Ward’s data. General Motors was the volume leader with 47.5% of the segment, followed by Ford with 39.5%. Chrysler was well back in third with 11%, with Nissan and Daimler, represented by the Sprinter, each clinging to less than 1.3% of the market.

From the Wall Street Journal: As the Obama administration pushes for a deal in the next few weeks with auto makers over fuel-economy standards that would roughly double existing mileage requirements, the treatment of large trucks is pitting Detroit auto makers against some of their Asian rivals. At issue is how proposed standards that go into effect beginning in 2016 will be applied to light trucks, including minivans and big pickups. At present, the bigger the truck, the more time that would be allowed for auto makers to improve the number of miles it goes on a gallon of gasoline. Plans being floated by the White House initially would permit more lenient mileage improvements for the largest pickup trucks and sport-utility vehicles—vehicles made primarily by General Motors Co., Ford Motor Co. and Chrysler Group LLC, according to people familiar with the matter. (continued on back)
Smaller trucks and SUVs, a market dominated by Toyota Motor Corp. and Honda Motor Co., initially would be required to achieve higher fuel-efficiency gains. Federal regulators are looking to give more leeway to larger trucks because they feel those vehicles required greater improvements than their smaller counterparts in the last round of changes to fuel-economy regulations, two people familiar with the administration's thinking said. A small SUV such as Honda's CRV, for instance, would need to improve fuel efficiency by several miles per gallon in 2017 model-year vehicles, and then make smaller additional improvements every year until 2025. The biggest trucks, such as some of Ford's F-Series pickups, won't face an increase until 2020. After that, they would need to make improvements every year through 2025. The bigger the truck, the more time will be allowed for auto makers to improve miles-per-gallon figures.

From Automotive News: Audi AG has decided to build a vehicle assembly plant in North America and is considering an additional engine and transmission plant. Volkswagen Group's premium brand is completing details of the assembly plant -- including models, location and capacity. Audi CEO Rupert Stadler said all decisions will be made within three years. "It is totally clear that we need new production capacity in the U.S.," Stadler said in an interview here. "The question only is when." An Audi source also told Automotive News that the carmaker is considering building an engine and transmission plant in North America to increase local content. That second plant could be shared with VW division. Under Audi's "Strategy 2020" plan, Stadler said the brand aims to nearly double its global sales by the end of the decade. Last year, Audi sold 1.1 million new cars. The original goal of 1.5 million cars for 2015 will be reached a year earlier than planned, Stadler said, and by 2020 Audi wants to sell 2 million cars. Globally Audi's lineup will increase from 38 models this year to 42 in 2015 and 50 by 2020.