Tuesday, October 30, 2012

State of the Union October 30, 2012

October 30, 2012 online at www.uawlocal2250.com

The Community Services Committee is selling raffle tickets for a 6’ x 8’ area rug (copper/brown shag style donated by Troy Flooring Center, retail value $325) and a $50 QT gas card. Tickets are $2 apiece or 3 for $5 and are available from any committee member. There should be a member selling tickets in each department. Drawing is Wednesday, Nov. 14.
Reminder: The Veterans Day observance holiday is Wednesday, Nov. 21 (not Friday the 16th). There is also no production next Tuesday, Nov. 6 so you can exercise your constitutional right/obligation to vote.
Ford Motor Co. posted a $1.63 billion third-quarter net profit, nearly matching its year-earlier total, as record high earnings in North America more than offset mounting losses in Europe. Pretax operating profit rose to a record $2.16 billion from $1.94 billion a year earlier, the company said in a statement today. Pretax operating profit in North America increased to $2.33 billion -- a record for any quarter since 2000, when Ford began tracking the region as separate business unit -- from $1.55 billion a year earlier. The pre-tax loss in Europe widened to $468 million from $306 million in the third quarter of 2011. Total global revenue was $32.1 billion, down from $33.1 billion a year earlier. Last year's net of $1.65 billion was Ford's second-highest quarterly profit ever.
Ford earned $4.14 billion in North America in 2012's first half and had an operating profit margin of 10.8 percent in an industry where a 5 percent margin is considered respectable. Ford's North American operating margin in the third quarter was a record 12 percent. Ford's U.S. car and light truck sales rose 5 percent through September to 1.69 million, but with the overall U.S. market up 15 percent, the company's market share in the first nine months fell to 15.5 percent from 16.8 percent a year earlier. Some of that market-share loss reflects the rebound of Japanese brands, which were production constrained in 2011 due to the devastating earthquake and tsunami in Japan. Ford's vehicles are also commanding higher prices. The average price a consumer paid for a Ford model rose to $32,535 this year, up from $28,750 five years ago, according to Edmunds.com. (GM reports 3rdquarter results tomorrow)
Chrysler Group's third-quarter net profit rose 80 percent to $381 million on strong sales of cars and light trucks in North America. The company earned $212 million a year earlier as its North American sales of cars and light trucks were rising amid what is now a string of 30 consecutive months of year-over-year sales gains. Revenue rose 18 percent to $15.5 billion during the latest period as Chrysler's worldwide vehicle sales climbed 12 percent to 556,000, the company said in a statement today. For the first nine months of 2012, Chrysler posted $1.3 billion in net profits, two and a half times the $509 million it earned for the same period of 2011. Chrysler ended the third quarter with $11.9 billion in cash, down from the $12.1 billion it had at the end of June. The company is preparing several major product launches expected to occur in 2013 and 2014. The company recorded a modified operating profit of $706 million, or 4.6 percent of revenue, for the third quarter, up 46 percent from $483 million reported for the same period of 2011. For the first nine months of 2012, Chrysler's modified operating profit was $2.2 billion, up 50 percent from the first nine months of 2011. The automaker said the rise was due in part to increased sales volumes and pricing, partially offset by a mix that favored less profitable passenger car sales instead of pickups and SUVs. Through September, Chrysler recorded 30 consecutive months of year-over-year sales gains in the United States. During the third quarter, the company said it posted a 13 percent increase in total U.S. sales and a 16 percent increase in U.S. retail sales. Chrysler's U.S. market share for the third quarter was 11.3 percent, down 0.1 percentage points from the same period of 2011.
Even after Chrysler Corp.'s Gualberto Ranieri, vice president of communications, said Friday, “Let's set the record straight: Jeep has no intention of shifting production of its Jeep models out of North America to China,” the Romney campaign put out a false and misleading ad basically repeating his bogus statement made Thursday in Ohio that Chrysler was moving all Jeep production to China. “What is especially hypocritical of Mr. Romney’s statements and new ad is Bain Capital’s closing of profitable U.S. facilities and shifting work to China to make even higher profits like what is happening today in closing a profitable Sensata plant in Freeport, Ill., to move the work to China,” said UAW President Bob King. “Romney says in the ad that he will fight for every American job, so why isn’t he fighting for the American jobs at Sensata? And why isn’t he intervening with his own Bain Capital to keep these jobs in the U.S. rather than outsourcing them to China? We just wish that Mr. Romney was as committed to investing in the U.S. as Chrysler CEO Sergio Marchionne is. “Americans will remember that President Obama stood behind American working families and American communities in rescuing the U.S. auto industry and that Mr. Romney opposed the rescue and now attacks Chrysler with misinformation. In putting out this misinformation, Romney is recklessly undermining Chrysler’s reputation and threatening good American jobs,” King added.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Friday, October 26, 2012

State of the Union October 26, 2012

October 26, 2012 online at www.uawlocal2250.com

From Chairman Mike Bullock: It is with a heavy heart that I have to pass on the following news: There has been another fatality at a GM facility. Brother Brian Gilbert, a machine repairman and UAW Local 440 member, passed away Oct. 22 from injuries sustained when a lift table collapsed on Oct. 10 and pinned him while he was performing a maintenance activity. This is the third fatality in the GM family this year, after having none the previous 7 years. We are all "our brother and sister's keeper". We must do all we can to ensure that ourselves and our brothers and sisters leave at the end of the work day the way we arrived. This means no shortcuts through orange crush zones, using pre-task planning and observing the “take two” rule before performing a task. Please keep Brian Gilbert’s family in your thoughts and prayers.
From the International Union UAW: UAW President Bob King will rally with workers and labor leaders from across the country Saturday to support Sensata Technologies workers here facing outsourcing by Bain Capital in the fight to save their jobs. The Sensata plant is owned by Bain Capital, founded by Mitt Romney, and makes sensors and controls for auto manufacturers. The company plans to close Nov. 5 -- the day before Election Day -- kicking 170 workers to the curb while sending their jobs overseas to Chinese sweatshops. Meantime, Sensata has forced workers at the Freeport plant to train replacements from China and even reduced their severance packages. Workers and their supporters have been camping out across from the plant -- at "Bainport Encampment" -- to bring attention to their cause. In Monday's final presidential debate, President Obama proved that he is a leader who has taken important actions to create a level playing field for U.S. companies and workers around the world. He has fought hard to stop the unfair trade practices of China and other global trading partners because he understands that fair trade is important to creating and maintaining auto jobs in the United States. While President Obama was saving the auto industry, Romney was profiting off the outsourcing of American jobs by investing in companies that were "pioneers of outsourcing." Romney led investments in companies that outsourced jobs, including those that grew into some of the largest outsourcing and offshoring companies in the world, while families and communities were left behind, forced into crisis. (continued on back)
"Mitt Romney has never stood up for American workers, and Bain Capital has put profits before people over and over," said UAW President Bob King. "Mitt Romney won't stand up for American workers at Sensata in Freeport, Illinois - a company in which he is a direct investor - even though their jobs are being moved to China in the middle of this presidential election. "Romney stands silent but stands to profit as Bain Capital offshores American jobs to China, even though the workers in Freeport make a modest wage of $14 to $17 per hour," said King, adding that investigators have documented the exploitation of the overwhelmingly young and female workforce at Sensata's Chinese facilities. According to a recent report by the Institute for Global Labour and Human Rights, workers at Sensata's facilities in China earn wages ranging from 99 cents to $1.35 per hour, work forced overtime in excess of legal limits, and 70 percent of them work 12-hour days, seven days a week. "Romney has never stood up for American workers like President Obama has. Instead, he used them for his own personal profit and political advantage. Republican President Teddy Roosevelt said 'speak softly and carry a big stick.' Romney speaks loudly and outsources the sticks to China," said King, adding: "His record on jobs and offshoring work is despicable. Romney is so wrong for working families."
And if that doesn’t make your stomach churn enough, the Wall Street Journal reports that private-equity firms are adding debt to the companies they own in order to fund payouts to themselves, a controversial practice now reaching a record pace. Leonard Green & Partners LP, Bain Capital LLC and Carlyle Group LP are among the firms using the tactic, which rose in popularity before the financial crisis. In these deals, known as "dividend recapitalizations," private-equity-owned companies raise cash by issuing debt. The proceeds are distributed in the form of dividends to buyout groups. In one example, drug developer Pharmaceutical Product Development LLC, which is owned by Carlyle and Hellman & Friedman, sold $525 million of PIK-toggle bonds (a risky type of debt known as "payment in kind toggle" bonds that give companies the choice to defer interest payments to investors and instead opt to add more debt to the balance sheet) with the proceeds going toward a roughly $600-million dividend for the private-equity firms. To pay the full dividend, the company is also contributing about a third of the cash on its balance sheet, further weakening the company. In an even shadier deal, Leonard Green and CVC Capital Partners repaid themselves the full cash investment they made in a $2.8 billion buyout of BJ's Wholesale Club Inc. a year ago. BJ's sold debt last month to help pay a $643 million dividend to the owners. The firms and the company declined to comment.
Just Announced: Extra employee vehicle allowance (EVA) on select Chevrolet vehicles including the 2012 and 2013 Silverado regular and extended cab and the brand new 2013 Malibu. Along with $1000 trade-in bonus (and $750 for veterans), total cash off on a 2012 Silverado All-Star Edition is $10,750! For example, a 4x4 extended cab 2012 Silverado that stickers for $37,155 can be yours for $24,522. And remember: aunts, uncles, nieces and nephews are not eligible for your employee discount. Hurry to take advantage of this offer as it only runs through October 31.

Tuesday, October 16, 2012

State of the Union October 16, 2012

October 16, 2012 online at www.uawlocal2250.com
•    Union Meeting is 15 minutes after today’s 2nd shift, and tomorrow at 7:15 am, 1 pm and 15 minutes after the longest 1st shift line time.
•    There will be a Community Services Committee meeting Thursday, Oct. 18 between shifts in the cafeteria. All are welcome to attend.
•    From Automotive News: General Motors will begin production of the Cadillac ELR plug-in hybrid at an assembly plant here by late 2013, GM North America President Mark Reuss said today. GM will invest $35 million in its Detroit-Hamtramck plant to prepare for production of the 2014 ELR coupe, Reuss said during a keynote address at the SAE Convergence Conference here. The car will be unveiled in January at the Detroit auto show. GM assembles the Chevrolet Volt plug-in hybrid at the plant. The ELR's powertrain will be similar to that of the Volt, which can travel about 38 miles on electric power from a T-shaped lithium ion battery before a small gasoline generator kicks on to power the car's electric motor. GM has invested more than $530 million in its Detroit-Hamtramck plant since December 2009. More than 1,500 workers there assemble the Chevrolet Malibu and the U.S., European and Australian versions of the Volt.
•    From Bloomberg: Toyota Motor Corp. first learned in 2008 about a defect in power-window switches that this week prompted it to recall 7.43 million vehicles worldwide for fire hazards, according to documents filed with U.S. regulators. Toyota, based in Toyota City, Japan, received a report in September 2008 from the U.S. about “an unusual smell” from the power-window master switch and “thermal damage” to the switch, the company said in a report posted yesterday on the U.S. National Highway Traffic Safety Administration website. The automaker sent the part to the supplier to investigate and no “root cause” was found. No other problems with the switch were reported until May 2010, when the company said it began sporadically receiving information about an abnormal smell or smoke coming from driver’s side doors, according to the report. “There was really no trend early on and it took considerable time to diagnose what seemed to be an isolated problem and how it was occurring,” John Hanson, a U.S.-based spokesman for Toyota, said in an e-mail. The U.S. auto-safety regulator opened an investigation into about 830,000 Camry cars and RAV4 crossover sport-utility vehicles in February after receiving six reports of fires that started in the window switch. It’s received reports of nine injuries and 161 fires, Lynda Tran, a NHTSA spokeswoman, said. (Toyota had originally offered to address the issue through a “service bulletin” where the defective switch is only replaced if an owner complains. NHTSA rejected that approach and insisted on a recall)
•    From the New York Times: The tale of Asimco Technologies, an auto parts manufacturer whose plants dot eastern China, would seem to underscore Mitt Romney’s campaign-trail complaint that China’s manufacturing juggernaut is costing America jobs. Nine years ago, the company bought two camshaft factories that employed about 500 people in Michigan. By 2007 both were shut down. Now Asimco manufactures the same components in China on government-donated land in a coastal region that China has designated an export base, where companies are eligible for the sort of subsidies Mr. Romney says create an unfair trade imbalance. But there is a twist to the Asimco story that would not fit neatly into a Romney stump speech: Since 2010, it has been owned by Bain Capital, the private equity firm founded by Mr. Romney, who has as much as $2.25 million invested in three Bain funds with large stakes in Asimco and at least seven other Chinese businesses, according to his 2012 candidate financial disclosure and other documents. That and other China-related holdings by Bain funds in which Mr. Romney has invested are a reminder of how he inhabits two worlds that at times have come into conflict during his campaign for the White House. As a candidate, Mr. Romney uses China as a punching bag. He accuses Beijing of unfairly subsidizing Chinese exports, artificially holding down the value of its currency to keep exports cheap, stealing American technology and hacking into corporate and government computers. “How is it China’s been so successful in taking away our jobs?” he asked recently. “Well, let me tell you how: by cheating.” But his private equity dealings, both while he headed Bain and since, complicate that message.
Mr. Romney’s campaign insists he has no control over his investments since they are held in a blind trust. That said, a confidential prospectus for one of the Bain funds, obtained by The New York Times, promotes China as a good investment for some of the same reasons that Mr. Romney has said concern him: “Strong fundamentals” like manufacturing wages 85 percent lower than what Americans earn, vast foreign exchange reserves and the likelihood that China will surpass the United States as the world’s largest economy. “Accordingly, Bain Capital expects to see an increasing array of high-growth companies available for investment,” the prospectus says. Among the companies in which the Bain funds have invested is a global auto parts maker that is in the process of closing a factory in Illinois and moving most of the equipment and jobs to Jiangsu Province, where the Chinese government has built it a new plant; a Chinese electronics retailer accused by Microsoft of selling computers with pirated software; and a Hong Kong-based Chinese appliance maker that was sued for copying another company’s design for a deep-fat fryer.
Mr. Romney has millions invested in a series of Bain funds that created and have a controlling stake in Sensata Technologies, a manufacturer of sensors and controls for vehicles, aircraft and electric motors that employs 4,000 workers in China. Since Bain took over the operation in 2006, its investment has quadrupled in value. Bain continues to own $2.6 billion worth of Sensata’s shares. Two years ago, Sensata bought an operation that made automobile sensors in Freeport, Ill. At the first meeting with the plant’s 170 workers, Sensata managers announced that by the end of 2012 all the equipment and jobs would be relocated, mostly to Jiangsu Province. Workers have staged demonstrations, pleading for Mr. Romney to intervene on their behalf. Chinese engineers, flown to Freeport for training on the equipment, described their salaries as a pittance compared with Freeport wages. Tom Gaulrapp, who has operated machines at the factory for 33 years, said he fears he will go bankrupt after he loses his job on Nov. 5. “This goes to show the unbelievable hypocrisy of this man,” he said of Mr. Romney. “He talks about how we need to get tough on China and stop China from taking our jobs, and then he is making money off shipping our jobs there.” Note: Sensata pays their Chinese workers $.99 to $1.35 an hour, with the typical workweek being 7-12 hour days. Honeywell, who sold the business to Sensata, reported that in 2010, the Automation and Control Solutions sector (including the Freeport plant) had a profit of $1.77 billion. Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Thursday, October 11, 2012

State of the Union October 11, 2012

October 11, 2012 online at www.uawlocal2250.com
•    Reminder: Second shift start time will be change from 5:30 pm to 4 pm on Monday, October 15. First break will be 6:00 pm. Lunch will be 8:30 pm and Second Break will be 10:30 pm. The traffic lights will cycle from 3:15 pm to 4:15 pm.
•    Now Available: New videosdescribing the historic events that transpired from 2007 – 2011 that changed the way medical benefits are provided for UAW auto retirees. These videos are available for viewing on the trust’s website at uawtrust.org and there are also links to the videos on the UAW website at uaw.org.
•    From the Detroit Free Press: Modern commercial vans are emerging as a competitive segment in the U.S., and automakers are launching new products, many from Europe, as versatile offerings better equipped to handle a wide range of duties for small businesses and corporate fleets alike. Chrysler is creating a Ram Commercial division to handle development and sales of commercial vehicles in preparation to sell Fiat commercial vans in the U.S. Ford is using the Transit name on three global commercial vans that are to be sold in the U.S. by the end of 2013. Nissan continues to push in the segment it entered in 2011. It invested $118 million to build the NV cargo van and passenger van in its Canton, Miss., plant and is introducing the smaller NV200, which will become the official New York taxi about a year from now under a 10-year contract. And Mercedes-Benz is hinting it has a redesigned Sprinter up its sleeve. "We are not going to be sitting still," said Claus Tritt, vice president of operations for Daimler Vans. One analyst said M-B may bring the minivan-size Vito from Europe. "We are seeing a major fragmentation of the market with new players, entries, models and sizes," said analyst Aaron Bragman of IHS Automotive in Northville, Mich. "No one is entirely sure what will work. It is a big experiment," Bragman said. "There is a shift to European-styled vans, but there is no guarantee Americans will see it and say it looks great." The Sprinter, for example, has been sold here for a decade and still has a small percentage of the market. Chrysler has been without a dedicated commercial van since it sold the Sprinter as a Dodge when it was owned by Daimler. That pact ended in 2010, and the Sprinter was reintroduced as a Mercedes-Benz. Fred Diaz, CEO of the Ram brand, announced the Ram Commercial division last month at the Texas State Fair. "We are getting really, really serious about the commercial end of the business," said Diaz. Dodge dealers had been shown two commercial vans in Las Vegas on Sept. 10. Fiat/Chrysler CEO Sergio Marchionne has said the Fiat Ducato large commercial van and Fiat Doblo compact van will come to the U.S. in 2013. Bragman said buyers may be concerned about towing and performance of the Ducato because it is front-wheel drive.
• Ford has been the segment leader for decades with the E-Series, formerly known as the Econoline, which has 51% of the market. But E-Series will end production in 2014, replaced by the Transit medium van made in Kansas City starting next year. The larger Transit will be offered in the U.S. in a range of body styles, wheelbases and roof heights. It is rear-wheel drive with an EcoBoost or diesel engine. The big question, Bragman said, is where do Ford customers go if they don't like the Transit? They could turn to GM for the American-style, V8, rear-drive, body-on-frame box vans they are familiar with (Chevrolet Express and GMC Savana). But those vans are not scheduled to be replaced until 2015 or 2016, Bragman said. Or they could turn to Nissan. In addition to the NV, the compact NV200 will go on sale in 2013, giving the Asian automaker four commercial vans. Mercedes-Benz has a new van called the Citan in Europe that would compete with the Transit Connect, but the automaker is not convinced there is enough demand here. The size of the commercial van market has grown only modestly from 1.88% of industry sales in 2008 to 2.05% in 2011, according to LMC Automotive. Some of that growth comes from Ford's Transit Connect, which was introduced in 2009. Sales grew from 8,834 in 2009 to 31,914 last year. GM's models may be aging, but its large, experienced dealer network in the U.S. knows how to sell them. "The Euro vans are wonderfully compact and fuel-efficient," said Joseph Langhauser, manager of commercial products sales support for GM. "But the nice part is there are now distinguishing features between the products. Those customers that require heavy loads and towing capacity are probably going to stay with our body-on-frame models."
•    PickupTrucks.com recently did a 4-truck comparison between global midsize competitors and gives us the first review of the new Colorado, sporting a Holden moniker in this instance. Cutting to the chase, the Colorado finished 2nd overall behind the new global Ford Ranger (not slated for US consumption) and ahead of the VW Amarok and the best-selling Toyota Hilux (think Tacoma) while taking first in off road performance and overall value. Here’s what they had to say about the Colorado: Holden’s Colorado costs $49,990 (Australian), and it shapes up to be a great value for the money if you need to tow heavy items or do a lot of work. For someone with a caravan or a boat tipping the scales close to 7,700 pounds, it is the only option…It has a strong engine, modern six-speed gearboxes, good interior space and all the equipment you expect. The Colorado used a bit more fuel than the VW Amarok, but its 23 mpg average on our test is not bad. The official government number is 25.8 mpg…(in summary) If you’re expecting a ute that handles more like a car, then it’s going to disappoint. Sure, it feels more traditionally trucklike compared with the Ranger and Amarok when it comes to cornering and is far more cumbersome in general driving, but it is a pickup, after all. Some liked the no-nonsense interior, but we thought it was a little ordinary for an all-new truck, and it did look like a lower trim level. The engine is the loudest at idle, but the sound is not irritating and smoothens out as the truck gains speed. Despite all that, it didn’t take us long to warm up to the Colorado. Its softer suspension means it floats a little more than the others, but it is also very comfortable in most conditions. The engine has plenty of torque to get around without much fuss, and the cabin feels spacious. The Colorado’s 7,500-pound-plus tow rating is handy, and there is nothing missing from the list of standard equipment. If you don’t mind driving a pickup that feels like a pickup, the Colorado (the least expensive of our group) makes for a good value proposition. (The Colorado in the test came with the 2.8 liter 4-cylinder turbo diesel rated at 177 horsepower and 347 pounds feet of torque. It had a payload capacity of 3300 pounds)

Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Tuesday, October 9, 2012

State of the Union October 9, 2012

October 9, 2012 online at www.uawlocal2250.com
•    Reminder from the Benefits Dept.: If you were hired as a permanent employee in February 2012, as of October 1st you have health coverage through Blue Cross Blue Shield by GM. However, you MUST call Fidelity at 1-800-489-4646 to activate your insurance, even if you do not have dependents.
•    Moral Character and the Presidency – By UAW President Bob King A great Republican woman, Margaret Chase Smith, once summed up the dilemma facing candidates for public office this way: "The right way is not always the popular and easy way. Standing for right when it is unpopular is a true test of moral character." Her words echo through the decades and reverberate in the 2012 presidential race. Just a few years ago, our country was facing its most serious economic crisis since the Great Depression. President George W. Bush had bailed out the banks, but the American people were still hurting. Jobs were disappearing by the hundreds of thousands each month. Millions of homeowners were underwater or facing foreclosure. Businesses were cut off from credit. Auto sales were tanking. And the domestic auto industry was teetering on the brink of collapse. The bailout of Wall Street by the last administration left a bad taste for much of the American public, and the idea of rescuing the car companies was wildly unpopular. Playing to that sentiment, Mitt Romney penned an op-ed advocating, "Let Detroit Go Bankrupt." President Barack Obama, newly elected, knew that much of the public was skeptical — even hostile — to an auto industry rescue. But he also knew that allowing General Motors and Chrysler to collapse would have been devastating for auto and parts workers, the local businesses that depend on them and the country as a whole. More than a million jobs were hanging in the balance. He knew the right thing to do, and he did it: not a bailout, but a lifeline, with real change and shared sacrifice from all stakeholders. Obama's leadership saved more than a million jobs. Today, the auto industry is thriving once again. Plants are humming and adding new shifts. Since June 2009, auto and parts manufacturers and dealers have grown employment by nearly a quarter of a million jobs. These are good, middle-class jobs, making things for an economy built to last. And now that the auto rescue has succeeded, Mitt Romney — who opposed it when that was the easy and popular position to take — is trying to claim credit for it. But that's not surprising. At Bain Capital, the corporate buyout firm he founded, Romney and his partners too often made their money taking companies apart and laying off workers. Instead of doing what was right — building companies up and securing good jobs for American workers — they did what was easy … and profitable. America's working men and women know about hard work, because that's what we do every day. We know about doing what's right, even at personal cost, because that's the legacy of the brave men and women who built our unions and the great American middle class. And that's who built every social movement that has made our democracy stronger and more inclusive.
•    King cont’d: No surprise, then, that Margaret Chase Smith's test of moral character resonates for us. It's not about what's easy, and it's not about what's popular. It's about doing the right thing even when it's neither. Barack Obama has passed that test. And that's why we're proud to be supporting his re-election as president of the United States.
•    From Automotive News: General Motors is overhauling its commercial dealer network in a bid to boost sales to business customers. GM wants dealerships that sell to small- and mid-sized businesses -- customers who buy one to 100 vehicles a year -- to offer perks such as extended service hours and better availability of loaners. In exchange, GM is offering commercial dealers advertising support, more floorplan money and the chance for more bonus cash based on sales volume, among other benefits. The program will go into effect in January and replace a system that has been in place for more than a decade, says Ed Peper, who in June was appointed GM's U.S. vice president of fleet and commercial sales. About 430 of GM's dealers, or roughly 10 percent of its U.S. network, are enrolled in the current commercial program. GM hopes that beefing up its service to construction companies, farmers and other commercial customers will boost a fast-growing slice of its business. Sales of pickups, commercial vans and other vehicles to business customers, including large corporate buyers, grew 18 percent this year through September, compared with 3 percent for GM's overall U.S. sales. GM sales executives say demand from small- and mid-sized businesses has emerged as a key driver of the company's sales growth, as businesses that delayed purchases during the economic downturn look to replace aging vehicles. "We want to encourage our dealers into the smaller fleet space," says Jennifer Costabile, director of marketing and sales support for GM's fleet and commercial business. "There's a lot of pent-up demand. We have a tremendous number of businesses out there that are really ripe for our dealers to go after." Peper says any GM dealer who agrees to the conditions can sign up for the program. Under the new rules, dealers must:
  • Pay a $400 monthly administrative fee.
  • Staff at least 1 sales manager and 1 account specialist exclusively for commercial customers.
  • Offer commercial customers priority service hours beyond normal operating hours.
  • Install and maintain at least one service hoist that can lift up to 8 tons.
  • Maintain a dedicated marketing budget for the commercial business.
  • Dealers who comply with those and other standards can earn at least $100 per commercial vehicle sold if they also hit a factory-set sales objective. That will replace a system of occasional 60-day stair-step incentive programs, which pay dealers bonuses as sales targets are met. They also will get an extra 60 days of floorplan coverage on certain vehicles, as well as financial assistance for maintaining work-ready loaner vehicles. GM also will create an advertising program exclusively for commercial dealers.
    For larger corporate accounts, GM has its own sales force that calls on those customers, which generally service their own vehicles. Peper says dealers should covet small- and mid-sized business customers because:
  • They tend to be more loyal than retail customers.
  • They spend more on service.
  • They often generate referrals for retail business.
"This is all about customer retention for us," he says. Steve Hurley, dealer principal at Stingray Chevrolet in Plant City, Fla., and co-chairman of the Chevrolet National Dealer Council, says the new program could weed out dealers who aren't willing to intensify their commitment to their commercial operations. "For the dealers who are willing to invest, the support from GM is going to be much stronger," he says. "You will see GM's numbers go up because of this."

Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Tuesday, October 2, 2012

State of the Union October 2, 2012

October 2, 2012

online at www.uawlocal2250.com

From Chairman Mike Bullock:

Welcome back to all of you from your extended vacations. I hope you all enjoyed your time off and come back rested and refreshed. While you were gone, we tragically lost our UAW Region 5 Director Jim Wells, who passed away Sept. 26. As many of you know, Jim was the first chairman of Local 2250 and was always a champion and advocate for this local and plant.

Personally, Jim was a resource and a friend to me as I worked through the many difficult issues that came up the last few years. He will be greatly missed. UAW President Bob King issued this statement upon his passing:

"It is with a heavy heart that we announce Jim's passing last night. But we will remain forever inspired by his character, integrity and passion for the labor movement. A dedicated trade unionist for nearly 50 years, Wells joined UAW Local 25 in 1966 when he was hired at the General Motors plant in St. Louis. Jim transferred to the GM Wentzville Assembly plant and became the first chairman of UAW Local 2250. He was appointed an international representative by then-UAW President Owen Bieber in 1985, and served four years on the Region 5 staff.

He served as UAW Region 5 assistant director for six years from 1989 to 1995. First elected to lead Region 5 in 1995, he was re-elected in 2010 for his fifth term serving UAW members and retirees in 17 states in the western and southwestern United States, including Missouri, California and Washington state. Jim was the longest-serving member of the UAW International Executive Board. We'll always remember his unwavering commitment to fighting for and protecting all workers' rights. The UAW extends its deepest sympathy to Jim's wife, Jane, their daughters, Kelly, Traci and Janie, his father, Ed Wells, and four grandchildren."

On a different note, I would like to thank our Benefits Representatives Mike Bridgins, Russell "Smitty" Smith and Karen Jones for all the extra time and effort they have put in working on all the issues with members’ unemployment and SUB problems. Finally, the new local contract books are in and you should be receiving your copy from your committee person.

Attention: Beginning today, Tuesday, Oct. 2, the GM Employee Discount Program now includes aunts, uncles, nieces and nephews.

General Motors Co. today reported its highest September U.S. sales since 2008: 210,245 vehicles, up 1.5 percent compared with a year ago. New products helped drive a 29 percent increase in passenger car sales. Sales of GM’s mini, small and compact cars alone were up a combined 97 percent, and all GM brands increased their retail sales. "Passenger cars have been the launch point for a broad and deep GM product offensive," said Kurt McNeil, vice president of U.S. sales operations. “Auto sales will continue to be a bright spot for the U.S. economy, which is particularly good news for GM as we walk into an even stronger cadence of new products in 2013 and 2014." GM has moved aggressively to replace existing vehicles with better designs, more technology and improved fuel economy. At the same time, GM is entering growth segments and offering new entry points for each brand. Seventy percent of GM nameplates will be all new or redesigned in 2012 and 2013.

September’s car sales increase reflected a strong start for the new Chevrolet Spark and Cadillac XTS, continued strong sales of the Buick Verano, Chevrolet Cruze and Chevrolet Sonic, and a second consecutive sales record for the Chevrolet Volt. September also marked the first deliveries of the all-new Cadillac ATS. The GMC Terrain and Acadia crossovers had strong months as well, with sales up 8 percent and 16 percent, respectively. This helped drive a 3 percent increase for all GM crossovers versus a year ago. Truck sales were down 20 percent due to a 46 percent year-over-year reduction in fleet sales due to the timing of customer deliveries. In the large pickup segment, GM’s total sales were down 12 percent and fleet sales were down 56 percent. However, GM reduced its large pickup inventories by approximately 8,600 units compared with August, and earned average transaction prices more than $2,300 per unit above a year ago with the lowest incentive spending in the industry, according to J.D. Power PIN data. Van sales came in at 4886, a drop of 41.8%.

Automotive News broke down Ford’s future product portfolio recently. Here’s their take on the Transit and Econoline full size vans:

Transit:Ford will begin making the Transit commercial van next year in Kansas City, Mo., as a 2014 model. The European-style commercial van will feature Ford's 3.5-liter EcoBoost engine and a diesel, likely a 3.2-liter Duratorq. Ford has not said exactly how the Transit will be branded, but it has trademarked names such as T-150, T-250 and T-350. The Transit is a rwd van based on the European Transit

E series: Ford will continue to build its long-running E-series van for some time after Transit production begins. The company won't say just how long. But the cutaway version of the E series, used in such applications as airport shuttle vans, will continue well into this decade.

Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119