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

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