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

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