Friday, July 27, 2012

State of the Union July 27, 2012

July 27, 2012 online at www.uawlocal2250.com

•From the Chaplaincy Committee: There will be an in plant memorial for Ronald “Ron” C. Crisler today at 4:45 pm in the Chassis Chapel located at column C-42. All are welcome.

•The traffic lights on Highway A at the body (#2) and chassis (#4) entrances have been activated. Unfortunately we had no advance notice that this would be done this week. As soon as we find out the schedule for these lights we will let you know. For now assume that they will be operating when you are coming to and leaving the plant.

•    Second quarter financial results from our competitors continue to come out. Volkswagen AG’s operating profit rose 3.4% to $3.98 billion on revenue of $58.4 billion, which was up 19%. That equates to a profit margin of 6.8%. Nissan reported operating profit of $1.5 billion, which was down 19.5% compared to last year. Revenue was $26.7 billion and profit margin was 5.7%. Hyundai reported profits of $2.2 billion, up 10%, on revenue of $25.4 billion for a profit margin of 8.7%. Kia had profits of $960 million, down 10%, on revenue of $14.4 billion, a 6.7% margin.

•    From the Wall Street Journal: Ford Motor Co. is working on one of the biggest gambles in its 108-year history: a pickup truck with a largely aluminum body. The radical redesign will help meet tougher federal fuel-economy targets now starting to have wide-ranging effects on Detroit's auto makers. But Ford will have to overcome a host of manufacturing obstacles, plus convince die-hard pickup buyers that aluminum is as tough as steel. Ford is hoping the switch to the lighter metal will cut the weight of its F-150 truck by about 700 pounds, according to Ford executives familiar with the company's plans. The new Ford truck is being designed to come out in 2014 capable of hitting the increasing fuel economy standards through 2020, one of the executives familiar with its plans said. That would equate to roughly a 25% improvement in fuel economy. The aluminum body is being used for the F-150 only; the larger F-250 and other Ford heavy trucks don't fall under the new fuel-economy standards.
GM, Ford's longtime rival, which outsells Ford some years in trucks with Chevy and GMC combined, also looked into increasing the use of aluminum to improve fuel-economy in future pickups. But GM concluded customers will balk at paying more. "Pickup buyers have enjoyed this bandwidth of cheapness, in which they get size, capability and aesthetics at affordable prices," said Mark Reuss, who runs GM's North American operations. Instead, GM plans to address the fuel-economy challenge by producing two different trucks. Next year, GM is expected to launch a full-size truck for customers who need power and towing performance. GM is working on improved engines and transmissions to reduce fuel consumption. The new trucks will also have a sleeker design to improve aerodynamics, and use aluminum to cut weight, but not to the same level as Ford. Then, about two years later, GM will add a smaller truck. It won't be able to haul quite as much gravel or tow as much gear as the bigger model, but GM is counting on it to offer 20% better gas mileage, without the extra cost of heavy use of aluminum parts, a person familiar with GM's plans said.

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

State of the Union July 25, 2012

July 25, 2012 online at www.uawlocal2250.com

The 7th annual SOS – Support our Soldiers – motorcycle ride and rally will be Saturday, Aug. 18. Registration will begin at 9 am at the Union Hall with the last bike out at 11am. Cost is $20 per bike, $5 per passenger and $5 for each extra hand. The ride ends at Crazy Horse Saloon in Wentzville at 6 pm. All bikes and cages are welcome. Proceeds will benefit Operation Homefront. If you have any questions you can contact Steve Melson at 636-262-1234.

From the Wall Street Journal: Ford Motor Co.’s second-quarter net profit slid 57% as its overseas operations and a higher tax rate held back strong results from North America. Ford also lowered its full-year profit forecast as well as its budget for capital spending. The company's results give a hint into its expanding economic problems abroad, particularly in Europe and how much it now relies on its home market for profits. Overall, Ford posted second-quarter net profit of $1.04 billion, down from $2.4 billion in the year-earlier period. Revenue fell 6.2% to $33.3 billion from $35.5 billion. Ford's operating earnings of $1.8 billion or 30 cents a share—after-tax profits excluding some charges for asset write-downs and cuts to workers—were better than the 28-cent a share profit forecast by analysts. Ford said it now expects its annual losses in Europe to exceed $1 billion, up from the $600 million loss forecast earlier in the year.
"This is structural in nature," said Bob Shanks, Ford's chief financial officer, in an interview after the release of the earnings. "And we think this is a situation that we will have to deal with for the foreseeable future." Mr. Shanks said Ford is expecting difficulties in Europe to last at least five years. He suggested that Ford will announce a restructuring initiative there in the future. Ford posted a pre-tax loss of $404 million in the region, a reverse from the $176 million it made a year earlier in the quarter. Revenues in Europe fell $1.9 billion to $7 billion.
Ford's North American operations produced $2 billion in pre-tax profit, up $1.9 billion a year earlier. Its profit margin in its home market increased to 10.2% from 9.8%. The company said its South American posted a $5 million pre-tax profit— positive, but a plunge from the $267 million year-ago result as competition forced it to lower prices or use incentives to sell cars. Ford said it expects the region to remain profitable for the year. Ford's Asia and Africa operations also lost $66 million on a pre-tax basis as higher revenues from car sales were offset by heavy capital spending for new plants and products. Ford Motor Credit's pre-tax results also declined to $447 million, down from $604 million a year earlier. The lending arm is getting less revenue and profit from vehicles returned on leases.(General Motors will report 2nd quarter financial results Thursday, Aug. 2)

Chevrolet topped three categories in the latest J.D. Power and Associates’ Automotive Performance, Execution and Layout study, released today. The APEAL survey measures what consumers like about their vehicles based on rankings of 80 attributes collected between February and May of this year. The Chevrolet Sonic subcompact, Volt compact car and Avalanche pickup all place first in their respective categories. Results are spread across U.S., Asian and European auto makers alike, with Audi, Dodge, Ford, Kia, Mini, Nissanand Porsche each receiving two first-place honors, and BMW, Infiniti, Range Rover, Mercedes-Benz and Volkswagen each taking home one. At 887 out of a possible 1,000 points, Porsche is the highest-ranking nameplate in the APEAL study for an eighth consecutive year. The industry average is 788 points. Cadillac was GM’s highest rated brand at 823 points, followed by Buick (784), GMC (780) and Chevrolet (777).

From Torque News: The Chevrolet.com website page dedicated to the Chevrolet Volt has three interesting “gauges” showing the actual number of miles driven by Chevrolet Volt owners around the United States. The Volt communicates with company computers to keep a running, up to the second total of the miles driven by Volt owners around the country, including how many of those miles are driven on electricity. It is really a very interesting feature.
As this piece goes live here on Torque News.com, the Chevrolet Volt has traveled roughly 105,790,000 miles on US roads and roughly 67,020,000 of those miles have been driven on pure electric power – meaning that roughly 64% of the Volt mileage over the last 21 months has been electric. The result of all of this electric driving is over 3.5 million gallons of gasoline saved by using electric power as opposed to gasoline. Considering that the national gas price average right now for the required premium fuel is $3.75, Volt owners have saved a whopping $13.24 million dollars.

From Digital Trends: The Nissan Leaf may be able to drive quickly in reverse, but it may not be able to handle intense summer heat. Several Leaf owners in Arizona say their cars are losing range, CBS5-TV Phoenix reports, and they think the heat is to blame. One Leaf owner said that when they bought their car a year ago it returned 90 miles on one charge, enough to get them to work and back. Now the Leaf will only go 44 miles on a single charge. In addition, owners have seen two or three of the 12 lights on the Leafs’ battery capacity gauges stay off, even with a full charge. That indicates that the battery is no longer holding the extra charge. There are 400 Leafs on the road in Arizona, and five owners have complained of reduced battery range so far. They say their Leafs have lost 30 percent of their battery capacity, despite impeccable maintenance, proper driving techniques, and a clean bill of health from Nissan dealers. According to Nissan, a battery should not lose 30 percent of its charge until the car is seven years old. However, director of product planning Mark Perry said the company does not consider the Arizona complaints a problem, although it is investigating them.

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

Monday, July 23, 2012

State of the Union July 20, 2012

July 20, 2012 online at www.uawlocal2250.com

We have been informed that as a result of already achieving full production after the model change this week, mandatory overtime relating to the model change is no longer in effect.

Reminder: It is General Motors policy that no weapons are allowed on company property, which includes inside the plant, the parking lots and surrounding areas such as the ball fields.

The Women’s Committee golf tournament has been rescheduled for Sunday, Sept. 23. Start time will be 1 pm and the location is still Country Lake golf course in Warrenton.

GM has announced increased Employee Vehicle Allowance (EVA) cash on most 2012 models. You can combine this with the preferred price, consumer cash and other offers like trade in allowance or Chevy confidence cash to get a great deal on a new car, truck or SUV. Models with increased EVA include the Chevrolet Camaro, Equinox, Impala, Silverado (reg. and ext. cab) and Traverse; Buick Enclave and LaCrosse; Cadillac Escalade and CTS; and GMC Acadia, Terrain and Sierra (reg. and ext. cab).

You must take delivery by July 31. Here are a couple of price examples:
  • MSRP of Equinox LTZ FWD with optional equipment - $ 31,045.00 Preferred Pricing: $29,955.36 Employee Vehicle Allowance -$2,000.00 Chevy Confidence Cash -$500.00 Price You Pay - $27,455.36 Your Discount $3,589.64
  • MSRP of Sierra 1500 Ext. Cab SLE 2WD with optional equipment - $33,285.00 Preferred Pricing: $31,439.82 Employee Vehicle Allowance -$3,500.00 Consumer Cash -$3,000.00 Trade-In Allowance -$1,000.00 Loyalty/Conquest Cash -$500.00 Price You Pay - $23,439.82 Your Discount - $9,845.18


From Automotive News: Automakers are pretty good at keeping future product secrets but occasionally suppliers let cats out of bags unintentionally, and General Motors has been burned twice recently. Canadian toolmaker Omega Tool recently showed off its capabilities in a video on its Web site. In the process it inadvertently revealed the injection-molded bumper cover for the redesigned 2014 Corvette -- a big deal among Vette devotees. The car is to debut at the Detroit auto show in January, and Chevy is doing its best to keep the car under wraps. Omega yanked the video after its miscue gained fame on the Internet, but Corvette fans have sent it speeding around cyberspace. And another GM supplier helped confirm plans for a redone GMC Canyon pickup, even though GM hasn't acknowledged the truck's existence. This is the last year for the current Canyon and Chevy Colorado pickups, and GM is winding down the plant that builds them. GM announced a redone Colorado but has been mum on plans for GMC. But Rugged Liner Inc., of Owosso, Mich., has put out a release saying that it will supply bed liners for the 2015 Chevy Colorado -- and GMC Canyon. Obama made the right call on the auto bailout
By UAW President Bob King:
The bankruptcy restructuring General Motors and Chrysler in 2009 through the creation of new companies formed with assets purchased from those troubled companies was highly successful. Today GM and Chrysler are profitable, investing in America and creating jobs. President Obama’s decision to act to save GM and Chrysler prevented an economic catastrophe that would have thrown the nation into a full-blown depression and resulted in dozens of additional bankruptcies in the auto industry and across industrial America. Instead, the auto industry today accounts for an outsized share of economic growthand is helping lead our nation's economic recovery.
Yet, for political critics of the Obama administration, this achievement, completing a process started by President Bush, is barely worth mentioning. The problem for these critics is that the public, especially in states with a large auto industry presence, knows better. People who lived through the ups and downs of the auto industry remember well what happened and how it turned out. So when Republican presidential candidate Mitt Romney insists that GM and Chrysler should have been restructured in a deal financed by private lenders, the public remembers that no entity besides the U.S. Treasury would provide that funding. Without the Treasury, "Let Detroit Go Bankrupt" would have turned into "Force Detroit to Liquidate," with all the economic calamity that would have followed. U.S.Judge Arthur Gonzales found exactly that in the order authorizing the sale of Chrysler's assets to the new Chrysler: "The sale transaction is the only alternative to liquidation available to the debtors." Another oft-repeated criticism is the claim that bankrupt Chrysler's secured creditors got less than they were entitled to under the bankruptcy code. In fact, the secured creditors received the highest possible amount available to them. Judge Gonzales affirmed this point in the sale order: "The sale transaction will provide a greater recovery for the debtors' creditors than would be provided by any other practical available alternative, including, without limitation, liquidation whether under chapter 11 or chapter 7 of the Bankruptcy Code." The Chrysler creditors group agreed, with 90% supporting the sale as ordered. The U.S. Appeals Court and the Supreme Court also agreed: Challenges to the treatment of various categories of creditors were rejected. Yet, well after the questions of fact and law were settled in court, claims to the contrary are common among the president's opponents.
The latest salvo comes from the Heritage Foundation, repeating the idea that the United Auto Workers' retiree health care trusts received more money than they were entitled to under the principles of bankruptcy reorganization when compared with unsecured creditors. But the comparison is hardly apt. The creditor's recovery is still occurring as a part of the bankruptcy restructuring, while the health care funding was approved by the court under the specific part of the bankruptcy code that deals with retirees, resulting in agreements with the new GM and Chrysler. The companies prudently bargained new contracts with the employees (and suppliers) they needed to be successful as newly formed entities. That amounts to good business judgment that is difficult to second-guess when both GM and Chrysler are performing better than they have in decades. This improvement was not achieved without significant sacrifice on the part of UAW members.
Many plants were closed, and tens of thousands of UAW members lost their jobs. Those hired before 2007 haven't had a raise since 2003. They also gave up cost-of-living raises, bonuses, vacation pay, overtime pay, holidays and break time. Those hired since 2007 are working for lower pay and benefits that have allowed the companies to hire thousands of workers at a greatly reduced cost. Retiree health care liabilities were shifted to the retiree trusts; retirees lost vision and dental coverage and face increased out-of-pocket costs. Last year, UAW members approved four-year collective bargaining agreements with the domestic automakers that contain no raises, but the deals have the possibility of increased at-risk compensation through profit sharing. In return, the companies agreed to invest in U.S facilities and create at least 20,000 new direct jobs that will result in tens of thousands of supporting jobs at suppliers and other businesses supported by the auto industry in communities across the country. In those communities, we are seeing plants retooled for new products and new technology, especially as manufacturers race to meet consumer expectations for more fuel-efficient vehicles. While the political opponents of the auto rescue package are sure to continue their flawed criticisms, those who live and work in auto communities across the nation see the success, the employment growth and the sense of a brighter future, and that is the real thing worth remembering about what President Obama did to save the U.S. auto industry.

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

Tuesday, July 10, 2012

State of the Union July 10, 2012

July 10, 2012 online at www.uawlocal2250.com

The Women’s Committee golf tournament has been rescheduled for Sunday, Sept. 23. Start time will be 1 pm and the location will still be Country Lake golf course in Warrenton.

To celebrate the transformation of its portfolio, Chevrolet will begin offering the Chevy Confidence program today for customers in participating U.S. retailers. Although employees and their families are not eligible for the program, we encourage you to share this news with your friends and social circles. Chevy Confidence includes:
  • Love it or Return it: a 60-day vehicle return program on every new 2012 or 2013 model year vehicle purchase. It’s simple – if you don’t love it, return it.
  • Total Confidence Pricing: all 2012 model year Chevrolets will be offered at the best possible prices in addition to all current vehicle-specific incentives. No mystery about it – the price you see is the price you pay.

Although employees and family members are not eligible for the 60 day return (we get cash off of $250 or $500 instead), it is a great opportunity for employees to try and get individuals into our products. Not only will they get the 60 day guarantee, but they get Preferred Pricing as well.

From Wards Auto: Small cars and motorcycles are the primary means of transportation on the crowded streets of Bangkok. But that changes quickly and dramatically once one gets out of town. Beyond the city limits, pickup trucks are a commanding presence on Thailand’s roadways, from expressways to back roads. “One-ton pickups rule the world here,” says Martin Apfel, president of General Motors Thailand. This nation of 66 million people is second only to the U.S. in pickup sales. “But on a per-capita basis, Thailand is No.1,” says Michael Diamente, managing director of a Dana-Spicer plant that makes truck parts in Thailand. Thais go more for midsize pickups, compared with Americans who tend to prefer fullsize models. Double-cab and 1-ton midsize pickups account for 60% of Thailand’s total vehicle production. It is expected to reach 2.2 million units this year, according to The Thai Automobile Industry Assn.

GM bills its 4-door crew-cab Colorado as “perfect for family applications or where carrying passengers in comfort is a priority. GM builds that model as well as 2-door extended-cab and single-cab Colorados at its plant in Rayong province southeast of Bangkok. The Colorado is “a big vehicle for the future of Chevrolet in Thailand,” an upbeat Apfel says at the truck’s launch. It’s “the most clean-sheet midsize truck program” in GM’s history. GM believes it has put daylight between itself and rivals. “It’s right at the top in terms of refinement,” Apfel says of the Colorado. “It is a true global truck,” he reckons. “We have designed, engineered and manufactured this truck to compete anywhere in the world – it’s the truck we always wanted to build.” The new Colorado offers seven body colors, with the 2.5L turbodiesel kicking off here at TB537,000 ($17,435) for the single cab (all prices include air-conditioning). The price rises through three versions of the extended cab – standard, high stance and 4x4 – ranging from TB584,000-TB737,000 ($18,961-$24,000), and three similar versions of the double cab, from TB659,000-TB808,000 ($21,396-$26,234).

Fuel economy of all new vehicles sold in the United States has dropped for the third month in a row-likely reflecting the continuing reduction in gas prices, say researchers at the University of Michigan Transportation Research Institute. Average fuel economy (window-sticker values) of cars, light trucks, minivans and SUVs purchased in June was 23.6 mpg-down from 23.7 in May, 23.9 in April and 24.1 in March-but still a 17 percent increase (3.5 mpg) from October 2007, the first month of monitoring by UMTRI researchers Michael Sivak and Brandon Schoettle. Sivak and Schoettle also reported the unadjusted Corporate Average Fuel Economy performance. This index is based on a different set of EPA ratings than window-sticker values. For June, unadjusted CAFE performance was 29 mpg, down from 29.1 in May, 29.3 in April and 29.6 mpg in March, but an increase of 17 percent (4.3 mpg) since October 2007.

Thursday, July 5, 2012

State of the Union July 3, 2012

July 3, 2012 online at www.uawlocal2250.com

•    General Motors Co. today reported June sales of 248,750 vehicles in the United States, up 16 percent year over year and the company’s highest sales since September 2008. Chevrolet, Buick, GMC and Cadillac all reported double-digit increases. “Across the board, June was a strong month for GM,” said Kurt McNeil, vice president, U.S. Sales Operations. “The combination of new products, available credit, lower fuel prices and modest economic growth was a stronger influence on consumer behavior than economic and political uncertainty." For the month, GM passenger car sales were up 12 percent year over year, thanks to a 32 percent increase in Chevrolet Malibu sales and a 21 percent increase in Buick LaCrosse sales. Combined sales of all seven Chevrolet, Buick, GMC and Cadillac crossovers were up 30 percent versus a year ago. Truck sales were up 11 percent, with all pickup, van and SUV segments up year over year. Retail deliveries were up 8 percent year over year. Fleet deliveries were up 36 percent versus a year ago due in part to the timing of customer deliveries. In July, fleet volumes and mix are expected be down month over month and year over year. Van sales came in at 10,209, up 33.7 percent over last year and the best June result since 2007. GM’s newest vehicles continue to perform well. Sales of the Buick Verano were 4,091 in June, and have increased each month since the car launched in December 2011. Chevrolet Sonic sales were 6,785 units and it is the retail sales leader in its segment. The new Cadillac XTS began arriving in showrooms in June, and dealers delivered more than 750 vehicles. Over the course of 2012 and 2013, 70 percent of GM’s nameplates will be all-new or redesigned.

•    The UAW applauds the health care ruling by the U.S. Supreme Court and President Obama for his courage in winning long-overdue reform that has already benefited millions of Americans. "Now that the false arguments against the constitutionality of the Affordable Care Act have been put to rest, we will continue to advocate for quality, cost-effective health care for our members and all Americans," said UAW President Bob King. "The UAW strongly supports health care reform. It's morally unacceptable to leave tens of millions of Americans with no insurance coverage, and it's economically unsustainable to force working families and retirees to bear the burden of out-of-control costs," King added.
"Even UAW members with excellent health insurance coverage worry about their children, many of whom are struggling to find work or working in jobs with no benefits," King said. "By allowing parents to keep children on their policy until age 26, the Affordable Care Act has already benefited thousands of our members." King added that by increasing the number of Americans with coverage through subsidies and the individual mandate, the Affordable Care Act will reduce the burden of expensive, uncompensated care that is now borne by our members and their employers. "We call on Governor Romney and Republicans in Congress to stop playing politics with the health care of the American people. Their continued pledge to repeal the law is a waste of time and would hurt millions of families. It's time to focus on the real business at hand -- strengthening our economy and putting Americans back to work."

•    A recent article at cars.com analyzed the level of American employment by automakers here are some excerpts: Detroit automakers have the clear lead in direct employment — at assembly, drivetrain, stamping, casting and tooling plants, research and design facilities, U.S. headquarters, testing grounds and the like. GM spokesman Fred Ligouri says GM employs 77,000 Americans. Chrysler's U.S. employment totals 39,200. Ford declined to provide numbers, but the American Automotive Policy Council, a group that represents the Detroit Three, says the Dearborn, Mich., automaker employs about 65,000. Combined, that's more than 2.5 times the number of employees that Toyota, Nissan and Honda – the three largest Japanese automakers in the U.S. — employ. It's no wonder the AAPC says that the Detroit Three employ two out of every three autoworkers in the U.S. "We're certainly never going to deny that [the Detroit Three] are global companies in a global marketplace," says AAPC President Matt Blunt. "But they're certainly performing above what one would expect in the United States in terms of employment, in terms of parts, in terms of capital investment." Of course, foreign-owned carmakers claim plenty of U.S. investment in product development, too. But Blunt maintains it's not as much the contributions from Chrysler, let alone GM or Ford. "Ford by itself and GM by itself — the fact that they're purchasing alone as many auto parts as all of the Japanese auto companies combined, that's really a pretty telling statistic," he says.

•    From the Detroit News: General Motors Co. said it sold 1,760 plug-in hybrid Chevrolet Volt vehicles in June, double what it sold in June 2011. In the first half of 2012, GM sold 8,817 Volts, more than triple the 2,745 it sold in the same period last year. It already has topped Volt sales for all of 2011, which were about 7,600. Volt sales have been boosted by California granting solo drivers of the extended-range electric vehicle access to carpool lanes. June sales were up over the 1,680 Volts sold in May. GM has been sharply outselling its Japanese rival, the all-electric Nissan Leaf, by more than three-to-one. For the first five months, Nissan has sold 2,613. The Japanese automaker has repeatedly insisted it will sell 20,000 Leafs in the U.S. in 2012. That means Nissan will have to average 2,485 a month for the rest of year — or nearly as many as it sold in the first five months combined.

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