Thursday, November 29, 2012

State of the Union November 29, 2012

November 29, 2012 online at www.uawlocal2250.com
The December production schedule is out. Contrary to some rumors, there will be production the week of the 17th. Overall, daily production remains 544 combined for both shifts. The Christmas holiday period runs from Dec. 22 through Jan. 1 and there will be no production through the Martin Luther King Jr. holiday on Monday, Jan 21. As of now, production is scheduled to resume Jan. 22.
The annual Pre-Trim bake sale will be Monday, Dec. 10. The sale will begin at first break on both shifts and continue until all items are sold. It will be held at the team center at column T-49. Proceeds will go to support the Adopt-A-Child program. Anyone wishing to donate bakery items can drop them off at the team center.
There will be a GM employees and family event this Sunday, Dec. 2 at Shoe Carnival from 6:30 pm – 9:30 pm. Just show your employee ID and get an additional 30% off, including sale prices, at the O’Fallon (2209 Highway K) and St. Charles (3867 Mexico Rd, Cave Springs Crossing) stores.
From Automotive News: The Chevrolet Volt plug-in hybrid landed atop Consumer Reports' annual owner-satisfaction ranking for the second straight year. Ninety-two percent of responding Volt owners in a poll of the magazine's subscribers said they definitely would buy a Volt again, tops among 240 models, the magazine said today. The Volt's two-year reign "points to the continuing trend of owners' enthusiasm for cars that are fuel-efficient cars, especially as we see more and more hybrid and electric models hitting the market," Rik Paul, Consumer Reports' auto editor, said in a statement. It's also affirmation for GM executives who've battled bad press from early soft sales, scathing criticism from opponents of green-car subsidies, and a late 2011 federal safety probe into battery fires that turned up no significant risks. The Nissan Versa sedan received the lowest rating from owners. Scores are based on the percentage of respondents who answered "definitely yes" to the following question: "Considering all factors -- price, reliability, comfort, enjoyment, etc., -- would you get this car if you had it to do all over again?" The Volt was joined in the winner’s circle by the Corvette, Silverado and Avalanche. Brand nationality doesn’t seem to have a strong effect on owner satisfaction: The 44 top-rated models include 16 American, 14 Asian, and 14 European vehicles.
From the Wall Street Journal: The U.S. auto industry is poised to report November sales cruised to another four-year high, a sign that the domestic market has returned to health even while Europe and Asia sales falter. Industry executives interviewed ahead of this week's Los Angeles Auto Show said November results, due out next week, should continue the year's big gains. Some analysts estimate November sales could hit an annualized selling pace of 15.2 million cars and light trucks-the strongest single monthly showing since 2008. Next year, U.S. sales are projected to reach between 14.5 million and just over 15 million cars and light trucks, a third consecutive year of growth. U.S. sales this year are projected to hit 14.4 million vehicles. Auto executives are watching the debate over federal taxes and spending, and are concerned about the risks should President Obama and Congress fail to reach a resolution. But for now, they say more U.S. consumers are willing to buy.
Reid Bigland, Chrysler Group LLC's Dodge brand chief, says, "If you look at the automotive industry and you benchmark November, it's kind of like what fiscal cliff?" The biggest factor in the optimism for 2013 U.S. auto sales is the advanced age of so many of the 245 million cars and light trucks now on the road. "The U.S. is a rolling junkyard," says Jim O'Sullivan, president of Mazda Motor Corp.'s North American unit. The average car on the road in the U.S. is now a record 11 years old, industry executives say and about 20% are 16 years old. When customers wheel their rattletraps into showrooms, they're also finding credit is relatively cheap and available. "Banks that weren't financing…are financing now," Mr. O'Sullivan says.
A third engine for U.S. auto demand is a volley of new cars and trucks, many on display Wednesday at the convention center here, that offer customers significant advances in fuel efficiency, safety and entertainment technology compared with cars made four or five years ago, let alone 11 years ago. The owner of an 11-year-old, six cylinder Ford Explorer that averages about 15 miles on a gallon of gasoline could replace it with a 2013 Explorer that gets up to 23 mpg with a four-cylinder, turbocharged "EcoBoost" model and use the difference to help fund a loan, say car makers. "We are seeing wholesale refreshes of significant segments. That is unprecedented," says Jim Farley, Ford's global sales and marketing chief.
Still, auto executives here say the uncertainty over future tax rates and federal spending must be resolved soon. "I don't think many people will forgive the politicians if just through stalemate, they don't find a more bipartisan way forward," said Jonathan Browning, head of Volkswagen AG's U.S. operations. Mr. Browning is more cautious than some of his rivals about near term U.S. industry growth. "I still describe it as a choppy growth," he says. Industry executives here say that even if the worst case scenarios for the economy come to pass and the nation slips back into recession, they are better prepared than in the past.
Annual U.S. sales could fall to as few as 10 million to 11 million vehicles and GM and most other auto makers could still break even, said Mark Reuss, head of General Motors's North American operations, "The industry is in a completely different place in its ability to adapt to different [sales] levels and make money," said Mr. Reuss.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Tuesday, November 27, 2012

November 27, 2012 online at www.uawlocal2250.com
The UAW Community Services committee still has Adopt-A-Child names available. Co-chairs Wanda Richard (1st shift) and Tina Hayes (2ndshift) will be in the cafeteria at breaks and lunch with the remaining names until they are gone.
The annual Pre-Trim bake sale will be Monday, Dec. 10. The sale will begin at first break on both shifts and continue until all items are sold. It will be held at the team center at column T-49. Proceeds will go to support the Adopt-A-Child program. Anyone wishing to donate bakery items can drop them off at the team center.
There will be a Red Cross Blood Drive Friday, Dec. 14 from 11:30 am to 7:30 pm in the tour holding room. Sign up will next Wednesday, Dec. 5 in the cafeteria at breaks and lunch on both 1st and 2ndshift.
This is the last day to submit an entry for the VAP (vehicle advocate program) overnight drive that will run from Dec. 5 through Dec. 31. Forms are available in the cafeteria next to the drop box. You have 2 days to buy your tickets for the 2 weekends and the Christmas shutdown week and support Make-A-Wish. Wanda and Tina will be selling these tickets and you can also get them at the benefits office and personnel.
There will be a GM employees and family event this Sunday, Dec. 2 at Shoe Carnival from 6:30 pm – 9:30 pm. Just show your employee ID and get an additional 30% off, including sale prices, at the O’Fallon (2209 Highway K) and St. Charles (3867 Mexico Rd, Cave Springs Crossing) stores.
Pop quiz: Which vehicle has the most torque coming from its powertrain: The The Porsche 911′s flat-six engine; The 5.0-liter V8 in the Ford F150 pickup; The Ferrari 458 Italia or the Chevy Spark EV micro car? The Porsche? A mere 325 lb. ft. F150? Better at 380. Ferrari, right? A hefty 398, but the winner is….the Spark, which generates an astounding 400 lb. ft. of torque, and being an electric vehicle, gives it all to you immediately. And with a price less than $25,000!
From Automotive News: With a re-engineered light-duty pickup now in dealerships this fall, the Ram brand team is turning its attention to two new commercial vans. The vans will be reskinned versions of European Fiat vans and are scheduled to arrive in 2013. They will be assembled in Mexico. Chrysler Group killed the Dakota in 2011, but don't be surprised if Ram re-enters the small-pickup market in the next few years with a new offering it can sell in both North and South America. Brand chief Fred Diaz said Chrysler continues to consider a "lifestyle truck" in the five-year product plan it presented in November 2009.
Small commercial van: Ram is putting a new nose and badge on the European version of the Fiat Doblo in its Saltillo, Mexico, assembly plant to give the brand a competitor to the Ford Transit Connect. It will appear for the 2014 model year. The name has not been revealed.
Rampage: No decision has been made on whether Chrysler will build a compact pickup to compete with the Chevrolet Colorado and Toyota Tacoma, Diaz said. Large commercial van: Fiat also is sending its full-sized front-wheel-drive European commercial van, the Ducato, to North America where it will get a new nose, nameplate and Ram badge. The Ducato will compete with such vans as the new full-sized Ford Transit van, or T series; the Mercedes-Benz Sprinter; and the Chevrolet Express. The 2014 model will be assembled in Saltillo.
From Wards Auto: Superstorm Sandy, which analysts estimate cost the U.S. auto industry 30,000-60,000 light-vehicle sales in October, likely will have a positive effect on November deliveries, according to a WardsAutoforecast. The outlook calls for auto makers to sell 1.12 million LVs this month, equating to a 15.2 million-unit seasonally adjusted annual rate, the highest since February 2008.

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

Tuesday, November 20, 2012

State of the Union November 20, 2012

November 20, 2012 online at www.uawlocal2250.com

From Chairman Mike Bullock: I want to wish everyone a safe and Happy Thanksgiving with your families and friends. We certainly have a lot to be thankful for here as the body shop for the Colorado/Canyon continues to go up and President Obama prepares for a second term. I would like to encourage everyone to check out the UAW Local 2250 facebook page. Finally, I want you to join in solidarity with Wal-Mart workers nationwide by boycotting Wal-Mart on Black Friday. These workers are counting on our support as they take a stand against the abuses they have been subjected to with low wages, erratic work schedules and meager benefits (see message from UAW International below).
The Civil Rights Committee is having a meeting for all members on Monday, Nov. 26 between the shifts at 3 pm at the Union Hall.
The Chaplaincy Committee would like to wish everyone a Blessed, Safe and Happy Thanksgiving this year.
As you head out to do your Christmas shopping this weekend, remember to make an effort to buy Union and American. There are numerous websites dedicated to informing the patriotic shopper what items are Union-made and American-made. Just google either term for guidance. The UAW website also has information about which products are UAW made. You might be surprised at what you find on the list – Folgers coffee or Planters peanuts anyone?
From the International Union UAW: Workers at Walmart are planning mass actions around the country on Black Friday to stand up to their employer and live better, forcing the company to recognize their organization and collaborate with them on important issues from wages to scheduling to healthcare. As the largest private sector employer in the United States, Walmart has enormous power to set the trends not just for the retail and service industries, but for the economy as a whole. Wages and working conditions set at Walmart have a ripple-effect throughout all jobs: low wages, limited access to health care and no retirement security. While the Walton family has the same wealth as the bottom 42 percent of American families combined, they pay Walmart associates an average of $8.81 an hour. UAW brothers and sisters , Walmart workers need your help! This will be the first direct action many Walmart workers take, and they will need support in their communities and around the country to back them up. So let’s gear up and support Walmart workers across this country by joining with them in actions on Black Friday. This is a tough fight, but if we all work together in solidarity and we use creative, nonviolent actions to support the workers' fight, Walmart will be persuaded to change the way it treats its workers.
From Wards Auto (by Drew Winter): I recently blogged about some of the auto industry’s biggest boondoggles of the last 25 years and asked readers to contribute their thoughts. My email bulged with suggestions, especially related to the Detroit Three.
Many mentioned General Motors’ misguided attempt to reinvent itself with Saturn and ill-advised investments in Fiatand Saab. Plus, there were vehicles such as the infamous Pontiac Aztek and the entire Hummer brand. Others mentioned questionable adventures at Ford, such as its purchase of Jaguar and Volvo, and numerous bad cars going back to the 1970s including the Pinto subcompact and Mustang II.
Readers also pointed to head scratchers at Chryslersuch as the TC by Maserati, a gussied up K-car with a Maserati badge; the odd-looking Plymouth Prowler; and the disastrous “partnership” with Daimlerthat ended in divorce.
But to ferret out the absolute worst mistakes Detroit has made in recent history, I look to professional automotive observer and author Maryann Keller. She has been enormously influential since the early 1980s. After a 28-year career as one of Wall Street’s top auto analysts she now runs her own company, Maryann Keller & Associates. She is as tough and insightful as ever. During a recent speech to the Society of Auto Analysts, Keller unleashes her own list of auto industry blunders, and her choices make most of the items above look like minor glitches.
Detroit auto makers wasted at least $50 billion during the past two decades in failed efforts to impress Wall Street and raise their stock prices, she says. That incredible figure includes stock buybacks, excessive dividends and diversification efforts, all of which could have been spent making better products. GM alone doled out $20 billion from 1986 to 2000 on stock buybacks and actually borrowed money it did not have to pay dividends from 2005 to 2008.
Ford kissed off half the cash it had on hand in 2000 creating a special dividend of $10 per share, Keller says. GM and Ford also wasted billions buying rental-car companies that hid excess production capacity and threw away billions more for e-commerce efforts that looked sexy during the Internet bubble economy but ultimately yielded zip in revenue and profits. Also on her list are the names of financial-services companies, vehicle retailers, recyclers, junkyards and mortgage companies. All were purchased in an effort to add glamour and growth to auto maker bottom lines, but they did neither.
Of course, these strategies did not look quite so boneheaded at the time. In the late 1990s, auto companies were considered old-fashioned. No matter how many vehicles they sold and how much cash they raked in, their stock prices looked weak compared with the soaring value of technology and Internet stocks. So auto makers tried to redefine themselves as something other than companies that built and sold cars and trucks.
And this was the Detroit Three’s biggest mistake ever: They tried to be something other than vehicle manufacturing companies. When they focused on being banks and mortgage lenders and impressing Wall Street, they took their eye off the ball of their core business. Design faltered, quality slipped and market share skidded. Disaster ensued. Ford was first to see the error of its ways and avoided bankruptcy. GM and Chryslerwere not so lucky.
But as Keller points out, “Wall Street didn’t make these decisions; the CEOs did.” I currently am testing vehicles for Ward’s 10 Best Engines and as a judge for the North American Car and Truck of the Year awards. Detroit’s new products such as the Cadillac ATS, Ford Fusion and Dodge Dart are terrific. Detroit auto makers clearly have their eye back on the ball. It shows in vehicle sales numbers, on their bottom line and their stock price. Let’s hope they never again try to be something they are not.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Tuesday, November 13, 2012

State of the Union November 13, 2012

November 13, 2012 online at ww.uawlocal2250.com

Reminder: Veterans Day observation holiday will be Wednesday, Nov. 21. As a result, this month’s Union meeting will be this week, with 2ndshift meeting after the Tuesday shift, and Wednesday at 7:15 am, 1 pm and 15 minutes after the longest 1st shift line time.
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. The proceeds will go to leveling off gifts for the upcoming Christmas Adopt-A-Child program.
This Thursday, Nov. 15 is the eligibility date for the $250 Quality Bonus, which is payable during the week ending Dec. 9. Eligible employees are defined as those whose status with the Company as of the eligibility date is one of the following:
  • Active with seniority
  • On temporary layoff status
  • On leave pursuant to Family and Medical Leave Act
  • On one of the following leaves of absence which has not exceeded 90 days as of the eligibility date: Informal; Formal; Sickness and Accident; Military; Educational

From UAW President Bob King: Friday President Obama called me to personally thank all UAW members and activists for their great support in this election. The President expressed how deeply he appreciates the UAW and our membership and expressed "that we could not have done this without the UAW and its membership." UAW members also made a critical difference in maintaining and increasing the Democratic majority in the Senate and in electing exciting new women leaders like Elizabeth Warren and Tammy Baldwin to the Senate. Thank you again for your help.
From the AP: The Transit Connect Wagon will debut later this month at the Los Angeles Auto Show. It's set to go on sale late next fall. It is based on Ford's Transit Connect commercial van, has the high roof of the van but trades its industrial-looking hood for the tapered nose and trapezoid grille of Ford's cars. It has sliding doors on both sides and comes in five-seat and seven-seat versions.
The new vehicle will have two four-cylinder engine options, one of which will get 30 miles per gallon or more on the highway. That would make it the most fuel-efficient minivan on the market — if it was a minivan. But Ford insists it's not. "It's anything but a minivan," said David Mondragon, Ford's general manager of marketing. "In our mind, it's a people mover. We think of it as more of a utility, or kind of a hybrid sport utility, than a minivan." (OK, Dave. We get you don’t like the word “minivan”. Call it whatever you want)
From Automotive News: Toyota and Hyundai-Kia increased fleet sales sharply in October while Ford, General Motors and Nissan decreased theirs slightly. On Nov. 1, GM sales boss Kurt McNeil said October sales to government and daily rental fleet buyers were unaffected by Superstorm Sandy. "The fleet decline was focused in our commercial business," he said. "Based on conversations with our customers, we think some of them are waiting until after the elections."
Retail vs. fleet sales Estimated retail and fleet volume for Oct. 2012 vs. Oct. 2011
Retail: Oct 2012 Retail Sales Oct 2012 % Retail Sales Oct 2011 Retail Sales Oct 2011 % Retail Shares % Change
General Motors 153,000 78% 143,300 77% 7%
Toyota Motor 138,500 89% 124,900 93% 11%
Ford Motor 124,000 98% 122,200 73% 2%
Honda 104,800 98% 96,4000 98% 9%
Chrysler 95,200 75% 85,000 74% 12%
Hyundai-Kia 80,300 87% 82,700 92% -3%
Nissan 66,700 84% 69,100 84% -4%
Top 7 762,500 82% 723,600 83% 5%
Fleet: Oct 2012
Fleet Sales
Oct 2012 % Fleet
Sales
Oct 2011
Fleet Sales
Oct 2012% Fleet Share % Change
Ford Motor 44,400 26% 45,700 27% -3%
General Motors 42,800 22% 43,600 23% -2%
Chrysler 31,000 25% 29,500 26% 5%
Toyota Motor 16,700 11% 9,100 7% 83%
Nissan 13,000 16% 13,300 16% -2%
Hyundai-Kia 12,500 13% 7,400 8% 68%
Honda 2,100 2% 2,000 2% 9%
Top 7 162,500 18% 150,600 17% 8%

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

Friday, November 9, 2012

State of the Union November 9, 2012

November 9, 2012 online at www.uawlocal2250.com

Reminder: Veterans Day observation holiday will be Wednesday, Nov. 21. As a result, this month’s Union meeting will be next week, with 2ndshift meeting after the Tuesday shift, and Wednesday at 7:15 am, 1 pm and 15 minutes after the longest 1st shift line time.
Yesterday’s gate drive for Hurricane Sandy victims was a huge success. $5005was collected and will be donated to the Red Cross. Thanks to everyone who gave their time and money to this cause.
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.
From the UAW 2250 CAP Committee: To the UAW Local 2250 membership – THANK YOU ! Many hours of volunteer work went into this election campaign. So many brothers and sisters gave their own time to help get labor-friendly candidates elected. We polled and surveyed neighborhoods, walked for candidates handing out information, made calls, registered voters, attended rallies, distributed yard signs, posted and gave out flyers in-plant, and got out the vote. We were successful in many of the races. Additional thanks to all the members that donated to VCAP and to those who bought the VCAP Cruise Tickets this year. Thanks to our Local President and Chairman for their leadership in this election. Both Van and Mike were seriously involved from the beginning and all through the entire election year. Most of all, THANKS TO THE MEMBERSHIP for going out and voting. There’s no doubt that the voting turn out, YOUR VOTE, is what made this election a success. Thanks again.
From the Detroit News: Ford workers angry about the automaker's plans to shutter a plant in Belgium broke windows and burned tires in a demonstration outside the company's European headquarters in Germany. Cologne city police spokesman Karlo Kreitz said about 100 of the protesters were taken into temporary custody after three officers suffered minor injuries in the fracas Wednesday morning. Police say the protesters arrived on buses from Belgium and blocked the entrance to the plant.
Then a group of 20 to 40 stormed the building and threw stones through windows while others burned tires and set off firecrackers. Ford has announced plans to shut an assembly plant in Genk, Belgium, and at least two factories in the U.K., which could eliminate as many as 6,200 jobs. Union representatives are meeting with company management in Cologne. The automaker will not rule out more European capacity cuts if the auto market deteriorates further. The situation in Europe remains "very volatile," CEO Alan Mulally said at a conference in Berlin on Wednesday. "We don't know whether it will stabilize or hit bottom or not because it's continuing to decrease," Mulally said. The second-largest U.S. carmaker said last month it will shutter a British van factory in Southampton and an associated stamping plant in 2013, and close a bigger site in Genk, Belgium, the following year. While Ford has no current plans for further capacity cuts --- which can range from dropping a factory shift to closing a plant -- the company is monitoring Europe's market and economic outlook very closely, Mulally said. The European cutbacks at Ford are expected to generate savings of $500 million annually by 2015. The U.S. carmaker aims to make a profit in the region around this time. Ford, which posted a $468-million European loss in the third quarter, expects to lose a combined $3 billion in the region in 2012 and 2013.
Ford has finally released some pictures of the full-size Transit van to be built in Kansas City and go on sale in about a year. No word on price yet, but Ford is saying that the Transit, which will be a unibody design with rear-wheel drive, will have the 3.5 liter V6 Ecoboost engine as well as a turbo diesel of undetermined size. Also no word on whether there will be a passenger version.

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

Thursday, November 1, 2012

State of the Union November 1, 2012

November 1, 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: With next Tuesday Nov. 6 being a paid day off, that means both Monday, Nov. 5 and Wednesday, Nov. 7 are VR blackout days and holiday pay qualifying days.
General Motors Co. today reported its highest October sales in the United States since 2007, with deliveries up 5 percent versus a year ago to 195,764 vehicles. Year-over-year sales to retail customers were up 7 percent and sales to fleet customers were down 2 percent.
“GM had a solid October in a month that was marked by a devastating national tragedy,” said Kurt McNeil, vice president, U.S. sales operations. “All of us at GM are deeply saddened by the loss of life and the extensive damage caused by the storms, but we’re really encouraged by the national and local response, which will speed the recovery.” GM’s new cars had a standout performance in October. “With new designs like the Chevrolet Spark, Buick Verano and Cadillac ATS, and a growing reputation for quality and good resale value, we are becoming an even more formidable competitor in every segment – not just traditional GM strongholds like trucks,” McNeil said. Sales of GM passenger cars increased 15 percent in October compared with a year ago. Crossovers were up 3 percent and sales of full-size pickup trucks were up 8 percent. Passenger car sales were driven by a 37 percent increase in Cadillac car sales, a 27 percent increase in Buick car sales and a 12 percent increase in Chevrolet car sales. Combined sales of mini, small and compact cars were up 72 percent compared with a year ago, driven by strong Spark and Sonic sales and a 34 percent increase in Cruze sales. Chevrolet dealers also delivered a record 2,961 Volts. Crossover sales were driven by double-digit increases for the Cadillac SRX, GMC Acadia and GMC Terrain. Overall truck sales were down 2 percent, reflecting lower sales of the GMC and Chevrolet mid-size pickups, which have been discontinued, and large SUVs. Van sales came in at 6575, a 10.3% drop from last October.
“Year over year, the light vehicle selling rate has increased for eight consecutive quarters without a tailwind from the residential housing sector, but that is starting to change,” said McNeil. “If these trends continue, housing may be the final piece of the puzzle that lifts sales above 15 million units on an annual basis just as GM prepares to launch even more new cars, crossovers and trucks.”
From UAW President Bob King: Mitt Romney's meandering statements and plain falsehoods about the auto industry finally caught up to him earlier this week when he told a big whopper that cannot be squared with the truth during a speech in Defiance, Ohio. He said that Jeep, the American icon and great Toledo institution, "is thinking of moving all production to China." (continued on back)
Everyone paying attention to the election called him on it.Chrysler Group LLC has set the record straight, stating it has no intention of shifting production of its Jeep models out of North America. Defiance is an Ohio auto town whose most important employer is the General Motors (GM) plant that was saved by President Barack Obama. Voters there recognize that Romney's claim is just plain foolish, because Jeep is expanding, not contracting -- it's been all over the Ohio press for a year. Though the fact-checkers and the media unanimously shot down Romney's claims, no one was more stunned at the sheer craziness of Romney's statement than the workers at the Jeep factory, just down the road from Defiance. Chrysler is investing $500 million, adding 1,100 jobs and will actually add new models to one of the Jeep plants in Toledo.
Yet none of this would be occurring if the Obama administration had followed Romney's plan to rely on private capital to restructure Chrysler. No one, least of all voters in Ohio, who have lived through the ups and downs of the auto industry, believes that Romney's plan would have resulted in anything except the liquidation of Chrysler. Chrysler's CEO Sergio Marchionne said that it would have been "impossible"for Chrysler to get financing from the private markets in 2009. The court records are clear, too, but Romney wants voters to forget what Judge Arthur Gonzales said when finalizing Chrysler's restructuring plan: "The sale transaction is the only alternative to liquidation available to the debtors."
All of which has brought us to a truly Etch-a-Sketch moment, where Romney, knowing he is sunk if he admits that his plan would have forced Chrysler into liquidation, tries desperately to flip the script with a big lie about Jeep moving out of Toledo. And, rather than take the opportunity to exhibit honesty and presidential character by correcting his misstatement, Romney doubled down with a misleading campaign spot about Jeep running in Ohio. Using Chrysler to take on the Obama administration's results in saving the domestic auto industry is an odd choice. After all, the Chrysler restructuring has been a great success, starting with Chrysler having paid back all of its loans from the federal government six years ahead of schedule.
Just a few days ago, Chrysler reported that it had its best September sales in five years and that its third-quarter profit was up 80 percent over 2011. Since 2009, Chrysler has hired more than 7,000 workers in the United States and is hiring thousands more, starting with adding an additional shift at a plant in Detroit that builds the Jeep Grand Cherokee. And while Mitt Romney sticks to his false Chrysler narrative, an even more damning story about the dirty dealing of Mitt Romney's investment partners during the 2009 restructuring of GM is beginning to emerge.
Mitt Romney and his partners made a killing on the GM bankruptcy by gaining control of bankrupt parts supplier Delphi, then threatening to withhold components critical to the production of GM vehicles. Romney's business partners were willing to force GM into liquidation and cause a national economic calamity unless they got more money. In the end, the Romney investor group got what it wanted and earned a profit of more than 3,000 percent on its initial investment.
This is the real Romney, a man who objected to the rescue of the domestic auto industry, then made astronomical profits after his business partners threatened the survival of GM. A man who lies about Chrysler moving jobs to China, when his history at Bain Capital, the private equity firm he founded, shows that he has invested in Chinese factories where workers are grossly exploited. Romney won't even act to stop the Sensata factory in Illinois, in which he is an investor, from closing the doors and moving to China the day before the election. Mitt Romney won't come clean on Chrysler, won't come clean on his Chinese investments and threatened the restructuring of GM for his own profit. That is the picture of a me-first hedge-fund investor, not someone who has the judgment or character to be President of the United States. Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119