Tuesday, March 19, 2013

State of the Union March 19, 2013

March 19, 2013 online at www.uawlocal2250.com

• Union meeting is tonight after 2nd shift and tomorrow at 7:15 am, 1 pm and 15 minutes after longest 1st shift line time.
•From the Community Services Committee: Thanks to everyone who donated bought raffle tickets or donated food to help restock area food pantries. A total of $4084 was raised. Winners of the raffle were: David Rodriguez – Blues tickets; Pat Dillon – Cardinals tickets; Tim Branch - $100 gas card.
• From the Detroit News: The Japanese government asked to join trade talks aimed at creating a massive free trade zone of at least 11 nations including the United States, Canada and Mexico — a move that could have dramatic implications for the U.S. auto industry. The American Automotive Policy Council, which represents Detroit's Big Three automakers, and some Michigan members of Congress urged the Obama administration not to let Japan join the talks. "Because Japan is the most closed auto market among developed nations and helps accomplish that through non-tariff measures, including manipulating its currency, Japan cannot be treated like other U.S. trade partners. By artificially weakening its currency, Japan enjoys a huge unfair advantage for their exports while impairing U.S. exports to Japan. That translates into lost jobs for American workers," said AAPC President Matt Blunt, a former Republican governor of Missouri. "We're for free trade, but only if all trade partners abide by agreed rules," Blunt said. "Japan's weakening of the yen by 23 percent since last October 1, 2012, has consequences beyond the U.S. economy. This is why Japan's actions have been widely criticized by independent groups and world leaders internationally, and threaten to spark a currency war. This is why allowing Japan to join the TPP at this time risks unraveling the entire negotiations and will certainly delay its completion."
•From Automotive News: General Motors will sell the current Chevrolet Impala for another year to fleet customers only, while the soon-to-be launched replacement will be geared for sale mainly to retail buyers. The fleet-only model, the 2014 Impala Limited, likely will be produced until spring 2014, Chevrolet marketing chief Chris Perry said here during a media launch of the next-gen Impala. The redesigned car will hit showrooms by mid-April, Perry said.
• Extending the life of the older Impala is a way for GM to capitalize on the popularity of the no-frills sedan among car-rental companies and fleet buyers who want an inexpensive big car with decent gas mileage. It also will allow Chevrolet to re-position the new Impala as a stylish and higher-priced offering that serves as the brand's flagship sedan. Last year, nearly 75 percent of the 169,351 Impalas that Chevy sold were to fleet buyers. For the forthcoming redesigned car, Perry said he expects retail to account for around 70 percent of sales. GM's plant in Oshawa, Ontario, makes the old and new versions. The automaker's Detroit-Hamtramck factory will also build the new Impalas, starting later this year.
•Attention: The $10,000 lump sum retirement cash payment has been extended through January 1, 2015. It had been previously set to expire Sept. 1, 2013.
•From FleetNews: General Motors has regained the lead in total fleet registrations with a 24.7 percent market share. This is the first time the automaker has topped fleet registrations since 2010. The numbers, compiled by Polk, show that total 2012 commercial fleet, government, and rental segments had 687,184 registered GM vehicles; a 3.4 percent increase over 2011. GM led all automakers by 17,977 registrations, according to Polk’s data.
The Polk data makes it clear that fleet and commercial sales is a key part of the U.S. automotive market. “This is very big business — it’s a big revenue business, it’s a big sales business, and it’s a good margin business — and it’s very important to the company. And, many of things that we do impact retail, too,” Ed Peper, GM U.S. vice president of Fleet and Commercial Sales, told Automotive Fleet.
Peper noted that many fleets are a key way both the general public and drivers become aware of GM’s products. “If fleet drivers like what they’re driving every day and it’s a GM product, they’ll buy a GM product for their own vehicle,” he said. GMC and Chevrolet van registrations were up 7 percent in 2012 and small cars were up nearly 200 percent. Commercial and government customers drove the segments’ increased sales, according to the automaker. While Peper noted that the 200 percent increase in the small car segment likely won’t be replicated next year, it does underline the trend of fleet rightsizing. “Some of the bigger fleets bought the Cruze, a ‘big’ small car. It has great fuel economy — and it makes sense for fleet and commercial applications,” he observed. In addition to the Cruze, Peper pointed to the Sonic, Spark, Captiva, and Buick Verano as other small cars that have proven themselves in commercial fleets. According to Peper, fleet is a front-of-mind priority for senior leadership. “We’re getting more support than ever before,” he said. Going forward, Peper said that the automaker is continually looking at ways to “tweak” products for commercial applications and said that GM is currently working on some new fleet-specific products. “We’re very interested in the fleet and commercial business,” Peper said. “We’re very humble. We just want to continue to serve our customers hopefully better than anybody in the marketplace and have them keep coming back again, and again, and again. That’s what we want to do.”

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

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