State of the Union April 23, 2013

April 23, 2013 online at www.uawlocal2250.com

(ul)

  From the Civil Rights Committee: We’re seeking ANY Hispanic collectibles, books, etc. to put on display for Mexican Heritage Day, which will be Thursday, May 2. If you would like to share your items, please see Denise Black, Civil Rights chairperson (1st shift trim, E-32 or Nextel #61) or Larry Mosbey, Civil Rights member (2nd shift chassis frame line) no later than April 26, 2013. All items will be returned after one day display. Thank you in advance.

  Attention Entry Level employees: Participants in the Flexible Spending Account program must apply for reimbursement of eligible expenses for the 2012 plan year (Jan. 1, 2012 – March 15, 2013) by next Tuesday, April 30. For employee claims, go to benefitsolutions.bankofamerica.com or call (866) 567-3993. For dependent claims go to acclarisonline.comor call (866) 203-9358.

From Bloomberg: Ford Motor Co. may post its highest first quarter North American profit ever, the latest sign the automaker's comeback is gaining momentum. Ford probably earned a record $2.7 billion pretax profit in North America during the first three months of the year, according to analyst estimates at Morgan Stanley and JPMorgan Chase & Co. First-quarter automotive revenue, to be released Wednesday, probably rose 10 percent to $33.6 billion, the average of 11 estimates compiled by Bloomberg, from $30.5 billion a year ago. Profit margins may have hit 12%. Just as Detroit's cars are making strides, the full-size pickup market is coming back. Led by rebounding demand for F-Series, the best-selling vehicle line in the U.S. for 31 years, large trucks' share of the U.S. auto market climbed to 11.7 percent in the first quarter, from 10.6 percent a year earlier, according to researcher Autodata Corp.

Kentucky is rolling out the (dollar covered) red carpet for Toyota to agree to produce the Lexus ES at their Georgetown plant. The state, whose senior senator argued vehemently against any taxpayer aid to the domestic auto makers, is willing to pony up $146.5 million in “tax incentives” to attract another 570 full-time jobs and 50,000 units of production. Toyota is expected to invest $530 million (on top of the $6 billion already plowed into the facility) to secure the incentives. The factory employs about 6,600 people and can build more than 500,000 vehicles and 600,000 engines annually. The new project could add 750 jobs when contract workers are included, according to the Kentucky statement.

The American University’s Kogod School of Business recently released its Made in America Auto Index that ranks vehicles sold in America as “Most American” by taking into account various criteria. The index was compiled by Associate Professor Frank DuBois, an (as described) expert in global supply chain management, and takes into account the following factors:

Profit Margin: where the automaker’s global headquarters is located

Labor: where the car is assembled

Research and Development: where R&D of the car took place

Inventory, Capital, and Other Expenses: location of assembly

Engine and Transmission: location of production

Body, Interior, Chassis, Electrical, and Other: location of production

National Highway Traffic Safety Administration AALA “Domestic Content” Score The index contains 32 General Motors models in 12 spots in the following order:

1. GMC Acadia, Buick Enclave, Chevy Traverse
2. Chevy Corvette, Chevy Equinox, GMC Terrain
3. GMC Sierra, Chevy Silverado, Chevy Avalanche, Cadillac Escalade, Chevy Suburban, Chevy Tahoe, GMC Yukon, Chevy Express, GMC Savana, Cadillac ATS, Cadillac CTS, Cadillac XTS, Chevy Malibu, Buick LaCrosse, Buick Regal
4. Chevy Colorado, GMC Canyon
5. Chevy Cruze, GMC Verano
6. . Chevy Sonic
7. Chevy Camaro
8. Chevy Volt
9. Chevy Impala
10. Chevy Captiva (fleet-only vehicle in the U.S.)
11. Cadillac SRX
12. Chevy Spark
    

The index contains 253 total vehicles and has a total of 72 positions, since there were multiple tie scores and similar models that varied on the basis of trim lines or engine and transmission options were combined for ease of comparison. The top score was 88.5 for the GM triplets. The Express/Savana vans scored 83. Tied for 72nd place were 21 different Toyota models, 13 different Nissan models, 11 Mercedes, 4 Hondas and Subarus, 3 Mazdas, 2 Mitusbishis, 1 BMW (and a partridge in a pear tree). The score for all of these vehicles? ONE. In fact, there were 110 foreign brand vehicles that scored 3.5 or less. This index stands in stark contrast to the Cars.com version, which has 4 of the top 5 most American made vehicles as Japanese brands. The Cars.com index seems to minimize the importance of domestic parts bought. GM doesn't have a single car in the top five of the index, yet consider that GM alone buys as many U.S. parts as Toyota, Honda, Nissan, Subaru, Mitsubishi, and all other Japanese automakers combined. And Detroit's Big Three are all headquartered here and have eight times the numbers of workers here that Toyota, Honda, and Nissan do. Detroit spends more on R&D here in the U.S. per year than juggernaut companies such as Boeing, Intel, Google, Apple, Hewlett-Packard, and ExxonMobil -- again, combined.

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