State of the Union April 30 2013

April 30, 2013 online at www.uawlocal2250.com


The Recreation Committee is raffling off 4 tickets to a Cardinals/Cubs game Sunday, Aug. 11 (1:15 start) to help support this Saturday’s Cinco DeMayo celebration. Ticket prices are $5 apiece or 3 for $10 and can be bought from any committee member, at the Union Hall or the night of the celebration. Drawing will be held at the celebration and you need not be present to win. Doors open at the Union Hall at 6 pm for the celebration.
Poage Chevrolet (formerly Cox & Cohea) in Wentzville is offering a special vehicle service program to all Wentzville Assembly employees, including spouses and children. The following are benefits of the program:

• Courtesy pick-up and delivery of your vehicle to and from the plant
• 10% off labor on any non-warranty repairs
• 20% off all genuine GM parts and GM accessories
• $10 off oil change/tire rotation on all vehicles

When scheduling your service, non-warranty repairs, or buying your parts or accessories all you have to do is present your GM plant ID to receive you discount. You can call 636-327-6268 or toll free at 866-688-4045.
Following up on the article about UAW President Bob King’s suggestion for another vote at Opel’s Bochum plant in Germany: "With every new discussion and any kind of delay we are wasting precious time," wrote Manfred Gellrich, Opel Bochum plant director, in a letter to the employees. In Rüsselsheim, Opel rejected the debate about new voting as absurd. A spokesman stated: "You can't just vote until you get the desired result." Rainer Einenkel, head of the Bochum works council, is being accused of not having informed the employees sufficiently enough. At issue is a wage freeze and cuts to “fringe benefits” as well as money saving work rules changes. Union workers at GM's Russelsheim, Kaiserslautern and Dudenhofen factories voted with majorities exceeding 83 percent to accept the reorganization agreement. According to the Russelsheimer Echo, more and more employees are changing their minds and wish for a new vote. But recent statements make that seem very unlikely. Einenkel is not going quietly, however. “This would be the most expensive plant closure of all times,” warned Einenkel a week after the failed vote. “This would cost GM billions. Opel would not survive this.”
Even though Honda’s quarterly profits reported last week were only 6.6% higher year-over-year, they are predicting a robust 58% rise in 2014 fiscal year profits (their fiscal years run April 1 through March 31). Why the stunning increase in profits? One reason: the weakened yen. Since the beginning of his administration late last year, Prime Minister Shinzo Abe has set about weakening the yen in what is known as “Abenomics”. And so far the yen is down roughly 25% against the dollar. How does this help companies like Honda? Let’s say the average transaction price of a Honda vehicle is $28,000. With the yen at 100 per dollar (it is slightly less today) that means Honda receives 2.8 million yen. A few months ago the yen was at 80 per dollar, which generated only 2.24 million yen – a difference of 560,000 yen, or $5600 at current exchange rates. So Honda (and Toyota and Nissan) will reap windfall profits by merely exchanging dollars for yen. Expect the Japanese big 3 to use that money to bump up incentives to take market share, as well as adding content to next generation vehicles with their new found largesse (which is exactly what they did a few years ago when the yen was trading at the absurd rate of 120 per dollar).

From Autoblog: By the end of this year, the Mercedes-Benz Sprinter will be the second-oldest nameplate in its segment here in the States (guess which is the oldest), but with hot new competition waiting in the wings, Mercedes-Benzis giving its hauler a freshened look and more equipment to stave off rivals. The US market is expected to get the new Sprinter for the 2014 model year. Some of this new technology includes a Crosswind Assist feature as standard equipment and the availability of Collision Prevention Assist and Blind Spot Assist as optional safety measures – Mercedes-Benz says that all three are firsts for any van in the world. Also added to the updated Sprinter is a new 1.8-liter supercharged gasoline (or CNG) engine producing 156 horsepower, which will complement the line of diesel engines that carry over and help make the Sprinter the first cargo van to meet the upcoming Euro VI emissions standards. Buyers will get to choose between a six-speed manual or a seven-speed automatic, which ought to further aid fuel economy. Additionally, a lower ride height is said to improve fuel economy and should improve handling while aiding ingress and egress for both people and cargo.
From Automotive News: Daimler and Renault said they are holding discussions to build a large van together as part of a possible expansion of their existing partnership. "We're in early talks with Renault," said Uta Leitner, a Daimler spokeswoman. "No decisions on possible production sites have been taken." Daimler currently works with Volkswagen in the European large van segment. The contract runs out at the end of 2016 and VW has announced plans to develop a new Crafter model on its own. Daimler first partnered with Renault in 2010.
Nissan will recall more than 123,000 new Altima sedans after a spare tire blew out - while locked away in the trunk of a car. The recall affects 2013 model year Altimas that were produced for about a year-long period, ending on March 26.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

State of the Union April 26, 2013

April 26, 2013 online at www.uawlocal2250.com
Thanks to everyone who contributed their money and time to the March of Dimes, March for Babies gate drive. A total of $3761 was collected for this great cause!

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.

From Automotive News: The head of the UAW suggested German hourly workers at a General Motors plant should accept a deal they previously rejected in order to keep their jobs. UAW President Bob King, who is a member of Opel's supervisory board, said on Tuesday that workers at GM's Opel plant in Bochum, Germany, should ask to vote again on the restructuring deal they rejected last month that would have kept the plant open through the end of 2016 and retained 1,200 of the more than 3,000 employees. The 50-year-old plant is now scheduled to close by the end of 2014, when Opel will end production of Zafira MPVs. The plant closure is part of management's strategy to achieve profitability in 2015 after what will be by then 15 straight years of losses for GM in Europe. "I would really hate to see that plant closed when so much effort was put in by IG Metall and the works council to save it," King said in a telephone interview. A revote, while rare, has been done before in the United States, he said. In 2008, workers at a former Ford Motor Co. glass plant petitioned for a revote, while in 1999 union leaders in the Flat Rock, Mich., assembly plant then run by Ford and Mazda Motor Corp. suggested a second vote. "I'm hoping if I talk about how that's one of the things that happened in the U.S., that maybe the (Bochum) workers will do that," King said. "I don't know if that's possible, but at least that would open up a door of opportunity for people to talk." GM officials said the workers had voted and the company was now focused on supporting the development agency 'Bochum Prospects 2022,' an initiative to attract new companies to the economically depressed Ruhr region of northwest Germany where the plant is located. "We gave the employee a clear choice," spokesman Harald Hamprecht said in an email. "We respect the outcome. The Opel supervisory board acted accordingly and we are moving on."
GM previously said no further negotiations on the labor deal would take place. The management board at GM's money-losing Opel unit approved the closing of the Bochum plant last week. King said it was up to union leaders in Germany to ask for a revote. He declined to say whether he had discussed the idea with the German union IG Metall. King emphasized that keeping the plant open would allow workers the opportunity to regain jobs later when the struggling European economy improves. The UAW took a similar approach at GM's Spring Hill, Tenn., plant, where vehicle assembly ended in November 2009 but engine and stamping operations continued. In November 2011, the union reached a new labor deal with GM that include resumption of vehicle assembly at the plant in the third quarter of last year.
Workers in Bochum had the same opportunity and perhaps didn't understand or it was not explained well enough, King said. Labor leaders in Bochum, a former coal mining town, led opposition against a compromise deal, betting GM would not take the unusual and costly step of shifting production and tooling of the Zafira prior to 2017. King, who was appointed by IG Metall to Opel's supervisory board in March 2012 and is up for reelection for a four-year term, said GM has not announced where Bochum production will be shifted.
He also said there have been discussions about shifting more production work to European plants, but declined to discuss further. King is trying to win the support of IG Metall as part of the UAW's efforts to organize the U.S. plants of German automakers Volkswagen and Daimler's Mercedes-Benz. He has said organizing the U.S. plants owned by foreign automakers is critical to the UAW's future success. King said the UAW's relationship with IG Metall was strong. Last month, IG Metall President Berthold Huber said in a letter that the hourly workers at VW's plant in Chattanooga, Tennessee, should pick the UAW to represent them. "UAW doesn't have a better advocate than Berthold Huber," said King, who added there were no new developments in the union's efforts to organize workers at the VW plant.


Here are some more quarterly earnings reports from our competitors:

• Hyundai Motor Co. today posted a 15 percent year-on-year fall in quarterly net profit, broadly in line with market forecasts, as it was hamstrung by weekend production stoppages and unfavorable currency moves. Net profit fell to 2.1 trillion won ($1.88 billion), Hyundai said.
• Kia Motors Corp. posted a 35 percent drop in first-quarter profit after production at its main domestic factories fell and the won strengthened against the yen. Net income declined to 783.9 billion won ($707 million), from 1.2 trillion won a year earlier.
• Honda Motor Co. said it posted a 6.6 percent rise in quarterly net profit, helped by the yen's rapid depreciation and strong sales of its Accord and CR-V models the United States. In the quarter ended March 31, Honda booked net profit of 75.7 billion yen ($760.88 million), compared with 71.5 billion yen in the same period last year. Honda's operating income from North America for the quarter fell 65 percent to 29 billion yen ($296 million) in the quarter and missed the 61.2 billion yen average analyst estimate.

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

State of the Union April 23, 2013

April 23, 2013 online at www.uawlocal2250.com

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  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

State of the Union April 19,2013

April 19, 2013 online at www.uawlocal2250.com

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.

Here is an opinion piece from Mike Colias of Automotive News about the upcoming midsize trucks we will be building:
Mark Reuss says the next-generation Chevrolet Colorado and GMC Canyon mid-sized pickups will be so much better than the bland outgoing models, General Motors might come up with new names. "We're targeting a new generation of buyer with a new truck," the GM North America president told reporters this week.
That's good. Because GM's entire pickup strategy relies greatly on the success of those new mid-sized offerings. Sticking with a mid-sized pickup is a big bet that diverges from rivals Ford and Chrysler, which have walked away from the segment.
GM's rivals don't seem to expect a revival in the shrunken market for mid-sized pickups. It's shriveled to just 264,197 units last year, from more than a 1 million in 2000, when the Ford Ranger, Chevy S-10 and Dodge Dakota were showroom staples.
Somewhere along the way, the line between full- and mid-sized pickup blurred. Most buyers didn't see the logic in opting for a smaller truck that didn't offer a whole lot better fuel economy -- or a much cheaper sticker price.
But Reuss contends that full-sized trucks can't be all things to all buyers. They are workhorses for people who use their trucks for a living. The mid-sized trucks will be for people who like the functionality of a truck but don't need big towing capacity and want better gas mileage. Want the same 25 mpg highway rating on the Ram 1500? You won't be able to get it on either of GM's redesigned full-sized pickups, the Silverado and Sierra, which should hit showrooms in June. But how about the new Colorado or Canyon?
That in a nutshell will be GM's strategy once the redesigned mid-sized pickups land in late 2014. So how can GM unblur that line between full- and mid-sized?
It must give consumers a clear choice: A mid-sized pickup that offers styling, features and fuel economy that a full-sized pickup can't sniff. A diesel engine, for example, would give those smaller pickups a sizeable mpg edge over its bigger brethern.
Reuss wouldn't comment on prospects for a diesel engine. But he did promise that GM will "attack the West coast with a lifestyle truck that is really beautiful and fun."
When they're unveiled this fall, the new Colorado and Canyon -- or whatever GM decides to call them -- will raise the curtain on one of the most interesting chess matches unfolding in the auto industry.

The new 2014 Chevrolet Cruze Clean Turbo Dieseldelivers an industry best EPA-estimated 46 MPG on the highway – better than any non-hybrid passenger car in America. It will be available in certain cities this spring and nationwide and in Canada in early fall. Equipped with a six-speed automatic transmission, the latest addition to the Cruze powertrain family has an estimated range of 700 highway miles on one tank of diesel fuel based on the EPA highway estimate and the vehicle’s fuel tank capacity. That’s about 10 hours of highway driving. “We harnessed generations of diesel expertise to adapt our world-class global engine for the North American market,” said Gary Altman, chief engineer, Chevrolet Cruze Diesel. “The Cruze Diesel is the best diesel passenger car out there. Chevrolet is redefining the meaning of great fuel economy with this car.” With a starting price of $25,695, including an $810 destination charge, the Chevrolet Cruze Diesel is a better value than a similarly equipped VW Jetta TDI automatic. Compared with Jetta, the Cruze Diesel offers standard equipment including the Chevrolet MyLink infotainment system, larger 17-inch alloy wheels, leather-appointed seating, a longer five-year 100,000-mile powertrain limited warranty, and a two-year maintenance plan. Cruze Diesel also beats its rivals in performance with a segment-leading estimated 148 horsepower (110 kW) and estimated 258 lb-ft of torque (350 Nm), and can go 0-60 in about 8.6 seconds. Its advanced 2.0L turbo-diesel engine has an overboost feature capable of increasing torque to an estimated 280 lb-ft (380 Nm) for short bursts of stronger acceleration when needed, such as entering freeway traffic. Cruze Diesel is powered by the cleanest diesel passenger car engine produced by General Motors. The vehicle generates 90 percent less Nitrogen Oxide (NOx) and particulate emissions when compared to previous-generation diesels. Chevrolet has sold more than 2 million Cruze models globally since it was launched in mid-2010. More than 33,000 of those were diesel powered.

From the Chattanooga Times Free Press: Volkswagen AG told 500 contract employees supplied by Aerotek at its Chattanooga assembly plant that it is cutting 15 percent of the workforce and they will be laid off. VW uses the staffing agency to screen, hire and provide temporary production jobs in the plant. VW executives blamed slower-than-expected growth in Passat sales and said they're doing away with a third production shift at the factory. Frank Fischer, who heads VW in Chattanooga, said the job cuts are unrelated to reports last month that VW officials in Europe are weighing the startup of negotiations with the United Auto Workers about a works council in Chattanooga. He said the company is asking the laid-off workers if they want to be recalled later. After the job cuts, Aerotek will have about 100 employees at the plant and about 30 others will be offered status as VW workers, Fischer said. He said those losing their jobs are to be paid through June.

GM will announce 1st quarter earnings Thursday, May 2. Ford will announce April 24 and Chrysler on April 29.

The Cadillac XTS and the Chevrolet Spark were 2 of the winners in Wards Auto’s 10-best interiors for 2013.

General Motors executives said they expect China auto sales to balloon to about 35 million vehicles by 2022, which would make the market bigger than the U.S. and Europe combined.

March European vehicle sales for Volkswagen, Europe's biggest automaker, slid 9 percent. Ford Motor's sales slid 15.8 percent, while General Motors' tumbled 12.6 percent. Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

State of the Union April 9, 2013

April 9, 2013 online at www.uawlocal2250.com


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. Also, there will be a Civil Rights Committee meeting Monday, April 15 between shifts at the Union Hall.
There will be a Veterans Committee this Thursday, April 11 between shifts at the Union Hall.
March van sales were down 11.7% versus last year, and are down 11.1% for the first quarter this year.
Here’s how the rest of the players fared in March:

March 2013

	2013	2012	Change	Share
Ford Ecoline	11,316	12,308	-8.1%	53.5%
GM	7,020	7,952	-11.7%	33/2%
Mercedes Sprinter	1529	1375	+11.2%	7.2%
Nissan NV	1,290	1,232	+4.7%	6.1%
Ford Transit Connect	3,655	2,973	+22.9%	----
Nissan NV 200	47	---	---	---

As expected, field supplies are higher, up to 67 days supply from 55 last month. Every model saw unit increases in field supply as overall supplies rose 2571 units from February. That said, passenger van supplies are still quite low at just under 1300 units for some 3500 dealers nationwide. Chevy cargo vans are at 70 days supply and cutaways are also around 70 days. You may notice a new entry in the van market – the Nissan NV 200. This is a small van aimed directly at the Transit connect, and was chosen as the next New York city cab.

You may wonder how this past March stacks up against previous years. As recently as 2008, as gas prices were beginning to spike and the economy was imploding, we sold 12,072. But by April that had dropped to 7178. The best March ever was 2005, when we sold 16,212. That year we sold an all-time best 162,350 vans.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

State of the Union April 4, 2013

April 4, 2013 online at www.uawlocal2250.com
From Automotive News: The UAW's total assets fell for the sixth straight year in 2012 while spending on political activities and lobbying nearly quadrupled from the previous year, the union's annual financial filing with the U.S. Labor Department shows. In 2012, the union reported assets of just over $1 billion, down 4 percent from the previous year, according to the filing dated March 29. Liabilities were roughly $7.7 million. The value of the UAW's investment holdings fell 8.3 percent, or nearly $65 million, to about $718 million. Under its president Bob King, who was elected in 2010, the union is trying to build membership at auto plants in the southern United States and expand into other areas including gaming, healthcare and higher education. Less than half of the UAW's nearly 383,000 members work in the auto industry. Last Thursday, the union reported its third straight year of membership gains. But the dues paid by workers in other industries is often less than what is possible in the auto sector. In the past, the UAW has sold assets and investments to pay for operations. In 2012, the UAW reported an increase in annual funding by 1 percent to $261 million. Funding from dues fell about 6 percent. The sale of investments and assets rose 13 percent. Cash disbursements were up 1 percent to $260 million. It included nearly $30 million spent on political activities and lobbying during a presidential election year. The union also wrote off the value of furniture and other equipment by about $38.5 million and its Black Lake golf course in northern Michigan by $1.8 million. The union opened the golf course during the SUV boom in 2000, when membership was about 672,000. The golf course is now worth $5.7 million, the UAW said. At its peak, UAW membership was 1.5 million in 1979. Auto workers at the Detroit 3 automakers represented about three-quarters of the membership in the 1970s. Now, workers from General Motors Co., Ford Motor Co. and Fiat's Chrysler Group account for about a third of the total.

From the Detroit News: General Motors Co. Chairman and CEO Dan Akerson said Thursday the automaker is closely monitoring tensions in Korea, has made contingency plans for employees and is thinking of moving production if tensions continue to rise. "Anything that goes on in Korea is important to our global production," he said during a live interview on CNBC's "Squawk Box" morning show. "If there were something that would happen in Korea, it's going to affect our entire industry, not just General Motors." Akerson said the company would consider moving production in Korea if the situation gets worse. Detroit-based GM has five plants in South Korea, which annually produce 145,000 units of domestic production and 1.3 million vehicles that are exported to other countries.

The UAW commends the Obama administration for proposing new fuel and tailpipe emission standards that will help ensure the U.S. auto industry remains the most advanced and competitive in the world. When combined with the already finalized CAFE standards, the American people can see the commitment of this administration to ensure we continue producing vehicles of the future. Upon full implementation, the proposed rule will reduce the amount of sulfur in our gasoline by two-thirds. This is one of the most cost-effective ways for us to get cleaner and healthier air while strengthening our domestic auto sector and creating thousands of new jobs. The proposed rule is a win for our economy and a win for public health. It is estimated to create thousands of jobs and will bring the U.S. standard in line with the standards utilized in California and countries around the world in helping to reduce air pollution. The UAW is proud to support the EPA’s proposed rule, and we urge its adoption.

General Motors Co. will invest nearly $332 million in four manufacturing sites to produce more fuel-efficient engines and transmissions, demonstrating GM's commitment to deliver what customers want: technology-driven performance and fewer trips to the pump. The investments – announced today at GM plants in Flint and Bay City, Mich.; Toledo, Ohio, and Bedford, Ind. – will support production of a new Ecotec small gas engine, a new V6 engine, 8-speed transmission, and tooling for an existing 6-speed transmission. GM also is increasing previously announced powertrain investment in plants in Romulus and Saginaw, Mich., to $646 million – an increase of $46 million – to support production of the new V6 engine. Since 2009, GM has announced nearly $1.8 billion of investments for the six Powertrain facilities. “We are investing in technologies and manufacturing capabilities that produce high-quality, fuel-efficient vehicles and components for our customers,” said Diana Tremblay, vice president of GM North American Manufacturing. “Today’s announcement demonstrates GM’s commitment to growing the business and strengthening the plant communities where we receive so much support.” Combined, the two investments will retain about 1,650 jobs at the six facilities. “The selection of these plants and the opportunity for the United Auto Workers to build the next generation of engines and transmissions reflects the great efforts of our work force,” said UAW Vice President Joe Ashton, who directs the union’s GM department. “This investment goes a long way to ensuring GM remains a marketplace leader and our members can continue to support and share in the company’s growth.”

The average transaction price for a new vehicle passed $31,000 last month and hit a near-record, according to calculations by shopping and research site TrueCar.com. Incentives fell slightly, and buyers picked cars and trucks with more accessories, TrueCar.com says. "Manufacturers continue to benefit from consumers' insatiable appetite for highly contented new vehicles," says Jesse Toprak, analyst for TrueCar. The average transaction price in March, according to TrueCar data, was $31,087, the second-highest in TrueCar's records. Highest was $31,228 last December. Transaction price calculations are meant to include everything -- such as taxes, license and paperwork fees -- in the out-the-door price. TrueCar estimated that the average incentive for new vehicles last month was $2,523, down $44 or 1.7% from a year earlier and unchanged from February. The combination of higher transaction prices, moderate incentives and strong sales should mean big profits for automakers when they report first-quarter financial results. Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

State of the Union April 2, 2013

April 2, 2013 online at www.uawlocal2250.com

General Motors Co. sold 245,950 vehicles in the United States in March, up 6 percent compared with a year ago. Retail sales increased 4 percent, fleet sales were up 12 percent and the fleet mix was 27 percent of total sales. “GM delivered its best March sales in five years thanks to a strengthening economy and new products, and we are expecting our third consecutive increase in market share versus last year,” said Kurt McNeil, vice president of U.S. sales operations. “Sales of smaller cars have been robust for some time. Trucks have improved in lockstep with the housing market and the strength of the crossover market signals that America’s families are more confident about their financial health.”
March Highlights (vs. 2012)

• Cadillac was up almost 50 percent; Buick was up 37 percent; GMC was up 12 percent; and Chevrolet sales were essentially equal to a year ago.
• Crossovers were up 31 percent; trucks, which include pickups, vans and SUVs, were up 2 percent; car sales were down 3 percent; large pickup sales were up 6 percent.
• Small business sales, which are included in retail sales, were up 32 percent to almost 15,000 deliveries, aided by a stronger housing market.
• Sales of GM’s redesigned mid-size crossovers were up 62 percent. The Chevrolet Traverse was up 54 percent; the GMC Acadia was up 77 percent, and the Buick Enclave was up 55 percent for its best-ever March sales.
• The all-new Cadillac ATS had its best sales month yet with deliveries of 3,587 units.
• In its second full month, the all-new Buick Encore had sales of more than 3,000 units, driving a 19 percent increase in GM small and compact crossover sales. Van sales came in at 7020, a decrease of 11.7% from March 2012.

First Quarter Highlights (vs. 2012)

• GM sales were up 9 percent: retail sales were up 10 percent; fleet sales were up 6 percent, and fleet mix was 26 percent of total sales.
• Cadillac was up 38 percent; Buick was up 28 percent; GMC was up 14 percent, and Chevrolet was up 5 percent.
• Crossovers were up 25 percent; trucks were up 10 percent and cars were up slightly.
• Large pickup trucks were up 21 percent, and combined mini, small and compact cars were up 14 percent.
  
  The UAW’s 2012 LM-2 report shows UAW membership continued to grow, increasing from 380,716 in 2011 to 382,513 in 2012. The growth in UAW membership continues along with the nation’s economic recovery. The successful turnaround of the automotive industry through the joint work of UAW auto members, auto management, and the Obama administration has played a key role in the recovery of the U.S. economy.
  Membership numbers reported to the Department of Labor in recent years were:
  • 380,716 for 2011
  • 376,612 for 2010
  • 355,191 for 2009
  It is important to note that the above Department of Labor numbers do not reflect the total number of workers represented by the UAW. Represented workers not counted in these numbers include workers who have been organized and are still in the process of bargaining their first contract and workers in the academic sector who are represented by the UAW but have not yet signed their membership cards. Including these workers in the total number of workers represented by the UAW bring the number to more than 400,000 members. “UAW membership continues on a steady path of recovery, even in the face of concerted attacks on workers and collective bargaining,” said UAW President Bob King.
  “Our 2011 collective bargaining agreements with the domestic automakers resulted in investment commitments of $20 billion in communities across America through 2015, so we anticipate continued membership growth for the next two years,” King added. New members organized recently by the UAW include thousands of casino employees, workers at Southern auto parts facilities in Alabama and Kentucky, and workers at Tulsa Bus in Tulsa, Okla.
  From the Detroit Free Press: General Motors is planning to launch two midsize pickup trucks as early as late next year under its Chevrolet and GMC brands. The new Chevrolet midsize pickup will be aimed at the “lifestyle,” pickup truck buyer while the GMC midsize pickup will be aimed at fleet buyers and small business owners, Mark Reuss, president of GM North America told the Free Press last week. Reuss said the launch of the two midsize trucks will be timed to coincide with Ford’s launch of its redesigned full-size F-150.
  Ford is widely expected to launch its new F-150 by the end of 2014 or in early 2015. “We are going to have a midsize truck that we launch right down the alley,” Reuss said. “When they bring out their F-150, we are going to have something no-one else has.” Reuss said GM’s midsize pickups will be larger than a Toyota Tacoma, which is classified as a compact pickup.
  GM phased out its compact Chevrolet Colorado and GMC Canyon pickups last year. Ford made its last Ford Ranger for North America in 2011. Chrysler ended production of the Dodge Ram Dakota in August, 2011, but continues to study the business case for a so-called lifestyle pickup, Fred Diaz, CEO of the Ram brand said in February. However, the timing of a new Dakota has been pushed back until approximately 2016. Compact pickups are a small segment in North America.
  They accounted for only 264,197 sales in the U.S. last year compared with 1.94 million full-size pickups. “This is going to be a new truck— a new size of truck with a new set of powertrains in those trucks,” Reuss said. “It will be a little bigger than a Tacoma.”
  Reuss said the decision to develop two midsize pickups is partly driven by the desire of some pickup buyers to be able to haul goods with better fuel economy than can be achieved by the company’s larger, full-size pickups.
  “I don’t think you can cost effectively get close…from a light-weighting standpoint,” to the needs of those customers, Reuss said. “There is a buyer out there that doesn’t need everything that a full size truck does.”
  Reuss said the two midsize trucks will be aimed at two distinct types of buyers. “We are going to go at it with Chevrolet on a lifestyle basis that will be quite different than a Silverado and we are going to go at it with GMC with professional grade capability in a little bit smaller truck with all of the fuel efficiency and fuel economy,” Reuss said.
  
  Tom Brune
  UAW/GM Communications Coordinator
  Wentzville Assembly
  636-327-2119