Wednesday, September 3, 2014

State of the Union September 3, 2014

September 3, 2014 online at www.uawlocal2250.com

• Teams still needed: The Annual Women’s Committee benefit golf tournament will be held this Saturday, Sept. 6 at Country Lake golf course in Warrenton. It is a 3-person scramble with a 1:30 pm shotgun start. Cost is $210 per team/$70 per person and includes prize money for the first 3 places in 3 flights, longest drive and closest to the pin contests as well as Food and beer that will be served after the tournament. Entry forms are available at the entrances. Proceeds will benefit the St. Louis Crisis Nursery which serves children and families of St. Charles, Warren, Lincoln, Pike, Franklin and Jefferson Counties as well as St. Louis City and County and East St. Louis.

• September is going to be a busy month for Local 2250 activities. In addition to this weekend’s golf tournament, next Saturday (9/13) is the annual Union Picnic at the Union Hall. The following Saturday (9/20) is the second work day for the Habitat for Humanity home in St. Peters. And Saturday, the 27th, is the SOS ride. More details for all the activities will be forthcoming.

• From the Benefits Department: If you are 60 or older, you can receive free shingles shots. We recommend that you get this from your doctor, but if you can’t there is reimbursement for shots from a pharmacy. See your benefits representative if you have any questions.

• From Automotive News: Chevrolet dealers requested nearly 30,000 Colorado pickups in the month since General Motors began taking orders for the all-new midsize truck -- about five times more than the company had forecast. "The dealers' enthusiasm for the Colorado is off the charts," Chevrolet U.S. chief Brian Sweeney told Automotive News on Monday. GM began taking orders for the 2015 Colorado in early August. The pickup, which is being built at GM's assembly plant in Wentzville, Mo., is expected to reach showrooms in October or early November. The launch of the Colorado and its sibling, the GMC Canyon, is among the most closely watched in years for GM. Skeptics question whether the demand is there to warrant a new generation of the pickups, which were phased out in 2012. GM is counting on the smaller trucks to give Chevy and GMC truck lineups that no rival can match: Offerings in the heavy-duty and light-duty segments with the Silverado and Sierra, and the midsize Colorado and Canyon. Ford dropped its Ranger small pickup in the U.S. in 2011, while Ram discontinued the Dakota that same year. The surge in early orders is "a sign that the dealers really believe in this product," said Sweeney, who oversees sales and marketing for Chevy in the U.S. Forecasts for combined sales of the Colorado and Canyon next year, by IHS Automotive, AutoPacific and LMC Automotive, range from 73,000 to 91,400 trucks. In comparison, GM sold 664,803 Silverados and GMC Sierras last year.

General Motors Co. (NYSE: GM) dealers delivered 272,423 vehicles in the United States in August, led by an 18 percent increase in truck sales compared to a year ago, a 10 percent increase in GMC deliveries and a 30 percent increase in commercial sales.
Total deliveries were down 1 percent compared with last August, which was GM’s best sales month of 2013. Retail deliveries, which are sales to individual consumers, declined 4 percent. Fleet deliveries were up 9 percent compared with a year ago.
On a selling day adjusted basis, GM’s total sales were up 2 percent, with retail sales essentially equal to a year ago and fleet up 13 percent.
Incentive spending as a percentage of average transaction prices (ATPs) was 10.4 percent, the lowest of all domestic automakers by a significant margin, according to J.D. Power PIN estimates. GM spending was down a full percentage point compared with both August 2013 and July 2014. “Chevrolet, GMC and Cadillac had an outstanding month with trucks. Cars and crossovers like the Buick Encore and GMC Acadia, and the Chevrolet Sonic, Cruze and Traverse, were also strong,” said Kurt McNeil, U.S. vice president of Sales Operations.
“We see a strong fall selling season ahead for GM and the industry, which sets the stage for the launches of the Chevrolet Colorado and GMC Canyon. Car-buying fundamentals like employment and energy prices are in good shape, consumer confidence has reached a post-recession high and business investment is increasing.”
Nearly 28,000 dealer orders have been placed for the Chevrolet Colorado, along with 14,000 orders for the GMC Canyon, which both began production this week and arrive in showrooms this fall. Chevrolet and GMC will soon be the only brands offering mid-size pickups, as well as light- and heavy-duty full-size pickups.
Light vehicle sales for the year are now expected to be near the high-end of GM’s full-year outlook set in January, which was for 16.0 million – 16.5 million units.
August Sales Highlights (vs. 2013 except as noted)
  • Sales of Chevrolet and GMC large SUVs were up 38 percent.
  • Cadillac Escalade deliveries increased 64 percent, for the vehicle line’s best August since 2007.
  • Chevrolet Silverado deliveries were up 13 percent and GMC Sierra sales were up 10 percent, and ATPs improved from July, according to PIN. This was the best August for GM pickups since 2008.
  • The Chevrolet Express van had its best August sales since 2007, with deliveries up 23 percent. The GMC Savana saw a 70 percent increase. Total van sales were 12,069.
  • Chevrolet Sonic deliveries were up 13 percent for the vehicle’s best August ever.
  • Sales of the Buick Encore small crossover were up 13 percent and Regal deliveries were up 29 percent.
  • In the medium crossover segment, sales of the Chevrolet Traverse were up 11 percent and GMC Acadia deliveries were up 5 percent.
  • Retail deliveries of the Chevrolet Cruze increased 23 percent and Camaro retail deliveries were up 2 percent.

• GM’s ATPs in August were the highest in company history at about $33,750, according to PIN. ATPs were up $500 per unit compared with July, and they were up about $2,900 from a year ago. GM’s gains in the commercial segment were driven by pickup and van sales, which were up 23 percent and 19 percent, respectively. Sales to rental customers were up about 3 percent. Sales to government customers were up about 14 percent. GM’s fleet mix in August was 22 percent. Calendar year to date, GM’s fleet mix is 25 percent

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

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