Saturday, March 28, 2015

State of the Union March 28, 2015



From the Wall Street Journal: With a tug, Volker Mornhinweg pulled a covering off a life-size clay model of the pickup truck that Daimler AG’s Mercedes-Benz intends to enter the global market for midsize haulers. Before him stands a sporty double-cab vehicle with the tapered lines typical of Mercedes-Benz sedans and sport-utility vehicles. But this vehicle has a loading space big enough for any craftsmen’s tools or gear for an outdoorsy family’s weekend outing. “Years ago, SUVs used to be, well, rough,” Mr. Mornhinweg, head of Mercedes-Benz Vans, said in an interview. “Then they became prettier. Now, we see the same trend in pickup trucks. We see opportunities to enter this market as the first premium brand.”

Daimler plans to build the truck in cooperation with Nissan Motor Co. using the basic framework of Nissan’s Navara and using Nissan factories to produce the vehicle, two people familiar with the situation said. The talks, which are at an advanced stage, involve using the basic architecture of Nissan’s Navara pickup truck for the new vehicle and producing it in Nissan factories, the people said. Nissan was not immediately available for comment. The Navara is called the Frontier in some markets. “The details are still being worked out,” one of the people said.

Mercedes-Benz would use the Navara framework, but would provide “everything with which the customer comes in contact,” the person added. That would include the powertrain, the interior, the design and other elements. Mercedes-Benz declined to disclose any details of production plans, a specific launch date or pricing, but said it is making preparations to produce the vehicle “in large numbers” in various regions of the world within the next five years. The truck will carry a payload of about one metric ton (2,200 pounds) and come with four- or six-cylinder engines. Mercedes-Benz is targeting Latin America, South Africa, Australia, and Europe for its debut. It says there are no current plans for a U.S. launch.

Global sales of such midsize trucks were 2.34 million vehicles last year, according to IHS Automotive, a research group. The market is growing, but it isn’t booming. Sales are expected to rise to 2.83 million by 2020, says IHS. Mr. Mornhinweg dismissed speculation that Mercedes-Benz also is planning to launch a full-size truck in the U.S. market against such popular trucks as Ford Motor Co.’s F-150 and General Motors Co.’s Silverado and Chrysler’s Ram. “The full-size segment is too specific for the U.S. It’s not a global market,” he said. “And it’s dominated by the Big Three. It makes no sense to go there.”

Dennis Williams: UAW ready to fight to restore the middle class
In the dark days of the Great Recession, UAW members from all sectors accepted concessions as many companies were threatened with bankruptcy and profits evaporated.
Six years later, the outlook has improved, UAW President Dennis Williams told delegates on the final day of the 2015 UAW Special Bargaining Convention in Detroit.
Now, “It’s Our Time” to share in the prosperity that our sacrifices have brought.
“I truly believe that the companies we deal with know that we can be creative and thoughtful,” Williams said. “But they also know that sharing in bad times must be equally shared in good times.”

Despite the prosperity, rewards are not getting to the people who need them the most. A free market society cannot thrive unless working men and women have disposable incomes. It was true in 1958 when Walter Reuther said it, and it remains true today.

“A society built on low-wage jobs does not deliver purchasing power,” therefore slowing economic growth and shrinking the middle class. That puts more working people in jeopardy and more in poverty, Williams said.

The United States now has the highest percentage of low-wage jobs among developed nations. The purchasing power to buy consumer goods, such as the vehicles they build, a house, or to send a child to college doesn’t exist, even with a recovering economy.
“I say there is something wrong with this country,” Williams said.

To fix it, America needs a strong union movement. But we’re under attack on so many fronts that are designed to diminish workers’ rights and collective bargaining. Both are based on fundamental democratic principles our nation was founded on.

In one such despicable attack, anti-union extremist Wisconsin Gov. Scott Walker compared union members to terrorists. President Williams asked all veterans, men and women who have honorably served our country in peacetime and in war, to stand and be recognized.

“Shame on Walker! Shame on the Republican Party and shame on anybody who has that kind of attitude about the working men and women of America,” Williams said to thunderous applause.

Despite the attacks, our bargaining committees know that the work they do will help lift people out of poverty.

“As an American citizen, we cannot be comfortable living in our country while children are going hungry,” Williams said. “We cannot accept that everyday people in the United States of America work 40 or 50 hours and more are living in poverty.”

Williams noted that this year there is a great deal at stake, not only in our bargaining, but in Washington where the fast track legislation is being negotiated. “No one can afford to get this wrong,” he said. “Our government cannot negotiate another bad trade agreement.”

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

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