Thursday, November 29, 2012

State of the Union November 29, 2012

November 29, 2012 online at www.uawlocal2250.com
The December production schedule is out. Contrary to some rumors, there will be production the week of the 17th. Overall, daily production remains 544 combined for both shifts. The Christmas holiday period runs from Dec. 22 through Jan. 1 and there will be no production through the Martin Luther King Jr. holiday on Monday, Jan 21. As of now, production is scheduled to resume Jan. 22.
The annual Pre-Trim bake sale will be Monday, Dec. 10. The sale will begin at first break on both shifts and continue until all items are sold. It will be held at the team center at column T-49. Proceeds will go to support the Adopt-A-Child program. Anyone wishing to donate bakery items can drop them off at the team center.
There will be a GM employees and family event this Sunday, Dec. 2 at Shoe Carnival from 6:30 pm – 9:30 pm. Just show your employee ID and get an additional 30% off, including sale prices, at the O’Fallon (2209 Highway K) and St. Charles (3867 Mexico Rd, Cave Springs Crossing) stores.
From Automotive News: The Chevrolet Volt plug-in hybrid landed atop Consumer Reports' annual owner-satisfaction ranking for the second straight year. Ninety-two percent of responding Volt owners in a poll of the magazine's subscribers said they definitely would buy a Volt again, tops among 240 models, the magazine said today. The Volt's two-year reign "points to the continuing trend of owners' enthusiasm for cars that are fuel-efficient cars, especially as we see more and more hybrid and electric models hitting the market," Rik Paul, Consumer Reports' auto editor, said in a statement. It's also affirmation for GM executives who've battled bad press from early soft sales, scathing criticism from opponents of green-car subsidies, and a late 2011 federal safety probe into battery fires that turned up no significant risks. The Nissan Versa sedan received the lowest rating from owners. Scores are based on the percentage of respondents who answered "definitely yes" to the following question: "Considering all factors -- price, reliability, comfort, enjoyment, etc., -- would you get this car if you had it to do all over again?" The Volt was joined in the winner’s circle by the Corvette, Silverado and Avalanche. Brand nationality doesn’t seem to have a strong effect on owner satisfaction: The 44 top-rated models include 16 American, 14 Asian, and 14 European vehicles.
From the Wall Street Journal: The U.S. auto industry is poised to report November sales cruised to another four-year high, a sign that the domestic market has returned to health even while Europe and Asia sales falter. Industry executives interviewed ahead of this week's Los Angeles Auto Show said November results, due out next week, should continue the year's big gains. Some analysts estimate November sales could hit an annualized selling pace of 15.2 million cars and light trucks-the strongest single monthly showing since 2008. Next year, U.S. sales are projected to reach between 14.5 million and just over 15 million cars and light trucks, a third consecutive year of growth. U.S. sales this year are projected to hit 14.4 million vehicles. Auto executives are watching the debate over federal taxes and spending, and are concerned about the risks should President Obama and Congress fail to reach a resolution. But for now, they say more U.S. consumers are willing to buy.
Reid Bigland, Chrysler Group LLC's Dodge brand chief, says, "If you look at the automotive industry and you benchmark November, it's kind of like what fiscal cliff?" The biggest factor in the optimism for 2013 U.S. auto sales is the advanced age of so many of the 245 million cars and light trucks now on the road. "The U.S. is a rolling junkyard," says Jim O'Sullivan, president of Mazda Motor Corp.'s North American unit. The average car on the road in the U.S. is now a record 11 years old, industry executives say and about 20% are 16 years old. When customers wheel their rattletraps into showrooms, they're also finding credit is relatively cheap and available. "Banks that weren't financing…are financing now," Mr. O'Sullivan says.
A third engine for U.S. auto demand is a volley of new cars and trucks, many on display Wednesday at the convention center here, that offer customers significant advances in fuel efficiency, safety and entertainment technology compared with cars made four or five years ago, let alone 11 years ago. The owner of an 11-year-old, six cylinder Ford Explorer that averages about 15 miles on a gallon of gasoline could replace it with a 2013 Explorer that gets up to 23 mpg with a four-cylinder, turbocharged "EcoBoost" model and use the difference to help fund a loan, say car makers. "We are seeing wholesale refreshes of significant segments. That is unprecedented," says Jim Farley, Ford's global sales and marketing chief.
Still, auto executives here say the uncertainty over future tax rates and federal spending must be resolved soon. "I don't think many people will forgive the politicians if just through stalemate, they don't find a more bipartisan way forward," said Jonathan Browning, head of Volkswagen AG's U.S. operations. Mr. Browning is more cautious than some of his rivals about near term U.S. industry growth. "I still describe it as a choppy growth," he says. Industry executives here say that even if the worst case scenarios for the economy come to pass and the nation slips back into recession, they are better prepared than in the past.
Annual U.S. sales could fall to as few as 10 million to 11 million vehicles and GM and most other auto makers could still break even, said Mark Reuss, head of General Motors's North American operations, "The industry is in a completely different place in its ability to adapt to different [sales] levels and make money," said Mr. Reuss.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

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