June 13, 2011 online at www.uawlocal2250.com
• Union meeting is this Wednesday, June 15 at 7:15 am, 1 pm, 3 pm and 15 minutes after the longest first shift line time.
• This week’s build information: 367 slider doors; 53 E-26; 494 r/h door delete; 131 Enterprise Leasing; 84 exports; 204 diesels; 280 On-star; 503 special paints; 69.8% white vans.
• From the Wall Street Journal: The United Auto Workers union is open to discussing wider use of profit-sharing plans instead of fixed pay increases for its members, a key shift as the union nears contract talks with Detroit auto makers. UAW President Bob King said in an interview Thursday that the union will broach the subject when formal negotiations with Ford Motor Co., General Motors Co. and Chrysler Group LLC start in late July. "It would be an advantage if you can guarantee to the [Detroit] companies certain things on fixed costs so that they would remain competitive," Mr. King said. He acknowledged that greater use of profit-sharing plans entails risk for his members. "When you're successful, that's good. But if you're sharing more of the risk, you need to have more of the upside."
• Auto news briefs: An Ohio state court awarded $2 billion in damages to commercial truck dealers who sued Ford Motor Co., saying that a program that offered unpublished discounts effectively overcharged some dealers. Ford is appealing the decision; Ford also announced that they will not be building a 7-passenger version of the C-Max minivan for the U.S. They will instead build only hybrid versions of the 5-passenger model in the Wayne assembly plant in Michigan. It had been rumored that the Ford plant in Clay County, Missouri would get the C-Max. There has been no official word on what product that plant will build; Chevrolet dealers in all 50 states can now take orders for the Volt. The Volt is now available in six different models, rather than three, with the lowest listed at $39,995, or about $1,000 less than the 2011 price. The high-end model with leather, backup camera and navigation system is $46,265.
• From Wards Auto: The annual labor-management negotiations are under way in the Korean auto industry, and this year includes high-stakes bartering as the unions ask for tens of thousands of dollars in bonus compensation. Hyundai held the first bargaining session with its workers union June 8, kicking off what some analysts predict could become a turbulent summer. The union is raising the ante this year, reportedly seeking a 7.2% wage increase and a bonus of about 8-months pay. The bonus, alone, could amount to 32 million-43 million won ($30,000-$40,000) or more per worker. Last year, the union settled for a 4.87% wage increase, 3-months pay as a performance bonus, a one-time special bonus of 5 million won ($4,600) and 30 shares of Hyundai common stock – currently valued at 238,000 won ($220) per share.
Final part of UAW President Bob King’s speech to the Detroit Area Chamber of Commerce:
Federal labor laws in the United States do not protect the right of workers in the private sector to join unions. Employers can with impunity create a climate of fear by implying dire consequences if workers choose to form a union. It is vital that progressive and moderate voices in the business community speak out against union-bashing extremism and the terrifying vision of a union-free America. An America without unions is an America with no middle class. An America with no unions and no middle class is an America that is no longer the beacon for democracy and freedom in the world.
Just as the UAW has chosen fundamental change and a vision of cooperation between government, business and labor, I urge you in the business community to partner with the UAW of the 21st century, to reject ideology and to embrace pragmatism, moderation and the search for common ground and common good for all in society.
Let us work together to build a prosperous Michigan. Let us work together for a strong middle class. Let us work together to create good jobs and to rebuild our manufacturing sector. Let us work together to rebuild infrastructure and invest in research and development. Let us work together to provide dignity and security to our elderly. Let us work together to build a strong public education system and preserve our world-class public universities. Let us work together – government, business and labor – to find creative and pragmatic solutions to our economic challenges. This is the Michigan way, and this is the American way.
Wednesday, June 15, 2011
Thursday, June 9, 2011
State of the Union June 9, 2011
June 9, 2011 online at www.uawlocal2250.com
• Reminder: There are two deadlines today: resolutions for the local agreement (see your committee person) and jacket sizes (see your team leader or Pat Workman at Suggestions, or call x 2308).
• Reminder: The Women’s Committee and the Veterans Committee meetings are today after first shift at the Union Hall.
• GM will invest $49 million to purchase tooling and equipment for the Bedford powertrain plant to produce components for a recently announced 8-speed transmission and a future small engine program. The investment will create or retain 91 jobs. “The all-new 8-speed transmission will improve fuel economy in a number of future vehicles,” GM Manufacturing Manager Arvin Jones said Wednesday. "And, the new gasoline engine, which will be offered in displacements from 1.0 liters to 1.5 liters, is key to fuel economy leadership in the small four-cylinder engine segment."
• For one month at least, US auto sales outpaced China’s. May sales declined to 1.04 million vehicles (this excludes heavy trucks and buses) in China versus 1.14 million last May. U.S. sales for May came in at 1.06 million vehicles. GM’s China sales declined 2.7% to 190,674 (GM sold 221,192 vehicles in the U.S. this May).
• The 2012 Buick LaCrosse with eAssist™, which is expected to deliver 25 percent better highway fuel economy than the current model, will be priced starting at $29,960 before an $860 destination charge. LaCrosse with eAssist uses a variety of advanced technologies and body enhancements to deliver up to 37 mpg highway fuel economy, better than the Lexus HS Hybrid and Lincoln MKZ Hybrid. eAssist will be the standard powertrain for LaCrosse, which will be built at the Fairfax Assembly Plant in Kansas City, Kan.
• From Automotive News: Prisoners, dead people and children qualified for a 2009 tax break to spur car buying, according to a U.S. report today that criticized the Internal Revenue Service for misapplying the refund in some cases. Among the fraudulent claims, 439 were prisoners, who deducted $955,843 in sales tax for the purchase of vehicles in 2009 "even though they were in prison for a full year in 2009 when the vehicle was purportedly purchased," the report said. Another $36,490 in claims were allowed for people who were dead before the before the deduction's short life, from mid-February 2009 to the end of that year, it said. The watchdog also found that 18 people under the age of 15 got $31,139 in QMV deductions.
Part 4 of UAW President Bob King’s speech to the Detroit Regional Chamber of Commerce:
Just as the UAW has made the choice to embrace fundamental change and has committed to working cooperatively with business, you in the business community are also facing a choice. This is a watershed moment for Michigan business. One choice is to work with those such as the UAW who want to engage in a moderate, inclusive and pragmatic approach that affirms a social compact between all segments of Michigan society. The other choice is to follow the extreme agenda of the right wing that embraces ideology and divisiveness. It is my fervent belief that the more moderate, creative problem-solving approach is not only more just and compassionate, but also more favorable to the growth of both large and small business.
Let’s look at the right-wing Republican agenda and its negative impact on business. One of its tenets is to drastically cut taxes on high earners and corporations at the expense of public education, public services and investment in infrastructure. The problem is, without strong education at both K-12 and the university level, we will not produce an educated and skilled labor force to compete in a global economy. Without good public services, we cannot attract business to our region. Without investment in infrastructure, our transportation system, electrical power system and communication system cannot support business growth.
The mantra to reduce taxes is a religion to many extreme Republicans, but this ideology gets in the way of practicality and hard facts. The truth about taxes is that corporate income taxes as a share of revenue on a federal level have dropped dramatically over recent decades. If corporations paid at the same rate today as they did in the 1950s, there would be over $500 billion dollars in additional federal revenue. The average federal income tax paid by the highest earners has also dropped, from almost 30 percent in 1995 to 16.6 percent in 2007.
The Republican budget proposal that passed the House of Representatives imposes devastating cuts in Pell grants for low-income college students, while at the same time cutting taxes yet more for the wealthy. If capital gains on the 400 highest earners were taxed at 35 percent, it would have brought in an additional $18 billion in revenue – enough to provide Pell grants to more than three million students who otherwise could not afford a college education.
A moderate and pragmatic approach to the budget would not sacrifice education. A moderate, pragmatic and inclusive approach to budgets would recognize that we can foster the creation of millions of good jobs through investments in infrastructure and education.
Another tenet of the right-wing agenda is to silence the voices of workers in the public sector by destroying collective bargaining rights. Again, I call upon our partners in the business community to reject this divisive ideological agenda that targets the unions of teachers, firefighters, nurses, police and state workers. Instead, let us all work together to make necessary changes and to find common solutions that bring prosperity to our communities.
There is no example in history of a middle-class democracy that exists without free, independent unions. The right to have a union is a fundamental human right. Indeed, our democratic economic competitors – Japan, Korea, Germany – all acknowledge the role of unions in their societies, at the same time as they provide universal health care and retirement security. Businesses should re-examine their instinctive negative reaction to the notion of unionization.
Nothing in this message is intended to constitute an electronic signature unless a specific statement to the contrary is included in this message.
• Reminder: There are two deadlines today: resolutions for the local agreement (see your committee person) and jacket sizes (see your team leader or Pat Workman at Suggestions, or call x 2308).
• Reminder: The Women’s Committee and the Veterans Committee meetings are today after first shift at the Union Hall.
• GM will invest $49 million to purchase tooling and equipment for the Bedford powertrain plant to produce components for a recently announced 8-speed transmission and a future small engine program. The investment will create or retain 91 jobs. “The all-new 8-speed transmission will improve fuel economy in a number of future vehicles,” GM Manufacturing Manager Arvin Jones said Wednesday. "And, the new gasoline engine, which will be offered in displacements from 1.0 liters to 1.5 liters, is key to fuel economy leadership in the small four-cylinder engine segment."
• For one month at least, US auto sales outpaced China’s. May sales declined to 1.04 million vehicles (this excludes heavy trucks and buses) in China versus 1.14 million last May. U.S. sales for May came in at 1.06 million vehicles. GM’s China sales declined 2.7% to 190,674 (GM sold 221,192 vehicles in the U.S. this May).
• The 2012 Buick LaCrosse with eAssist™, which is expected to deliver 25 percent better highway fuel economy than the current model, will be priced starting at $29,960 before an $860 destination charge. LaCrosse with eAssist uses a variety of advanced technologies and body enhancements to deliver up to 37 mpg highway fuel economy, better than the Lexus HS Hybrid and Lincoln MKZ Hybrid. eAssist will be the standard powertrain for LaCrosse, which will be built at the Fairfax Assembly Plant in Kansas City, Kan.
• From Automotive News: Prisoners, dead people and children qualified for a 2009 tax break to spur car buying, according to a U.S. report today that criticized the Internal Revenue Service for misapplying the refund in some cases. Among the fraudulent claims, 439 were prisoners, who deducted $955,843 in sales tax for the purchase of vehicles in 2009 "even though they were in prison for a full year in 2009 when the vehicle was purportedly purchased," the report said. Another $36,490 in claims were allowed for people who were dead before the before the deduction's short life, from mid-February 2009 to the end of that year, it said. The watchdog also found that 18 people under the age of 15 got $31,139 in QMV deductions.
Part 4 of UAW President Bob King’s speech to the Detroit Regional Chamber of Commerce:
Just as the UAW has made the choice to embrace fundamental change and has committed to working cooperatively with business, you in the business community are also facing a choice. This is a watershed moment for Michigan business. One choice is to work with those such as the UAW who want to engage in a moderate, inclusive and pragmatic approach that affirms a social compact between all segments of Michigan society. The other choice is to follow the extreme agenda of the right wing that embraces ideology and divisiveness. It is my fervent belief that the more moderate, creative problem-solving approach is not only more just and compassionate, but also more favorable to the growth of both large and small business.
Let’s look at the right-wing Republican agenda and its negative impact on business. One of its tenets is to drastically cut taxes on high earners and corporations at the expense of public education, public services and investment in infrastructure. The problem is, without strong education at both K-12 and the university level, we will not produce an educated and skilled labor force to compete in a global economy. Without good public services, we cannot attract business to our region. Without investment in infrastructure, our transportation system, electrical power system and communication system cannot support business growth.
The mantra to reduce taxes is a religion to many extreme Republicans, but this ideology gets in the way of practicality and hard facts. The truth about taxes is that corporate income taxes as a share of revenue on a federal level have dropped dramatically over recent decades. If corporations paid at the same rate today as they did in the 1950s, there would be over $500 billion dollars in additional federal revenue. The average federal income tax paid by the highest earners has also dropped, from almost 30 percent in 1995 to 16.6 percent in 2007.
The Republican budget proposal that passed the House of Representatives imposes devastating cuts in Pell grants for low-income college students, while at the same time cutting taxes yet more for the wealthy. If capital gains on the 400 highest earners were taxed at 35 percent, it would have brought in an additional $18 billion in revenue – enough to provide Pell grants to more than three million students who otherwise could not afford a college education.
A moderate and pragmatic approach to the budget would not sacrifice education. A moderate, pragmatic and inclusive approach to budgets would recognize that we can foster the creation of millions of good jobs through investments in infrastructure and education.
Another tenet of the right-wing agenda is to silence the voices of workers in the public sector by destroying collective bargaining rights. Again, I call upon our partners in the business community to reject this divisive ideological agenda that targets the unions of teachers, firefighters, nurses, police and state workers. Instead, let us all work together to make necessary changes and to find common solutions that bring prosperity to our communities.
There is no example in history of a middle-class democracy that exists without free, independent unions. The right to have a union is a fundamental human right. Indeed, our democratic economic competitors – Japan, Korea, Germany – all acknowledge the role of unions in their societies, at the same time as they provide universal health care and retirement security. Businesses should re-examine their instinctive negative reaction to the notion of unionization.
Nothing in this message is intended to constitute an electronic signature unless a specific statement to the contrary is included in this message.
Wednesday, June 8, 2011
State of the Union June 6, 2011
June 6, 2011 online at www.uawlocal2250.com
• Reminder: Resolutions for the Local Agreement can be submitted through Thursday, June 9. You can get submission forms from your committee person or at the Work Center and return the completed forms to the same.
• Build information from this week’s schedule: 366 slider doors; 105 E-26 models; 151 exports; 284 Enterprise Rent-A-Car units; 324 RH door deletes; 76.6% white vans.
• All jacket sizes must be turned in by this Thursday, June 9. See your team leader or group leader if you have not been asked for your size. All jacket size sheets should be turned in to Pat Workman at Suggestions.
• From Automotive News: General Motors’ executives have discussed buying shares from the U.S. Treasury Department to reduce the government’s 33 percent stake in the automaker, three people familiar with the matter said. GM is weighing uses for its cash, such as shoring up its underfunded pension plan, paying off debt and funding new vehicle programs, the people said. “In terms of uses of cash, we have clear, immediate priorities which include further strengthening our balance sheet and fully funding our pensions,” Jim Cain, a GM spokesman, said in a telephone interview. “Our objective is to fund our operations with cash and then return any excess cash to our shareholders. Nothing has been ruled in or out.”
• Chevy news briefs: The Volt became the first electric vehicle to earn a five-star overall vehicle score for safety as part of the National Highway Traffic Safety Administration’s New Car Assessment Program; For May, fuel-efficient, four-cylinder vehicles – including Cruze, Equinox and Malibu – accounted for 51 percent of Chevrolet retail sales. That is up from 36 percent in May a year ago, and doubles the rate of four-cylinder sales five years ago; Nearly 51 percent of Cruze buyers are new to Chevrolet, either trading in a non-GM vehicle or purchasing outright – suggesting they were either adding a vehicle to the household or that the Cruze was their first new car. For 2011, Cruze has brought more than 40,000 of these “conquest” buyers – second only to the Silverado full-size pickup for attracting new customers to the brand.
Part one of UAW President Bob King’s speech to the Detroit Regional Chamber of Commerce:
Thanks to the courageous decision of President Obama to save the American auto industry, and thanks to the willingness of business and labor to embrace change and work together, and thanks to the substantial sacrifices of our members, suppliers, dealers and all stakeholders, there has been an amazing revival of this vital American industry.
• Reminder: Resolutions for the Local Agreement can be submitted through Thursday, June 9. You can get submission forms from your committee person or at the Work Center and return the completed forms to the same.
• Build information from this week’s schedule: 366 slider doors; 105 E-26 models; 151 exports; 284 Enterprise Rent-A-Car units; 324 RH door deletes; 76.6% white vans.
• All jacket sizes must be turned in by this Thursday, June 9. See your team leader or group leader if you have not been asked for your size. All jacket size sheets should be turned in to Pat Workman at Suggestions.
• From Automotive News: General Motors’ executives have discussed buying shares from the U.S. Treasury Department to reduce the government’s 33 percent stake in the automaker, three people familiar with the matter said. GM is weighing uses for its cash, such as shoring up its underfunded pension plan, paying off debt and funding new vehicle programs, the people said. “In terms of uses of cash, we have clear, immediate priorities which include further strengthening our balance sheet and fully funding our pensions,” Jim Cain, a GM spokesman, said in a telephone interview. “Our objective is to fund our operations with cash and then return any excess cash to our shareholders. Nothing has been ruled in or out.”
• Chevy news briefs: The Volt became the first electric vehicle to earn a five-star overall vehicle score for safety as part of the National Highway Traffic Safety Administration’s New Car Assessment Program; For May, fuel-efficient, four-cylinder vehicles – including Cruze, Equinox and Malibu – accounted for 51 percent of Chevrolet retail sales. That is up from 36 percent in May a year ago, and doubles the rate of four-cylinder sales five years ago; Nearly 51 percent of Cruze buyers are new to Chevrolet, either trading in a non-GM vehicle or purchasing outright – suggesting they were either adding a vehicle to the household or that the Cruze was their first new car. For 2011, Cruze has brought more than 40,000 of these “conquest” buyers – second only to the Silverado full-size pickup for attracting new customers to the brand.
Part one of UAW President Bob King’s speech to the Detroit Regional Chamber of Commerce:
Thanks to the courageous decision of President Obama to save the American auto industry, and thanks to the willingness of business and labor to embrace change and work together, and thanks to the substantial sacrifices of our members, suppliers, dealers and all stakeholders, there has been an amazing revival of this vital American industry.
State of the Union June 7, 2011
June 7, 2011 online at www.uawlocal2250.com
• Reminder: Applications are now being accepted for the 2011 Black Lake Summer Scholarship Session. The dates for these family sessions are July 10-15, July 17-22 and July 24-29. They begin on Sunday evening and conclude on Friday morning. Participants will fly into Detroit on the day before, stay at a hotel and take a chartered bus to Black Lake the next morning. All travel expenses will be paid but there will be no lost time. Applications are available at the Union Hall and the deadline is this Friday, June 10.
• GM will invest $130 million to build an enterprise data center at its Technical Center campus in Warren, Mich., adding 25 high-tech jobs and expanding and renovating a former administrative building. Design is under way on the renovation and construction, with the final phase scheduled for completion in 2015.
• From the Wall Street Journal: General Motors Chairman and Chief Executive Daniel Akerson is expected to say Tuesday that GM has cut its pension shortfall in half since 2009, leaving the auto maker's plan 90% funded, according to people familiar with the matter. The fund was underfunded by $17.1 billion at the end of 2009 and the obligations have been a major concern for investors in the company.
• From Automotive News: Fiat S.p.A is in no rush to buy the remainder of Chrysler from a UAW trust fund and cannot be forced to launch a Chrysler IPO until 2013, Fiat CEO Sergio Marchionne said yesterday. The Italian carmaker has increased its stake in Chrysler to 52 %. The UAW retiree health care trust fund, or VEBA, holds a 45.7 percent stake in the Detroit-based carmaker. Fiat also agreed to pay $75 million for the right to buy all of VEBA's stake for a capped "threshold amount" -- which was set at $4.25 billion in 2009, increasing at a 9 percent annual interest rate, so analysts say it has now risen to around $5 billion.
• From the Detroit News: Mazda Motor Corp. and Ford Motor Co. said Monday they were in talks about the future of their joint Flat Rock plant as the Japanese automaker announced it wouldn't build its next-generation midsize carthere. Mazda didn't disclose its intentions regarding its troubled venture with Ford, but said the model that will replace the Mazda6 will be produced in Japan. A spokeswoman for Ford said the Flat Rock facility is "a critical plant" in the Dearborn automaker's manufacturing network. "Ford is currently working with Mazda and the United AutoWorkers to study options for the plant after Mazda6 production is moved," said Ford spokeswoman Marcey Evans. The Flat Rock plant employs around 1,700 workers producing Ford Mustangs as well as Mazda6 sedans. But last year, the plant was operating at less than half of its capacity.
Part 2 of UAW President Bob King’s speech to the Detroit Regional Chamber of Commerce:
On behalf of the UAW, I can state that our union has learned many lessons from the crisis in the auto industry, and we have decided to adopt fundamental, radical change. We have reinvented our union. We have recognized that we can no longer take the same approaches we took 20, 10 or even five years ago. We are calling our new approach the “UAW of the 21st century.”
We no longer live in the same world in which the UAW grew up 75 years ago. The 20th century UAW existed in an era of a national industrial economy and a national marketplace. The 21st century UAW recognizes that auto companies face critical challenges in a global marketplace, and it is our mission to create conditions that will enable our employers to compete and succeed in order to best represent our members.
The 20th century UAW tried to find ways to achieve job security, such as job banks, that in the end did not achieve the result we were seeking. The 21st century UAW knows that the only true path to job security is by producing the best quality product, the safest product and the longest lasting product, at the best price.
Simply put, our highest priority is to join with our employers to produce the best quality products at the best value for consumers.
The 20th century UAW fell into a pattern with our employers where we saw each other as adversaries rather than partners. Mistrust became embedded in our relations, and as a result we signed onto ever more lengthy and complicated contracts with work rules and narrow job classifications that hindered flexibility and promoted a litigious and time-consuming grievance culture. The 21st century UAW seeks and expects a partnership with employers based on mutual respect, trust and common goals. In a global economy, flexibility, innovation and teamwork are paramount.
The 20th century UAW joined with the companies in a mindset that it was the company’s job to worry about profits, and the union’s job to worry about getting the workers’ their share. The 21st century UAW embraces as our own the success of our employers in order to achieve the economic and social success of our members, their families and our communities.
The 20th century UAW was not primarily focused on the needs of consumers, and we failed to champion forcefully or effectively enough the goals of preserving our environment for future generations through green manufacturing and green products.
The 21st century UAW makes as a priority the interests of consumer safety, energy efficiency and environmental protection.
The 20th century UAW reacted with hostility and resistance to the historic changes brought about by the globalization of the economy. The 21st century UAW is adopting a more nuanced and constructive approach to global trade and global development. We are committed to becoming citizens of the world and achieving trade that spreads prosperity and lessens poverty. We are also committed to saving and growing the American industrial base with good jobs in the United States.
Nothing in this message is intended to constitute an electronic signature unless a specific statement to the contrary is included in this message.
• Reminder: Applications are now being accepted for the 2011 Black Lake Summer Scholarship Session. The dates for these family sessions are July 10-15, July 17-22 and July 24-29. They begin on Sunday evening and conclude on Friday morning. Participants will fly into Detroit on the day before, stay at a hotel and take a chartered bus to Black Lake the next morning. All travel expenses will be paid but there will be no lost time. Applications are available at the Union Hall and the deadline is this Friday, June 10.
• GM will invest $130 million to build an enterprise data center at its Technical Center campus in Warren, Mich., adding 25 high-tech jobs and expanding and renovating a former administrative building. Design is under way on the renovation and construction, with the final phase scheduled for completion in 2015.
• From the Wall Street Journal: General Motors Chairman and Chief Executive Daniel Akerson is expected to say Tuesday that GM has cut its pension shortfall in half since 2009, leaving the auto maker's plan 90% funded, according to people familiar with the matter. The fund was underfunded by $17.1 billion at the end of 2009 and the obligations have been a major concern for investors in the company.
• From Automotive News: Fiat S.p.A is in no rush to buy the remainder of Chrysler from a UAW trust fund and cannot be forced to launch a Chrysler IPO until 2013, Fiat CEO Sergio Marchionne said yesterday. The Italian carmaker has increased its stake in Chrysler to 52 %. The UAW retiree health care trust fund, or VEBA, holds a 45.7 percent stake in the Detroit-based carmaker. Fiat also agreed to pay $75 million for the right to buy all of VEBA's stake for a capped "threshold amount" -- which was set at $4.25 billion in 2009, increasing at a 9 percent annual interest rate, so analysts say it has now risen to around $5 billion.
• From the Detroit News: Mazda Motor Corp. and Ford Motor Co. said Monday they were in talks about the future of their joint Flat Rock plant as the Japanese automaker announced it wouldn't build its next-generation midsize carthere. Mazda didn't disclose its intentions regarding its troubled venture with Ford, but said the model that will replace the Mazda6 will be produced in Japan. A spokeswoman for Ford said the Flat Rock facility is "a critical plant" in the Dearborn automaker's manufacturing network. "Ford is currently working with Mazda and the United AutoWorkers to study options for the plant after Mazda6 production is moved," said Ford spokeswoman Marcey Evans. The Flat Rock plant employs around 1,700 workers producing Ford Mustangs as well as Mazda6 sedans. But last year, the plant was operating at less than half of its capacity.
Part 2 of UAW President Bob King’s speech to the Detroit Regional Chamber of Commerce:
On behalf of the UAW, I can state that our union has learned many lessons from the crisis in the auto industry, and we have decided to adopt fundamental, radical change. We have reinvented our union. We have recognized that we can no longer take the same approaches we took 20, 10 or even five years ago. We are calling our new approach the “UAW of the 21st century.”
We no longer live in the same world in which the UAW grew up 75 years ago. The 20th century UAW existed in an era of a national industrial economy and a national marketplace. The 21st century UAW recognizes that auto companies face critical challenges in a global marketplace, and it is our mission to create conditions that will enable our employers to compete and succeed in order to best represent our members.
The 20th century UAW tried to find ways to achieve job security, such as job banks, that in the end did not achieve the result we were seeking. The 21st century UAW knows that the only true path to job security is by producing the best quality product, the safest product and the longest lasting product, at the best price.
Simply put, our highest priority is to join with our employers to produce the best quality products at the best value for consumers.
The 20th century UAW fell into a pattern with our employers where we saw each other as adversaries rather than partners. Mistrust became embedded in our relations, and as a result we signed onto ever more lengthy and complicated contracts with work rules and narrow job classifications that hindered flexibility and promoted a litigious and time-consuming grievance culture. The 21st century UAW seeks and expects a partnership with employers based on mutual respect, trust and common goals. In a global economy, flexibility, innovation and teamwork are paramount.
The 20th century UAW joined with the companies in a mindset that it was the company’s job to worry about profits, and the union’s job to worry about getting the workers’ their share. The 21st century UAW embraces as our own the success of our employers in order to achieve the economic and social success of our members, their families and our communities.
The 20th century UAW was not primarily focused on the needs of consumers, and we failed to champion forcefully or effectively enough the goals of preserving our environment for future generations through green manufacturing and green products.
The 21st century UAW makes as a priority the interests of consumer safety, energy efficiency and environmental protection.
The 20th century UAW reacted with hostility and resistance to the historic changes brought about by the globalization of the economy. The 21st century UAW is adopting a more nuanced and constructive approach to global trade and global development. We are committed to becoming citizens of the world and achieving trade that spreads prosperity and lessens poverty. We are also committed to saving and growing the American industrial base with good jobs in the United States.
Nothing in this message is intended to constitute an electronic signature unless a specific statement to the contrary is included in this message.
State of the Union June 8, 2011
June 8, 2011 online at www.uawlocal2250.com
• Reminder: Jacket sizes are due tomorrow. If you haven’t been asked for your size, see your team leader. All forms should be turned into Pat Workman at Suggestions. If you have any questions you can call Pat at x2308.
• There will be a Women’s Committee and a Veterans Committee meeting on Thursday, June 9 after first shift at the Union Hall.
• Applications are currently being accepted for co-chairperson of the Education Committee. They are available and can be turned in at the Union Hall. Deadline is next Wednesday, June 15.
• Reminder: Resolutions for the Local Agreement can be submitted through Thursday, June 9. You can get submission forms from your committee person or at the Work Center and return the completed forms to the same.
• General Motors held the first shareholder meeting since bankruptcy yesterday. CEO Dan Akerson chaired the meeting and said among other things:
o We are creating a fortress balance sheet, which gives us freedom to operate. We had $36.5 billion of available liquidity with only $5 billion of debt on March 31.”
o “We have the right mix of existing GM passion and expertise with outside perspective. We are attracting talent from our competitors inside the auto industry and outside it as well.”
o “We’re gaining market share — 11.5 percent global share in the first quarter of 2011, up nearly half a point year over year. Significantly, our retail share was 17.7 percent, compared to pre-Chapter 11 in May 2009 when it was 14.9 percent, for our four brands."
o The most recent average transaction price we have is just over $29,500, about $1,100 above the industry average. That is the highest in the industry among full-line manufacturers.”
• From Automotive News: Is Nissan's latest electric vehicle safety net reassuring or more unnerving? The idea: a rescue truck that speeds to the aid of EVs with dead batteries. Bolted to the back of the 5-ton diesel truck is a 29-kilowatt diesel-slurping generator to recharge the rides. How's that for green?
Part 3 of UAW President Bob King’s speech to the Detroit Regional Chamber of Commerce:
Out of the ashes of the cataclysm of 2008 and 2009, a new, more visionary and stronger UAW is being born. The 21st century UAW views management not as our adversaries or enemies, but as partners in innovation and quality. Our relationship with employers is built upon a foundation of respect, shared goals, and a common mission, and a mutual social responsibility to create good, secure, middle-class jobs here in our communities in the United States.
This commitment to fundamental change is not just a tenet of my administration but is permeating the entire culture of the UAW. Our internal educational resources are devoted to nurturing this new mindset. I can tell you that there is no group of people more committed to the success of the auto industry than the union and our members working in the auto industry. Workers know that the success of their employers is in their own essential long-term interest. They won’t be jumping ship to grab onto a golden parachute. They are in this for the long haul. They are ready, willing and able to do what it takes to make their companies successful. Our members are energized by the new paradigm and welcome their enhanced opportunities to contribute to our companies’ success.
At GM, for example, our quality network promotes teamwork and invites total workforce involvement and continuous improvement. A Lordstown, Ohio, employee saved the company almost $200,000 by suggesting an alternative windshield sealer operation. Team members in Pontiac, Michigan, achieved more than $1.2 million in savings with suggestions to add plastic protection to a sensor.
At Chrysler, a sprayer in the paint shop – also a shop steward – devised a training video to systematize training for a new shift and volunteered for a split shift to assist with the training.
At Ford it was UAW members on the assembly line at the Chicago Assembly Plant that identified quality problems and advocated strongly for important process and training changes with the Taurus launch that created the best quality launch ever for Ford up to that time.
At Mitsubishi UAW members’ proven track record of world best productivity and quality convinced top management in Japan to award their newest vehicle platform to our UAW facility in Normal, Ill., over numerous other global sites competing for this platform. There are many, many more examples of such creative and innovative contributions by our members. Management will attest to the fact that the UAW is adding value to our enterprises.
At Ford, GM, Chrysler and Mitsubishi, the UAW has demonstrated our commitment to quality, teamwork, flexibility and innovation. We have forged a new culture that emphasizes trust, openness, cooperation and creative problem-solving. Our members have found millions of hours of annual savings. We are contributing to product development and innovative workforce solutions. We have taken the lead in workforce training and development. Layers of management have been eliminated because the workers are dedicated to creatively managing their own processes. Many facilities only have one main production classification, and an observer coming into a facility would not be able to tell who belongs to management and who is a union member. At one UAW GM facility there are no line supervisors, and UAW members take full responsibility for their operations.
• Reminder: Jacket sizes are due tomorrow. If you haven’t been asked for your size, see your team leader. All forms should be turned into Pat Workman at Suggestions. If you have any questions you can call Pat at x2308.
• There will be a Women’s Committee and a Veterans Committee meeting on Thursday, June 9 after first shift at the Union Hall.
• Applications are currently being accepted for co-chairperson of the Education Committee. They are available and can be turned in at the Union Hall. Deadline is next Wednesday, June 15.
• Reminder: Resolutions for the Local Agreement can be submitted through Thursday, June 9. You can get submission forms from your committee person or at the Work Center and return the completed forms to the same.
• General Motors held the first shareholder meeting since bankruptcy yesterday. CEO Dan Akerson chaired the meeting and said among other things:
o We are creating a fortress balance sheet, which gives us freedom to operate. We had $36.5 billion of available liquidity with only $5 billion of debt on March 31.”
o “We have the right mix of existing GM passion and expertise with outside perspective. We are attracting talent from our competitors inside the auto industry and outside it as well.”
o “We’re gaining market share — 11.5 percent global share in the first quarter of 2011, up nearly half a point year over year. Significantly, our retail share was 17.7 percent, compared to pre-Chapter 11 in May 2009 when it was 14.9 percent, for our four brands."
o The most recent average transaction price we have is just over $29,500, about $1,100 above the industry average. That is the highest in the industry among full-line manufacturers.”
• From Automotive News: Is Nissan's latest electric vehicle safety net reassuring or more unnerving? The idea: a rescue truck that speeds to the aid of EVs with dead batteries. Bolted to the back of the 5-ton diesel truck is a 29-kilowatt diesel-slurping generator to recharge the rides. How's that for green?
Part 3 of UAW President Bob King’s speech to the Detroit Regional Chamber of Commerce:
Out of the ashes of the cataclysm of 2008 and 2009, a new, more visionary and stronger UAW is being born. The 21st century UAW views management not as our adversaries or enemies, but as partners in innovation and quality. Our relationship with employers is built upon a foundation of respect, shared goals, and a common mission, and a mutual social responsibility to create good, secure, middle-class jobs here in our communities in the United States.
This commitment to fundamental change is not just a tenet of my administration but is permeating the entire culture of the UAW. Our internal educational resources are devoted to nurturing this new mindset. I can tell you that there is no group of people more committed to the success of the auto industry than the union and our members working in the auto industry. Workers know that the success of their employers is in their own essential long-term interest. They won’t be jumping ship to grab onto a golden parachute. They are in this for the long haul. They are ready, willing and able to do what it takes to make their companies successful. Our members are energized by the new paradigm and welcome their enhanced opportunities to contribute to our companies’ success.
At GM, for example, our quality network promotes teamwork and invites total workforce involvement and continuous improvement. A Lordstown, Ohio, employee saved the company almost $200,000 by suggesting an alternative windshield sealer operation. Team members in Pontiac, Michigan, achieved more than $1.2 million in savings with suggestions to add plastic protection to a sensor.
At Chrysler, a sprayer in the paint shop – also a shop steward – devised a training video to systematize training for a new shift and volunteered for a split shift to assist with the training.
At Ford it was UAW members on the assembly line at the Chicago Assembly Plant that identified quality problems and advocated strongly for important process and training changes with the Taurus launch that created the best quality launch ever for Ford up to that time.
At Mitsubishi UAW members’ proven track record of world best productivity and quality convinced top management in Japan to award their newest vehicle platform to our UAW facility in Normal, Ill., over numerous other global sites competing for this platform. There are many, many more examples of such creative and innovative contributions by our members. Management will attest to the fact that the UAW is adding value to our enterprises.
At Ford, GM, Chrysler and Mitsubishi, the UAW has demonstrated our commitment to quality, teamwork, flexibility and innovation. We have forged a new culture that emphasizes trust, openness, cooperation and creative problem-solving. Our members have found millions of hours of annual savings. We are contributing to product development and innovative workforce solutions. We have taken the lead in workforce training and development. Layers of management have been eliminated because the workers are dedicated to creatively managing their own processes. Many facilities only have one main production classification, and an observer coming into a facility would not be able to tell who belongs to management and who is a union member. At one UAW GM facility there are no line supervisors, and UAW members take full responsibility for their operations.
Friday, June 3, 2011
State of the Union June 3, 2011
June 3, 2011 online at www.uawlocal2250.com
Resolutions for the Local Agreement can be submitted through Thursday, June 9. You can get submission forms from your committee person or at the Work Center and return the completed forms to the same.http://www.blogger.com/img/blank.gif
On the heels of the best sales month for vans since late 2008, field supplies fell. Total stock fell 1459 units for a 76 day supply and net field stock dropped 1829 to stand at a 45 day supply. There are only 666 (!) passenger vans in net field stock – and over 3000 dealers’ lots available. Oddly enough, 91.3% of Express passengers vans were fleet deliveries while only 22.6% of Savana passenger vans were fleet. On the cutaway side, fleet sales were 82.9% for the Chevy and 96.3% for GMC. Cargo vans were 68.3% fleet for Chevy and 58.5% for GMC. For the month, total cutaway sales were roughly double both last May’s total and this May’s passenger van total – a reflection of large upfitter deliveries typical of this time of year. Overall GM field supplies stood at 611,271 with trucks at a 105 day supply and cars at a 61 day supply (for comparison, Toyota has around 191,000 vehicles total in stock). GM President Mark Reuss told the Wall Street Journal that there are no plans to raise truck incentives to reduce inventory.
Some other interesting facts from May sales: The Malibu was the best selling car for the month, topping Camry, Accord, Fusion, Altima etc. (You’d probably have to go back to the Corsica/Beretta era as the last time GM had the best-selling car in the industry) The Cruze outsold the Corolla, Civic and Focus. The Camaro trounced the Mustang 9451 to 6607. Additionally, 8 of the top 10 selling vehicles in the US were domestic brands.
In mid-June for GM employees paid by Payroll Services in the United States (including ISP paid from the US Payroll Systems), access to your online pay check stubs will move to a new service, ADP iPayStatements. Moving to this new service will allow you to view your paystub whenever and wherever it’s convenient, 24 hours a day/7 days a week using an internet link. There will be no change to the way your payroll is processed. When this change takes place, the payroll history available to you will date back to 12/31/2010. If you need copies of pay statements older than the 12/31/2010 statement, please take the time now to print out your statements. History statements older than 12/31/2010 will no longer be available online after June 18, 2011. Watch for more information, including how to access the new service.
From Autoweek: As proof that there's a group of enthusiasts for just about everything, owners of the lowly Ford Pinto are taking to the roads in celebration of the car's 40th birthday. Pinto owners are driving from Denver to the Carlisle Ford Nationals in Pennsylvania this week, a journeyof approximately 1,600 miles. The group toured Fort Riley in Kansas on Memorial Day, then went on to take laps around the Kansas Speedway and, later in the trip, the Indianapolis Motor Speedway. The group took several spins around that track at speeds that organizers claimed approached 95 mph (ed. – personally, the only way my ’74 Pinto could go that fast is if you dropped it from a plane).
GM President Mark Reuss recently gave an interview to Automotive News. Here are some excerpts:
Where do you see this year's sales shaking out?
Our production schedules remain pretty flat and constant with around a 13 million-unit [seasonally adjusted annual rate]. I can't predict what's going to happen with the people we compete with here, but that's how we're operating the business. We'll continue to be very agile around things that we run out of or get short of. The mix I think is changing faster than any of us can comprehend.
Is GM commanding more money than in the past for small cars such as the Cruze?
The average transaction price is always a great indicator. Last month [the Cruze] was $2,000 to $3,000 over Corolla and Civic. Granted, those are older products. These small cars, they're heavily contented and great cars to drive. So we're seeing a difference in small-car content buying, and we're seeing a lot of people come to Cruze.
How different will the GMC and Chevy truck lineups be?
We probably have taken a very siloed, two-company, two-brand approach to trucks to take on our competition that has one. When you do that, and you don't do it right, and you've got price overlap and identical incentives and go-to-market strategies, then you're going to get dilution. I think we can do premium Chevrolets and we can take GMC and move it even further up.
Explain what GM has been doing on incentives.
If you look at GM over the last calendar year, we were about $200 [incentives per vehicle] below the industry. That's pretty disciplined. If you look at any one or two months over that year, you'll see us slightly above or below the industry because we're turning different model years. We're not going to be totally predictable for our competition. But we're going to be very responsible from a price retention standpoint. I think if you look at the data, you'll see that General Motors has the highest average transaction prices in the industry.
Resolutions for the Local Agreement can be submitted through Thursday, June 9. You can get submission forms from your committee person or at the Work Center and return the completed forms to the same.http://www.blogger.com/img/blank.gif
On the heels of the best sales month for vans since late 2008, field supplies fell. Total stock fell 1459 units for a 76 day supply and net field stock dropped 1829 to stand at a 45 day supply. There are only 666 (!) passenger vans in net field stock – and over 3000 dealers’ lots available. Oddly enough, 91.3% of Express passengers vans were fleet deliveries while only 22.6% of Savana passenger vans were fleet. On the cutaway side, fleet sales were 82.9% for the Chevy and 96.3% for GMC. Cargo vans were 68.3% fleet for Chevy and 58.5% for GMC. For the month, total cutaway sales were roughly double both last May’s total and this May’s passenger van total – a reflection of large upfitter deliveries typical of this time of year. Overall GM field supplies stood at 611,271 with trucks at a 105 day supply and cars at a 61 day supply (for comparison, Toyota has around 191,000 vehicles total in stock). GM President Mark Reuss told the Wall Street Journal that there are no plans to raise truck incentives to reduce inventory.
Some other interesting facts from May sales: The Malibu was the best selling car for the month, topping Camry, Accord, Fusion, Altima etc. (You’d probably have to go back to the Corsica/Beretta era as the last time GM had the best-selling car in the industry) The Cruze outsold the Corolla, Civic and Focus. The Camaro trounced the Mustang 9451 to 6607. Additionally, 8 of the top 10 selling vehicles in the US were domestic brands.
In mid-June for GM employees paid by Payroll Services in the United States (including ISP paid from the US Payroll Systems), access to your online pay check stubs will move to a new service, ADP iPayStatements. Moving to this new service will allow you to view your paystub whenever and wherever it’s convenient, 24 hours a day/7 days a week using an internet link. There will be no change to the way your payroll is processed. When this change takes place, the payroll history available to you will date back to 12/31/2010. If you need copies of pay statements older than the 12/31/2010 statement, please take the time now to print out your statements. History statements older than 12/31/2010 will no longer be available online after June 18, 2011. Watch for more information, including how to access the new service.
From Autoweek: As proof that there's a group of enthusiasts for just about everything, owners of the lowly Ford Pinto are taking to the roads in celebration of the car's 40th birthday. Pinto owners are driving from Denver to the Carlisle Ford Nationals in Pennsylvania this week, a journeyof approximately 1,600 miles. The group toured Fort Riley in Kansas on Memorial Day, then went on to take laps around the Kansas Speedway and, later in the trip, the Indianapolis Motor Speedway. The group took several spins around that track at speeds that organizers claimed approached 95 mph (ed. – personally, the only way my ’74 Pinto could go that fast is if you dropped it from a plane).
GM President Mark Reuss recently gave an interview to Automotive News. Here are some excerpts:
Where do you see this year's sales shaking out?
Our production schedules remain pretty flat and constant with around a 13 million-unit [seasonally adjusted annual rate]. I can't predict what's going to happen with the people we compete with here, but that's how we're operating the business. We'll continue to be very agile around things that we run out of or get short of. The mix I think is changing faster than any of us can comprehend.
Is GM commanding more money than in the past for small cars such as the Cruze?
The average transaction price is always a great indicator. Last month [the Cruze] was $2,000 to $3,000 over Corolla and Civic. Granted, those are older products. These small cars, they're heavily contented and great cars to drive. So we're seeing a difference in small-car content buying, and we're seeing a lot of people come to Cruze.
How different will the GMC and Chevy truck lineups be?
We probably have taken a very siloed, two-company, two-brand approach to trucks to take on our competition that has one. When you do that, and you don't do it right, and you've got price overlap and identical incentives and go-to-market strategies, then you're going to get dilution. I think we can do premium Chevrolets and we can take GMC and move it even further up.
Explain what GM has been doing on incentives.
If you look at GM over the last calendar year, we were about $200 [incentives per vehicle] below the industry. That's pretty disciplined. If you look at any one or two months over that year, you'll see us slightly above or below the industry because we're turning different model years. We're not going to be totally predictable for our competition. But we're going to be very responsible from a price retention standpoint. I think if you look at the data, you'll see that General Motors has the highest average transaction prices in the industry.
Wednesday, June 1, 2011
State of the Union June 1, 2011
June 1, 2011 online at www.uawlocal2250.com
Applications are now being accepted for the 2011 Black Lake Summer Scholarship Session. The dates for these family sessions are July 10-15, July 17-22 and July 24-29. They begin on Sunday evening and conclude on Friday morning. Participants will fly into Detroit on the day before, stay at a hotel and take a chartered bus to Black Lake the next morning. All travel expenses will be paid but there will be no lost time. Applications are available at the Union Hall and the deadline is Friday, June 10.
Reminder: The Blessing of the Bikes is today 15 minutes after the longest first shift line time and will be held at the arch in the front of the plant. You don’t need your bike to attend.
From BusinessFleet: General Motors gathered its fleet friends and family together in Palm Springs this week to show off its product and give a glimpse into the future. As you might expect at a fleet preview, GM reiterated that "fleet business is good business." But the numbers back up the talk: GM's sales to commercial fleets are up 8 percent year over year, while fleet sales represent 25 percent of total U.S. sales. GM pointed out that sales to small businesses were up 30 percent in the first quarter. GM expects overall fleet sales for the industry to remain steady at 2.5 million vehicles for each of the remaining three quarters of 2011. GM is jumping into factory-direct liquefied petroleum gas (LPG, or propane autogas) offerings on the 2012 Chevrolet Express and GMC Savana cutaway 3500 and 4500 vans. The vans will be produced at GM's Wentzville, Mo., plant. GM will be taking orders for the fourth quarter of this year. (The new LPG offering complements GM's versions of its compressed natural gas vans on the market now.)
• From the Wall Street Journal: Japan's auto sales slumped 38% from a year earlier in May, hammered by a shortage of parts as a result of the March 11 earthquake. But the sales drop was less than the record plunge in the previous month (down 51%), as car makers were able to operate domestic plants for the whole month for the first time since the disaster. Sales of Toyota Motor Corp. vehicles plummeted 57% to 48,733 in May, with those of the luxury Lexus brand down 5.3% at 1,789. The weak numbers came out the same day Toyota announced a global recall of about 140,000 vehicles, including 106,000 first-generation Prius hybrids, in the U.S., Japan, the U.K., Germany and elsewhere. Nissan Motor Co.'s sales dropped 16% to 28,037, and Honda Motor Co.'s sales tumbled 35% to 21,294.
• From Mlive: General Motors says it will invest $88 million in a Cadillac factory in Lansing, Michigan. The company says the investment won't create any new jobs but will equip the plant to make a new model. The factory now has 971 workers and makes the Cadillac CTS sports sedan. GM wouldn't identify the new model, but the CTS is due to be revamped soon. Previously GM announced in October that it will spend $190 million to build a new small Cadillac at the Lansing Grand River plant, adding 600 jobs and a second shift.
• From Bloomberg: Ford's assembly plants in Avon Lake, Ohio, and Flat Rock, Mich., are likely targets (for closure) because of weak sales of vehicles made there, said Sean McAlinden of the Center for Automotive Research and Robert W. Clark, who negotiated national bargaining agreements for the automaker for more than 30 years before retiring in 2002. Mazda Motor Corp. said in February it may pull out of the Flat Rock plant, where it has been a partner with Ford since the 1980s. The factory, which opened in 1987, makes the Ford Mustang sports car and Mazda 6 sedan, both of which have been losing market share. GM's Chevrolet Camaro snapped the Mustang's 24-year run as the top-selling sports car in 2010. Ford's Avon Lake plant makes the Econoline van, which may lose sales to the Transit Connect electric delivery van the automaker plans to build in the U.S. Ford said in January it would invest $400 million in its Claycomo, Mo., plant, which may build the Transit, consultant Michael Robinet of IHS Automotive said at the time. Ford has no announcements planned on the Avon Lake plant, and "it would be far too premature to comment on future product plans" there, Marcey Evans, a Ford spokeswoman, said in an e-mail. She declined to comment on Flat Rock.
• From the Detroit Free Press: Ford has increased prices on its 2011 models by an average of $124, or 0.4%, the third price increase since January as the automaker tries to offset rising prices for steel, plastic and other materials. The increase was communicated to dealers last week, according to Ford spokesman Todd Nissen. It comes after a similar increase in April, which also averaged 0.4%, or $117 per vehicle, and another one in January. “This brings our average price increases this year to 1.3%, or $375 on average,” Nissen said, adding that the average price increase for all automakers in the U.S. is about 1%. General Motors last month raised prices by an average of 0.4%, or $123 for the average 2011 model. Steel and aluminum prices remain at or near three-year highs. An average carcontains about 325 pounds of aluminum, and because aluminum refining requires so much electricity, the cost of coal also has an impact on the cost of aluminum.
• May sales numbers are starting to come out. General Motors reported 221,192 total sales in May, including a 9 percent increase in retail sales compared to May 2010. Total sales declined 1 percent on lower fleet volume. During the month, total sales of GM passenger cars increased 13 percent. Total crossover sales declined 1 percent, while retail sales were up 17 percent compared to last year’s May. Total combined sales of Chevrolet Silverado and Avalanche, and GMC Sierra decreased 14 percent; with retail sales down 17 percent versus a year ago. Van sales came in at 8954, a 15.7% increase over last year and the highest monthly total this year. More to come tomorrow.
Applications are now being accepted for the 2011 Black Lake Summer Scholarship Session. The dates for these family sessions are July 10-15, July 17-22 and July 24-29. They begin on Sunday evening and conclude on Friday morning. Participants will fly into Detroit on the day before, stay at a hotel and take a chartered bus to Black Lake the next morning. All travel expenses will be paid but there will be no lost time. Applications are available at the Union Hall and the deadline is Friday, June 10.
Reminder: The Blessing of the Bikes is today 15 minutes after the longest first shift line time and will be held at the arch in the front of the plant. You don’t need your bike to attend.
From BusinessFleet: General Motors gathered its fleet friends and family together in Palm Springs this week to show off its product and give a glimpse into the future. As you might expect at a fleet preview, GM reiterated that "fleet business is good business." But the numbers back up the talk: GM's sales to commercial fleets are up 8 percent year over year, while fleet sales represent 25 percent of total U.S. sales. GM pointed out that sales to small businesses were up 30 percent in the first quarter. GM expects overall fleet sales for the industry to remain steady at 2.5 million vehicles for each of the remaining three quarters of 2011. GM is jumping into factory-direct liquefied petroleum gas (LPG, or propane autogas) offerings on the 2012 Chevrolet Express and GMC Savana cutaway 3500 and 4500 vans. The vans will be produced at GM's Wentzville, Mo., plant. GM will be taking orders for the fourth quarter of this year. (The new LPG offering complements GM's versions of its compressed natural gas vans on the market now.)
• From the Wall Street Journal: Japan's auto sales slumped 38% from a year earlier in May, hammered by a shortage of parts as a result of the March 11 earthquake. But the sales drop was less than the record plunge in the previous month (down 51%), as car makers were able to operate domestic plants for the whole month for the first time since the disaster. Sales of Toyota Motor Corp. vehicles plummeted 57% to 48,733 in May, with those of the luxury Lexus brand down 5.3% at 1,789. The weak numbers came out the same day Toyota announced a global recall of about 140,000 vehicles, including 106,000 first-generation Prius hybrids, in the U.S., Japan, the U.K., Germany and elsewhere. Nissan Motor Co.'s sales dropped 16% to 28,037, and Honda Motor Co.'s sales tumbled 35% to 21,294.
• From Mlive: General Motors says it will invest $88 million in a Cadillac factory in Lansing, Michigan. The company says the investment won't create any new jobs but will equip the plant to make a new model. The factory now has 971 workers and makes the Cadillac CTS sports sedan. GM wouldn't identify the new model, but the CTS is due to be revamped soon. Previously GM announced in October that it will spend $190 million to build a new small Cadillac at the Lansing Grand River plant, adding 600 jobs and a second shift.
• From Bloomberg: Ford's assembly plants in Avon Lake, Ohio, and Flat Rock, Mich., are likely targets (for closure) because of weak sales of vehicles made there, said Sean McAlinden of the Center for Automotive Research and Robert W. Clark, who negotiated national bargaining agreements for the automaker for more than 30 years before retiring in 2002. Mazda Motor Corp. said in February it may pull out of the Flat Rock plant, where it has been a partner with Ford since the 1980s. The factory, which opened in 1987, makes the Ford Mustang sports car and Mazda 6 sedan, both of which have been losing market share. GM's Chevrolet Camaro snapped the Mustang's 24-year run as the top-selling sports car in 2010. Ford's Avon Lake plant makes the Econoline van, which may lose sales to the Transit Connect electric delivery van the automaker plans to build in the U.S. Ford said in January it would invest $400 million in its Claycomo, Mo., plant, which may build the Transit, consultant Michael Robinet of IHS Automotive said at the time. Ford has no announcements planned on the Avon Lake plant, and "it would be far too premature to comment on future product plans" there, Marcey Evans, a Ford spokeswoman, said in an e-mail. She declined to comment on Flat Rock.
• From the Detroit Free Press: Ford has increased prices on its 2011 models by an average of $124, or 0.4%, the third price increase since January as the automaker tries to offset rising prices for steel, plastic and other materials. The increase was communicated to dealers last week, according to Ford spokesman Todd Nissen. It comes after a similar increase in April, which also averaged 0.4%, or $117 per vehicle, and another one in January. “This brings our average price increases this year to 1.3%, or $375 on average,” Nissen said, adding that the average price increase for all automakers in the U.S. is about 1%. General Motors last month raised prices by an average of 0.4%, or $123 for the average 2011 model. Steel and aluminum prices remain at or near three-year highs. An average carcontains about 325 pounds of aluminum, and because aluminum refining requires so much electricity, the cost of coal also has an impact on the cost of aluminum.
• May sales numbers are starting to come out. General Motors reported 221,192 total sales in May, including a 9 percent increase in retail sales compared to May 2010. Total sales declined 1 percent on lower fleet volume. During the month, total sales of GM passenger cars increased 13 percent. Total crossover sales declined 1 percent, while retail sales were up 17 percent compared to last year’s May. Total combined sales of Chevrolet Silverado and Avalanche, and GMC Sierra decreased 14 percent; with retail sales down 17 percent versus a year ago. Van sales came in at 8954, a 15.7% increase over last year and the highest monthly total this year. More to come tomorrow.
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