October 16, 2012 online at www.uawlocal2250.com
• Union Meeting is 15 minutes after today’s 2nd shift, and tomorrow at 7:15 am, 1 pm and 15 minutes after the longest 1st shift line time.
• There will be a Community Services Committee meeting Thursday, Oct. 18 between shifts in the cafeteria. All are welcome to attend.
• From Automotive News: General Motors will begin production of the Cadillac ELR plug-in hybrid at an assembly plant here by late 2013, GM North America President Mark Reuss said today. GM will invest $35 million in its Detroit-Hamtramck plant to prepare for production of the 2014 ELR coupe, Reuss said during a keynote address at the SAE Convergence Conference here. The car will be unveiled in January at the Detroit auto show. GM assembles the Chevrolet Volt plug-in hybrid at the plant. The ELR's powertrain will be similar to that of the Volt, which can travel about 38 miles on electric power from a T-shaped lithium ion battery before a small gasoline generator kicks on to power the car's electric motor. GM has invested more than $530 million in its Detroit-Hamtramck plant since December 2009. More than 1,500 workers there assemble the Chevrolet Malibu and the U.S., European and Australian versions of the Volt.
• From Bloomberg: Toyota Motor Corp. first learned in 2008 about a defect in power-window switches that this week prompted it to recall 7.43 million vehicles worldwide for fire hazards, according to documents filed with U.S. regulators. Toyota, based in Toyota City, Japan, received a report in September 2008 from the U.S. about “an unusual smell” from the power-window master switch and “thermal damage” to the switch, the company said in a report posted yesterday on the U.S. National Highway Traffic Safety Administration website. The automaker sent the part to the supplier to investigate and no “root cause” was found. No other problems with the switch were reported until May 2010, when the company said it began sporadically receiving information about an abnormal smell or smoke coming from driver’s side doors, according to the report. “There was really no trend early on and it took considerable time to diagnose what seemed to be an isolated problem and how it was occurring,” John Hanson, a U.S.-based spokesman for Toyota, said in an e-mail. The U.S. auto-safety regulator opened an investigation into about 830,000 Camry cars and RAV4 crossover sport-utility vehicles in February after receiving six reports of fires that started in the window switch. It’s received reports of nine injuries and 161 fires, Lynda Tran, a NHTSA spokeswoman, said. (Toyota had originally offered to address the issue through a “service bulletin” where the defective switch is only replaced if an owner complains. NHTSA rejected that approach and insisted on a recall)
• From the New York Times: The tale of Asimco Technologies, an auto parts manufacturer whose plants dot eastern China, would seem to underscore Mitt Romney’s campaign-trail complaint that China’s manufacturing juggernaut is costing America jobs. Nine years ago, the company bought two camshaft factories that employed about 500 people in Michigan. By 2007 both were shut down. Now Asimco manufactures the same components in China on government-donated land in a coastal region that China has designated an export base, where companies are eligible for the sort of subsidies Mr. Romney says create an unfair trade imbalance. But there is a twist to the Asimco story that would not fit neatly into a Romney stump speech: Since 2010, it has been owned by Bain Capital, the private equity firm founded by Mr. Romney, who has as much as $2.25 million invested in three Bain funds with large stakes in Asimco and at least seven other Chinese businesses, according to his 2012 candidate financial disclosure and other documents. That and other China-related holdings by Bain funds in which Mr. Romney has invested are a reminder of how he inhabits two worlds that at times have come into conflict during his campaign for the White House. As a candidate, Mr. Romney uses China as a punching bag. He accuses Beijing of unfairly subsidizing Chinese exports, artificially holding down the value of its currency to keep exports cheap, stealing American technology and hacking into corporate and government computers. “How is it China’s been so successful in taking away our jobs?” he asked recently. “Well, let me tell you how: by cheating.” But his private equity dealings, both while he headed Bain and since, complicate that message.
Mr. Romney’s campaign insists he has no control over his investments since they are held in a blind trust. That said, a confidential prospectus for one of the Bain funds, obtained by The New York Times, promotes China as a good investment for some of the same reasons that Mr. Romney has said concern him: “Strong fundamentals” like manufacturing wages 85 percent lower than what Americans earn, vast foreign exchange reserves and the likelihood that China will surpass the United States as the world’s largest economy. “Accordingly, Bain Capital expects to see an increasing array of high-growth companies available for investment,” the prospectus says. Among the companies in which the Bain funds have invested is a global auto parts maker that is in the process of closing a factory in Illinois and moving most of the equipment and jobs to Jiangsu Province, where the Chinese government has built it a new plant; a Chinese electronics retailer accused by Microsoft of selling computers with pirated software; and a Hong Kong-based Chinese appliance maker that was sued for copying another company’s design for a deep-fat fryer.
Mr. Romney has millions invested in a series of Bain funds that created and have a controlling stake in Sensata Technologies, a manufacturer of sensors and controls for vehicles, aircraft and electric motors that employs 4,000 workers in China. Since Bain took over the operation in 2006, its investment has quadrupled in value. Bain continues to own $2.6 billion worth of Sensata’s shares. Two years ago, Sensata bought an operation that made automobile sensors in Freeport, Ill. At the first meeting with the plant’s 170 workers, Sensata managers announced that by the end of 2012 all the equipment and jobs would be relocated, mostly to Jiangsu Province. Workers have staged demonstrations, pleading for Mr. Romney to intervene on their behalf. Chinese engineers, flown to Freeport for training on the equipment, described their salaries as a pittance compared with Freeport wages. Tom Gaulrapp, who has operated machines at the factory for 33 years, said he fears he will go bankrupt after he loses his job on Nov. 5. “This goes to show the unbelievable hypocrisy of this man,” he said of Mr. Romney. “He talks about how we need to get tough on China and stop China from taking our jobs, and then he is making money off shipping our jobs there.” Note: Sensata pays their Chinese workers $.99 to $1.35 an hour, with the typical workweek being 7-12 hour days. Honeywell, who sold the business to Sensata, reported that in 2010, the Automation and Control Solutions sector (including the Freeport plant) had a profit of $1.77 billion.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Tuesday, October 16, 2012
Thursday, October 11, 2012
State of the Union October 11, 2012
October 11, 2012 online at www.uawlocal2250.com
• Reminder: Second shift start time will be change from 5:30 pm to 4 pm on Monday, October 15. First break will be 6:00 pm. Lunch will be 8:30 pm and Second Break will be 10:30 pm. The traffic lights will cycle from 3:15 pm to 4:15 pm.
• Now Available: New videosdescribing the historic events that transpired from 2007 – 2011 that changed the way medical benefits are provided for UAW auto retirees. These videos are available for viewing on the trust’s website at uawtrust.org and there are also links to the videos on the UAW website at uaw.org.
• From the Detroit Free Press: Modern commercial vans are emerging as a competitive segment in the U.S., and automakers are launching new products, many from Europe, as versatile offerings better equipped to handle a wide range of duties for small businesses and corporate fleets alike. Chrysler is creating a Ram Commercial division to handle development and sales of commercial vehicles in preparation to sell Fiat commercial vans in the U.S. Ford is using the Transit name on three global commercial vans that are to be sold in the U.S. by the end of 2013. Nissan continues to push in the segment it entered in 2011. It invested $118 million to build the NV cargo van and passenger van in its Canton, Miss., plant and is introducing the smaller NV200, which will become the official New York taxi about a year from now under a 10-year contract. And Mercedes-Benz is hinting it has a redesigned Sprinter up its sleeve. "We are not going to be sitting still," said Claus Tritt, vice president of operations for Daimler Vans. One analyst said M-B may bring the minivan-size Vito from Europe. "We are seeing a major fragmentation of the market with new players, entries, models and sizes," said analyst Aaron Bragman of IHS Automotive in Northville, Mich. "No one is entirely sure what will work. It is a big experiment," Bragman said. "There is a shift to European-styled vans, but there is no guarantee Americans will see it and say it looks great." The Sprinter, for example, has been sold here for a decade and still has a small percentage of the market. Chrysler has been without a dedicated commercial van since it sold the Sprinter as a Dodge when it was owned by Daimler. That pact ended in 2010, and the Sprinter was reintroduced as a Mercedes-Benz. Fred Diaz, CEO of the Ram brand, announced the Ram Commercial division last month at the Texas State Fair. "We are getting really, really serious about the commercial end of the business," said Diaz. Dodge dealers had been shown two commercial vans in Las Vegas on Sept. 10. Fiat/Chrysler CEO Sergio Marchionne has said the Fiat Ducato large commercial van and Fiat Doblo compact van will come to the U.S. in 2013. Bragman said buyers may be concerned about towing and performance of the Ducato because it is front-wheel drive.
• Ford has been the segment leader for decades with the E-Series, formerly known as the Econoline, which has 51% of the market. But E-Series will end production in 2014, replaced by the Transit medium van made in Kansas City starting next year. The larger Transit will be offered in the U.S. in a range of body styles, wheelbases and roof heights. It is rear-wheel drive with an EcoBoost or diesel engine. The big question, Bragman said, is where do Ford customers go if they don't like the Transit? They could turn to GM for the American-style, V8, rear-drive, body-on-frame box vans they are familiar with (Chevrolet Express and GMC Savana). But those vans are not scheduled to be replaced until 2015 or 2016, Bragman said. Or they could turn to Nissan. In addition to the NV, the compact NV200 will go on sale in 2013, giving the Asian automaker four commercial vans. Mercedes-Benz has a new van called the Citan in Europe that would compete with the Transit Connect, but the automaker is not convinced there is enough demand here. The size of the commercial van market has grown only modestly from 1.88% of industry sales in 2008 to 2.05% in 2011, according to LMC Automotive. Some of that growth comes from Ford's Transit Connect, which was introduced in 2009. Sales grew from 8,834 in 2009 to 31,914 last year. GM's models may be aging, but its large, experienced dealer network in the U.S. knows how to sell them. "The Euro vans are wonderfully compact and fuel-efficient," said Joseph Langhauser, manager of commercial products sales support for GM. "But the nice part is there are now distinguishing features between the products. Those customers that require heavy loads and towing capacity are probably going to stay with our body-on-frame models."
• PickupTrucks.com recently did a 4-truck comparison between global midsize competitors and gives us the first review of the new Colorado, sporting a Holden moniker in this instance. Cutting to the chase, the Colorado finished 2nd overall behind the new global Ford Ranger (not slated for US consumption) and ahead of the VW Amarok and the best-selling Toyota Hilux (think Tacoma) while taking first in off road performance and overall value. Here’s what they had to say about the Colorado: Holden’s Colorado costs $49,990 (Australian), and it shapes up to be a great value for the money if you need to tow heavy items or do a lot of work. For someone with a caravan or a boat tipping the scales close to 7,700 pounds, it is the only option…It has a strong engine, modern six-speed gearboxes, good interior space and all the equipment you expect. The Colorado used a bit more fuel than the VW Amarok, but its 23 mpg average on our test is not bad. The official government number is 25.8 mpg…(in summary) If you’re expecting a ute that handles more like a car, then it’s going to disappoint. Sure, it feels more traditionally trucklike compared with the Ranger and Amarok when it comes to cornering and is far more cumbersome in general driving, but it is a pickup, after all. Some liked the no-nonsense interior, but we thought it was a little ordinary for an all-new truck, and it did look like a lower trim level. The engine is the loudest at idle, but the sound is not irritating and smoothens out as the truck gains speed. Despite all that, it didn’t take us long to warm up to the Colorado. Its softer suspension means it floats a little more than the others, but it is also very comfortable in most conditions. The engine has plenty of torque to get around without much fuss, and the cabin feels spacious. The Colorado’s 7,500-pound-plus tow rating is handy, and there is nothing missing from the list of standard equipment. If you don’t mind driving a pickup that feels like a pickup, the Colorado (the least expensive of our group) makes for a good value proposition. (The Colorado in the test came with the 2.8 liter 4-cylinder turbo diesel rated at 177 horsepower and 347 pounds feet of torque. It had a payload capacity of 3300 pounds)
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
• Reminder: Second shift start time will be change from 5:30 pm to 4 pm on Monday, October 15. First break will be 6:00 pm. Lunch will be 8:30 pm and Second Break will be 10:30 pm. The traffic lights will cycle from 3:15 pm to 4:15 pm.
• Now Available: New videosdescribing the historic events that transpired from 2007 – 2011 that changed the way medical benefits are provided for UAW auto retirees. These videos are available for viewing on the trust’s website at uawtrust.org and there are also links to the videos on the UAW website at uaw.org.
• From the Detroit Free Press: Modern commercial vans are emerging as a competitive segment in the U.S., and automakers are launching new products, many from Europe, as versatile offerings better equipped to handle a wide range of duties for small businesses and corporate fleets alike. Chrysler is creating a Ram Commercial division to handle development and sales of commercial vehicles in preparation to sell Fiat commercial vans in the U.S. Ford is using the Transit name on three global commercial vans that are to be sold in the U.S. by the end of 2013. Nissan continues to push in the segment it entered in 2011. It invested $118 million to build the NV cargo van and passenger van in its Canton, Miss., plant and is introducing the smaller NV200, which will become the official New York taxi about a year from now under a 10-year contract. And Mercedes-Benz is hinting it has a redesigned Sprinter up its sleeve. "We are not going to be sitting still," said Claus Tritt, vice president of operations for Daimler Vans. One analyst said M-B may bring the minivan-size Vito from Europe. "We are seeing a major fragmentation of the market with new players, entries, models and sizes," said analyst Aaron Bragman of IHS Automotive in Northville, Mich. "No one is entirely sure what will work. It is a big experiment," Bragman said. "There is a shift to European-styled vans, but there is no guarantee Americans will see it and say it looks great." The Sprinter, for example, has been sold here for a decade and still has a small percentage of the market. Chrysler has been without a dedicated commercial van since it sold the Sprinter as a Dodge when it was owned by Daimler. That pact ended in 2010, and the Sprinter was reintroduced as a Mercedes-Benz. Fred Diaz, CEO of the Ram brand, announced the Ram Commercial division last month at the Texas State Fair. "We are getting really, really serious about the commercial end of the business," said Diaz. Dodge dealers had been shown two commercial vans in Las Vegas on Sept. 10. Fiat/Chrysler CEO Sergio Marchionne has said the Fiat Ducato large commercial van and Fiat Doblo compact van will come to the U.S. in 2013. Bragman said buyers may be concerned about towing and performance of the Ducato because it is front-wheel drive.
• Ford has been the segment leader for decades with the E-Series, formerly known as the Econoline, which has 51% of the market. But E-Series will end production in 2014, replaced by the Transit medium van made in Kansas City starting next year. The larger Transit will be offered in the U.S. in a range of body styles, wheelbases and roof heights. It is rear-wheel drive with an EcoBoost or diesel engine. The big question, Bragman said, is where do Ford customers go if they don't like the Transit? They could turn to GM for the American-style, V8, rear-drive, body-on-frame box vans they are familiar with (Chevrolet Express and GMC Savana). But those vans are not scheduled to be replaced until 2015 or 2016, Bragman said. Or they could turn to Nissan. In addition to the NV, the compact NV200 will go on sale in 2013, giving the Asian automaker four commercial vans. Mercedes-Benz has a new van called the Citan in Europe that would compete with the Transit Connect, but the automaker is not convinced there is enough demand here. The size of the commercial van market has grown only modestly from 1.88% of industry sales in 2008 to 2.05% in 2011, according to LMC Automotive. Some of that growth comes from Ford's Transit Connect, which was introduced in 2009. Sales grew from 8,834 in 2009 to 31,914 last year. GM's models may be aging, but its large, experienced dealer network in the U.S. knows how to sell them. "The Euro vans are wonderfully compact and fuel-efficient," said Joseph Langhauser, manager of commercial products sales support for GM. "But the nice part is there are now distinguishing features between the products. Those customers that require heavy loads and towing capacity are probably going to stay with our body-on-frame models."
• PickupTrucks.com recently did a 4-truck comparison between global midsize competitors and gives us the first review of the new Colorado, sporting a Holden moniker in this instance. Cutting to the chase, the Colorado finished 2nd overall behind the new global Ford Ranger (not slated for US consumption) and ahead of the VW Amarok and the best-selling Toyota Hilux (think Tacoma) while taking first in off road performance and overall value. Here’s what they had to say about the Colorado: Holden’s Colorado costs $49,990 (Australian), and it shapes up to be a great value for the money if you need to tow heavy items or do a lot of work. For someone with a caravan or a boat tipping the scales close to 7,700 pounds, it is the only option…It has a strong engine, modern six-speed gearboxes, good interior space and all the equipment you expect. The Colorado used a bit more fuel than the VW Amarok, but its 23 mpg average on our test is not bad. The official government number is 25.8 mpg…(in summary) If you’re expecting a ute that handles more like a car, then it’s going to disappoint. Sure, it feels more traditionally trucklike compared with the Ranger and Amarok when it comes to cornering and is far more cumbersome in general driving, but it is a pickup, after all. Some liked the no-nonsense interior, but we thought it was a little ordinary for an all-new truck, and it did look like a lower trim level. The engine is the loudest at idle, but the sound is not irritating and smoothens out as the truck gains speed. Despite all that, it didn’t take us long to warm up to the Colorado. Its softer suspension means it floats a little more than the others, but it is also very comfortable in most conditions. The engine has plenty of torque to get around without much fuss, and the cabin feels spacious. The Colorado’s 7,500-pound-plus tow rating is handy, and there is nothing missing from the list of standard equipment. If you don’t mind driving a pickup that feels like a pickup, the Colorado (the least expensive of our group) makes for a good value proposition. (The Colorado in the test came with the 2.8 liter 4-cylinder turbo diesel rated at 177 horsepower and 347 pounds feet of torque. It had a payload capacity of 3300 pounds)
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Tuesday, October 9, 2012
State of the Union October 9, 2012
October 9, 2012 online at www.uawlocal2250.com
• Reminder from the Benefits Dept.: If you were hired as a permanent employee in February 2012, as of October 1st you have health coverage through Blue Cross Blue Shield by GM. However, you MUST call Fidelity at 1-800-489-4646 to activate your insurance, even if you do not have dependents.
• Moral Character and the Presidency – By UAW President Bob King A great Republican woman, Margaret Chase Smith, once summed up the dilemma facing candidates for public office this way: "The right way is not always the popular and easy way. Standing for right when it is unpopular is a true test of moral character." Her words echo through the decades and reverberate in the 2012 presidential race. Just a few years ago, our country was facing its most serious economic crisis since the Great Depression. President George W. Bush had bailed out the banks, but the American people were still hurting. Jobs were disappearing by the hundreds of thousands each month. Millions of homeowners were underwater or facing foreclosure. Businesses were cut off from credit. Auto sales were tanking. And the domestic auto industry was teetering on the brink of collapse. The bailout of Wall Street by the last administration left a bad taste for much of the American public, and the idea of rescuing the car companies was wildly unpopular. Playing to that sentiment, Mitt Romney penned an op-ed advocating, "Let Detroit Go Bankrupt." President Barack Obama, newly elected, knew that much of the public was skeptical — even hostile — to an auto industry rescue. But he also knew that allowing General Motors and Chrysler to collapse would have been devastating for auto and parts workers, the local businesses that depend on them and the country as a whole. More than a million jobs were hanging in the balance. He knew the right thing to do, and he did it: not a bailout, but a lifeline, with real change and shared sacrifice from all stakeholders. Obama's leadership saved more than a million jobs. Today, the auto industry is thriving once again. Plants are humming and adding new shifts. Since June 2009, auto and parts manufacturers and dealers have grown employment by nearly a quarter of a million jobs. These are good, middle-class jobs, making things for an economy built to last. And now that the auto rescue has succeeded, Mitt Romney — who opposed it when that was the easy and popular position to take — is trying to claim credit for it. But that's not surprising. At Bain Capital, the corporate buyout firm he founded, Romney and his partners too often made their money taking companies apart and laying off workers. Instead of doing what was right — building companies up and securing good jobs for American workers — they did what was easy … and profitable. America's working men and women know about hard work, because that's what we do every day. We know about doing what's right, even at personal cost, because that's the legacy of the brave men and women who built our unions and the great American middle class. And that's who built every social movement that has made our democracy stronger and more inclusive.
• King cont’d: No surprise, then, that Margaret Chase Smith's test of moral character resonates for us. It's not about what's easy, and it's not about what's popular. It's about doing the right thing even when it's neither. Barack Obama has passed that test. And that's why we're proud to be supporting his re-election as president of the United States.
• From Automotive News: General Motors is overhauling its commercial dealer network in a bid to boost sales to business customers. GM wants dealerships that sell to small- and mid-sized businesses -- customers who buy one to 100 vehicles a year -- to offer perks such as extended service hours and better availability of loaners. In exchange, GM is offering commercial dealers advertising support, more floorplan money and the chance for more bonus cash based on sales volume, among other benefits. The program will go into effect in January and replace a system that has been in place for more than a decade, says Ed Peper, who in June was appointed GM's U.S. vice president of fleet and commercial sales. About 430 of GM's dealers, or roughly 10 percent of its U.S. network, are enrolled in the current commercial program. GM hopes that beefing up its service to construction companies, farmers and other commercial customers will boost a fast-growing slice of its business. Sales of pickups, commercial vans and other vehicles to business customers, including large corporate buyers, grew 18 percent this year through September, compared with 3 percent for GM's overall U.S. sales. GM sales executives say demand from small- and mid-sized businesses has emerged as a key driver of the company's sales growth, as businesses that delayed purchases during the economic downturn look to replace aging vehicles. "We want to encourage our dealers into the smaller fleet space," says Jennifer Costabile, director of marketing and sales support for GM's fleet and commercial business. "There's a lot of pent-up demand. We have a tremendous number of businesses out there that are really ripe for our dealers to go after." Peper says any GM dealer who agrees to the conditions can sign up for the program. Under the new rules, dealers must:
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
• Reminder from the Benefits Dept.: If you were hired as a permanent employee in February 2012, as of October 1st you have health coverage through Blue Cross Blue Shield by GM. However, you MUST call Fidelity at 1-800-489-4646 to activate your insurance, even if you do not have dependents.
• Moral Character and the Presidency – By UAW President Bob King A great Republican woman, Margaret Chase Smith, once summed up the dilemma facing candidates for public office this way: "The right way is not always the popular and easy way. Standing for right when it is unpopular is a true test of moral character." Her words echo through the decades and reverberate in the 2012 presidential race. Just a few years ago, our country was facing its most serious economic crisis since the Great Depression. President George W. Bush had bailed out the banks, but the American people were still hurting. Jobs were disappearing by the hundreds of thousands each month. Millions of homeowners were underwater or facing foreclosure. Businesses were cut off from credit. Auto sales were tanking. And the domestic auto industry was teetering on the brink of collapse. The bailout of Wall Street by the last administration left a bad taste for much of the American public, and the idea of rescuing the car companies was wildly unpopular. Playing to that sentiment, Mitt Romney penned an op-ed advocating, "Let Detroit Go Bankrupt." President Barack Obama, newly elected, knew that much of the public was skeptical — even hostile — to an auto industry rescue. But he also knew that allowing General Motors and Chrysler to collapse would have been devastating for auto and parts workers, the local businesses that depend on them and the country as a whole. More than a million jobs were hanging in the balance. He knew the right thing to do, and he did it: not a bailout, but a lifeline, with real change and shared sacrifice from all stakeholders. Obama's leadership saved more than a million jobs. Today, the auto industry is thriving once again. Plants are humming and adding new shifts. Since June 2009, auto and parts manufacturers and dealers have grown employment by nearly a quarter of a million jobs. These are good, middle-class jobs, making things for an economy built to last. And now that the auto rescue has succeeded, Mitt Romney — who opposed it when that was the easy and popular position to take — is trying to claim credit for it. But that's not surprising. At Bain Capital, the corporate buyout firm he founded, Romney and his partners too often made their money taking companies apart and laying off workers. Instead of doing what was right — building companies up and securing good jobs for American workers — they did what was easy … and profitable. America's working men and women know about hard work, because that's what we do every day. We know about doing what's right, even at personal cost, because that's the legacy of the brave men and women who built our unions and the great American middle class. And that's who built every social movement that has made our democracy stronger and more inclusive.
• King cont’d: No surprise, then, that Margaret Chase Smith's test of moral character resonates for us. It's not about what's easy, and it's not about what's popular. It's about doing the right thing even when it's neither. Barack Obama has passed that test. And that's why we're proud to be supporting his re-election as president of the United States.
• From Automotive News: General Motors is overhauling its commercial dealer network in a bid to boost sales to business customers. GM wants dealerships that sell to small- and mid-sized businesses -- customers who buy one to 100 vehicles a year -- to offer perks such as extended service hours and better availability of loaners. In exchange, GM is offering commercial dealers advertising support, more floorplan money and the chance for more bonus cash based on sales volume, among other benefits. The program will go into effect in January and replace a system that has been in place for more than a decade, says Ed Peper, who in June was appointed GM's U.S. vice president of fleet and commercial sales. About 430 of GM's dealers, or roughly 10 percent of its U.S. network, are enrolled in the current commercial program. GM hopes that beefing up its service to construction companies, farmers and other commercial customers will boost a fast-growing slice of its business. Sales of pickups, commercial vans and other vehicles to business customers, including large corporate buyers, grew 18 percent this year through September, compared with 3 percent for GM's overall U.S. sales. GM sales executives say demand from small- and mid-sized businesses has emerged as a key driver of the company's sales growth, as businesses that delayed purchases during the economic downturn look to replace aging vehicles. "We want to encourage our dealers into the smaller fleet space," says Jennifer Costabile, director of marketing and sales support for GM's fleet and commercial business. "There's a lot of pent-up demand. We have a tremendous number of businesses out there that are really ripe for our dealers to go after." Peper says any GM dealer who agrees to the conditions can sign up for the program. Under the new rules, dealers must:
- Pay a $400 monthly administrative fee.
- Staff at least 1 sales manager and 1 account specialist exclusively for commercial customers.
- Offer commercial customers priority service hours beyond normal operating hours.
- Install and maintain at least one service hoist that can lift up to 8 tons.
- Maintain a dedicated marketing budget for the commercial business. Dealers who comply with those and other standards can earn at least $100 per commercial vehicle sold if they also hit a factory-set sales objective. That will replace a system of occasional 60-day stair-step incentive programs, which pay dealers bonuses as sales targets are met. They also will get an extra 60 days of floorplan coverage on certain vehicles, as well as financial assistance for maintaining work-ready loaner vehicles. GM also will create an advertising program exclusively for commercial dealers.
- They tend to be more loyal than retail customers.
- They spend more on service.
- They often generate referrals for retail business.
For larger corporate accounts, GM has its own sales force that calls on those customers, which generally service their own vehicles. Peper says dealers should covet small- and mid-sized business customers because:
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Tuesday, October 2, 2012
State of the Union October 2, 2012
October 2, 2012
online at www.uawlocal2250.com
From Chairman Mike Bullock:
Welcome back to all of you from your extended vacations. I hope you all enjoyed your time off and come back rested and refreshed. While you were gone, we tragically lost our UAW Region 5 Director Jim Wells, who passed away Sept. 26. As many of you know, Jim was the first chairman of Local 2250 and was always a champion and advocate for this local and plant.
Personally, Jim was a resource and a friend to me as I worked through the many difficult issues that came up the last few years. He will be greatly missed. UAW President Bob King issued this statement upon his passing:
"It is with a heavy heart that we announce Jim's passing last night. But we will remain forever inspired by his character, integrity and passion for the labor movement. A dedicated trade unionist for nearly 50 years, Wells joined UAW Local 25 in 1966 when he was hired at the General Motors plant in St. Louis. Jim transferred to the GM Wentzville Assembly plant and became the first chairman of UAW Local 2250. He was appointed an international representative by then-UAW President Owen Bieber in 1985, and served four years on the Region 5 staff.
He served as UAW Region 5 assistant director for six years from 1989 to 1995. First elected to lead Region 5 in 1995, he was re-elected in 2010 for his fifth term serving UAW members and retirees in 17 states in the western and southwestern United States, including Missouri, California and Washington state. Jim was the longest-serving member of the UAW International Executive Board. We'll always remember his unwavering commitment to fighting for and protecting all workers' rights. The UAW extends its deepest sympathy to Jim's wife, Jane, their daughters, Kelly, Traci and Janie, his father, Ed Wells, and four grandchildren."
On a different note, I would like to thank our Benefits Representatives Mike Bridgins, Russell "Smitty" Smith and Karen Jones for all the extra time and effort they have put in working on all the issues with members’ unemployment and SUB problems. Finally, the new local contract books are in and you should be receiving your copy from your committee person.
Attention: Beginning today, Tuesday, Oct. 2, the GM Employee Discount Program now includes aunts, uncles, nieces and nephews.
General Motors Co. today reported its highest September U.S. sales since 2008: 210,245 vehicles, up 1.5 percent compared with a year ago. New products helped drive a 29 percent increase in passenger car sales. Sales of GM’s mini, small and compact cars alone were up a combined 97 percent, and all GM brands increased their retail sales. "Passenger cars have been the launch point for a broad and deep GM product offensive," said Kurt McNeil, vice president of U.S. sales operations. “Auto sales will continue to be a bright spot for the U.S. economy, which is particularly good news for GM as we walk into an even stronger cadence of new products in 2013 and 2014." GM has moved aggressively to replace existing vehicles with better designs, more technology and improved fuel economy. At the same time, GM is entering growth segments and offering new entry points for each brand. Seventy percent of GM nameplates will be all new or redesigned in 2012 and 2013.
September’s car sales increase reflected a strong start for the new Chevrolet Spark and Cadillac XTS, continued strong sales of the Buick Verano, Chevrolet Cruze and Chevrolet Sonic, and a second consecutive sales record for the Chevrolet Volt. September also marked the first deliveries of the all-new Cadillac ATS. The GMC Terrain and Acadia crossovers had strong months as well, with sales up 8 percent and 16 percent, respectively. This helped drive a 3 percent increase for all GM crossovers versus a year ago. Truck sales were down 20 percent due to a 46 percent year-over-year reduction in fleet sales due to the timing of customer deliveries. In the large pickup segment, GM’s total sales were down 12 percent and fleet sales were down 56 percent. However, GM reduced its large pickup inventories by approximately 8,600 units compared with August, and earned average transaction prices more than $2,300 per unit above a year ago with the lowest incentive spending in the industry, according to J.D. Power PIN data. Van sales came in at 4886, a drop of 41.8%.
Automotive News broke down Ford’s future product portfolio recently. Here’s their take on the Transit and Econoline full size vans:
Transit:Ford will begin making the Transit commercial van next year in Kansas City, Mo., as a 2014 model. The European-style commercial van will feature Ford's 3.5-liter EcoBoost engine and a diesel, likely a 3.2-liter Duratorq. Ford has not said exactly how the Transit will be branded, but it has trademarked names such as T-150, T-250 and T-350. The Transit is a rwd van based on the European Transit
E series: Ford will continue to build its long-running E-series van for some time after Transit production begins. The company won't say just how long. But the cutaway version of the E series, used in such applications as airport shuttle vans, will continue well into this decade.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
online at www.uawlocal2250.com
From Chairman Mike Bullock:
Welcome back to all of you from your extended vacations. I hope you all enjoyed your time off and come back rested and refreshed. While you were gone, we tragically lost our UAW Region 5 Director Jim Wells, who passed away Sept. 26. As many of you know, Jim was the first chairman of Local 2250 and was always a champion and advocate for this local and plant.
Personally, Jim was a resource and a friend to me as I worked through the many difficult issues that came up the last few years. He will be greatly missed. UAW President Bob King issued this statement upon his passing:
"It is with a heavy heart that we announce Jim's passing last night. But we will remain forever inspired by his character, integrity and passion for the labor movement. A dedicated trade unionist for nearly 50 years, Wells joined UAW Local 25 in 1966 when he was hired at the General Motors plant in St. Louis. Jim transferred to the GM Wentzville Assembly plant and became the first chairman of UAW Local 2250. He was appointed an international representative by then-UAW President Owen Bieber in 1985, and served four years on the Region 5 staff.
He served as UAW Region 5 assistant director for six years from 1989 to 1995. First elected to lead Region 5 in 1995, he was re-elected in 2010 for his fifth term serving UAW members and retirees in 17 states in the western and southwestern United States, including Missouri, California and Washington state. Jim was the longest-serving member of the UAW International Executive Board. We'll always remember his unwavering commitment to fighting for and protecting all workers' rights. The UAW extends its deepest sympathy to Jim's wife, Jane, their daughters, Kelly, Traci and Janie, his father, Ed Wells, and four grandchildren."
On a different note, I would like to thank our Benefits Representatives Mike Bridgins, Russell "Smitty" Smith and Karen Jones for all the extra time and effort they have put in working on all the issues with members’ unemployment and SUB problems. Finally, the new local contract books are in and you should be receiving your copy from your committee person.
Attention: Beginning today, Tuesday, Oct. 2, the GM Employee Discount Program now includes aunts, uncles, nieces and nephews.
General Motors Co. today reported its highest September U.S. sales since 2008: 210,245 vehicles, up 1.5 percent compared with a year ago. New products helped drive a 29 percent increase in passenger car sales. Sales of GM’s mini, small and compact cars alone were up a combined 97 percent, and all GM brands increased their retail sales. "Passenger cars have been the launch point for a broad and deep GM product offensive," said Kurt McNeil, vice president of U.S. sales operations. “Auto sales will continue to be a bright spot for the U.S. economy, which is particularly good news for GM as we walk into an even stronger cadence of new products in 2013 and 2014." GM has moved aggressively to replace existing vehicles with better designs, more technology and improved fuel economy. At the same time, GM is entering growth segments and offering new entry points for each brand. Seventy percent of GM nameplates will be all new or redesigned in 2012 and 2013.
September’s car sales increase reflected a strong start for the new Chevrolet Spark and Cadillac XTS, continued strong sales of the Buick Verano, Chevrolet Cruze and Chevrolet Sonic, and a second consecutive sales record for the Chevrolet Volt. September also marked the first deliveries of the all-new Cadillac ATS. The GMC Terrain and Acadia crossovers had strong months as well, with sales up 8 percent and 16 percent, respectively. This helped drive a 3 percent increase for all GM crossovers versus a year ago. Truck sales were down 20 percent due to a 46 percent year-over-year reduction in fleet sales due to the timing of customer deliveries. In the large pickup segment, GM’s total sales were down 12 percent and fleet sales were down 56 percent. However, GM reduced its large pickup inventories by approximately 8,600 units compared with August, and earned average transaction prices more than $2,300 per unit above a year ago with the lowest incentive spending in the industry, according to J.D. Power PIN data. Van sales came in at 4886, a drop of 41.8%.
Automotive News broke down Ford’s future product portfolio recently. Here’s their take on the Transit and Econoline full size vans:
Transit:Ford will begin making the Transit commercial van next year in Kansas City, Mo., as a 2014 model. The European-style commercial van will feature Ford's 3.5-liter EcoBoost engine and a diesel, likely a 3.2-liter Duratorq. Ford has not said exactly how the Transit will be branded, but it has trademarked names such as T-150, T-250 and T-350. The Transit is a rwd van based on the European Transit
E series: Ford will continue to build its long-running E-series van for some time after Transit production begins. The company won't say just how long. But the cutaway version of the E series, used in such applications as airport shuttle vans, will continue well into this decade.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Thursday, August 16, 2012
State of the Union August 16, 2012
August 16, 2012 online at www.uawlocal2250.com
• There has been some misunderstanding about the use of VR time during the shutdown for those who have just 40 hours. Per the vacation application guidelines, “Employees entitled to 40 hours of vacation entitlement may chooseeither to use such hours or be placed on an unpaid leave of absence during the entire shutdown period.”
• Tickets for a 50-50 raffle to support the SOS ride this Saturday will go on sale Thursday. Trustee Wanda Richard will be in the cafeteria at first break and then on the shop floor selling tickets on first shift and Kim Davis will be selling tickets on 2nd shift. Also, SOS t-shirts will be on sale today in the cafeteria.
• Reminder: The 7th annual SOS – Support our Soldiers – motorcycle ride and rally will be next Saturday, Aug. 18. Registration will begin at 9 am at the Union Hall with the last bike out at 11am. Cost is $20 per bike, $5 per passenger and $5 for each extra hand. The ride ends at Crazy Horse Saloon in Wentzville at 6 pm. All bikes and cages (cars) are welcome. Proceeds will benefit Operation Homefront. If you have any questions you can contact Steve Melson at 636-262-1234.
• Hybrid full-size pickups and SUV’s have been in GM’s lineup for several years now, but you’d never know it reading this article from Wards Auto: The ultimate goal of a partnership formed last year between Fordand Toyotais a hybrid-electric fullsize pickup, says a high-ranking Ford engineer.“The nut we’re trying to crack is how do we do an F-150 hybrid?” Kevin Layden, Forddirector-electrification programs and engineering, tells WardsAutoat a media backgrounder here. “We’re working with (Toyota) and developing plans.” The auto makers last year inked an agreement to jointly develop rear-wheel-drive hybrid-electric powertrains, noting increasing fuel efficiency of light-duty pickups and SUVs is imperative to remaining viable in a U.S. market facing increasingly stringent government emissions and mileage regulations. The partners hope to mitigate costs and increase speed-to-market of new products. Work with Toyota is ongoing, Layden says, but he declines to reveal when a production vehicle may result from the tie-up. There are several obstacles confronting engineers, Layden says, including how to ensure a fuel-efficient electrified powertrain can handle the workload and durability demands of pickup and SUV buyers. “Everyone wants to tow with a truck, and that’s a duty cycle that really taxes the battery and electric motor” he says. “We have to figure out how you maximize that and still get the fuel economy.”
• Toyota has finally gotten on the electric vehicle bandwagon with an EV version of the compact SUV RAV4. The battery pack is supplied by Tesla, so it now appears that Toyota can do neither a hybrid electric full size pickup or a dedicated electric vehicle without considerable assistance. The RAV4 gas version starts at $22,650. The electric version? $49,800! For that you get, according to Wards Auto, “base-model-like bargain accoutrements: unappealing plastic trim on the instrument panel and door inners and fake-leather seating.”
• From Autoblog: Here's a shocking statistic: The United States has fewer cars per capita than Italy, Germany, France, Spain, Belgium, Japan, Australia, New Zealand and 16 other countries. Even more dramatic is one of the potential causes: A declining American middle class. According to an Atlantic report on a new study conduct by the Carnegie Endowment for International Peace, we're ranked just 25th in the world in per-person car ownership. The actual number stands at 439 cars per 1,000 Americans. Further, the U.S. is an outlier when you compare the number of vehicles per capita to household consumption. While we have one of the highest rates of household spending, car buying is in decline here. It is this disparity that points to the widening income gap in the U.S. as a potential cause of our low rate of car ownership. Indeed, car ownership rates track with the size of a nation's middle class, according to the report.
• From Automotive News: Opel is in talks with the IG Metall union and worker representatives to shorten working hours at its main German plant in Ruesselsheim, near Frankfurt. "Due to the deteriorating market situation in Europe, the management of Adam Opel AG is negotiating the subject of short time working and working hour reduction in Ruesselsheim with the works council and IG Metall," the money-losing General Motors subsidiary said in a statement on Thursday. The statement said the sides expect to reach an agreement quickly. Media reports cited company sources as saying Opel was also considering shortened working hours at its engine plant in Kaiserslautern, Germany. Ruesselsheim is Opel's main production hub and currently produces the Astra compact and Insignia mid-sized models. The carmaker has previously said that production of the next-generation Astra will be done at plants in the UK and Poland in 2015. If management and labor representatives agree to shorten working hours for the plant's staff, Opel can apply for subsidies under the German government's short-work program, called Kurzarbeit. The scheme was used by many struggling companies in the 2008-2009 recession, allowing them to preserve jobs by cutting the hours of employees when usage of plants was low, while having the government compensate workers for part of their lost wages. At the height of the last global financial crisis, more than 1.4 million workers in Germany received money under the program. While recent data shows only about 80,000 people were receiving such assistance in May of this year, several companies have had to seek government subsidies in recent months.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
• There has been some misunderstanding about the use of VR time during the shutdown for those who have just 40 hours. Per the vacation application guidelines, “Employees entitled to 40 hours of vacation entitlement may chooseeither to use such hours or be placed on an unpaid leave of absence during the entire shutdown period.”
• Tickets for a 50-50 raffle to support the SOS ride this Saturday will go on sale Thursday. Trustee Wanda Richard will be in the cafeteria at first break and then on the shop floor selling tickets on first shift and Kim Davis will be selling tickets on 2nd shift. Also, SOS t-shirts will be on sale today in the cafeteria.
• Reminder: The 7th annual SOS – Support our Soldiers – motorcycle ride and rally will be next Saturday, Aug. 18. Registration will begin at 9 am at the Union Hall with the last bike out at 11am. Cost is $20 per bike, $5 per passenger and $5 for each extra hand. The ride ends at Crazy Horse Saloon in Wentzville at 6 pm. All bikes and cages (cars) are welcome. Proceeds will benefit Operation Homefront. If you have any questions you can contact Steve Melson at 636-262-1234.
• Hybrid full-size pickups and SUV’s have been in GM’s lineup for several years now, but you’d never know it reading this article from Wards Auto: The ultimate goal of a partnership formed last year between Fordand Toyotais a hybrid-electric fullsize pickup, says a high-ranking Ford engineer.“The nut we’re trying to crack is how do we do an F-150 hybrid?” Kevin Layden, Forddirector-electrification programs and engineering, tells WardsAutoat a media backgrounder here. “We’re working with (Toyota) and developing plans.” The auto makers last year inked an agreement to jointly develop rear-wheel-drive hybrid-electric powertrains, noting increasing fuel efficiency of light-duty pickups and SUVs is imperative to remaining viable in a U.S. market facing increasingly stringent government emissions and mileage regulations. The partners hope to mitigate costs and increase speed-to-market of new products. Work with Toyota is ongoing, Layden says, but he declines to reveal when a production vehicle may result from the tie-up. There are several obstacles confronting engineers, Layden says, including how to ensure a fuel-efficient electrified powertrain can handle the workload and durability demands of pickup and SUV buyers. “Everyone wants to tow with a truck, and that’s a duty cycle that really taxes the battery and electric motor” he says. “We have to figure out how you maximize that and still get the fuel economy.”
• Toyota has finally gotten on the electric vehicle bandwagon with an EV version of the compact SUV RAV4. The battery pack is supplied by Tesla, so it now appears that Toyota can do neither a hybrid electric full size pickup or a dedicated electric vehicle without considerable assistance. The RAV4 gas version starts at $22,650. The electric version? $49,800! For that you get, according to Wards Auto, “base-model-like bargain accoutrements: unappealing plastic trim on the instrument panel and door inners and fake-leather seating.”
• From Autoblog: Here's a shocking statistic: The United States has fewer cars per capita than Italy, Germany, France, Spain, Belgium, Japan, Australia, New Zealand and 16 other countries. Even more dramatic is one of the potential causes: A declining American middle class. According to an Atlantic report on a new study conduct by the Carnegie Endowment for International Peace, we're ranked just 25th in the world in per-person car ownership. The actual number stands at 439 cars per 1,000 Americans. Further, the U.S. is an outlier when you compare the number of vehicles per capita to household consumption. While we have one of the highest rates of household spending, car buying is in decline here. It is this disparity that points to the widening income gap in the U.S. as a potential cause of our low rate of car ownership. Indeed, car ownership rates track with the size of a nation's middle class, according to the report.
• From Automotive News: Opel is in talks with the IG Metall union and worker representatives to shorten working hours at its main German plant in Ruesselsheim, near Frankfurt. "Due to the deteriorating market situation in Europe, the management of Adam Opel AG is negotiating the subject of short time working and working hour reduction in Ruesselsheim with the works council and IG Metall," the money-losing General Motors subsidiary said in a statement on Thursday. The statement said the sides expect to reach an agreement quickly. Media reports cited company sources as saying Opel was also considering shortened working hours at its engine plant in Kaiserslautern, Germany. Ruesselsheim is Opel's main production hub and currently produces the Astra compact and Insignia mid-sized models. The carmaker has previously said that production of the next-generation Astra will be done at plants in the UK and Poland in 2015. If management and labor representatives agree to shorten working hours for the plant's staff, Opel can apply for subsidies under the German government's short-work program, called Kurzarbeit. The scheme was used by many struggling companies in the 2008-2009 recession, allowing them to preserve jobs by cutting the hours of employees when usage of plants was low, while having the government compensate workers for part of their lost wages. At the height of the last global financial crisis, more than 1.4 million workers in Germany received money under the program. While recent data shows only about 80,000 people were receiving such assistance in May of this year, several companies have had to seek government subsidies in recent months.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Tuesday, August 14, 2012
State of the Union August 14, 2012
August 14, 2012 online at www.uawlocal2250.com
Tickets for a 50-50 raffle to support the SOS ride this Saturday will go on sale Thursday. Trustee Wanda Richard will be in the cafeteria at first break and then on the shop floor selling tickets on first shift and Kim Davis will be selling tickets on 2nd shift.
General Motors is recalling more than 10,000 full-size vans in the U.S. and Canada because the fuel filler pipes can rust, leak and cause fires. The recall affects Chevrolet Express and GMC Savana vans from the 2003 and 2004 model years with left-side cargo doors. It covers vans sold in 20 states, Washington, D.C., and in Canada, where salt and chemicals are used to clear snow from roads. GM said Tuesday salt and chemicals can get trapped in a conduit that covers the fuel filler pipe and cause corrosion. Gasoline may leak and cause a fire. The company said it doesn’t know of any fires or injuries from the problem. GM dealers will fix the problem free of charge.
Dealers are expected to be notified in October when parts become available. GM said in documents filed with the National Highway Traffic Safety Administration that owners already have been sent letters detailing special repair coverage for the problem. Owners know to take their vans to dealers if a leak develops. The vans were sold in all 50 states, but the recall affects only those sold or registered in Canada and the following states: Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia and Wisconsin. Owners with questions can call Chevrolet at (866) 694-6546 and GMC at (866) 996-9463. (The plant has been aware of this issue and a service bulletin had been issued to dealerships to correct the problem if it had occurred.)
The GM Korea Union has a tentative wage deal. Union members will vote on the tentative agreement on Thursday and Friday, union spokesman Choi Jong-hak told Dow Jones Newswires. The union agreed to a basic pay increase of 92,000 Korean won ($82) per person, performance-based bonus worth KRW5 million (about $4500) to be paid at the end of the year, and a lump-sum incentive payment of KRW3 million (about $2700), GM Korea spokesman Park Hae-ho said. On the issue of ending night shifts, the two parties have agreed to decide on the time frame for the new shift system in the first half of next year, Mr. Choi said.
Gov. Jay Nixon and the governors of Michigan, Tennessee and Illinois have founded the National Governors Auto Caucus to grow the auto industry and its suppliers, Gov. Nixon announced. The bi-partisan caucus, composed of Gov. Nixon, Gov. Richard Snyder (R-MI), Gov. Bill Haslam (R-TN), and Gov. Pat Quinn (D-IL), was introduced at an annual conference sponsored by the Center for Automotive Research in Traverse City, Michigan. "I look forward working with fellow Governors and experts in the industry to seek new ways to continue the recent growth in automotive manufacturing," said Gov. Nixon. "This partnership will help to strengthen the nation's economy and create more jobs in each of our states." A significant player in the U.S. economy, the automotive industry employs eight million people in manufacturing, suppliers and dealers. This industry generates $500 billion in income for its employees and $70 billion in tax revenues. Missouri's automotive industry comprises 5.3 percent of the state labor force with 190,000 employees throughout the state.
In Missouri, the growing automotive supply chain was bolstered by recent announcements by Ford and General Motors of expansion to their manufacturing facilities. Last year, Ford announced a $1.1 billion investment in its Kansas City Assembly Plant, adding a second manufacturing line for the F-150 pickup truck in 2012 and bringing in a new product, the Transit commercial van, in 2013-an investment that will create 1,600 new jobs. Earlier this year, GM broke ground on a $380 million expansion at its Wentzville plant, adding 1,660 jobs and a new pickup line for the Chevy Colorado. "The rebirth of the American auto industry is happening right here in Missouri," Gov. Nixon said. "We have an unprecedented opportunity to create jobs by growing our network of automotive suppliers throughout the state. Already we've seen great progress with the new projects and expansions at Magna International, Johnson Controls, Spartan Light Metals, Bodine Aluminum, and TG USA. These are the types of new jobs we want to bring to every community across Missouri."
From the Detroit Free Press: The Canadian Auto Workers union expects to reach agreements with Detroit’s three automakers this fall without a work stoppage, CAW President Ken Lewenza said at the opening of bargaining in Toronto today. CAW contracts with General Motors, Ford and Chrysler expire at midnight Sept. 17. The CAW is usually serious about sticking to the deadline. Lewenza said it is too early to talk about the target. GM’s opening proposal expressed the importance of operations in Canada but called for changes to reduce hourly costs because Canada has become one of the most expensive places to build vehicles. The handshake opening with Chrysler was to occur late today and Ford follows on Wednesday. A big factor is the strength of the Canadian dollar, Lewenza said, something that cannot be bargained. And its high value is “unsustainable,” he said, so companies should not bargain a long-term agreement based on current rates which the union thinks is 20% overvalued. Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Tickets for a 50-50 raffle to support the SOS ride this Saturday will go on sale Thursday. Trustee Wanda Richard will be in the cafeteria at first break and then on the shop floor selling tickets on first shift and Kim Davis will be selling tickets on 2nd shift.
General Motors is recalling more than 10,000 full-size vans in the U.S. and Canada because the fuel filler pipes can rust, leak and cause fires. The recall affects Chevrolet Express and GMC Savana vans from the 2003 and 2004 model years with left-side cargo doors. It covers vans sold in 20 states, Washington, D.C., and in Canada, where salt and chemicals are used to clear snow from roads. GM said Tuesday salt and chemicals can get trapped in a conduit that covers the fuel filler pipe and cause corrosion. Gasoline may leak and cause a fire. The company said it doesn’t know of any fires or injuries from the problem. GM dealers will fix the problem free of charge.
Dealers are expected to be notified in October when parts become available. GM said in documents filed with the National Highway Traffic Safety Administration that owners already have been sent letters detailing special repair coverage for the problem. Owners know to take their vans to dealers if a leak develops. The vans were sold in all 50 states, but the recall affects only those sold or registered in Canada and the following states: Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia and Wisconsin. Owners with questions can call Chevrolet at (866) 694-6546 and GMC at (866) 996-9463. (The plant has been aware of this issue and a service bulletin had been issued to dealerships to correct the problem if it had occurred.)
The GM Korea Union has a tentative wage deal. Union members will vote on the tentative agreement on Thursday and Friday, union spokesman Choi Jong-hak told Dow Jones Newswires. The union agreed to a basic pay increase of 92,000 Korean won ($82) per person, performance-based bonus worth KRW5 million (about $4500) to be paid at the end of the year, and a lump-sum incentive payment of KRW3 million (about $2700), GM Korea spokesman Park Hae-ho said. On the issue of ending night shifts, the two parties have agreed to decide on the time frame for the new shift system in the first half of next year, Mr. Choi said.
Gov. Jay Nixon and the governors of Michigan, Tennessee and Illinois have founded the National Governors Auto Caucus to grow the auto industry and its suppliers, Gov. Nixon announced. The bi-partisan caucus, composed of Gov. Nixon, Gov. Richard Snyder (R-MI), Gov. Bill Haslam (R-TN), and Gov. Pat Quinn (D-IL), was introduced at an annual conference sponsored by the Center for Automotive Research in Traverse City, Michigan. "I look forward working with fellow Governors and experts in the industry to seek new ways to continue the recent growth in automotive manufacturing," said Gov. Nixon. "This partnership will help to strengthen the nation's economy and create more jobs in each of our states." A significant player in the U.S. economy, the automotive industry employs eight million people in manufacturing, suppliers and dealers. This industry generates $500 billion in income for its employees and $70 billion in tax revenues. Missouri's automotive industry comprises 5.3 percent of the state labor force with 190,000 employees throughout the state.
In Missouri, the growing automotive supply chain was bolstered by recent announcements by Ford and General Motors of expansion to their manufacturing facilities. Last year, Ford announced a $1.1 billion investment in its Kansas City Assembly Plant, adding a second manufacturing line for the F-150 pickup truck in 2012 and bringing in a new product, the Transit commercial van, in 2013-an investment that will create 1,600 new jobs. Earlier this year, GM broke ground on a $380 million expansion at its Wentzville plant, adding 1,660 jobs and a new pickup line for the Chevy Colorado. "The rebirth of the American auto industry is happening right here in Missouri," Gov. Nixon said. "We have an unprecedented opportunity to create jobs by growing our network of automotive suppliers throughout the state. Already we've seen great progress with the new projects and expansions at Magna International, Johnson Controls, Spartan Light Metals, Bodine Aluminum, and TG USA. These are the types of new jobs we want to bring to every community across Missouri."
From the Detroit Free Press: The Canadian Auto Workers union expects to reach agreements with Detroit’s three automakers this fall without a work stoppage, CAW President Ken Lewenza said at the opening of bargaining in Toronto today. CAW contracts with General Motors, Ford and Chrysler expire at midnight Sept. 17. The CAW is usually serious about sticking to the deadline. Lewenza said it is too early to talk about the target. GM’s opening proposal expressed the importance of operations in Canada but called for changes to reduce hourly costs because Canada has become one of the most expensive places to build vehicles. The handshake opening with Chrysler was to occur late today and Ford follows on Wednesday. A big factor is the strength of the Canadian dollar, Lewenza said, something that cannot be bargained. And its high value is “unsustainable,” he said, so companies should not bargain a long-term agreement based on current rates which the union thinks is 20% overvalued. Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Thursday, August 2, 2012
State of the Union August 2, 2012
August 2, 2012 online at www.uawlocal2250.com
• Chairman Mike Bullock and President Van Simpson announced today the International Union appointments of Lou Jones as Adapt representative, Donetta Calloway as Human Resource Development representative and Millie Donnelly as Alternate EAP representative. Mike and Van would like everyone to give them their full support in their new assignments.
• If you were hired as a New Hire in December, 2011, as of August 1styou have health care coverage through Blue Cross Blue Shield by General Motors. However, YOU MUST call Fidelity at 800-489-4646 for health insurance, even if you don’t have dependents. If you have any questions, place a call to your Benefits Representative: Lisa Williams (636-327-2025), Russell Smith (636-327-2314) or Mike Bridgins (636-327-2112).
• As you saw yesterday, July was a breakout month for our van sales. Besides being our best July in 6 years, we outsold Ford by a wide margin and captured over 50% share, a rare achievement in any month since the van launch in 1996. Here is how the van segment shook out in July:
Over all, the industry reported sales on Wednesday of 1.15 million vehicles during July, which was an 8.9 percent improvement over the same period a year ago. That lags the 14.8 percent increase the industry recorded during the first six months of 2012. While sales are still on track to top 14 million vehicles for the entire year, analysts said growth appeared to be slowing somewhat. Industry incentives remained flat in July compared with the previous month, with an average discount per vehicle of about $2,200, according to Edmunds.com, an auto information site that compiles incentive data.
General Motors Co. today announced second quarter net income attributable to common stockholders of $1.5 billion, or $0.90 per fully diluted share. In the second quarter a year ago, GM’s net income attributable to common stockholders was $2.5 billion, or $1.54 per fully diluted share.
Net revenue in the second quarter of 2012 was $37.6 billion, compared with $39.4 billion in the second quarter of 2011. The decrease was due almost entirely to the strengthening of the U.S. dollar versus other major currencies. Earnings before interest and tax (EBIT) adjusted was $2.1 billion, compared with $3.0 billion in the second quarter of 2011. Total restructuring expense included in EBIT-adjusted for the second quarter of 2012 was $0.1 billion.
“Our results in North America, our International Operations and at GM Financial were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” said GM chairman and CEO Dan Akerson. “Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade.”
GM North America (GMNA) reported EBIT-adjusted of $2.0 billion, compared with $2.2 billion in the second quarter of 2011. (Total GMNA profits for the first 6 months are $3.656 billion, which equates to $3500 in profit sharing)
GM Europe (GME) reported an EBIT-adjusted loss of $0.4 billion, compared with EBIT-adjusted of $0.1 billion in second quarter of 2011.
GM International Operations (GMIO) reported EBIT-adjusted of $0.6 billion, equal to the second quarter of 2011.
GM South America (GMSA) reported breakeven results on an EBIT-adjusted basis, compared with EBIT-adjusted of $0.1 billion in the second quarter of 2011. The second quarter 2012 results include $0.1 billion in restructuring expenses.
GM Financial earnings before tax was $0.2 billion for the quarter, compared with $0.1 billion a year ago.
In the Corporate segment, GM reported EBIT-adjusted of $(0.2) billion, of which $(0.1) billion was attributable to a non-cash foreign exchange loss. For the quarter, automotive cash flow from operating activities was $3.8 billion and automotive free cash flow was $1.7 billion. GM ended the quarter with very strong total automotive liquidity of $38.5 billion. Automotive cash and marketable securities was $32.6 billion, compared with $31.5 billion at the end of the first quarter of 2012.
At the end of the first quarter, GM indicated that GMNA’s results for the second and third quarters of 2012 were expected to be comparable to the first quarter. Second quarter GMNA results were stronger in part due to timing of spending that was deferred to the third quarter. GM continues to expect that the average of its second and third quarter EBIT-adjusted in GMNA will be comparable to first quarter results. “We’re executing an aggressive product plan around the world, and at the same time we are working systematically to simplify the business and truly leverage our scale to grow our margins,” said Dan Ammann, senior vice president and CFO.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
• Chairman Mike Bullock and President Van Simpson announced today the International Union appointments of Lou Jones as Adapt representative, Donetta Calloway as Human Resource Development representative and Millie Donnelly as Alternate EAP representative. Mike and Van would like everyone to give them their full support in their new assignments.
• If you were hired as a New Hire in December, 2011, as of August 1styou have health care coverage through Blue Cross Blue Shield by General Motors. However, YOU MUST call Fidelity at 800-489-4646 for health insurance, even if you don’t have dependents. If you have any questions, place a call to your Benefits Representative: Lisa Williams (636-327-2025), Russell Smith (636-327-2314) or Mike Bridgins (636-327-2112).
• As you saw yesterday, July was a breakout month for our van sales. Besides being our best July in 6 years, we outsold Ford by a wide margin and captured over 50% share, a rare achievement in any month since the van launch in 1996. Here is how the van segment shook out in July:
| 2012 | 2011 | Change | Share | |
| GM | 11,980 | 6562 | +82.6% | 51.2% |
| Ford Econoline | 8,574 | 8802 | -2.6% | 36.6% |
| Mercedes Sprinter | 2203 | 1732 | +27% | 9.4% |
| Nissan NV | 651 | 679 | -4% | 2.8% |
| Ford Transit connect | 2627 | 2607 | +1% | --- |
Over all, the industry reported sales on Wednesday of 1.15 million vehicles during July, which was an 8.9 percent improvement over the same period a year ago. That lags the 14.8 percent increase the industry recorded during the first six months of 2012. While sales are still on track to top 14 million vehicles for the entire year, analysts said growth appeared to be slowing somewhat. Industry incentives remained flat in July compared with the previous month, with an average discount per vehicle of about $2,200, according to Edmunds.com, an auto information site that compiles incentive data.
General Motors Co. today announced second quarter net income attributable to common stockholders of $1.5 billion, or $0.90 per fully diluted share. In the second quarter a year ago, GM’s net income attributable to common stockholders was $2.5 billion, or $1.54 per fully diluted share.
Net revenue in the second quarter of 2012 was $37.6 billion, compared with $39.4 billion in the second quarter of 2011. The decrease was due almost entirely to the strengthening of the U.S. dollar versus other major currencies. Earnings before interest and tax (EBIT) adjusted was $2.1 billion, compared with $3.0 billion in the second quarter of 2011. Total restructuring expense included in EBIT-adjusted for the second quarter of 2012 was $0.1 billion.
“Our results in North America, our International Operations and at GM Financial were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” said GM chairman and CEO Dan Akerson. “Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade.”
GM North America (GMNA) reported EBIT-adjusted of $2.0 billion, compared with $2.2 billion in the second quarter of 2011. (Total GMNA profits for the first 6 months are $3.656 billion, which equates to $3500 in profit sharing)
GM Europe (GME) reported an EBIT-adjusted loss of $0.4 billion, compared with EBIT-adjusted of $0.1 billion in second quarter of 2011.
GM International Operations (GMIO) reported EBIT-adjusted of $0.6 billion, equal to the second quarter of 2011.
GM South America (GMSA) reported breakeven results on an EBIT-adjusted basis, compared with EBIT-adjusted of $0.1 billion in the second quarter of 2011. The second quarter 2012 results include $0.1 billion in restructuring expenses.
GM Financial earnings before tax was $0.2 billion for the quarter, compared with $0.1 billion a year ago.
In the Corporate segment, GM reported EBIT-adjusted of $(0.2) billion, of which $(0.1) billion was attributable to a non-cash foreign exchange loss. For the quarter, automotive cash flow from operating activities was $3.8 billion and automotive free cash flow was $1.7 billion. GM ended the quarter with very strong total automotive liquidity of $38.5 billion. Automotive cash and marketable securities was $32.6 billion, compared with $31.5 billion at the end of the first quarter of 2012.
At the end of the first quarter, GM indicated that GMNA’s results for the second and third quarters of 2012 were expected to be comparable to the first quarter. Second quarter GMNA results were stronger in part due to timing of spending that was deferred to the third quarter. GM continues to expect that the average of its second and third quarter EBIT-adjusted in GMNA will be comparable to first quarter results. “We’re executing an aggressive product plan around the world, and at the same time we are working systematically to simplify the business and truly leverage our scale to grow our margins,” said Dan Ammann, senior vice president and CFO.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
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