Dec. 23, 2010 online at www.uawlocal2250.com
· From Chairman Mike Bullock: I would like to take this time to wish everyone a Merry Christmas and a Happy New Year. This past year has been challenging and I am grateful for your support as we work through difficult issues. And I want to commend you on your generosity as a membership, with the Adopt-A-Child and Make-A-Wish programs being just a couple of examples of your willingness to help those less fortunate than us. Enjoy your time off with your families, relax and please be safe. See you next year!
· The modulator for channel 36 of the plant communication system has expired so the video and radio is available on channel 34. However, many televisions may not have that channel loaded. We hope to get the modulator repaired and apologize for the inconvenience.
· From Automotive News: UAW President Bob King said the union intends to launch a campaign in January to organize the U.S. manufacturing plants of Asian and German automakers. King said the UAW has sent letters to the global CEOs of the automakers with U.S. transplant operations, saying the union wants to organize their plants and cooperate to improve operations. King declined to say which transplant automaker the UAW would target first or to reveal how the automakers responded to the letter. The union is asking target automakers to sign principles pledging that they will not interfere with free and fair union elections at their factories. The principles, which King first announced this summer, were approved by the UAW's board of directors within the past week, King said. If the UAW is allowed to hold a fair election and workers at transplant operations vote against unionization, the UAW will respect the decision and quietly leave, King said.
Thursday, December 23, 2010
Wednesday, December 22, 2010
State of the Union December 22, 2010
Dec. 22, 2010 online at www.uawlocal2250.com
· From Chairman Mike Bullock: To clear up any confusion, the January schedule that management presented to me has 10.3 hours per day and three (3) Fridays: 1/7, 1/21 and 1/28. I have not agreed to any additional Fridays. There will be a 4-day weekend for the Martin Luther King holiday as we have Friday, Jan. 14 off. Also, tomorrow will be a VR blackout day and a qualifying day for holiday pay.
· From Community Services: We were able to provide Christmas for 110 children this year that otherwise wouldn’t have had one. Once again you have outdone yourselves. Thanks to all who donated their time and money to help bring some happiness to those in need.
· The drawing for the HP laptop computer will now be held at first break Thursday, Dec. 23. Tickets are still available from any Civil Rights committee member and are $5 apiece or 3 for $10 and the proceeds will go to the Martin Luther King scholarship fund.
· From Automotive News: General Motors Chief Executive Officer Dan Akerson is looking to at least triple the company's target for electric-car sales by expanding the market for the Chevrolet Volt and adding models that would share similar technology, said three people familiar with his plan. Akerson told GM's executive team in early December to find ways to sell three to four times as many electric cars as planned for 2012 by mid-decade, said the people, who asked not to be identified because the plans are private. GM has said it expects to sell 10,000 Volts in 2011 and 45,000 the following year, when capacity may reach 60,000. Akerson told his executive team to come back to him with a way to meet the higher sales numbers for the Volt and other electric-drive models, or with reasons why it can't be done, one of the people familiar with the plan said.
· From the Detroit Free Press: The Insurance Institute for Highway Safety recognized 66 vehicles on Wednesday with its "top safety pick award" for the 2011 model year, the most-ever awarded by the Virginia-based group. The number was more than double the 27 vehicles selected last year. The vehicles were chosen for protection in front, side and rear crash tests. To qualify, the insurance industry group also requires the vehicles to have anti-rollover electronic stability control and receive top scores in roof strength tests. GM's winners include the Chevrolet Malibu, Cruze and Equinox; Cadillac CTS and SRX; Buick LaCrosse and Regal and GMC Terrain.
Nothing in this message is intended to constitute an electronic signature unless a specific statement to the contrary is included in this message.
· From Chairman Mike Bullock: To clear up any confusion, the January schedule that management presented to me has 10.3 hours per day and three (3) Fridays: 1/7, 1/21 and 1/28. I have not agreed to any additional Fridays. There will be a 4-day weekend for the Martin Luther King holiday as we have Friday, Jan. 14 off. Also, tomorrow will be a VR blackout day and a qualifying day for holiday pay.
· From Community Services: We were able to provide Christmas for 110 children this year that otherwise wouldn’t have had one. Once again you have outdone yourselves. Thanks to all who donated their time and money to help bring some happiness to those in need.
· The drawing for the HP laptop computer will now be held at first break Thursday, Dec. 23. Tickets are still available from any Civil Rights committee member and are $5 apiece or 3 for $10 and the proceeds will go to the Martin Luther King scholarship fund.
· From Automotive News: General Motors Chief Executive Officer Dan Akerson is looking to at least triple the company's target for electric-car sales by expanding the market for the Chevrolet Volt and adding models that would share similar technology, said three people familiar with his plan. Akerson told GM's executive team in early December to find ways to sell three to four times as many electric cars as planned for 2012 by mid-decade, said the people, who asked not to be identified because the plans are private. GM has said it expects to sell 10,000 Volts in 2011 and 45,000 the following year, when capacity may reach 60,000. Akerson told his executive team to come back to him with a way to meet the higher sales numbers for the Volt and other electric-drive models, or with reasons why it can't be done, one of the people familiar with the plan said.
· From the Detroit Free Press: The Insurance Institute for Highway Safety recognized 66 vehicles on Wednesday with its "top safety pick award" for the 2011 model year, the most-ever awarded by the Virginia-based group. The number was more than double the 27 vehicles selected last year. The vehicles were chosen for protection in front, side and rear crash tests. To qualify, the insurance industry group also requires the vehicles to have anti-rollover electronic stability control and receive top scores in roof strength tests. GM's winners include the Chevrolet Malibu, Cruze and Equinox; Cadillac CTS and SRX; Buick LaCrosse and Regal and GMC Terrain.
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 December 21 2010
Dec. 21, 2010 online at www.uawlocal2250.com
· The deadline for picking up your thermometers or claiming a prize from the Suggestion Fair drawing is Wednesday, Dec. 22. To claim your prize go to suggestions or call 2308 to make an appointment. The following names were drawn and have not picked up their prize:
David Hurst Randy Oliver
Karl Hatfill Donna Royster
Jim Meyer Bob Warren
Keith Glaze Rich Sommer
B. Patton G. D’Aveta
Dan Smith Ken Wikoff George Thompson Charles Fordyce
Brenda Dunnegan Elijah Chambers
Jacqueline Hunter Herb McBride
Leon Pinder Roger Morrow
Lynn Shannon Jerry Bergman
Charles Taylor John Gottschalk
Stan Herbert
· From the Detroit News: Toyota Motor Corp. agreed Monday to pay $32.4 million in federal fines, settling two federal investigations that found the automaker delayed recalling nearly 6 million vehicles. Toyota's board of directors agreed to pay the maximum fine in two separate investigations by the National Highway Traffic Safety Administration. Toyota will pay $16.4 million after NHTSA said the Japanese automaker delayed its recall of nearly 5 million vehicles for pedal entrapment and will pay $16 million after the agency said it delayed a 2005 recall of 980,000 million 4Runners and pickups for faulty steering rods that could lead to loss of steering control. Toyota didn't admit to any wrongdoing in paying the record fines.
· General Motors says it is recalling 111,136 2011 Chevrolet Equinox, GMC Terrain and Cadillac SRX crossovers because of seat belt buckle anchors that could fail in a crash. Some of the crossover vehicles were produced with a seat belt buckle anchor that was cracked, according to GM.
What The NY Times Op-Ed Page Doesn′t Know About Cars (Opinion) – Jalopnik By Justin Hyde
Earlier this week, an automotive blogger took to the pages of the New York Times to argue that the Detroit bailout didn't work. Why can't the New York Times op-ed page find writers who know anything about the auto industry?
In his piece "A Green Detroit? No, A Guzzling One," Edward Niedermeyer does his best Tom Friedman impersonation, contending that despite what President Barack Obama said would happen, General Motors and Chrysler have failed to make strides in fuel-efficient technology, and "Detroit is falling back into the bad habits" which could lead to another bailout. What Mr. Obama called his "one goal" - having Detroit "lead the world in building the next generation of clean cars" - is nowhere near being achieved. While the idea of improving G.M.'s and Chrysler's fuel efficiency was doubtless a politically popular justification for the bailout, American consumers have not embraced the goal with equal fervor.
Already we're in the ditch. It may be news to the anti-SUV crowd, but Detroit can rightfully claim a share of leadership in green cars. GM has the Volt, plus a 40-mpg compact car that doesn't suck and more on the way. Ford has hybrids and electric vehicles, plus it has spread fuel-efficient turbo engines throughout its lineup, including the full-size pickups Americans continue to demand. Chrysler's is behind the other two in general, but given it was dead in the water, its new models have acceptable efficiency for their size, and its reworking hasn't hit the smaller vehicles yet.
If Detroit isn't leading, who is? Niedermeyer pings Detroit for not matching the fuel economy of foreign automakers who don't sell millions of full-size pickups. Yet Toyota's average fleet fuel economy likely fell by 0.9 mpg for the 2010 model year, while Detroit's improved or stayed steady. Nissan has the Leaf, which just went on sale in limited numbers, and little else. Hyundai has come on strong, but doesn't play in the larger vehicles that Detroit builds, and European companies still pay federal fuel-economy fines rather than meet U.S. standards.
Meanwhile, Niedermeyer also wants to blame Detroit for building the pickups and SUVs that remain popular with buyers, saying inventories have swollen along with rebates. Even GM being profitable enough to launch the largest stock offering in history gets turned into a demerit because "taxpayers have every incentive to cheer on the bailed-out automaker as it overproduces vehicles and pushes cheap credit." Automakers are just as vulnerable to credit crunches and other economic shocks as they are to sharp increases in energy prices. On this front, Detroit is falling back into the bad habits that led G.M. and Chrysler to collapse.
He's right in so far as inventories have grown — yet they're still lower than what they were a year ago. Given forecasts for a 10% growth in auto sales next year and strong sales in the back half of this year, it would be news if supplies weren't rising. Chrysler, often dinged for relying on fleet sales, had a 79-day supply at the end of November. Honda, the green, scrappy, fleet-resistant company held up by the Friedmanites as an example of what Detroit should be like, had a 70-day supply. As for credit, GM and Chrysler now sport some of the strongest balance sheets in the industry, thanks to their bankruptcies. It's easy to find analysts worrying that GM won't carry enough debt. Chrysler's paying interest through the nose on its $7 billion U.S. government loan, but has $8 billion in cash on hand. And do we need to mention that it was far more than just Chrysler and GM that turned to governments here and abroad for help during the last credit crunch?
So according to the Times, if gas prices don't rise and Americans don't buy greener vehicles, then the bailout of GM and Chrysler fell short. If gas prices do rise — creating the demand for the more-efficient models Detroit has now shown it can produce — that's also bad, because the credit markets will suffer, and then flying unicorns attack Detroit and its Bailout II: Electric Boogaloo. For this holiday, I'd wish for a few days where we set aside the kvetching about what the U.S. auto industry is or isn't, and simply enjoy the fact that we as a nation decided a couple hundred thousand people should earn a living in manufacturing instead of hearing their children ask Santa Claus to stop their electricity from being shut off. I would also wish for better insights into the auto industry from the New York Times op-ed page, but I know better than to ask for flying unicorns.
Nothing in this message is intended to constitute an electronic signature unless a specific statement to the contrary is included in this message.
· The deadline for picking up your thermometers or claiming a prize from the Suggestion Fair drawing is Wednesday, Dec. 22. To claim your prize go to suggestions or call 2308 to make an appointment. The following names were drawn and have not picked up their prize:
David Hurst Randy Oliver
Karl Hatfill Donna Royster
Jim Meyer Bob Warren
Keith Glaze Rich Sommer
B. Patton G. D’Aveta
Dan Smith Ken Wikoff George Thompson Charles Fordyce
Brenda Dunnegan Elijah Chambers
Jacqueline Hunter Herb McBride
Leon Pinder Roger Morrow
Lynn Shannon Jerry Bergman
Charles Taylor John Gottschalk
Stan Herbert
· From the Detroit News: Toyota Motor Corp. agreed Monday to pay $32.4 million in federal fines, settling two federal investigations that found the automaker delayed recalling nearly 6 million vehicles. Toyota's board of directors agreed to pay the maximum fine in two separate investigations by the National Highway Traffic Safety Administration. Toyota will pay $16.4 million after NHTSA said the Japanese automaker delayed its recall of nearly 5 million vehicles for pedal entrapment and will pay $16 million after the agency said it delayed a 2005 recall of 980,000 million 4Runners and pickups for faulty steering rods that could lead to loss of steering control. Toyota didn't admit to any wrongdoing in paying the record fines.
· General Motors says it is recalling 111,136 2011 Chevrolet Equinox, GMC Terrain and Cadillac SRX crossovers because of seat belt buckle anchors that could fail in a crash. Some of the crossover vehicles were produced with a seat belt buckle anchor that was cracked, according to GM.
What The NY Times Op-Ed Page Doesn′t Know About Cars (Opinion) – Jalopnik By Justin Hyde
Earlier this week, an automotive blogger took to the pages of the New York Times to argue that the Detroit bailout didn't work. Why can't the New York Times op-ed page find writers who know anything about the auto industry?
In his piece "A Green Detroit? No, A Guzzling One," Edward Niedermeyer does his best Tom Friedman impersonation, contending that despite what President Barack Obama said would happen, General Motors and Chrysler have failed to make strides in fuel-efficient technology, and "Detroit is falling back into the bad habits" which could lead to another bailout. What Mr. Obama called his "one goal" - having Detroit "lead the world in building the next generation of clean cars" - is nowhere near being achieved. While the idea of improving G.M.'s and Chrysler's fuel efficiency was doubtless a politically popular justification for the bailout, American consumers have not embraced the goal with equal fervor.
Already we're in the ditch. It may be news to the anti-SUV crowd, but Detroit can rightfully claim a share of leadership in green cars. GM has the Volt, plus a 40-mpg compact car that doesn't suck and more on the way. Ford has hybrids and electric vehicles, plus it has spread fuel-efficient turbo engines throughout its lineup, including the full-size pickups Americans continue to demand. Chrysler's is behind the other two in general, but given it was dead in the water, its new models have acceptable efficiency for their size, and its reworking hasn't hit the smaller vehicles yet.
If Detroit isn't leading, who is? Niedermeyer pings Detroit for not matching the fuel economy of foreign automakers who don't sell millions of full-size pickups. Yet Toyota's average fleet fuel economy likely fell by 0.9 mpg for the 2010 model year, while Detroit's improved or stayed steady. Nissan has the Leaf, which just went on sale in limited numbers, and little else. Hyundai has come on strong, but doesn't play in the larger vehicles that Detroit builds, and European companies still pay federal fuel-economy fines rather than meet U.S. standards.
Meanwhile, Niedermeyer also wants to blame Detroit for building the pickups and SUVs that remain popular with buyers, saying inventories have swollen along with rebates. Even GM being profitable enough to launch the largest stock offering in history gets turned into a demerit because "taxpayers have every incentive to cheer on the bailed-out automaker as it overproduces vehicles and pushes cheap credit." Automakers are just as vulnerable to credit crunches and other economic shocks as they are to sharp increases in energy prices. On this front, Detroit is falling back into the bad habits that led G.M. and Chrysler to collapse.
He's right in so far as inventories have grown — yet they're still lower than what they were a year ago. Given forecasts for a 10% growth in auto sales next year and strong sales in the back half of this year, it would be news if supplies weren't rising. Chrysler, often dinged for relying on fleet sales, had a 79-day supply at the end of November. Honda, the green, scrappy, fleet-resistant company held up by the Friedmanites as an example of what Detroit should be like, had a 70-day supply. As for credit, GM and Chrysler now sport some of the strongest balance sheets in the industry, thanks to their bankruptcies. It's easy to find analysts worrying that GM won't carry enough debt. Chrysler's paying interest through the nose on its $7 billion U.S. government loan, but has $8 billion in cash on hand. And do we need to mention that it was far more than just Chrysler and GM that turned to governments here and abroad for help during the last credit crunch?
So according to the Times, if gas prices don't rise and Americans don't buy greener vehicles, then the bailout of GM and Chrysler fell short. If gas prices do rise — creating the demand for the more-efficient models Detroit has now shown it can produce — that's also bad, because the credit markets will suffer, and then flying unicorns attack Detroit and its Bailout II: Electric Boogaloo. For this holiday, I'd wish for a few days where we set aside the kvetching about what the U.S. auto industry is or isn't, and simply enjoy the fact that we as a nation decided a couple hundred thousand people should earn a living in manufacturing instead of hearing their children ask Santa Claus to stop their electricity from being shut off. I would also wish for better insights into the auto industry from the New York Times op-ed page, but I know better than to ask for flying unicorns.
Nothing in this message is intended to constitute an electronic signature unless a specific statement to the contrary is included in this message.
Monday, December 20, 2010
State of the Union December 17 2010
Dec. 17, 2010 online at www.uawlocal2250.com
· The Vehicle Advocate Program (VAP or overnight drive) schedule has been released for 2011. Wentzville is scheduled to have the vehicles from February 7 through March 7. The vehicles in this year’s fleet are: Buick Regal, Buick Lacrosse, Chevy Traverse, Chevy Cruze, GMC Acadia Denali and Cadillac CTS Coupe.
· The deadline for picking up either the thermometer or any suggestion drawing prize is Wednesday, Dec. 23. You can call 2308 to make an appointment or stop by suggestions to claim your prize.
· The Adopt-A-Child program is sponsoring 80 children this year. You can still donate to any community services committee member if you wish to help.
· The Civil Rights Committee is still selling chances for an HP laptop computer. The tickets are $5 each or 3 for $10 and available from any committee member. The drawing will be Wednesday, Dec. 22 at 1 pm in the cafeteria. Thanks for your support.
· Below are pictures of the GMC Sierra All-Terrain HD Concept that will debut at the International Auto Show in Detroit in January. It is believed to offer a good indication of the styling of the next-generation Sierra pickup.
Here are excerpts from a Wards Auto world article about Toyota’s future: The light at the end of a dark tunnel for Toyota Motor Corp. is not as bright today as Goldman Sachs Japan analysts found it last February. A recent 28-page study summing up the auto maker’s current plight is headlined “A sleeping giant – Toyota re-rating delayed; Nissan still top pick” and underscores the difficulties the company is having to recover lost ground and raise lower rankings. Their expectations for a return to better times for the auto maker any time soon have been dimmed.
For example, they foresee global automotive sales expanding at a much faster pace in the future than the 2.6% average annual growth rate of the past 20 years, estimating year-on-year gains of 9% to 69.2 million units in calendar 2010, 8% to 75 million in 2011 and 8% to 80.7 million in 2012. Yet Toyota’s global sales, down 15% year-on-year to 7.567 million units in the fiscal year ending March 2009 and off 4% to 7.237 million in fiscal 2010, are expected to be far behind the overall industry pace, rising only 3% to 7.451 million in the current fiscal year.
In the slowly shrinking home market, Toyota is expected to remain firmly in place as the sales leader, yet operating losses in Japan in fiscal 2009 and fiscal 2010 are expected to continue, with the company’s operating margin estimated at -5% from now through fiscal 2013.
Europe is another black hole for Toyota. Sales sank from 1.284 million units in fiscal 2008 to 858,000 in fiscal 2010 ended last March and are predicted to bottom out at 723,000 in fiscal 2012 before edging up to 741,000 the following year. Toyota’s operating profits in this area ceased in fiscal 2008, replaced by operating losses in the next two years, and Goldman Sachs analysts estimate continued red ink this year through fiscal 2013.
Sales in North America, mainly the U.S., were 2.098 million units in fiscal 2010, 30% (860,000 units) below those two years before, but the analysts foresee a rise from this bottom to 2.544 million vehicles by fiscal 2013. “One of the most serious issues for Toyota at present is the mismatch between the production and sales mix, with its North American production ratio at only 50% versus 90% for Honda (Motor Co. Ltd.) and 80% for Nissan (Motor Co. Ltd.),” the report says. The authors add that “the strong yen eroded margins on models imported from Japan, and stepped up sales incentives offered since the recalls have also dented sales’ profits.” Highlighted areas of concern include:
· Operating profit sensitivity to a one yen movement against the U.S. dollar is estimated at ¥30 billion ($375 million) for Toyota, ¥15 billion ($187.5 million) for Honda and ¥14 billion ($175 million) for Nissan.
· Toyota’s under-performance in profit margin stems from weak sales volume rather than foreign exchange or costs.
· Sales mix/incentives are a key factor in the difference between Toyota and Honda profits. Likely explanations include an increase in incentives prompted by the North American recalls, deterioration in the regional and product mix due to weak sales in the high-margin North American market, and sluggish Lexus sales.
· Toyota is pursuing a variety of cost-cutting measures to maintain domestic production (about 3.2 million units) and turn a profit at an exchange rate of ¥80/$1 but seems to be still affected by recalls as sales continue to slump, especially in North America.
· Operating profits in the current fiscal year from financing will be ¥290 billion ($3.62 billion), twice those from automotive and other company business and two-thirds of Toyota’s global total, a dramatic shift from 3% of that total in fiscal 2008.
· The Vehicle Advocate Program (VAP or overnight drive) schedule has been released for 2011. Wentzville is scheduled to have the vehicles from February 7 through March 7. The vehicles in this year’s fleet are: Buick Regal, Buick Lacrosse, Chevy Traverse, Chevy Cruze, GMC Acadia Denali and Cadillac CTS Coupe.
· The deadline for picking up either the thermometer or any suggestion drawing prize is Wednesday, Dec. 23. You can call 2308 to make an appointment or stop by suggestions to claim your prize.
· The Adopt-A-Child program is sponsoring 80 children this year. You can still donate to any community services committee member if you wish to help.
· The Civil Rights Committee is still selling chances for an HP laptop computer. The tickets are $5 each or 3 for $10 and available from any committee member. The drawing will be Wednesday, Dec. 22 at 1 pm in the cafeteria. Thanks for your support.
· Below are pictures of the GMC Sierra All-Terrain HD Concept that will debut at the International Auto Show in Detroit in January. It is believed to offer a good indication of the styling of the next-generation Sierra pickup.
Here are excerpts from a Wards Auto world article about Toyota’s future: The light at the end of a dark tunnel for Toyota Motor Corp. is not as bright today as Goldman Sachs Japan analysts found it last February. A recent 28-page study summing up the auto maker’s current plight is headlined “A sleeping giant – Toyota re-rating delayed; Nissan still top pick” and underscores the difficulties the company is having to recover lost ground and raise lower rankings. Their expectations for a return to better times for the auto maker any time soon have been dimmed.
For example, they foresee global automotive sales expanding at a much faster pace in the future than the 2.6% average annual growth rate of the past 20 years, estimating year-on-year gains of 9% to 69.2 million units in calendar 2010, 8% to 75 million in 2011 and 8% to 80.7 million in 2012. Yet Toyota’s global sales, down 15% year-on-year to 7.567 million units in the fiscal year ending March 2009 and off 4% to 7.237 million in fiscal 2010, are expected to be far behind the overall industry pace, rising only 3% to 7.451 million in the current fiscal year.
In the slowly shrinking home market, Toyota is expected to remain firmly in place as the sales leader, yet operating losses in Japan in fiscal 2009 and fiscal 2010 are expected to continue, with the company’s operating margin estimated at -5% from now through fiscal 2013.
Europe is another black hole for Toyota. Sales sank from 1.284 million units in fiscal 2008 to 858,000 in fiscal 2010 ended last March and are predicted to bottom out at 723,000 in fiscal 2012 before edging up to 741,000 the following year. Toyota’s operating profits in this area ceased in fiscal 2008, replaced by operating losses in the next two years, and Goldman Sachs analysts estimate continued red ink this year through fiscal 2013.
Sales in North America, mainly the U.S., were 2.098 million units in fiscal 2010, 30% (860,000 units) below those two years before, but the analysts foresee a rise from this bottom to 2.544 million vehicles by fiscal 2013. “One of the most serious issues for Toyota at present is the mismatch between the production and sales mix, with its North American production ratio at only 50% versus 90% for Honda (Motor Co. Ltd.) and 80% for Nissan (Motor Co. Ltd.),” the report says. The authors add that “the strong yen eroded margins on models imported from Japan, and stepped up sales incentives offered since the recalls have also dented sales’ profits.” Highlighted areas of concern include:
· Operating profit sensitivity to a one yen movement against the U.S. dollar is estimated at ¥30 billion ($375 million) for Toyota, ¥15 billion ($187.5 million) for Honda and ¥14 billion ($175 million) for Nissan.
· Toyota’s under-performance in profit margin stems from weak sales volume rather than foreign exchange or costs.
· Sales mix/incentives are a key factor in the difference between Toyota and Honda profits. Likely explanations include an increase in incentives prompted by the North American recalls, deterioration in the regional and product mix due to weak sales in the high-margin North American market, and sluggish Lexus sales.
· Toyota is pursuing a variety of cost-cutting measures to maintain domestic production (about 3.2 million units) and turn a profit at an exchange rate of ¥80/$1 but seems to be still affected by recalls as sales continue to slump, especially in North America.
· Operating profits in the current fiscal year from financing will be ¥290 billion ($3.62 billion), twice those from automotive and other company business and two-thirds of Toyota’s global total, a dramatic shift from 3% of that total in fiscal 2008.
Friday, December 17, 2010
State of the Union December 17, 2010
Dec. 17, 2010 online at www.uawlocal2250.com
· Reminder: There will be Christmas parties today after work at Maggie Malones, 990 Wentzville Parkway (the annual chassis party with free eats, drink specials and door prizes) and at Heroes on the south outer road in Lake Saint Louis (drink and food specials to 10 pm and raffles). Everyone is welcome.
· Thanks to your generous donations for our laid off members we were able to use the money left over from Thanksgiving and provide Christmas hams to 60 families.
· Today is the last day to enroll any 26 year-old children on your health care plan. To do so you need to call the National Benefits Center at 1-800 489-4646 and follow the prompts to health and insurance.
· Management has released a revised schedule for January. The daily schedule will be 10.3 hours off of K-line Monday through Friday with 1/7, 1/21 and 1/28 being the scheduled Fridays.
· From Automotive News: Honda Motor Co. said it would recall about 1.35 million Fit subcompacts globally to repair defective wiring in the headlights. Subject to the recall are Fit cars built at Honda's Suzuka factory in Japan between November 2001 and October 2007. About 735,000 units will be recalled in Japan. Honda will also recall 143,000 Fits exported to the United States.
· From the Detroit Free Press: Chrysler is recalling 367,350 Chrysler Town & Country and Dodge Grand Caravan minivans from the 2008 model year because water leaks could cause air bags to inflate inadvertently. Dealers can fix the problem by replacing a heating and cooling drain grommet, according to the National Highway Traffic Safety Administration, which posted the recall on its Web site today.
· From Automotive News: General Motors Co.'s Saturn Ion is being investigated by U.S. auto-safety regulators following at least 633 complaints about sudden loss of power steering. The U.S. National Highway Traffic Safety Administration is investigating about 384,000 Ions from model years 2004 to 2007, after reports of crashes involving injuries, the agency said today on its website. The agency said it received four reports of crashes involving the defect, one of which resulted in an injury. “Customers who have those vehicles have been notified,” said Alan Adler, a spokesman for GM. “And if they have loss of power-steering assist, they can go to dealers and have that repaired.”
From the International Union UAW: Here are some facts about the renegotiated U.S. Korea Free Trade Agreement (KORUS FTA):
Why does the UAW support the 2010 KORUS FTA now when it didn’t support the 2007 agreement?
The UAW believes the renegotiated 2010 agreement gives far better protection to our UAW members than the 2007 agreement because it will protect current American auto jobs and grow more American auto jobs. The KORUS FTA also includes labor and environmental commitments, as well as important enforcement mechanisms. We also believe that if we did not get actively engaged before the Republican majority took control of the U.S. House of Representatives in January, then the Republicans would have advocated for the 2007 Bush-negotiated agreement with NO safeguards for our members.
How does the 2010 agreement give UAW members more protection than the 2007 agreement?
· AUTO TARIFFS: The 2010 agreement delays implementation of the tariff reductions on autos. The 2007 agreement would have immediately eliminated U.S. tariffs on automobiles and most auto parts. The 2010 agreement keeps the 2.5 percent U.S. tariff in place until the fifth year after the FTA goes into effect.
· LIGHT TRUCK TARIFFS: The 2007 agreement would have required the United States to start reducing our 25 percent tariff on Korean pickups immediatelyand eliminated it by year 10 of the agreement. The 2010 agreement allows the United States to maintain the full 25 percent tariff until the eighth year and then phases it out by the tenth year.
Does the 2010 agreement open the Korean markets to our U.S.-made vehicles better than the 2007 agreement?
· LIGHT TRUCK TARIFFS: Korea is required to keep to its original commitment to eliminate its 10 percent tariff on U.S.-made trucks immediately.
· ELECTRIC CAR TARIFFS: The 2007 agreement would have eliminated tariffs on electric cars and plug-in hybrids by year 10. Under the 2010 agreement, Korea will immediately reduce its electric car tariffs from 8 percent to 4 percent, and will phase out their tariff by year five of the agreement.
· SAFETY STANDARDS: New in the 2010 agreement is a provision that allows for 25,000 U.S.-made vehicles per U.S. automaker to be imported into Korea provided they meet U.S. federal safety standards. In the past, Korean safety standards have been used as a way to prevent the export of U.S. vehicles to Korea. After reaching 25,000 U.S. vehicles, additional U.S. vehicles are allowed to be imported into Korea if they meet, or are modified to meet, the Korean safety standards.
· AUTOMOTIVE ENVIRONMENTAL STANDARDS: Also new under the 2010 agreement, all U.S. autos will be considered compliant with Korean environmental standards on fuel economy and emissions. This has also been a barrier to the export of American vehicles to Korea.
Is there a limit to the number of Korean cars that can be imported to the U.S.?
· SAFEGUARDS: The KORUS FTA has a first ever, auto specific safeguard provision to protect against “surges” of Korean vehicles that harm the domestic auto industry. The safeguard goes into effect when the tariff reductions begin. The UAW, the domestic auto companies or the U.S. government may initiate a case under the new provision by petitioning the International Trade Commission (ITC). The process is similar to the one the Steelworkers successfully used in the case involving Chinese tires. The remedy for a finding of injury is the “snapback” to the original tariff levels prior to implementation of the FTA.
· Reminder: There will be Christmas parties today after work at Maggie Malones, 990 Wentzville Parkway (the annual chassis party with free eats, drink specials and door prizes) and at Heroes on the south outer road in Lake Saint Louis (drink and food specials to 10 pm and raffles). Everyone is welcome.
· Thanks to your generous donations for our laid off members we were able to use the money left over from Thanksgiving and provide Christmas hams to 60 families.
· Today is the last day to enroll any 26 year-old children on your health care plan. To do so you need to call the National Benefits Center at 1-800 489-4646 and follow the prompts to health and insurance.
· Management has released a revised schedule for January. The daily schedule will be 10.3 hours off of K-line Monday through Friday with 1/7, 1/21 and 1/28 being the scheduled Fridays.
· From Automotive News: Honda Motor Co. said it would recall about 1.35 million Fit subcompacts globally to repair defective wiring in the headlights. Subject to the recall are Fit cars built at Honda's Suzuka factory in Japan between November 2001 and October 2007. About 735,000 units will be recalled in Japan. Honda will also recall 143,000 Fits exported to the United States.
· From the Detroit Free Press: Chrysler is recalling 367,350 Chrysler Town & Country and Dodge Grand Caravan minivans from the 2008 model year because water leaks could cause air bags to inflate inadvertently. Dealers can fix the problem by replacing a heating and cooling drain grommet, according to the National Highway Traffic Safety Administration, which posted the recall on its Web site today.
· From Automotive News: General Motors Co.'s Saturn Ion is being investigated by U.S. auto-safety regulators following at least 633 complaints about sudden loss of power steering. The U.S. National Highway Traffic Safety Administration is investigating about 384,000 Ions from model years 2004 to 2007, after reports of crashes involving injuries, the agency said today on its website. The agency said it received four reports of crashes involving the defect, one of which resulted in an injury. “Customers who have those vehicles have been notified,” said Alan Adler, a spokesman for GM. “And if they have loss of power-steering assist, they can go to dealers and have that repaired.”
From the International Union UAW: Here are some facts about the renegotiated U.S. Korea Free Trade Agreement (KORUS FTA):
Why does the UAW support the 2010 KORUS FTA now when it didn’t support the 2007 agreement?
The UAW believes the renegotiated 2010 agreement gives far better protection to our UAW members than the 2007 agreement because it will protect current American auto jobs and grow more American auto jobs. The KORUS FTA also includes labor and environmental commitments, as well as important enforcement mechanisms. We also believe that if we did not get actively engaged before the Republican majority took control of the U.S. House of Representatives in January, then the Republicans would have advocated for the 2007 Bush-negotiated agreement with NO safeguards for our members.
How does the 2010 agreement give UAW members more protection than the 2007 agreement?
· AUTO TARIFFS: The 2010 agreement delays implementation of the tariff reductions on autos. The 2007 agreement would have immediately eliminated U.S. tariffs on automobiles and most auto parts. The 2010 agreement keeps the 2.5 percent U.S. tariff in place until the fifth year after the FTA goes into effect.
· LIGHT TRUCK TARIFFS: The 2007 agreement would have required the United States to start reducing our 25 percent tariff on Korean pickups immediatelyand eliminated it by year 10 of the agreement. The 2010 agreement allows the United States to maintain the full 25 percent tariff until the eighth year and then phases it out by the tenth year.
Does the 2010 agreement open the Korean markets to our U.S.-made vehicles better than the 2007 agreement?
· LIGHT TRUCK TARIFFS: Korea is required to keep to its original commitment to eliminate its 10 percent tariff on U.S.-made trucks immediately.
· ELECTRIC CAR TARIFFS: The 2007 agreement would have eliminated tariffs on electric cars and plug-in hybrids by year 10. Under the 2010 agreement, Korea will immediately reduce its electric car tariffs from 8 percent to 4 percent, and will phase out their tariff by year five of the agreement.
· SAFETY STANDARDS: New in the 2010 agreement is a provision that allows for 25,000 U.S.-made vehicles per U.S. automaker to be imported into Korea provided they meet U.S. federal safety standards. In the past, Korean safety standards have been used as a way to prevent the export of U.S. vehicles to Korea. After reaching 25,000 U.S. vehicles, additional U.S. vehicles are allowed to be imported into Korea if they meet, or are modified to meet, the Korean safety standards.
· AUTOMOTIVE ENVIRONMENTAL STANDARDS: Also new under the 2010 agreement, all U.S. autos will be considered compliant with Korean environmental standards on fuel economy and emissions. This has also been a barrier to the export of American vehicles to Korea.
Is there a limit to the number of Korean cars that can be imported to the U.S.?
· SAFEGUARDS: The KORUS FTA has a first ever, auto specific safeguard provision to protect against “surges” of Korean vehicles that harm the domestic auto industry. The safeguard goes into effect when the tariff reductions begin. The UAW, the domestic auto companies or the U.S. government may initiate a case under the new provision by petitioning the International Trade Commission (ITC). The process is similar to the one the Steelworkers successfully used in the case involving Chinese tires. The remedy for a finding of injury is the “snapback” to the original tariff levels prior to implementation of the FTA.
Wednesday, December 15, 2010
State of the Union December 15, 2010
Dec. 15, 2010 online at www.uawlocal2250.com
There will be a Suggestion Fair Thursday, Dec. 16 in the cafeteria. It will run from first break through last break. There will be a free gift for everyone – badge required – and cake. There will also be drawings throughout the day.
The deadline to pick up a thermometer is Wednesday, Dec. 23. Call 2308 to make an appointment if you haven’t gotten one yet.
From Automotive News: GM and Ford canceled or shortened shifts at seven assembly plants because of weather-related road closings in Canada. At GM, the changes affect production of the Chevrolet Equinox and GMC Terrain compact sport-utility vehicles, the Chevrolet Impala sedan and Camaro coupe, and the Cadillac CTS and STS models. The Lansing Grand River assembly plant in Lansing, Mich., which makes the CTS and STS, closed earlier today because of a parts shortage caused by highway closings in Canada, said Chris Lee, a GM spokesman. He declined to specify the part. Workers at GM's assembly plant in Oshawa, Ontario, were sent home early during the day shift and the late shift today was canceled, said Jason Easton, a spokesman. GM shortened shifts at its CAMI assembly plant in Ingersoll, Ontario, starting Monday, he said. The CAMI facility makes the Equinox and Terrain, and the Oshawa plant makes the Impala and Camaro. GM also suspended output at a plant in Flint, Mich., that builds light- and heavy-duty pickup trucks because of a shortage of parts.
More Automotive News: An increasing number of new-car shoppers are staying away from Toyota showrooms because of the company's quality and safety problems, according to a study by J.D. Power and Associates. The market research firm's 2010 Avoider Study, which was released today, found that 19 percent of new-vehicle shoppers surveyed said they avoided Toyota because of “bad reputation of manufacturer” -- a startling increase of 17 percentage points from a year ago. Fifteen percent of respondents cited a “bad experience with this manufacturer,” up 12 percentage points from 2009. And 15 percent said they were “concerned about the future of this vehicle brand,” up 11 points from 2009.
Nissan has announced pricing on the NV full-size van that will go on sale next year. The base model 1500 will go for $24,590 and come with a 4 liter V6 and 5-speed automatic transmission. The high-roof version will start at $27,990. (Chevy Express base model 1500 with 4.3 liter V6 is $24,860 + $980 destination). Here’s a comparison between the Express and the NV:
Chevy Express Nissan NV
135” and 155” wheelbase 146.1” only
Standard roof cargo height
55.25” 55.4” (high roof is 76.5”)
Cargo capacity short wheelbase
267.3 cu.ft. (316.8 – lwb) 220+ cu.ft. (300+ high roof)
Cargo width between wheelhouse
52.5” (75.5” total floor) 53.9” (70.3” total floor)
60/40 or slider cargo doors slider door only on passenger side
On passenger side – 60/40 door no cargo doors on driver side
On driver side
Engine choices: 4.3 V6, 4.8 V8 4.0 V6, 5.6 V8
5.3 V8, 6.0 V8, 6.6 V8 diesel
Nissan is not projecting any volumes yet for this vehicle. One analyst put the first year number at 25,000 units. Initially, there will be no passenger version of the NV. It will come in 1500, 2500 and 3500 versions and further down the road a smaller, Transit connect-sized version will be offered. There has been no mention of a cutaway model. Nissan has struck a deal with Adrian for tool-rack upfitting and intends to market the NV through some 300-400 Nissan dealers specifically chosen to sell and service the van. The main selling points for the van as Nissan sees it are the optional high roof models, which undercut Sprinter prices by several thousand dollars, and the pickup-like interior that is more business-oriented with fold down passenger seat backs and a larger center console suitable for laptops or letter size files. It also has cargo interior side-panels and square-top wheel wells, available navigation system and rear-view monitor.
There will be a Suggestion Fair Thursday, Dec. 16 in the cafeteria. It will run from first break through last break. There will be a free gift for everyone – badge required – and cake. There will also be drawings throughout the day.
The deadline to pick up a thermometer is Wednesday, Dec. 23. Call 2308 to make an appointment if you haven’t gotten one yet.
From Automotive News: GM and Ford canceled or shortened shifts at seven assembly plants because of weather-related road closings in Canada. At GM, the changes affect production of the Chevrolet Equinox and GMC Terrain compact sport-utility vehicles, the Chevrolet Impala sedan and Camaro coupe, and the Cadillac CTS and STS models. The Lansing Grand River assembly plant in Lansing, Mich., which makes the CTS and STS, closed earlier today because of a parts shortage caused by highway closings in Canada, said Chris Lee, a GM spokesman. He declined to specify the part. Workers at GM's assembly plant in Oshawa, Ontario, were sent home early during the day shift and the late shift today was canceled, said Jason Easton, a spokesman. GM shortened shifts at its CAMI assembly plant in Ingersoll, Ontario, starting Monday, he said. The CAMI facility makes the Equinox and Terrain, and the Oshawa plant makes the Impala and Camaro. GM also suspended output at a plant in Flint, Mich., that builds light- and heavy-duty pickup trucks because of a shortage of parts.
More Automotive News: An increasing number of new-car shoppers are staying away from Toyota showrooms because of the company's quality and safety problems, according to a study by J.D. Power and Associates. The market research firm's 2010 Avoider Study, which was released today, found that 19 percent of new-vehicle shoppers surveyed said they avoided Toyota because of “bad reputation of manufacturer” -- a startling increase of 17 percentage points from a year ago. Fifteen percent of respondents cited a “bad experience with this manufacturer,” up 12 percentage points from 2009. And 15 percent said they were “concerned about the future of this vehicle brand,” up 11 points from 2009.
Nissan has announced pricing on the NV full-size van that will go on sale next year. The base model 1500 will go for $24,590 and come with a 4 liter V6 and 5-speed automatic transmission. The high-roof version will start at $27,990. (Chevy Express base model 1500 with 4.3 liter V6 is $24,860 + $980 destination). Here’s a comparison between the Express and the NV:
Chevy Express Nissan NV
135” and 155” wheelbase 146.1” only
Standard roof cargo height
55.25” 55.4” (high roof is 76.5”)
Cargo capacity short wheelbase
267.3 cu.ft. (316.8 – lwb) 220+ cu.ft. (300+ high roof)
Cargo width between wheelhouse
52.5” (75.5” total floor) 53.9” (70.3” total floor)
60/40 or slider cargo doors slider door only on passenger side
On passenger side – 60/40 door no cargo doors on driver side
On driver side
Engine choices: 4.3 V6, 4.8 V8 4.0 V6, 5.6 V8
5.3 V8, 6.0 V8, 6.6 V8 diesel
Nissan is not projecting any volumes yet for this vehicle. One analyst put the first year number at 25,000 units. Initially, there will be no passenger version of the NV. It will come in 1500, 2500 and 3500 versions and further down the road a smaller, Transit connect-sized version will be offered. There has been no mention of a cutaway model. Nissan has struck a deal with Adrian for tool-rack upfitting and intends to market the NV through some 300-400 Nissan dealers specifically chosen to sell and service the van. The main selling points for the van as Nissan sees it are the optional high roof models, which undercut Sprinter prices by several thousand dollars, and the pickup-like interior that is more business-oriented with fold down passenger seat backs and a larger center console suitable for laptops or letter size files. It also has cargo interior side-panels and square-top wheel wells, available navigation system and rear-view monitor.
Tuesday, December 14, 2010
State of the Union December 13, 2010
Dec. 13, 2010 online at www.uawlocal2250.com
From the Detroit Free Press: The Chevrolet Silverado HD was been selected as the 2011 Motor Trend Truck of the Year, the publication announced this weekend. Chevrolet also earned the 2011 Motor Trend Car of the Year award for the Chevrolet Volt, the industry's first electric car with extended-range capability. It is the first time since 2006 that one brand has won both Motor Trend Car and Truck of the Year awards in the same year. Chevrolet and Buick won both awards in 1979. The new 2011 Silverado HD built in Flint, Mich., and Fort Wayne, Ind., was introduced this summer, featuring new frame and suspension designs, and a more powerful Duramax diesel engine with 397 horsepower, 765 lb.-ft. of torque, and 11 percent better fuel-economy. As a result, the 2011 Silverado HD is capable of towing up to 21,700 pounds, or carrying 6,635 pounds of payload. The new Silverado HD also offers available confidence- and control-related features specifically for towing including electronic trailer sway control, hill start assist and smart exhaust brake system.
From Automotive News: Figure on a slow and steady recovery in U.S. auto sales next year -- a rise of about 10 percent, according to the consensus of analysts surveyed by Automotive News. But one outlier predicts a much bigger jump in 2011 and offers some compelling data to back it up. The consensus is for 2011 volume of 12.7 million sales, a 10 percent increase if this year ends at 11.5 million units. All but one of the seven analysts predicted a market of 12.5 to 12.9 million. But Morgan Stanley says consumer creditworthiness is improving so rapidly that lenders are about to loosen credit dramatically -- and that will rocket the market to 14 million units in 2011. "The catalyst is credit availability -- a bigger impediment to auto sales than tight inventories or low demand," says Ravi Shanker, Morgan Stanley's lead analyst for North America.
GM sold 196,990 vehicles in China last month, up 11 % over last year, as total sales topped the 2 million mark for the year. Analysts expect the Chinese market to total right around 18 million for the year, the highest ever for a country.( GM sold 168,739 vehicles in the US last month with year-to-date sales of 1,991,042)
From the Detroit Free Press: The Chevrolet Silverado HD was been selected as the 2011 Motor Trend Truck of the Year, the publication announced this weekend. Chevrolet also earned the 2011 Motor Trend Car of the Year award for the Chevrolet Volt, the industry's first electric car with extended-range capability. It is the first time since 2006 that one brand has won both Motor Trend Car and Truck of the Year awards in the same year. Chevrolet and Buick won both awards in 1979. The new 2011 Silverado HD built in Flint, Mich., and Fort Wayne, Ind., was introduced this summer, featuring new frame and suspension designs, and a more powerful Duramax diesel engine with 397 horsepower, 765 lb.-ft. of torque, and 11 percent better fuel-economy. As a result, the 2011 Silverado HD is capable of towing up to 21,700 pounds, or carrying 6,635 pounds of payload. The new Silverado HD also offers available confidence- and control-related features specifically for towing including electronic trailer sway control, hill start assist and smart exhaust brake system.
From Automotive News: Figure on a slow and steady recovery in U.S. auto sales next year -- a rise of about 10 percent, according to the consensus of analysts surveyed by Automotive News. But one outlier predicts a much bigger jump in 2011 and offers some compelling data to back it up. The consensus is for 2011 volume of 12.7 million sales, a 10 percent increase if this year ends at 11.5 million units. All but one of the seven analysts predicted a market of 12.5 to 12.9 million. But Morgan Stanley says consumer creditworthiness is improving so rapidly that lenders are about to loosen credit dramatically -- and that will rocket the market to 14 million units in 2011. "The catalyst is credit availability -- a bigger impediment to auto sales than tight inventories or low demand," says Ravi Shanker, Morgan Stanley's lead analyst for North America.
GM sold 196,990 vehicles in China last month, up 11 % over last year, as total sales topped the 2 million mark for the year. Analysts expect the Chinese market to total right around 18 million for the year, the highest ever for a country.( GM sold 168,739 vehicles in the US last month with year-to-date sales of 1,991,042)
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