Reminder: Union meeting is this week. Second shift meeting is 15 minutes after Tuesday’s shift. Wednesday meeting times are 7:15 am, 1:00 pm, 3 pm and 15 minutes after the longest first shift line time.
The annual Good Friday golf tournament will be held this year (April 6) at the Warrenton Golf Course. It is a 3-man scramble with an 11 am shotgun start and the cost is $150 per team and includes dinner after the tournament. Forms are available at the entrances. If you are interested you can contact Steve Waymon at x2350 between 10:30 pm and 7 am, Mike Prescott (Big Z) at the tire room on day shift, or call Bill Chancellor at 636-456-2460. Please make checks payable to Bill Chancellor. Please turn in your entries and money to Steve or big Z by Friday, March 30. All golfers are welcome.
From the Detroit News: Ford says about 1,700 factory workers nationwide will take early retirement offers and leave the company by June 1. Spokeswoman Marcey Evans said Friday that Ford won't replace all of the retiring workers. It will replace some of them by bringing back about 250 laid-off employees. It will also hire some replacements at lower wages. The automaker doesn't provide numbers per plant, Evans said. Ford offered the buyouts to all 41,000 factory workers last fall in an effort to cut its skilled trades and production work forces. It offered skilled trades workers such as electricians and plumbers $100,000 to retire. Production workers were offered $50,000. The company has about 9,000 skilled tradesmen, which it says is too many.
Keeping in mind that our profit share payouts are based on North American profits, of which production is a very good indicator, a report issued by Wards Auto World is worth looking at. For all of 2011, GM produced 1,145,052 cars and 1,943,832 light trucks for a total of 3,088,884 vehicles. Wards forecast for 2012 is 1,370,043 cars and 1,617,988 light trucks for a total of 3,180,553 – an increase of 3%. Light trucks will decline because of the downtime scheduled for the pickup plants as they prepare for the launch of the redesigned Silverado/Sierra. This will be more than offset by increase car production, but as we all know, GM makes more money on trucks than cars. Bottom line: North American profits will struggle to exceed this year’s total and will depend on GM’s ability to maintain pricing power, particularly in cars. The new Malibu should sell at higher prices than the current model, for example. And the Cadillac ATS and XTS are new entries that will have transaction prices comparable to pickups, if not the volume. ( Of course gas prices can render any forecast obsolete)
The LA Times weighed in on the debate about Mitt Romney’s opposition to the auto industry “bailouts”. Here are some excerpts: Mitt Romney has car trouble. No, we're not referring to the notorious 1983 incident in which he forced the family dog to ride in a crate strapped to the top of his station wagon, but a matter likely to hurt him far more with blue-collar voters: his contention that the bailouts of the U.S. automotive industry by both Presidents George W. Bush and Obamawere a bad idea. If a speech last week by Vice President Joe Biden is any indicator, the Obama campaign is going to use the auto bailouts as a sledgehammer against Romney, should the latter emerge as the GOPnominee. Rallying a union crowd in Ohio, Biden slammed Romney for claiming that bailing out the Detroit automakers would turn them into the "living dead." "Gov. Romney's predictions of a living dead? We have now living proof: a million jobs saved, 200,000 new jobs created," Biden said, to cheers. With Romney trying to sell himself as a better steward of the economy than Obama, his demonstrably wrong conclusions about the bailouts are grist for the Obama attack mill. Romney compounds his problem by continuing to insist the bailouts were a mistake… His argument is twofold: The companies should have been allowed to go through a "managed bankruptcy" without government intervention, which would have reduced taxpayer risk. And, because the restructuring that followed the bailouts ended up handing large ownership stakes in GM and Chrysler to the United Auto Workers, "the president gave the companies to the UAW." Both propositions are disingenuous…Had the government failed to act, not only would the two companies likely have been liquidated but they would have taken much of the U.S. auto sector — parts makers and other suppliers — with them, causing devastating job losses. Meanwhile, the UAW ended up with big shares in the automakers because the companies were so deeply indebted to the union. That would have been the outcome even if Romney's bailout-free bankruptcy had taken place… If ever there were an issue begging for a Romney flip-flop, the auto bailouts would be it. By uncharacteristically sticking with a losing position, Romney could be handing the keys to manufacturing states to Obama.
Since Consumer Reports detailed their experiences with the $108,000 Fisker Karma, several owners (there are only 500 or so) are reporting similar and other problems. Examples of complaints include: “My Karma (with less than a thousand miles on it) had a mysteriously worn-down coupling between one of the motors and the wheels. This will require a completely new differential. As of today... my Karma [has been] "in the shop" longer than I have driven the car. And the prospect of having it in the shop for another 2 weeks (or possibly longer) is making me really unhappy...” [From FiskerBuzz.com] “While driving the car, a 2012 Fisker Karma, at 35 mph, the car shut itself off, all lights on the dash illuminated, the brakes did not work, and the steering was impaired, leaving basic directional control only.” [From NHTSA] “So, after leaving the car with my dealer for the last five days, I finally got it back today and really all they did was update my software from [version] 6.12 to 6.14.2. They didn't address ANY of the other issues on the list I sent them last week. They didn't fix the heat shield. They didn't fix the trunk. They didn't fix the body panels. They didn't fix the leather on the passenger seat. Or the wind noise/rattle from the rear window or the driver's window. They didn't even give me floormats!” [From FiskerBuzz.com] “This would be a funny story if it wasn't [that] I picked up [my Karma] last Monday and it broke down on Tuesday morning. It had to be towed back to the dealership. They "corrected" the problem and I got it back today. We will see. Not a good start.” [From ConsumerReports.org] Ever the apologist for all things not GM, Consumer Reports wrote, “In fairness, the challenges Fisker has surmounted in going from a start-up to a bonafide automaker over a short period are monumental. Some birthing pains are not unexpected.” They later conceded that “The Volt proved that all-new, high-tech electrified cars can indeed be reliable.”
Tuesday, March 20, 2012
Thursday, March 15, 2012
State of the Union March 15, 2012
March 15, 2012 online at www.uawlocal2250.com
From the Community Services Committee: We are extending the deadline for purchasing raffle tickets to Tuesday, March 20, with the drawing to be held at the Union meeting on March 21. Tickets are $5 apiece or 3 for $10 and the prizes are St. Louis Blues tickets (April 6), Cardinals tickets (weekend game) and a $100 Cabela’s gift card. You can buy them from any committee member. The proceeds will go to providing Easter baskets for the homeless and shelters. We will also take donations of candy (must be wrapped), toys and money to build Easter baskets. We plan to put the baskets together between shifts on Wednesday, March 28 and anyone wishing to help is welcome. Thanks for your continued support.
Reminder: Tomorrow is the last day to either enroll for life insurance or increase your existing coverage one level without proof of good health. You can either mail in the form you received in the packet or go to gmbenefits.com to accomplish this. It’s also a good time to update your beneficiary if you need to.
Ed Peper has been named general manger of GM fleet and commercial operations. During his 28 years with the company, he’s held a number of jobs, including vice president of the Chevrolet brand in the U.S., and general sales manager of Cadillac. In a recent post on the blog “Faces of GM” Peper mentioned he was captain of the basketball team at Hillsdale College. “Many of those things rub off into business, pushing yourself hard, having goals and chasing after them, working together as a team. It’s all about the team,” Peper emphasized. “That’s one of the things I’ve talked about with our fleet and commercial team. We’re going to be the No. 1 choice in the fleet and commercial market for very business-savvy fleet buyers by doing three things: providing them with great products, providing them with very innovative business solutions and providing an exceptional customer experience they can’t get anywhere else,” he continued. “Early on here in my job, I am really trying to install this vision and these three pillars and everything we do is going to be about doing these things well,” Peper went on to say. “Fuel economy is incredibly important,” he stressed. “We look at the compressed fuel pickups that we’re launching right now, with fuel prices where they are over the course of three or four years the potential savings may be anywhere from $5,000 to $7,000 on these vehicles. This is really important. ..Fleet customers desire the lowest cost of ownership so if we can give them vehicles that are great looking, get great fuel economy, have great residuals, that all contributes to that total cost of ownership for them as fleet customers. That is what’s most important,” Peper went on to say. The GM executive contends the market is ripe for GM to leverage sales in the commercial and fleet spaces. “The average age of fleet vehicles out there is almost 11 years so there are a lot of customers who want to replace their vehicles,” Peper noted. “What we’re seeing early on this year is a lot of pent-up demand and excitement around wanting to replace fleets.”
The swing toward natural gas vehicles (NGV) took on aspects of a bandwagon last week as two major automakers paraded out new natural gas-powered pickup trucks, and General Electric and Chesapeake Energy Corp. heralded a new "CNG In A Box" fueling station design, Natural Gas Intelligence reports. GE will be rolling out its proprietary "CNG In A Box" later this year with around 250 modular and standardized CNG compression stations for NGV infrastructure. Since Chesapeake has a leasehold in almost every major unconventional natural gas basin in the United States, it's a foregone conclusion that some of those CNG boxes (your choice:an 8X20 foot or 8X40 foot container) will be turning up in some of those production areas.
From the New York Times: Those Eminem and Clint Eastwood advertisements just might have worked: Americans seem to be changing their minds about the once-loathed auto bailout. Back in 2008 and 2009, the Bush and Obama administrations, fearful about losing a major industry during the worst downtown since the Great Depression, stepped in to bail out and restructure Chrysler and General Motors — an effort that ended up costing taxpayers some $80 billion. It was, to put it gently, unpopular. In polls at the time, 3 in 4 Americans said Washington should not broaden its effort to help the carmakers, as it ended up doing; nearly 6 in 10 poll respondents opposed the bailouts once they happened; and 54 percent of people said they were “mostly bad for the economy.” Largely negative polls accumulated through 2010 and 2011, too. But more recent polls seem to show a thaw in public opinion — even if the auto bailout remains relatively unpopular, as far as government initiatives go. A Gallup poll from February indicates that a majority of Americans still do not give a thumbs-up to the effort, but the approval and disapproval numbers have narrowed. And a Pew poll conducted a few weeks ago shows that an actual majority of respondents now support the bailout — a first. What might account for some Americans’ changing their minds? For one thing, the automakers that got Washington’s help have returned to the black. And the motor-vehicle manufacturing industry as a whole has added 126,500 jobs, an increase of about 20 percent, since the end of the recession. That has led to a huge surge in popularity for the auto industry. Indeed, in 2009, 59 percent of Americans had a very or somewhat negative opinion of carmakers. By last summer, 42 percent approved, with 32 percent disapproving.
From the Wall Street Journal: India is poised to overtake Japan as Asia's No. 2 vehicle market by 2016, and sales gains in China will remain strong this decade, according to new estimates. Despite recent concerns about slower economic growth, China is on track to hit sales of 30.68 million vehicles by 2020, up 74% from 17.66 million last year, according to IHS Automotive. China overtook the U.S. in 2009 to become the world's largest auto market by volume. The market-research firm's analysis of sales trends excludes buses and trucks. Sales in China are seen rising to 19.21 million vehicles this year, enough to pull past Europe's combined sales of 18.15 million, the Denver-based firm says. Sales in India are projected to rise to 4.88 million vehicles by 2016 from 2.91 million last year. Sales are forecast at 6.73 million in 2020. Japan will see demand rise to 4.51 million in 2016 from 4.13 million last year, when sales were held down by last year's earthquake. Japan had sales of 4.87 million vehicles in 2010. IHS forecasts Japan's sales will reach 4.35 million in 2020. Japanese vehicle sales, including those of minivehicles, are forecast to rise to 5.19 million this year as demand and supply rebounds from last year's earthquake. But IHS sees that as a temporary spike unlikely to reverse longer-term trends. IHS projects that Toyota Motor Corp. will remain the No. 1 auto maker in Asia, with sales of 5.4 million vehicles in 2020, up from 4.2 million last year. Those figures include sales from minivehicle subsidiary Daihatsu Motor Co. But second-ranked General Motors Co. GM could trade places with current No. 3, Volkswagen AG. GM's sales, including those of Chinese venture SAIC GM Wuling Automobile Co., are forecast rising to 4.4 million vehicles in 2020 from three million last year. VW's sales are seen accelerating to 4.5 million from 2.7 million.
From the Community Services Committee: We are extending the deadline for purchasing raffle tickets to Tuesday, March 20, with the drawing to be held at the Union meeting on March 21. Tickets are $5 apiece or 3 for $10 and the prizes are St. Louis Blues tickets (April 6), Cardinals tickets (weekend game) and a $100 Cabela’s gift card. You can buy them from any committee member. The proceeds will go to providing Easter baskets for the homeless and shelters. We will also take donations of candy (must be wrapped), toys and money to build Easter baskets. We plan to put the baskets together between shifts on Wednesday, March 28 and anyone wishing to help is welcome. Thanks for your continued support.
Reminder: Tomorrow is the last day to either enroll for life insurance or increase your existing coverage one level without proof of good health. You can either mail in the form you received in the packet or go to gmbenefits.com to accomplish this. It’s also a good time to update your beneficiary if you need to.
Ed Peper has been named general manger of GM fleet and commercial operations. During his 28 years with the company, he’s held a number of jobs, including vice president of the Chevrolet brand in the U.S., and general sales manager of Cadillac. In a recent post on the blog “Faces of GM” Peper mentioned he was captain of the basketball team at Hillsdale College. “Many of those things rub off into business, pushing yourself hard, having goals and chasing after them, working together as a team. It’s all about the team,” Peper emphasized. “That’s one of the things I’ve talked about with our fleet and commercial team. We’re going to be the No. 1 choice in the fleet and commercial market for very business-savvy fleet buyers by doing three things: providing them with great products, providing them with very innovative business solutions and providing an exceptional customer experience they can’t get anywhere else,” he continued. “Early on here in my job, I am really trying to install this vision and these three pillars and everything we do is going to be about doing these things well,” Peper went on to say. “Fuel economy is incredibly important,” he stressed. “We look at the compressed fuel pickups that we’re launching right now, with fuel prices where they are over the course of three or four years the potential savings may be anywhere from $5,000 to $7,000 on these vehicles. This is really important. ..Fleet customers desire the lowest cost of ownership so if we can give them vehicles that are great looking, get great fuel economy, have great residuals, that all contributes to that total cost of ownership for them as fleet customers. That is what’s most important,” Peper went on to say. The GM executive contends the market is ripe for GM to leverage sales in the commercial and fleet spaces. “The average age of fleet vehicles out there is almost 11 years so there are a lot of customers who want to replace their vehicles,” Peper noted. “What we’re seeing early on this year is a lot of pent-up demand and excitement around wanting to replace fleets.”
The swing toward natural gas vehicles (NGV) took on aspects of a bandwagon last week as two major automakers paraded out new natural gas-powered pickup trucks, and General Electric and Chesapeake Energy Corp. heralded a new "CNG In A Box" fueling station design, Natural Gas Intelligence reports. GE will be rolling out its proprietary "CNG In A Box" later this year with around 250 modular and standardized CNG compression stations for NGV infrastructure. Since Chesapeake has a leasehold in almost every major unconventional natural gas basin in the United States, it's a foregone conclusion that some of those CNG boxes (your choice:an 8X20 foot or 8X40 foot container) will be turning up in some of those production areas.
From the New York Times: Those Eminem and Clint Eastwood advertisements just might have worked: Americans seem to be changing their minds about the once-loathed auto bailout. Back in 2008 and 2009, the Bush and Obama administrations, fearful about losing a major industry during the worst downtown since the Great Depression, stepped in to bail out and restructure Chrysler and General Motors — an effort that ended up costing taxpayers some $80 billion. It was, to put it gently, unpopular. In polls at the time, 3 in 4 Americans said Washington should not broaden its effort to help the carmakers, as it ended up doing; nearly 6 in 10 poll respondents opposed the bailouts once they happened; and 54 percent of people said they were “mostly bad for the economy.” Largely negative polls accumulated through 2010 and 2011, too. But more recent polls seem to show a thaw in public opinion — even if the auto bailout remains relatively unpopular, as far as government initiatives go. A Gallup poll from February indicates that a majority of Americans still do not give a thumbs-up to the effort, but the approval and disapproval numbers have narrowed. And a Pew poll conducted a few weeks ago shows that an actual majority of respondents now support the bailout — a first. What might account for some Americans’ changing their minds? For one thing, the automakers that got Washington’s help have returned to the black. And the motor-vehicle manufacturing industry as a whole has added 126,500 jobs, an increase of about 20 percent, since the end of the recession. That has led to a huge surge in popularity for the auto industry. Indeed, in 2009, 59 percent of Americans had a very or somewhat negative opinion of carmakers. By last summer, 42 percent approved, with 32 percent disapproving.
From the Wall Street Journal: India is poised to overtake Japan as Asia's No. 2 vehicle market by 2016, and sales gains in China will remain strong this decade, according to new estimates. Despite recent concerns about slower economic growth, China is on track to hit sales of 30.68 million vehicles by 2020, up 74% from 17.66 million last year, according to IHS Automotive. China overtook the U.S. in 2009 to become the world's largest auto market by volume. The market-research firm's analysis of sales trends excludes buses and trucks. Sales in China are seen rising to 19.21 million vehicles this year, enough to pull past Europe's combined sales of 18.15 million, the Denver-based firm says. Sales in India are projected to rise to 4.88 million vehicles by 2016 from 2.91 million last year. Sales are forecast at 6.73 million in 2020. Japan will see demand rise to 4.51 million in 2016 from 4.13 million last year, when sales were held down by last year's earthquake. Japan had sales of 4.87 million vehicles in 2010. IHS forecasts Japan's sales will reach 4.35 million in 2020. Japanese vehicle sales, including those of minivehicles, are forecast to rise to 5.19 million this year as demand and supply rebounds from last year's earthquake. But IHS sees that as a temporary spike unlikely to reverse longer-term trends. IHS projects that Toyota Motor Corp. will remain the No. 1 auto maker in Asia, with sales of 5.4 million vehicles in 2020, up from 4.2 million last year. Those figures include sales from minivehicle subsidiary Daihatsu Motor Co. But second-ranked General Motors Co. GM could trade places with current No. 3, Volkswagen AG. GM's sales, including those of Chinese venture SAIC GM Wuling Automobile Co., are forecast rising to 4.4 million vehicles in 2020 from three million last year. VW's sales are seen accelerating to 4.5 million from 2.7 million.
Tuesday, March 13, 2012
State of the Union March 13, 2012
March 13, 2012 online at www.uawlocal2250.com
From Automotive News: General Motors is scrambling to increase availability of popular Chevrolet Equinox and GMC Terrain crossovers with four-cylinder engines. For two months, tight supplies of the 2.4-liter four-cylinder versions have forced GM to restrict dealer orders for those vehicles, which account for the vast majority of Equinox and Terrain sales. That has many dealers ordering more 3.0-liter V-6 models than they would like in the face of sharply rising fuel prices. GM spokesman Jim Cain confirmed that there are "temporary order limits" in place on four-banger versions of the Equinox and Terrain. "It's a function of a strong industry, a hot vehicle and very robust demand for the four-cylinder model," Cain wrote in an e-mail. "We're working with our suppliers to increase deliveries of key components" to meet demand. GM has told dealers that the supply constraints are temporary but it hasn't said when it expects the issue to be resolved, Cain said. He wouldn't say which suppliers GM is working with, although he said it was a Tier 2 supplier problem related to certain parts that go into the four-cylinder versions. He said the problem was not availability of the engines themselves. Four-cylinder models accounted for 79 percent of Equinox and Terrain sales in February, down from 87 percent during all of 2011, Cain said. In recent weeks, GM has offered $1,000 in dealer cash on V-6 models to lift sales. It's not offering any dealer cash on the four-cylinder versions, according to AIS Rebates, an Ann Arbor, Mich., firm that provides incentive data to dealers. Cain says both models are selling well, though the four-cylinder versions are in higher demand. In February, four-cylinder Equinoxes took an average of 30 days to sell, compared with 39 days for V-6 versions, GM says. Terrain sales took an average 44 days for the four-cylinder and 49 days for the V-6. The 4-cylinder is rated 32 hwy mpg while the V6 is rated 24 hwy mpg.
From AOL: Anxious over $5 per gallon gas promised by forecasters by early summer? How does $2.09 per gallon sound? That's what drivers of natural-gas vehicles enjoy now. President Obama is pushing to give natural gas vehicles like the Honda Civic CNG as much tax-credit help as electric vehicles. The motivation is simple. The U.S. has an abundance of natural gas that could put a major dent in America's consumption of foreign oil, and a significant push toward nat-gas vehicles would provide competition for oil companies and potentially drive down prices of oil and gasoline. President Obama's new legislation proposal to support alternative energy vehicles would bump the tax credit for electric vehicles from $7,500 now to $10,000 and institute a new credit for natural-gas vehicles that would cover half the cost premium for the vehicles (the CNG option for our van costs $9000).
As the trials and tribulations of electric car maker Tesla have demonstrated, this business isn’t as easy as it may seem, especially when it comes to building reliable electric vehicles. Unfortunately the Volt seems to get all of the negative press even though you will never get stranded in one, let alone be immolated in it. The other newcomer to the electric arena, Fisker, is having major issues as well. Our friends (?) at Consumer Reports set out to put the luxury/sports sedan Fisker Karma through their testing procedure. Except they couldn’t. Take it away CR: “Last week, our $107,850 Fisker Karma plug-in hybrid flashed an error message and locked in gear with just 180 miles on the odometer. The disabled car was taken on a flatbed truck to the dealership where we bought the car. Now, after 48 hours at the shop, the Karma has experienced a rebirth, and it is operating fine at our test track. Our problem occurred during routine speedometer calibration runs on our test track, part of the standard procedures for checking in new vehicles. This exercise involves running the car up to 65 mph to check the accuracy of the speedometer. With the warning light on and chime sounding what would become a death knell, we coasted to a halt next to our maintenance garage, where the car went into Neutral, and would then only move from Neutral to Park. After letting the car sit for an hour, we were able to restart and move the vehicle, but the error message reappeared and it again locked in gear when parked. The dealer’s repair invoice says the problem was “duplicated repeatedly.” A “fault was found in the battery and inverter cable. Both were replaced as a unit.” In other words, we now have a brand-new lithium-ion drive battery pack provided under warranty, though likely costing as much as a small, fuel-efficient car. We buy about 80 cars a year and this is the first time in memory that we have had a car that is undriveable before it has finished our check-in process.” At least the Tesla didn’t “brick” while it was being driven.
From the Detroit News: The National Highway Traffic Safety Administration said Monday it is expanding its investigation into stuck throttles in another 1.56 million Ford Motor Co. vehicles. On Sunday, NHTSA said it's opening a preliminary investigation into 360,000 2005-06 Ford Taurus sedans over complaints of vehicles suddenly accelerating because of detached cruise control cables. On Monday, NHTSA said it was expanding its review, in a formal request for information to Ford to include the 2001-2005 Taurus and Mercury Sable. That means NHTSA is looking at a total of 1.92 million cars. "The agency is actively investigating a potential issue with a stuck throttle resulting from cruise control cable detachment involving certain Ford vehicles," NHTSA spokeswoman Lynda Tran said. Ford spokesman Daniel Pierce said the automaker is cooperating. NHTSA said Sunday it has received 14 complaints from Taurus owners that said the engine revved as high as 4,000 RPMs after shifting into park or neutral. NHTSA didn't identify any crashes or injuries related to the issue in its statement. In a complaint filed Feb. 15, an owner from Hickory, N.C., said "while coasting uphill and approaching my left turn the (2006 Taurus) began to accelerate. I made the left turn while applying a good amount of force to the brake pedal for fear that I would hit mail boxes and homes." The owner of a 2005 Taurus told NHTSA in November that when stopped at a light the car started to rev "and could not hold on brakes enough to stop moving. Went through red light, around two cars as speed reached about 70 miles per hour. Both feet on brakes. Could smell them burning," the owner wrote. In both complaints, the owners said the problem was a disconnected cruise control cable.
From Automotive News: General Motors is scrambling to increase availability of popular Chevrolet Equinox and GMC Terrain crossovers with four-cylinder engines. For two months, tight supplies of the 2.4-liter four-cylinder versions have forced GM to restrict dealer orders for those vehicles, which account for the vast majority of Equinox and Terrain sales. That has many dealers ordering more 3.0-liter V-6 models than they would like in the face of sharply rising fuel prices. GM spokesman Jim Cain confirmed that there are "temporary order limits" in place on four-banger versions of the Equinox and Terrain. "It's a function of a strong industry, a hot vehicle and very robust demand for the four-cylinder model," Cain wrote in an e-mail. "We're working with our suppliers to increase deliveries of key components" to meet demand. GM has told dealers that the supply constraints are temporary but it hasn't said when it expects the issue to be resolved, Cain said. He wouldn't say which suppliers GM is working with, although he said it was a Tier 2 supplier problem related to certain parts that go into the four-cylinder versions. He said the problem was not availability of the engines themselves. Four-cylinder models accounted for 79 percent of Equinox and Terrain sales in February, down from 87 percent during all of 2011, Cain said. In recent weeks, GM has offered $1,000 in dealer cash on V-6 models to lift sales. It's not offering any dealer cash on the four-cylinder versions, according to AIS Rebates, an Ann Arbor, Mich., firm that provides incentive data to dealers. Cain says both models are selling well, though the four-cylinder versions are in higher demand. In February, four-cylinder Equinoxes took an average of 30 days to sell, compared with 39 days for V-6 versions, GM says. Terrain sales took an average 44 days for the four-cylinder and 49 days for the V-6. The 4-cylinder is rated 32 hwy mpg while the V6 is rated 24 hwy mpg.
From AOL: Anxious over $5 per gallon gas promised by forecasters by early summer? How does $2.09 per gallon sound? That's what drivers of natural-gas vehicles enjoy now. President Obama is pushing to give natural gas vehicles like the Honda Civic CNG as much tax-credit help as electric vehicles. The motivation is simple. The U.S. has an abundance of natural gas that could put a major dent in America's consumption of foreign oil, and a significant push toward nat-gas vehicles would provide competition for oil companies and potentially drive down prices of oil and gasoline. President Obama's new legislation proposal to support alternative energy vehicles would bump the tax credit for electric vehicles from $7,500 now to $10,000 and institute a new credit for natural-gas vehicles that would cover half the cost premium for the vehicles (the CNG option for our van costs $9000).
As the trials and tribulations of electric car maker Tesla have demonstrated, this business isn’t as easy as it may seem, especially when it comes to building reliable electric vehicles. Unfortunately the Volt seems to get all of the negative press even though you will never get stranded in one, let alone be immolated in it. The other newcomer to the electric arena, Fisker, is having major issues as well. Our friends (?) at Consumer Reports set out to put the luxury/sports sedan Fisker Karma through their testing procedure. Except they couldn’t. Take it away CR: “Last week, our $107,850 Fisker Karma plug-in hybrid flashed an error message and locked in gear with just 180 miles on the odometer. The disabled car was taken on a flatbed truck to the dealership where we bought the car. Now, after 48 hours at the shop, the Karma has experienced a rebirth, and it is operating fine at our test track. Our problem occurred during routine speedometer calibration runs on our test track, part of the standard procedures for checking in new vehicles. This exercise involves running the car up to 65 mph to check the accuracy of the speedometer. With the warning light on and chime sounding what would become a death knell, we coasted to a halt next to our maintenance garage, where the car went into Neutral, and would then only move from Neutral to Park. After letting the car sit for an hour, we were able to restart and move the vehicle, but the error message reappeared and it again locked in gear when parked. The dealer’s repair invoice says the problem was “duplicated repeatedly.” A “fault was found in the battery and inverter cable. Both were replaced as a unit.” In other words, we now have a brand-new lithium-ion drive battery pack provided under warranty, though likely costing as much as a small, fuel-efficient car. We buy about 80 cars a year and this is the first time in memory that we have had a car that is undriveable before it has finished our check-in process.” At least the Tesla didn’t “brick” while it was being driven.
From the Detroit News: The National Highway Traffic Safety Administration said Monday it is expanding its investigation into stuck throttles in another 1.56 million Ford Motor Co. vehicles. On Sunday, NHTSA said it's opening a preliminary investigation into 360,000 2005-06 Ford Taurus sedans over complaints of vehicles suddenly accelerating because of detached cruise control cables. On Monday, NHTSA said it was expanding its review, in a formal request for information to Ford to include the 2001-2005 Taurus and Mercury Sable. That means NHTSA is looking at a total of 1.92 million cars. "The agency is actively investigating a potential issue with a stuck throttle resulting from cruise control cable detachment involving certain Ford vehicles," NHTSA spokeswoman Lynda Tran said. Ford spokesman Daniel Pierce said the automaker is cooperating. NHTSA said Sunday it has received 14 complaints from Taurus owners that said the engine revved as high as 4,000 RPMs after shifting into park or neutral. NHTSA didn't identify any crashes or injuries related to the issue in its statement. In a complaint filed Feb. 15, an owner from Hickory, N.C., said "while coasting uphill and approaching my left turn the (2006 Taurus) began to accelerate. I made the left turn while applying a good amount of force to the brake pedal for fear that I would hit mail boxes and homes." The owner of a 2005 Taurus told NHTSA in November that when stopped at a light the car started to rev "and could not hold on brakes enough to stop moving. Went through red light, around two cars as speed reached about 70 miles per hour. Both feet on brakes. Could smell them burning," the owner wrote. In both complaints, the owners said the problem was a disconnected cruise control cable.
Thursday, March 8, 2012
State of the Union March 8, 2012
March 8, 2012 online at www.uawlocal2250.com
A total of 24 skilled trades members have been accepted for the Special Attrition Program and will retire at the end of this month.
Entry level employees who have completed 90 days should be getting a new hire packet in the mail. If you have not received one and you have more than 90 days, see your benefits representative.
Entry level employees who have achieved 90 days are eligible for Tuition Assistance benefits. Specifically, this program provides up to $5000 per calendar year for courses at regionally accredited colleges or universities ($200 may be used to purchase books) for degree related courses or $2200 for job related courses – no personal/skill enhancement courses. For questions about college or course eligibility call 1-800-228-2946.
Schedule update: We are currently scheduled to work Friday, March 30. Also, the week of April 2 will be a 3-day work week, Monday through Wednesday (10.7, 10.7, 10.6) due to the Good Friday holiday. As always, this is subject to change.
There will be a Women’s Committee, a Veterans Committee and a CAP Committee meeting today after first shift at the Union Hall.
Reminder: This weekend is the beginning of daylight savings time, so remember to move your clocks forward one hour.
From the Detroit News: The United Auto Workers sued American Axle & Manufacturing Inc., claiming the auto supplier isn't following its contractual obligation to provide pension, insurance and other benefits to laid-off workers. The union said the Detroit-based company — which closed its factories in Detroit and Cheektowaga, N.Y., last month — wasn't following its contract, which required the company to pay early retirement pensions for employees laid off when a plant is closed. The UAW said the company in March 2011 adopted an amendment to the contract that canceled the benefit. The company said it was required to do so because of a federal law passed in 2006 governing pensions. The union said the dispute affects 100 UAW-represented employees who are over age 50 and have 10 years of service. The suit filed in U.S. District Court in Detroit also says that disabled employees are entitled to short-term and long-term disability benefits. The supplier says when it laid off all employees at the two plants, it would end the benefits. American Axle also is halting retiree health care and life insurance, the UAW said. The suit seeks the restoration of the benefits.
From Automotive News: General Motors CEO Dan Akerson said it may be two years before its European division is back in profit as the continent sheds over-capacity the same way the U.S. industry had to over the past half decade. The world's largest automaker has lost money in Europe for the last 12 years. "I think it'll be a good year or two before we can achieve profitability in Europe again," Akerson said at an on-stage interview conducted in San Francisco on Wednesday night. European sales had been recovering before the continent became gripped by fears of debt defaults in the middle of last year, Akerson said at the event. "People stopped buying. I can see it every day in the sales reports," said Akerson. Industry-wide, Akerson believed there were between seven and 10 excess car plants in Europe and other executives estimate there is 20 percent over-capacity there. He emphasized that a deal with France's PSA/Peugeot-Citroen announced last week was merely an alliance and that each carmaker had its own problems to solve. GM announced last week that it would halt production of the Chevy Volt plug-in hybrid car for five weeks and temporarily lay off 1,300 U.S. workers. But Akerson, arguing that a two-week production shutdown last year for its popular Cruze compact car did not generate as much concern, dismissed the worries surrounding the Volt as political. "Sometimes I feel bad for President Obama," Akerson told reporters, saying the Volt was in the works long before Obama's election, yet it was seen as his car due to the government's 27 percent stake in GM after its bailout. "It's not the Obama car." GM is adjusting the Volt to meet strict California requirements for a further $1,500 state rebate and allow drivers to use special carpool lanes in the state, where a fourth of the 7,671 Volts GM sold in 2011 were purchased. Akerson had said earlier that, while it was not up to him, his ideal outcome would be for the government to, for example, sell off the stake steadily over 10 quarters because he believed uncertainty about it was weighing on GM's share price.
From Marketwatch: Toyota Motor Corp. plans to recall about 682,000 cars and trucks in the U.S. to fix some stop lamp switches while remedying a separate problem with its pickups' steering wheel assemblies. The news is the latest in a string of wide-ranging recalls over the past three years for the Japanese auto maker, which has struggled to regain its reputation for quality. The challenges prompted the company last year to launch an advertising campaign touting its safety values while offering two years of free dealer scheduled maintenance. Toyota in November launched a separate safety recall involving about 283,200 Toyota and 137,000 Lexus vehicles to replace the crankshaft pulley on V6 engines. On Wednesday, the auto maker disclosed an issue with about 495,000 Tacoma models ranging from 2005 to early 2009 that could prevent the trucks' driver-side airbags from inflating in a crash. Friction between the steering wheel's spiral cable and its assembly could cause it to lose connectivity to the driver's air bag module over time, the company said. Toyota also plans to replace stop lamp switches on about 70,500 Camry vehicles and about 116,000 Venza vehicles after the company found silicon grease might have reached the inside of the switch during assembly in North America, causing an increase in electrical resistance. The flaw could cause the cars' warning lamps to light up, prevent the vehicles from starting or prevent shift levers from moving to the "park" position. Some of the vehicles' stop lamps might also stop working.
A total of 24 skilled trades members have been accepted for the Special Attrition Program and will retire at the end of this month.
Entry level employees who have completed 90 days should be getting a new hire packet in the mail. If you have not received one and you have more than 90 days, see your benefits representative.
Entry level employees who have achieved 90 days are eligible for Tuition Assistance benefits. Specifically, this program provides up to $5000 per calendar year for courses at regionally accredited colleges or universities ($200 may be used to purchase books) for degree related courses or $2200 for job related courses – no personal/skill enhancement courses. For questions about college or course eligibility call 1-800-228-2946.
Schedule update: We are currently scheduled to work Friday, March 30. Also, the week of April 2 will be a 3-day work week, Monday through Wednesday (10.7, 10.7, 10.6) due to the Good Friday holiday. As always, this is subject to change.
There will be a Women’s Committee, a Veterans Committee and a CAP Committee meeting today after first shift at the Union Hall.
Reminder: This weekend is the beginning of daylight savings time, so remember to move your clocks forward one hour.
From the Detroit News: The United Auto Workers sued American Axle & Manufacturing Inc., claiming the auto supplier isn't following its contractual obligation to provide pension, insurance and other benefits to laid-off workers. The union said the Detroit-based company — which closed its factories in Detroit and Cheektowaga, N.Y., last month — wasn't following its contract, which required the company to pay early retirement pensions for employees laid off when a plant is closed. The UAW said the company in March 2011 adopted an amendment to the contract that canceled the benefit. The company said it was required to do so because of a federal law passed in 2006 governing pensions. The union said the dispute affects 100 UAW-represented employees who are over age 50 and have 10 years of service. The suit filed in U.S. District Court in Detroit also says that disabled employees are entitled to short-term and long-term disability benefits. The supplier says when it laid off all employees at the two plants, it would end the benefits. American Axle also is halting retiree health care and life insurance, the UAW said. The suit seeks the restoration of the benefits.
From Automotive News: General Motors CEO Dan Akerson said it may be two years before its European division is back in profit as the continent sheds over-capacity the same way the U.S. industry had to over the past half decade. The world's largest automaker has lost money in Europe for the last 12 years. "I think it'll be a good year or two before we can achieve profitability in Europe again," Akerson said at an on-stage interview conducted in San Francisco on Wednesday night. European sales had been recovering before the continent became gripped by fears of debt defaults in the middle of last year, Akerson said at the event. "People stopped buying. I can see it every day in the sales reports," said Akerson. Industry-wide, Akerson believed there were between seven and 10 excess car plants in Europe and other executives estimate there is 20 percent over-capacity there. He emphasized that a deal with France's PSA/Peugeot-Citroen announced last week was merely an alliance and that each carmaker had its own problems to solve. GM announced last week that it would halt production of the Chevy Volt plug-in hybrid car for five weeks and temporarily lay off 1,300 U.S. workers. But Akerson, arguing that a two-week production shutdown last year for its popular Cruze compact car did not generate as much concern, dismissed the worries surrounding the Volt as political. "Sometimes I feel bad for President Obama," Akerson told reporters, saying the Volt was in the works long before Obama's election, yet it was seen as his car due to the government's 27 percent stake in GM after its bailout. "It's not the Obama car." GM is adjusting the Volt to meet strict California requirements for a further $1,500 state rebate and allow drivers to use special carpool lanes in the state, where a fourth of the 7,671 Volts GM sold in 2011 were purchased. Akerson had said earlier that, while it was not up to him, his ideal outcome would be for the government to, for example, sell off the stake steadily over 10 quarters because he believed uncertainty about it was weighing on GM's share price.
From Marketwatch: Toyota Motor Corp. plans to recall about 682,000 cars and trucks in the U.S. to fix some stop lamp switches while remedying a separate problem with its pickups' steering wheel assemblies. The news is the latest in a string of wide-ranging recalls over the past three years for the Japanese auto maker, which has struggled to regain its reputation for quality. The challenges prompted the company last year to launch an advertising campaign touting its safety values while offering two years of free dealer scheduled maintenance. Toyota in November launched a separate safety recall involving about 283,200 Toyota and 137,000 Lexus vehicles to replace the crankshaft pulley on V6 engines. On Wednesday, the auto maker disclosed an issue with about 495,000 Tacoma models ranging from 2005 to early 2009 that could prevent the trucks' driver-side airbags from inflating in a crash. Friction between the steering wheel's spiral cable and its assembly could cause it to lose connectivity to the driver's air bag module over time, the company said. Toyota also plans to replace stop lamp switches on about 70,500 Camry vehicles and about 116,000 Venza vehicles after the company found silicon grease might have reached the inside of the switch during assembly in North America, causing an increase in electrical resistance. The flaw could cause the cars' warning lamps to light up, prevent the vehicles from starting or prevent shift levers from moving to the "park" position. Some of the vehicles' stop lamps might also stop working.
Tuesday, March 6, 2012
State of the Union March 6, 2012
March 6, 2012 online at www.uawlocal2250.com
The UAW Community Services committee is holding a raffle, with the proceeds to go for providing Easter Baskets for the homeless and shelters. The top prize is 2 tickets to the St. Louis Blues game on April 6 (these are great seats). Second prize is 2 Cardinals tickets to a weekend game. Third prize is a $100 Cabela’s gift card. Tickets are available now through March 15 and are $5 apiece or 3 for $10 and can be bought from any committee member. The drawing will be held at the March 21 Union meeting.
The annual Good Friday golf tournament will be held this year (April 6) at the Warrenton Golf Course. It is a 3-man scramble with an 11 am shotgun start and the cost is $150 per team and includes dinner after the tournament. Forms are available at the entrances. If you are interested you can contact Steve Waymon at x2350 between 10:30 pm and 7 am, Mike Prescott (Big Z) at the tire room on day shift, or call Bill Chancellor at 636-456-2460. Please make checks payable to Bill Chancellor.
To find a better February sales result for our van, you would have to go back to 2008. Here is how the rest of the segment shook out:
2012 2011 Change Share
Ford Econoline 10,100 9,723 +3.9% 52.8%
GM 7,383 4,694 +57.3% 38.6%
Mercedes Sprinter 830 712 +11.9% 4.3%
Nissan NV 807 12 --- 4.2%
Ford Transit 2,305 2,152 +7.1% ---
Field supplies reflect the improved sales performance. Overall net stock dropped roughly 500 units to a 42 day supply. Passenger van supplies are just over 600 units and the Chevy has only a 10 day supply, by far the lowest of any GM truck product. Express cargo vans are down to a 37 day supply while cutaways supplies are essentially unchanged.
There’s good news and bad news on the Chevy Volt front. The good news is that the Opel version (Ampera) was named European car of the year at the Geneva Auto Show. The bad news is that the Hamtramck plant where both are produced will go down for 5 weeks beginning March 19. “Even with sales up in February over January, we are still seeking to align our production with demand,” said GM spokesman Chris Lee.
From Automotive News: A startup backed by General Motors said last week that it has developed a breakthrough lithium ion battery that could slash the cost of electric vehicles. Envia Systems said the lighter and more powerful battery cells could reduce by more than half the cost of a battery pack in an EV with a 300-mile electric range. "There is this enormous race going on" to develop higher-density batteries, which are considered the key to making less costly EVs that can go longer distances between charges, Envia CEO Atul Kapadia said in an interview. "What we've done is leapfrog all existing technologies." Envia, of Newark, Calif., said its advanced cathode technology enables its battery to produce 400 watt hours per kilogram, at an estimated cost of $125 per kilowatt hour. Batteries used in EVs today produce 80 to 150 watt hours per kilogram, at a cost of $250 to $350 per kilowatt hour, Envia says. Envia uses manganese and other inexpensive metals to make its battery cells' cathode, which is the electrode from which the current flows. The use of cheaper materials drives down costs. And because the cells store more energy, fewer cells are needed to assemble the battery pack, which further drives down the overall cost. Envia could have the technology in commercial production by 2014, Kapadia said. Kapadia said GM remains Envia's largest investor and is the "most aggressive and most enthusiastic" automaker interested in its battery, although GM does not have contractual rights to the technology. Jon Lauckner, who was named GM's chief technology officer last month, sits on Envia's board of directors.
From the Wall Street Journal: Business groups are urging Congress to let employers put less money into their pension funds, saying that exceptionally low interest rates are forcing them to set aside too much cash. A provision attached to the Senate highway bill would change the formula many large companies, must use to calculate how much to add to their pension funds, potentially shrinking their combined contributions by billions of dollars a year. The business groups argue that with U.S. interest rates near historic lows, companies are diverting money into pension funds that could be otherwise used to hire new workers or make other investments. The AFL-CIO, the nation's biggest labor federation, said it could support changing the pension fund formula if it is paired with protection for the pension plans' participants. "Employers do have a valid concern for realistic funding assumptions and less volatility" said legislative representative Lauren Rothfarb.
The UAW Community Services committee is holding a raffle, with the proceeds to go for providing Easter Baskets for the homeless and shelters. The top prize is 2 tickets to the St. Louis Blues game on April 6 (these are great seats). Second prize is 2 Cardinals tickets to a weekend game. Third prize is a $100 Cabela’s gift card. Tickets are available now through March 15 and are $5 apiece or 3 for $10 and can be bought from any committee member. The drawing will be held at the March 21 Union meeting.
The annual Good Friday golf tournament will be held this year (April 6) at the Warrenton Golf Course. It is a 3-man scramble with an 11 am shotgun start and the cost is $150 per team and includes dinner after the tournament. Forms are available at the entrances. If you are interested you can contact Steve Waymon at x2350 between 10:30 pm and 7 am, Mike Prescott (Big Z) at the tire room on day shift, or call Bill Chancellor at 636-456-2460. Please make checks payable to Bill Chancellor.
To find a better February sales result for our van, you would have to go back to 2008. Here is how the rest of the segment shook out:
2012 2011 Change Share
Ford Econoline 10,100 9,723 +3.9% 52.8%
GM 7,383 4,694 +57.3% 38.6%
Mercedes Sprinter 830 712 +11.9% 4.3%
Nissan NV 807 12 --- 4.2%
Ford Transit 2,305 2,152 +7.1% ---
Field supplies reflect the improved sales performance. Overall net stock dropped roughly 500 units to a 42 day supply. Passenger van supplies are just over 600 units and the Chevy has only a 10 day supply, by far the lowest of any GM truck product. Express cargo vans are down to a 37 day supply while cutaways supplies are essentially unchanged.
There’s good news and bad news on the Chevy Volt front. The good news is that the Opel version (Ampera) was named European car of the year at the Geneva Auto Show. The bad news is that the Hamtramck plant where both are produced will go down for 5 weeks beginning March 19. “Even with sales up in February over January, we are still seeking to align our production with demand,” said GM spokesman Chris Lee.
From Automotive News: A startup backed by General Motors said last week that it has developed a breakthrough lithium ion battery that could slash the cost of electric vehicles. Envia Systems said the lighter and more powerful battery cells could reduce by more than half the cost of a battery pack in an EV with a 300-mile electric range. "There is this enormous race going on" to develop higher-density batteries, which are considered the key to making less costly EVs that can go longer distances between charges, Envia CEO Atul Kapadia said in an interview. "What we've done is leapfrog all existing technologies." Envia, of Newark, Calif., said its advanced cathode technology enables its battery to produce 400 watt hours per kilogram, at an estimated cost of $125 per kilowatt hour. Batteries used in EVs today produce 80 to 150 watt hours per kilogram, at a cost of $250 to $350 per kilowatt hour, Envia says. Envia uses manganese and other inexpensive metals to make its battery cells' cathode, which is the electrode from which the current flows. The use of cheaper materials drives down costs. And because the cells store more energy, fewer cells are needed to assemble the battery pack, which further drives down the overall cost. Envia could have the technology in commercial production by 2014, Kapadia said. Kapadia said GM remains Envia's largest investor and is the "most aggressive and most enthusiastic" automaker interested in its battery, although GM does not have contractual rights to the technology. Jon Lauckner, who was named GM's chief technology officer last month, sits on Envia's board of directors.
From the Wall Street Journal: Business groups are urging Congress to let employers put less money into their pension funds, saying that exceptionally low interest rates are forcing them to set aside too much cash. A provision attached to the Senate highway bill would change the formula many large companies, must use to calculate how much to add to their pension funds, potentially shrinking their combined contributions by billions of dollars a year. The business groups argue that with U.S. interest rates near historic lows, companies are diverting money into pension funds that could be otherwise used to hire new workers or make other investments. The AFL-CIO, the nation's biggest labor federation, said it could support changing the pension fund formula if it is paired with protection for the pension plans' participants. "Employers do have a valid concern for realistic funding assumptions and less volatility" said legislative representative Lauren Rothfarb.
Wednesday, February 29, 2012
State of the Union February 28, 2012
Feb. 28, 2012 online at www.uawlocal2250.com
The UAW is holding its annual CAP Legislative Conference this week in Washington DC. President Obama is scheduled to speak to the conference today. Here is a recap of some of yesterday’s events:
Delegates heard from AFL-CIO Executive Vice President Arlene Holt Baker who thanked the UAW for creating a path to the middle class and fighting fervently against efforts to eroded worker gains. Baker told delegates that for her and many Americans, the UAW’s progress in helping secure jobs for Americans is now and has always been an important factor. The UAW, she said, has continued Walter Reuther’s legacy of love for community and country and believing that “we truly are our brothers’ and sisters’ keepers.”
Known in the political arena as “Gene the Machine” for his tireless work ethic, Gene Sperling addressed UAW delegates on America’s current economic climate. A Washington insider, Sperling is director of the National Economic Council and Assistant to the President for Economic Policy. Appointed by President Obama in January 2011, he formerly served as counselor to the Secretary of the Department of the Treasury, Timothy Geithner, starting in 2009. He said that while the economy is making a turnaround, we had to come back from losing 1.1 million jobs to creating 800,000 jobs a month. Sperling added that while this isn’t a modest recovery, it will take time before middle-class working America begins to fully recover. “The UAW is a symbol of U.S. comeback. It is an unquestionable fact that we have a long way to go to heal from this depression we inherited. When you look at what this president did, he will be remembered as the president who took one of the swiftest, most aggressive actions to protect this country against the next great depression,” said Sperling. “The American economy was growing within six months of President Obama being elected – and a year later, hundreds of thousands of jobs have been brought back.”
UAW Secretary-Treasurer Dennis Williams brought delegates up to speed on the union’s demand that workers at transnational auto plants be given the right to decide whether they want a union. “We are at a critical time in the transnational organizing effort. The UAW made a huge commitment to organizing two years ago,” said Williams. “We are working together now like never before. We cannot continue to organize as we have in the past. We have to build alliances and coalitions like never before.” Williams said the UAW wants to make sure all workers – not just UAW members – make good wages and can live a middle-class life. He said the UAW also is focusing on bringing young activists from around the world into the movement to create global solidarity. “To achieve our goals, we have to communicate. We have reached out to workers in every [foreign-owned] facility in the United States and are holding meetings with international allies,” said Williams.
Here is an editorial letter to the Detroit Free Press from UAW President Bob King:
For most Americans, cars are a way to get around. For most of Detroit, they're a way of life. Generations of autoworkers grew up trusting that if we worked hard and played by the rules, we would be able to live the American dream. Not long ago, that way of life almost ended. I have been stunned at the recent debate about what really happened here in 2009. Choices have been scrutinized, other paths imagined, and the road we took to get to this point has been studied from every conceivable angle. That's all fair game. But rewriting facts and denying history are not.
Some say the successes we see today could have happened on their own, as if the credit markets weren't frozen solid and private financiers were banging down our door. That claim is more than just wrong; it's an insult to the men and women of the auto industry, workers and management alike. All made incredible sacrifices and worked tirelessly to keep this industry alive. It's an affront to everyone who never stopped believing that Detroit can, and will, continue to build the best vehicles in the world.
We can't let them mislead the American people about President Barack Obama's bold and decisive rescue of the auto industry, or about the sacrifices our workers made. They deserve the truth. Those trying to attack the president for political gain have ignored this reality. They claim labor got a free pass. Nothing could be further from the truth. Even before the emergency rescue loans, autoworkers made deep concessions to save their companies and keep Detroit alive. From 2005 on, we gave up pay increases, overtime pay and holidays, and agreed to reduced pay and benefits for new hires.
When Obama required more concessions from both labor and management in exchange for the emergency loans, we did the right thing. UAW agreed to freeze wages and benefits, and even agreed to waive for six years our right to strike. We were willing to share the sacrifice to help our industry and this region survive. They did more than survive. Today, the automakers are thriving. General Motors is once again the world's top carmaker. Its $7.6-billion profit in 2011 was its largest ever. The auto industry added more than 200,000 jobs in the last 2 1/2 years, and 2011 was the strongest year of job growth in our industry since 1994.
Demand for American cars is rising, so GM, Ford and Chrysler are running three production shifts a day at many plants. New shifts at GM's Detroit-Hamtramck Plant and Chrysler's Jefferson North Plant mean jobs for thousands more workers in Michigan, the Midwest and across the country. Chrysler was nearly forced to shutter its Sterling Heights Assembly Plant. Now its 2,300 workers are building the Chrysler 200, one of Detroit's hottest-selling new models. They repaid the federal loans years ahead of schedule. Michigan is recovering from the recession at the second-fastest pace in the country.
A stronger Detroit means a stronger nation. More working Michiganders mean more money in our economy, and more local restaurants and shops that thrive and create even more jobs. The president's emergency loans weren't a politically popular decision. But he refused to turn his back on us during Detroit's darkest hour. He stood up for us and more than a million American jobs that depend on the auto industry. If he hadn't, this great American industry and city would have collapsed. End of story. Our state and country would be a very different place without the auto loans. Autoworkers have good-paying American jobs that put food on the table, pay tuition bills, buy homes and keep the American dream alive. I don't have to tell you that cars made Detroit. But no matter what anyone tells you, it's thanks to President Obama that Detroit is still making cars.
The UAW is holding its annual CAP Legislative Conference this week in Washington DC. President Obama is scheduled to speak to the conference today. Here is a recap of some of yesterday’s events:
Delegates heard from AFL-CIO Executive Vice President Arlene Holt Baker who thanked the UAW for creating a path to the middle class and fighting fervently against efforts to eroded worker gains. Baker told delegates that for her and many Americans, the UAW’s progress in helping secure jobs for Americans is now and has always been an important factor. The UAW, she said, has continued Walter Reuther’s legacy of love for community and country and believing that “we truly are our brothers’ and sisters’ keepers.”
Known in the political arena as “Gene the Machine” for his tireless work ethic, Gene Sperling addressed UAW delegates on America’s current economic climate. A Washington insider, Sperling is director of the National Economic Council and Assistant to the President for Economic Policy. Appointed by President Obama in January 2011, he formerly served as counselor to the Secretary of the Department of the Treasury, Timothy Geithner, starting in 2009. He said that while the economy is making a turnaround, we had to come back from losing 1.1 million jobs to creating 800,000 jobs a month. Sperling added that while this isn’t a modest recovery, it will take time before middle-class working America begins to fully recover. “The UAW is a symbol of U.S. comeback. It is an unquestionable fact that we have a long way to go to heal from this depression we inherited. When you look at what this president did, he will be remembered as the president who took one of the swiftest, most aggressive actions to protect this country against the next great depression,” said Sperling. “The American economy was growing within six months of President Obama being elected – and a year later, hundreds of thousands of jobs have been brought back.”
UAW Secretary-Treasurer Dennis Williams brought delegates up to speed on the union’s demand that workers at transnational auto plants be given the right to decide whether they want a union. “We are at a critical time in the transnational organizing effort. The UAW made a huge commitment to organizing two years ago,” said Williams. “We are working together now like never before. We cannot continue to organize as we have in the past. We have to build alliances and coalitions like never before.” Williams said the UAW wants to make sure all workers – not just UAW members – make good wages and can live a middle-class life. He said the UAW also is focusing on bringing young activists from around the world into the movement to create global solidarity. “To achieve our goals, we have to communicate. We have reached out to workers in every [foreign-owned] facility in the United States and are holding meetings with international allies,” said Williams.
Here is an editorial letter to the Detroit Free Press from UAW President Bob King:
For most Americans, cars are a way to get around. For most of Detroit, they're a way of life. Generations of autoworkers grew up trusting that if we worked hard and played by the rules, we would be able to live the American dream. Not long ago, that way of life almost ended. I have been stunned at the recent debate about what really happened here in 2009. Choices have been scrutinized, other paths imagined, and the road we took to get to this point has been studied from every conceivable angle. That's all fair game. But rewriting facts and denying history are not.
Some say the successes we see today could have happened on their own, as if the credit markets weren't frozen solid and private financiers were banging down our door. That claim is more than just wrong; it's an insult to the men and women of the auto industry, workers and management alike. All made incredible sacrifices and worked tirelessly to keep this industry alive. It's an affront to everyone who never stopped believing that Detroit can, and will, continue to build the best vehicles in the world.
We can't let them mislead the American people about President Barack Obama's bold and decisive rescue of the auto industry, or about the sacrifices our workers made. They deserve the truth. Those trying to attack the president for political gain have ignored this reality. They claim labor got a free pass. Nothing could be further from the truth. Even before the emergency rescue loans, autoworkers made deep concessions to save their companies and keep Detroit alive. From 2005 on, we gave up pay increases, overtime pay and holidays, and agreed to reduced pay and benefits for new hires.
When Obama required more concessions from both labor and management in exchange for the emergency loans, we did the right thing. UAW agreed to freeze wages and benefits, and even agreed to waive for six years our right to strike. We were willing to share the sacrifice to help our industry and this region survive. They did more than survive. Today, the automakers are thriving. General Motors is once again the world's top carmaker. Its $7.6-billion profit in 2011 was its largest ever. The auto industry added more than 200,000 jobs in the last 2 1/2 years, and 2011 was the strongest year of job growth in our industry since 1994.
Demand for American cars is rising, so GM, Ford and Chrysler are running three production shifts a day at many plants. New shifts at GM's Detroit-Hamtramck Plant and Chrysler's Jefferson North Plant mean jobs for thousands more workers in Michigan, the Midwest and across the country. Chrysler was nearly forced to shutter its Sterling Heights Assembly Plant. Now its 2,300 workers are building the Chrysler 200, one of Detroit's hottest-selling new models. They repaid the federal loans years ahead of schedule. Michigan is recovering from the recession at the second-fastest pace in the country.
A stronger Detroit means a stronger nation. More working Michiganders mean more money in our economy, and more local restaurants and shops that thrive and create even more jobs. The president's emergency loans weren't a politically popular decision. But he refused to turn his back on us during Detroit's darkest hour. He stood up for us and more than a million American jobs that depend on the auto industry. If he hadn't, this great American industry and city would have collapsed. End of story. Our state and country would be a very different place without the auto loans. Autoworkers have good-paying American jobs that put food on the table, pay tuition bills, buy homes and keep the American dream alive. I don't have to tell you that cars made Detroit. But no matter what anyone tells you, it's thanks to President Obama that Detroit is still making cars.
Thursday, February 23, 2012
State of the Union February 23, 2012
Feb. 23, 2012 online at www.uawlocal2250.com
From Chairman Mike Bullock: Here is More information from the Leadership Meeting in Detroit on February 16: UAW Vice President Joe Ashton's first announcement was the $7000 profit sharing, He announced it is the largest profit sharing check ever for General Motors and the first time it has ever been larger than Ford."These results also prove that President Obama made the right decision to stand with American workers and the domestic auto industry at a time when it was a difficult and unpopular decision. Without the President's bold action, the American auto industry would have collapsed" VP Ashton said. He also commented on the need for GM to add money to the pension fund. The pension fund is currently underfunded by $10 billion. On pensions, VP Ashton said that in 2011 only 16% of Americans have a defined pension as compared to 10 years ago the number was 30%. Mike Grimes, Administrative Assistant to VP Ashton, announced the requisition of 1277 employees for 15 GM plants in the US. These openings will be filled by Area Hire and then Extended Area Hire throughout the country. Backfills for those openings will come from New Hires, where needed. Under the 2011 National Agreement all Guide and Delphi employees will be given two offers to transfer to a GM location, 1 Nationally and 1 regionally. According to AA Grimes all Nationwide offers have been made and only regional offers remain. There are no Local Delphi or Guide plants within our region, so we don't expect any more transfers from Delphi or Guide in the future. Legal Services informed the leadership that as of December 31, 2013, it will be discontinued. All UAW represented employees should use this benefit before that happens, if for nothing else but to have your will drawn up. Benefits Administrator Dean Manship reminded everyone that open enrollment for Optional Life Insurance will be this Spring. Anyone who has Optional Life can move up one level without a health survey. Administrator Manship says that one of the most difficult things his department has to deal with is the updating of beneficiaries, or lack of. He wants to remind everyone to confirm who their life insurance beneficiary is. This can be done by going online at www.gmbenefits.com. Also, a lot of employees are using VR time, when there are open VP days on the calendar. If you know you need a day off in advance use the time off procedure before burning a VR day.
From the Education Committee: The winner of the gift basket is Keith Brooks, security. Also, we still have UAW anniversary shirts for sale in limited sizes. You can contact Donell Jordan in body shop, 1st shift, at column BB-13 if you are interested.
If you completed your 90 days of employment from Jan. 1 – March 5, 2012, there is a free celebration planned for you on March 4 at Cuetopia Sports Bar & Grill. It is located at 11824 West Florissant in St. Louis (314-830-1200). The party will begin at 7:30 pm and feature free entertainment. Please call Rowena at 314-972-0432 or go to column AA-18, body shop 2nd shift, to make reservations. All UAW employees are welcome. Wear your UAW jackets.
From Huffington Post: General Motors shot back at Newt Gingrich Tuesday, openly mocking his stump speech allegation that the Chevy Volt is an "Obama car" because "you can't put a gun rack in a Volt." "Actually, you can," wrote GM's head of communications, Selim Bingol, on the company's blog. "But the real question is, 'Why would you?'" Gingrich made a stir last week during a speech in Georgia when he observed that the Volt isn't a great car for a gun rack. "We believe in the right to bear arms and we like to bear the arms in our trucks," he said, according to The Detroit News. "That’s like saying, 'You can’t put training wheels on a Harley,'" Bingol said. "There are better places for gun racks and training wheels -- pickup trucks and little Schwinns, respectively. Seriously, when is the last time you saw a gun rack in ANY sedan?"
This month’s Fortune magazine cover has “Toyota” emblazoned in red and states the automaker is “Back on track”. The piece is written by Alex Taylor (don’t call me junior) III, smug automotive pontificator and erstwhile UAW and GM basher. One of the positives he points out in making his case is Toyota’s joint electric vehicle venture with Tesla. That, however, may turn out to be a negative thing. Word is out that Tesla’s electric Roadsters, of which approximately 2200 have been sold, have a tendency to “brick” (Tesla’s word), which is to say that if the battery gets fully depleted, it is basically a brick, and therefore must be replaced at a cost of around $40,000 to the owner, because the “bumper to bumper” warranty does not cover any damage related to "Failure to maintain the Battery at a proper charge level at all times" as a Santa Barbara owner found out the hard way (insurance won’t cover it either). So far there have been 5 instances of such an occurance, and it’s easier to do than you might think. According to Jalopnik, a Tesla Roadster that is simply parked without being plugged in will eventually become a "brick". The parasitic load from the car's always-on subsystems continually drains the battery and if the battery's charge is ever totally depleted, it is essentially destroyed. Complete discharge can happen even when the car is plugged in if it isn't receiving sufficient current to charge, which can be caused by something as simple as using an extension cord. After battery death, the car is completely inoperable. At least in the case of the Tesla Roadster, it's not even possible to enable tow mode, meaning the wheels will not turn and the vehicle cannot be pushed nor transported to a repair facility by traditional means. The amount of time it takes an unplugged Tesla to die varies. Tesla's Roadster Owners Manual states that the battery should take approximately 11 weeks of inactivity to completely discharge. However, that is from a full 100% charge. If the car has been driven first, say to be parked at an airport for a long trip, that time can be substantially reduced. If the car is driven to nearly its maximum range and then left unplugged, it could potentially "brick" in about one week. Many other scenarios are possible: for example, the car becomes unplugged by accident, or is unwittingly plugged into an extension cord that is defective or too long. The Santa Barbara owner took his Roadster out for a drive and then parked it in a temporary garage while his home was being renovated. Lacking a built-in Tesla charger or a convenient power outlet, he left the car unplugged. Six weeks later his car was dead. It took four men two hours to drag the 2,700-pound Roadster onto a flatbed truck so that it could be shipped to Tesla's Los Angeles area service center, all at the owner's expense. As a second Roadster owner discovered, the Tesla battery system can completely discharge even when the vehicle is plugged in. This owner's car was plugged into a 100-foot long extension cord for an extended period. The length of this extension cord evidently reduced the electric current to a level insufficient to charge the Tesla, resulting in another "bricked" Roadster. So what is Tesla bringing to the Toyota joint venture party? From the Toyota press release: “As previously announced, Toyota will pay Tesla approximately $100 million to supply the electric powertrain, which includes the battery, motor, gear box and power electronics for the RAV4 EV. Tesla will build the electric powertrains at its production facility in Palo Alto, California and then ship them to TMMC for final assembly into the vehicle.”
From Chairman Mike Bullock: Here is More information from the Leadership Meeting in Detroit on February 16: UAW Vice President Joe Ashton's first announcement was the $7000 profit sharing, He announced it is the largest profit sharing check ever for General Motors and the first time it has ever been larger than Ford."These results also prove that President Obama made the right decision to stand with American workers and the domestic auto industry at a time when it was a difficult and unpopular decision. Without the President's bold action, the American auto industry would have collapsed" VP Ashton said. He also commented on the need for GM to add money to the pension fund. The pension fund is currently underfunded by $10 billion. On pensions, VP Ashton said that in 2011 only 16% of Americans have a defined pension as compared to 10 years ago the number was 30%. Mike Grimes, Administrative Assistant to VP Ashton, announced the requisition of 1277 employees for 15 GM plants in the US. These openings will be filled by Area Hire and then Extended Area Hire throughout the country. Backfills for those openings will come from New Hires, where needed. Under the 2011 National Agreement all Guide and Delphi employees will be given two offers to transfer to a GM location, 1 Nationally and 1 regionally. According to AA Grimes all Nationwide offers have been made and only regional offers remain. There are no Local Delphi or Guide plants within our region, so we don't expect any more transfers from Delphi or Guide in the future. Legal Services informed the leadership that as of December 31, 2013, it will be discontinued. All UAW represented employees should use this benefit before that happens, if for nothing else but to have your will drawn up. Benefits Administrator Dean Manship reminded everyone that open enrollment for Optional Life Insurance will be this Spring. Anyone who has Optional Life can move up one level without a health survey. Administrator Manship says that one of the most difficult things his department has to deal with is the updating of beneficiaries, or lack of. He wants to remind everyone to confirm who their life insurance beneficiary is. This can be done by going online at www.gmbenefits.com. Also, a lot of employees are using VR time, when there are open VP days on the calendar. If you know you need a day off in advance use the time off procedure before burning a VR day.
From the Education Committee: The winner of the gift basket is Keith Brooks, security. Also, we still have UAW anniversary shirts for sale in limited sizes. You can contact Donell Jordan in body shop, 1st shift, at column BB-13 if you are interested.
If you completed your 90 days of employment from Jan. 1 – March 5, 2012, there is a free celebration planned for you on March 4 at Cuetopia Sports Bar & Grill. It is located at 11824 West Florissant in St. Louis (314-830-1200). The party will begin at 7:30 pm and feature free entertainment. Please call Rowena at 314-972-0432 or go to column AA-18, body shop 2nd shift, to make reservations. All UAW employees are welcome. Wear your UAW jackets.
From Huffington Post: General Motors shot back at Newt Gingrich Tuesday, openly mocking his stump speech allegation that the Chevy Volt is an "Obama car" because "you can't put a gun rack in a Volt." "Actually, you can," wrote GM's head of communications, Selim Bingol, on the company's blog. "But the real question is, 'Why would you?'" Gingrich made a stir last week during a speech in Georgia when he observed that the Volt isn't a great car for a gun rack. "We believe in the right to bear arms and we like to bear the arms in our trucks," he said, according to The Detroit News. "That’s like saying, 'You can’t put training wheels on a Harley,'" Bingol said. "There are better places for gun racks and training wheels -- pickup trucks and little Schwinns, respectively. Seriously, when is the last time you saw a gun rack in ANY sedan?"
This month’s Fortune magazine cover has “Toyota” emblazoned in red and states the automaker is “Back on track”. The piece is written by Alex Taylor (don’t call me junior) III, smug automotive pontificator and erstwhile UAW and GM basher. One of the positives he points out in making his case is Toyota’s joint electric vehicle venture with Tesla. That, however, may turn out to be a negative thing. Word is out that Tesla’s electric Roadsters, of which approximately 2200 have been sold, have a tendency to “brick” (Tesla’s word), which is to say that if the battery gets fully depleted, it is basically a brick, and therefore must be replaced at a cost of around $40,000 to the owner, because the “bumper to bumper” warranty does not cover any damage related to "Failure to maintain the Battery at a proper charge level at all times" as a Santa Barbara owner found out the hard way (insurance won’t cover it either). So far there have been 5 instances of such an occurance, and it’s easier to do than you might think. According to Jalopnik, a Tesla Roadster that is simply parked without being plugged in will eventually become a "brick". The parasitic load from the car's always-on subsystems continually drains the battery and if the battery's charge is ever totally depleted, it is essentially destroyed. Complete discharge can happen even when the car is plugged in if it isn't receiving sufficient current to charge, which can be caused by something as simple as using an extension cord. After battery death, the car is completely inoperable. At least in the case of the Tesla Roadster, it's not even possible to enable tow mode, meaning the wheels will not turn and the vehicle cannot be pushed nor transported to a repair facility by traditional means. The amount of time it takes an unplugged Tesla to die varies. Tesla's Roadster Owners Manual states that the battery should take approximately 11 weeks of inactivity to completely discharge. However, that is from a full 100% charge. If the car has been driven first, say to be parked at an airport for a long trip, that time can be substantially reduced. If the car is driven to nearly its maximum range and then left unplugged, it could potentially "brick" in about one week. Many other scenarios are possible: for example, the car becomes unplugged by accident, or is unwittingly plugged into an extension cord that is defective or too long. The Santa Barbara owner took his Roadster out for a drive and then parked it in a temporary garage while his home was being renovated. Lacking a built-in Tesla charger or a convenient power outlet, he left the car unplugged. Six weeks later his car was dead. It took four men two hours to drag the 2,700-pound Roadster onto a flatbed truck so that it could be shipped to Tesla's Los Angeles area service center, all at the owner's expense. As a second Roadster owner discovered, the Tesla battery system can completely discharge even when the vehicle is plugged in. This owner's car was plugged into a 100-foot long extension cord for an extended period. The length of this extension cord evidently reduced the electric current to a level insufficient to charge the Tesla, resulting in another "bricked" Roadster. So what is Tesla bringing to the Toyota joint venture party? From the Toyota press release: “As previously announced, Toyota will pay Tesla approximately $100 million to supply the electric powertrain, which includes the battery, motor, gear box and power electronics for the RAV4 EV. Tesla will build the electric powertrains at its production facility in Palo Alto, California and then ship them to TMMC for final assembly into the vehicle.”
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