August 16, 2012 online at www.uawlocal2250.com
• There has been some misunderstanding about the use of VR time during the shutdown for those who have just 40 hours. Per the vacation application guidelines, “Employees entitled to 40 hours of vacation entitlement may chooseeither to use such hours or be placed on an unpaid leave of absence during the entire shutdown period.”
• Tickets for a 50-50 raffle to support the SOS ride this Saturday will go on sale Thursday. Trustee Wanda Richard will be in the cafeteria at first break and then on the shop floor selling tickets on first shift and Kim Davis will be selling tickets on 2nd shift. Also, SOS t-shirts will be on sale today in the cafeteria.
• Reminder: The 7th annual SOS – Support our Soldiers – motorcycle ride and rally will be next Saturday, Aug. 18. Registration will begin at 9 am at the Union Hall with the last bike out at 11am. Cost is $20 per bike, $5 per passenger and $5 for each extra hand. The ride ends at Crazy Horse Saloon in Wentzville at 6 pm. All bikes and cages (cars) are welcome. Proceeds will benefit Operation Homefront. If you have any questions you can contact Steve Melson at 636-262-1234.
• Hybrid full-size pickups and SUV’s have been in GM’s lineup for several years now, but you’d never know it reading this article from Wards Auto: The ultimate goal of a partnership formed last year between Fordand Toyotais a hybrid-electric fullsize pickup, says a high-ranking Ford engineer.“The nut we’re trying to crack is how do we do an F-150 hybrid?” Kevin Layden, Forddirector-electrification programs and engineering, tells WardsAutoat a media backgrounder here. “We’re working with (Toyota) and developing plans.” The auto makers last year inked an agreement to jointly develop rear-wheel-drive hybrid-electric powertrains, noting increasing fuel efficiency of light-duty pickups and SUVs is imperative to remaining viable in a U.S. market facing increasingly stringent government emissions and mileage regulations. The partners hope to mitigate costs and increase speed-to-market of new products. Work with Toyota is ongoing, Layden says, but he declines to reveal when a production vehicle may result from the tie-up. There are several obstacles confronting engineers, Layden says, including how to ensure a fuel-efficient electrified powertrain can handle the workload and durability demands of pickup and SUV buyers. “Everyone wants to tow with a truck, and that’s a duty cycle that really taxes the battery and electric motor” he says. “We have to figure out how you maximize that and still get the fuel economy.”
• Toyota has finally gotten on the electric vehicle bandwagon with an EV version of the compact SUV RAV4. The battery pack is supplied by Tesla, so it now appears that Toyota can do neither a hybrid electric full size pickup or a dedicated electric vehicle without considerable assistance. The RAV4 gas version starts at $22,650. The electric version? $49,800! For that you get, according to Wards Auto, “base-model-like bargain accoutrements: unappealing plastic trim on the instrument panel and door inners and fake-leather seating.”
• From Autoblog: Here's a shocking statistic: The United States has fewer cars per capita than Italy, Germany, France, Spain, Belgium, Japan, Australia, New Zealand and 16 other countries. Even more dramatic is one of the potential causes: A declining American middle class. According to an Atlantic report on a new study conduct by the Carnegie Endowment for International Peace, we're ranked just 25th in the world in per-person car ownership. The actual number stands at 439 cars per 1,000 Americans. Further, the U.S. is an outlier when you compare the number of vehicles per capita to household consumption. While we have one of the highest rates of household spending, car buying is in decline here. It is this disparity that points to the widening income gap in the U.S. as a potential cause of our low rate of car ownership. Indeed, car ownership rates track with the size of a nation's middle class, according to the report.
• From Automotive News: Opel is in talks with the IG Metall union and worker representatives to shorten working hours at its main German plant in Ruesselsheim, near Frankfurt. "Due to the deteriorating market situation in Europe, the management of Adam Opel AG is negotiating the subject of short time working and working hour reduction in Ruesselsheim with the works council and IG Metall," the money-losing General Motors subsidiary said in a statement on Thursday. The statement said the sides expect to reach an agreement quickly. Media reports cited company sources as saying Opel was also considering shortened working hours at its engine plant in Kaiserslautern, Germany. Ruesselsheim is Opel's main production hub and currently produces the Astra compact and Insignia mid-sized models. The carmaker has previously said that production of the next-generation Astra will be done at plants in the UK and Poland in 2015. If management and labor representatives agree to shorten working hours for the plant's staff, Opel can apply for subsidies under the German government's short-work program, called Kurzarbeit. The scheme was used by many struggling companies in the 2008-2009 recession, allowing them to preserve jobs by cutting the hours of employees when usage of plants was low, while having the government compensate workers for part of their lost wages. At the height of the last global financial crisis, more than 1.4 million workers in Germany received money under the program. While recent data shows only about 80,000 people were receiving such assistance in May of this year, several companies have had to seek government subsidies in recent months.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Thursday, August 16, 2012
Tuesday, August 14, 2012
State of the Union August 14, 2012
August 14, 2012 online at www.uawlocal2250.com
Tickets for a 50-50 raffle to support the SOS ride this Saturday will go on sale Thursday. Trustee Wanda Richard will be in the cafeteria at first break and then on the shop floor selling tickets on first shift and Kim Davis will be selling tickets on 2nd shift.
General Motors is recalling more than 10,000 full-size vans in the U.S. and Canada because the fuel filler pipes can rust, leak and cause fires. The recall affects Chevrolet Express and GMC Savana vans from the 2003 and 2004 model years with left-side cargo doors. It covers vans sold in 20 states, Washington, D.C., and in Canada, where salt and chemicals are used to clear snow from roads. GM said Tuesday salt and chemicals can get trapped in a conduit that covers the fuel filler pipe and cause corrosion. Gasoline may leak and cause a fire. The company said it doesn’t know of any fires or injuries from the problem. GM dealers will fix the problem free of charge.
Dealers are expected to be notified in October when parts become available. GM said in documents filed with the National Highway Traffic Safety Administration that owners already have been sent letters detailing special repair coverage for the problem. Owners know to take their vans to dealers if a leak develops. The vans were sold in all 50 states, but the recall affects only those sold or registered in Canada and the following states: Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia and Wisconsin. Owners with questions can call Chevrolet at (866) 694-6546 and GMC at (866) 996-9463. (The plant has been aware of this issue and a service bulletin had been issued to dealerships to correct the problem if it had occurred.)
The GM Korea Union has a tentative wage deal. Union members will vote on the tentative agreement on Thursday and Friday, union spokesman Choi Jong-hak told Dow Jones Newswires. The union agreed to a basic pay increase of 92,000 Korean won ($82) per person, performance-based bonus worth KRW5 million (about $4500) to be paid at the end of the year, and a lump-sum incentive payment of KRW3 million (about $2700), GM Korea spokesman Park Hae-ho said. On the issue of ending night shifts, the two parties have agreed to decide on the time frame for the new shift system in the first half of next year, Mr. Choi said.
Gov. Jay Nixon and the governors of Michigan, Tennessee and Illinois have founded the National Governors Auto Caucus to grow the auto industry and its suppliers, Gov. Nixon announced. The bi-partisan caucus, composed of Gov. Nixon, Gov. Richard Snyder (R-MI), Gov. Bill Haslam (R-TN), and Gov. Pat Quinn (D-IL), was introduced at an annual conference sponsored by the Center for Automotive Research in Traverse City, Michigan. "I look forward working with fellow Governors and experts in the industry to seek new ways to continue the recent growth in automotive manufacturing," said Gov. Nixon. "This partnership will help to strengthen the nation's economy and create more jobs in each of our states." A significant player in the U.S. economy, the automotive industry employs eight million people in manufacturing, suppliers and dealers. This industry generates $500 billion in income for its employees and $70 billion in tax revenues. Missouri's automotive industry comprises 5.3 percent of the state labor force with 190,000 employees throughout the state.
In Missouri, the growing automotive supply chain was bolstered by recent announcements by Ford and General Motors of expansion to their manufacturing facilities. Last year, Ford announced a $1.1 billion investment in its Kansas City Assembly Plant, adding a second manufacturing line for the F-150 pickup truck in 2012 and bringing in a new product, the Transit commercial van, in 2013-an investment that will create 1,600 new jobs. Earlier this year, GM broke ground on a $380 million expansion at its Wentzville plant, adding 1,660 jobs and a new pickup line for the Chevy Colorado. "The rebirth of the American auto industry is happening right here in Missouri," Gov. Nixon said. "We have an unprecedented opportunity to create jobs by growing our network of automotive suppliers throughout the state. Already we've seen great progress with the new projects and expansions at Magna International, Johnson Controls, Spartan Light Metals, Bodine Aluminum, and TG USA. These are the types of new jobs we want to bring to every community across Missouri."
From the Detroit Free Press: The Canadian Auto Workers union expects to reach agreements with Detroit’s three automakers this fall without a work stoppage, CAW President Ken Lewenza said at the opening of bargaining in Toronto today. CAW contracts with General Motors, Ford and Chrysler expire at midnight Sept. 17. The CAW is usually serious about sticking to the deadline. Lewenza said it is too early to talk about the target. GM’s opening proposal expressed the importance of operations in Canada but called for changes to reduce hourly costs because Canada has become one of the most expensive places to build vehicles. The handshake opening with Chrysler was to occur late today and Ford follows on Wednesday. A big factor is the strength of the Canadian dollar, Lewenza said, something that cannot be bargained. And its high value is “unsustainable,” he said, so companies should not bargain a long-term agreement based on current rates which the union thinks is 20% overvalued. Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Tickets for a 50-50 raffle to support the SOS ride this Saturday will go on sale Thursday. Trustee Wanda Richard will be in the cafeteria at first break and then on the shop floor selling tickets on first shift and Kim Davis will be selling tickets on 2nd shift.
General Motors is recalling more than 10,000 full-size vans in the U.S. and Canada because the fuel filler pipes can rust, leak and cause fires. The recall affects Chevrolet Express and GMC Savana vans from the 2003 and 2004 model years with left-side cargo doors. It covers vans sold in 20 states, Washington, D.C., and in Canada, where salt and chemicals are used to clear snow from roads. GM said Tuesday salt and chemicals can get trapped in a conduit that covers the fuel filler pipe and cause corrosion. Gasoline may leak and cause a fire. The company said it doesn’t know of any fires or injuries from the problem. GM dealers will fix the problem free of charge.
Dealers are expected to be notified in October when parts become available. GM said in documents filed with the National Highway Traffic Safety Administration that owners already have been sent letters detailing special repair coverage for the problem. Owners know to take their vans to dealers if a leak develops. The vans were sold in all 50 states, but the recall affects only those sold or registered in Canada and the following states: Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia and Wisconsin. Owners with questions can call Chevrolet at (866) 694-6546 and GMC at (866) 996-9463. (The plant has been aware of this issue and a service bulletin had been issued to dealerships to correct the problem if it had occurred.)
The GM Korea Union has a tentative wage deal. Union members will vote on the tentative agreement on Thursday and Friday, union spokesman Choi Jong-hak told Dow Jones Newswires. The union agreed to a basic pay increase of 92,000 Korean won ($82) per person, performance-based bonus worth KRW5 million (about $4500) to be paid at the end of the year, and a lump-sum incentive payment of KRW3 million (about $2700), GM Korea spokesman Park Hae-ho said. On the issue of ending night shifts, the two parties have agreed to decide on the time frame for the new shift system in the first half of next year, Mr. Choi said.
Gov. Jay Nixon and the governors of Michigan, Tennessee and Illinois have founded the National Governors Auto Caucus to grow the auto industry and its suppliers, Gov. Nixon announced. The bi-partisan caucus, composed of Gov. Nixon, Gov. Richard Snyder (R-MI), Gov. Bill Haslam (R-TN), and Gov. Pat Quinn (D-IL), was introduced at an annual conference sponsored by the Center for Automotive Research in Traverse City, Michigan. "I look forward working with fellow Governors and experts in the industry to seek new ways to continue the recent growth in automotive manufacturing," said Gov. Nixon. "This partnership will help to strengthen the nation's economy and create more jobs in each of our states." A significant player in the U.S. economy, the automotive industry employs eight million people in manufacturing, suppliers and dealers. This industry generates $500 billion in income for its employees and $70 billion in tax revenues. Missouri's automotive industry comprises 5.3 percent of the state labor force with 190,000 employees throughout the state.
In Missouri, the growing automotive supply chain was bolstered by recent announcements by Ford and General Motors of expansion to their manufacturing facilities. Last year, Ford announced a $1.1 billion investment in its Kansas City Assembly Plant, adding a second manufacturing line for the F-150 pickup truck in 2012 and bringing in a new product, the Transit commercial van, in 2013-an investment that will create 1,600 new jobs. Earlier this year, GM broke ground on a $380 million expansion at its Wentzville plant, adding 1,660 jobs and a new pickup line for the Chevy Colorado. "The rebirth of the American auto industry is happening right here in Missouri," Gov. Nixon said. "We have an unprecedented opportunity to create jobs by growing our network of automotive suppliers throughout the state. Already we've seen great progress with the new projects and expansions at Magna International, Johnson Controls, Spartan Light Metals, Bodine Aluminum, and TG USA. These are the types of new jobs we want to bring to every community across Missouri."
From the Detroit Free Press: The Canadian Auto Workers union expects to reach agreements with Detroit’s three automakers this fall without a work stoppage, CAW President Ken Lewenza said at the opening of bargaining in Toronto today. CAW contracts with General Motors, Ford and Chrysler expire at midnight Sept. 17. The CAW is usually serious about sticking to the deadline. Lewenza said it is too early to talk about the target. GM’s opening proposal expressed the importance of operations in Canada but called for changes to reduce hourly costs because Canada has become one of the most expensive places to build vehicles. The handshake opening with Chrysler was to occur late today and Ford follows on Wednesday. A big factor is the strength of the Canadian dollar, Lewenza said, something that cannot be bargained. And its high value is “unsustainable,” he said, so companies should not bargain a long-term agreement based on current rates which the union thinks is 20% overvalued. Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Thursday, August 2, 2012
State of the Union August 2, 2012
August 2, 2012 online at www.uawlocal2250.com
• Chairman Mike Bullock and President Van Simpson announced today the International Union appointments of Lou Jones as Adapt representative, Donetta Calloway as Human Resource Development representative and Millie Donnelly as Alternate EAP representative. Mike and Van would like everyone to give them their full support in their new assignments.
• If you were hired as a New Hire in December, 2011, as of August 1styou have health care coverage through Blue Cross Blue Shield by General Motors. However, YOU MUST call Fidelity at 800-489-4646 for health insurance, even if you don’t have dependents. If you have any questions, place a call to your Benefits Representative: Lisa Williams (636-327-2025), Russell Smith (636-327-2314) or Mike Bridgins (636-327-2112).
• As you saw yesterday, July was a breakout month for our van sales. Besides being our best July in 6 years, we outsold Ford by a wide margin and captured over 50% share, a rare achievement in any month since the van launch in 1996. Here is how the van segment shook out in July:
Over all, the industry reported sales on Wednesday of 1.15 million vehicles during July, which was an 8.9 percent improvement over the same period a year ago. That lags the 14.8 percent increase the industry recorded during the first six months of 2012. While sales are still on track to top 14 million vehicles for the entire year, analysts said growth appeared to be slowing somewhat. Industry incentives remained flat in July compared with the previous month, with an average discount per vehicle of about $2,200, according to Edmunds.com, an auto information site that compiles incentive data.
General Motors Co. today announced second quarter net income attributable to common stockholders of $1.5 billion, or $0.90 per fully diluted share. In the second quarter a year ago, GM’s net income attributable to common stockholders was $2.5 billion, or $1.54 per fully diluted share.
Net revenue in the second quarter of 2012 was $37.6 billion, compared with $39.4 billion in the second quarter of 2011. The decrease was due almost entirely to the strengthening of the U.S. dollar versus other major currencies. Earnings before interest and tax (EBIT) adjusted was $2.1 billion, compared with $3.0 billion in the second quarter of 2011. Total restructuring expense included in EBIT-adjusted for the second quarter of 2012 was $0.1 billion.
“Our results in North America, our International Operations and at GM Financial were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” said GM chairman and CEO Dan Akerson. “Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade.”
GM North America (GMNA) reported EBIT-adjusted of $2.0 billion, compared with $2.2 billion in the second quarter of 2011. (Total GMNA profits for the first 6 months are $3.656 billion, which equates to $3500 in profit sharing)
GM Europe (GME) reported an EBIT-adjusted loss of $0.4 billion, compared with EBIT-adjusted of $0.1 billion in second quarter of 2011.
GM International Operations (GMIO) reported EBIT-adjusted of $0.6 billion, equal to the second quarter of 2011.
GM South America (GMSA) reported breakeven results on an EBIT-adjusted basis, compared with EBIT-adjusted of $0.1 billion in the second quarter of 2011. The second quarter 2012 results include $0.1 billion in restructuring expenses.
GM Financial earnings before tax was $0.2 billion for the quarter, compared with $0.1 billion a year ago.
In the Corporate segment, GM reported EBIT-adjusted of $(0.2) billion, of which $(0.1) billion was attributable to a non-cash foreign exchange loss. For the quarter, automotive cash flow from operating activities was $3.8 billion and automotive free cash flow was $1.7 billion. GM ended the quarter with very strong total automotive liquidity of $38.5 billion. Automotive cash and marketable securities was $32.6 billion, compared with $31.5 billion at the end of the first quarter of 2012.
At the end of the first quarter, GM indicated that GMNA’s results for the second and third quarters of 2012 were expected to be comparable to the first quarter. Second quarter GMNA results were stronger in part due to timing of spending that was deferred to the third quarter. GM continues to expect that the average of its second and third quarter EBIT-adjusted in GMNA will be comparable to first quarter results. “We’re executing an aggressive product plan around the world, and at the same time we are working systematically to simplify the business and truly leverage our scale to grow our margins,” said Dan Ammann, senior vice president and CFO.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
• Chairman Mike Bullock and President Van Simpson announced today the International Union appointments of Lou Jones as Adapt representative, Donetta Calloway as Human Resource Development representative and Millie Donnelly as Alternate EAP representative. Mike and Van would like everyone to give them their full support in their new assignments.
• If you were hired as a New Hire in December, 2011, as of August 1styou have health care coverage through Blue Cross Blue Shield by General Motors. However, YOU MUST call Fidelity at 800-489-4646 for health insurance, even if you don’t have dependents. If you have any questions, place a call to your Benefits Representative: Lisa Williams (636-327-2025), Russell Smith (636-327-2314) or Mike Bridgins (636-327-2112).
• As you saw yesterday, July was a breakout month for our van sales. Besides being our best July in 6 years, we outsold Ford by a wide margin and captured over 50% share, a rare achievement in any month since the van launch in 1996. Here is how the van segment shook out in July:
| 2012 | 2011 | Change | Share | |
| GM | 11,980 | 6562 | +82.6% | 51.2% |
| Ford Econoline | 8,574 | 8802 | -2.6% | 36.6% |
| Mercedes Sprinter | 2203 | 1732 | +27% | 9.4% |
| Nissan NV | 651 | 679 | -4% | 2.8% |
| Ford Transit connect | 2627 | 2607 | +1% | --- |
Over all, the industry reported sales on Wednesday of 1.15 million vehicles during July, which was an 8.9 percent improvement over the same period a year ago. That lags the 14.8 percent increase the industry recorded during the first six months of 2012. While sales are still on track to top 14 million vehicles for the entire year, analysts said growth appeared to be slowing somewhat. Industry incentives remained flat in July compared with the previous month, with an average discount per vehicle of about $2,200, according to Edmunds.com, an auto information site that compiles incentive data.
General Motors Co. today announced second quarter net income attributable to common stockholders of $1.5 billion, or $0.90 per fully diluted share. In the second quarter a year ago, GM’s net income attributable to common stockholders was $2.5 billion, or $1.54 per fully diluted share.
Net revenue in the second quarter of 2012 was $37.6 billion, compared with $39.4 billion in the second quarter of 2011. The decrease was due almost entirely to the strengthening of the U.S. dollar versus other major currencies. Earnings before interest and tax (EBIT) adjusted was $2.1 billion, compared with $3.0 billion in the second quarter of 2011. Total restructuring expense included in EBIT-adjusted for the second quarter of 2012 was $0.1 billion.
“Our results in North America, our International Operations and at GM Financial were solid but we clearly have more work to do to offset the headwinds we face, especially in regions like Europe and South America,” said GM chairman and CEO Dan Akerson. “Despite the challenging environment, GM has now achieved 10 consecutive quarters of profitability, which is a milestone the company has not achieved in more than a decade.”
GM North America (GMNA) reported EBIT-adjusted of $2.0 billion, compared with $2.2 billion in the second quarter of 2011. (Total GMNA profits for the first 6 months are $3.656 billion, which equates to $3500 in profit sharing)
GM Europe (GME) reported an EBIT-adjusted loss of $0.4 billion, compared with EBIT-adjusted of $0.1 billion in second quarter of 2011.
GM International Operations (GMIO) reported EBIT-adjusted of $0.6 billion, equal to the second quarter of 2011.
GM South America (GMSA) reported breakeven results on an EBIT-adjusted basis, compared with EBIT-adjusted of $0.1 billion in the second quarter of 2011. The second quarter 2012 results include $0.1 billion in restructuring expenses.
GM Financial earnings before tax was $0.2 billion for the quarter, compared with $0.1 billion a year ago.
In the Corporate segment, GM reported EBIT-adjusted of $(0.2) billion, of which $(0.1) billion was attributable to a non-cash foreign exchange loss. For the quarter, automotive cash flow from operating activities was $3.8 billion and automotive free cash flow was $1.7 billion. GM ended the quarter with very strong total automotive liquidity of $38.5 billion. Automotive cash and marketable securities was $32.6 billion, compared with $31.5 billion at the end of the first quarter of 2012.
At the end of the first quarter, GM indicated that GMNA’s results for the second and third quarters of 2012 were expected to be comparable to the first quarter. Second quarter GMNA results were stronger in part due to timing of spending that was deferred to the third quarter. GM continues to expect that the average of its second and third quarter EBIT-adjusted in GMNA will be comparable to first quarter results. “We’re executing an aggressive product plan around the world, and at the same time we are working systematically to simplify the business and truly leverage our scale to grow our margins,” said Dan Ammann, senior vice president and CFO.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Friday, July 27, 2012
State of the Union July 27, 2012
July 27, 2012 online at www.uawlocal2250.com
•From the Chaplaincy Committee: There will be an in plant memorial for Ronald “Ron” C. Crisler today at 4:45 pm in the Chassis Chapel located at column C-42. All are welcome.
•The traffic lights on Highway A at the body (#2) and chassis (#4) entrances have been activated. Unfortunately we had no advance notice that this would be done this week. As soon as we find out the schedule for these lights we will let you know. For now assume that they will be operating when you are coming to and leaving the plant.
• Second quarter financial results from our competitors continue to come out. Volkswagen AG’s operating profit rose 3.4% to $3.98 billion on revenue of $58.4 billion, which was up 19%. That equates to a profit margin of 6.8%. Nissan reported operating profit of $1.5 billion, which was down 19.5% compared to last year. Revenue was $26.7 billion and profit margin was 5.7%. Hyundai reported profits of $2.2 billion, up 10%, on revenue of $25.4 billion for a profit margin of 8.7%. Kia had profits of $960 million, down 10%, on revenue of $14.4 billion, a 6.7% margin.
• From the Wall Street Journal: Ford Motor Co. is working on one of the biggest gambles in its 108-year history: a pickup truck with a largely aluminum body. The radical redesign will help meet tougher federal fuel-economy targets now starting to have wide-ranging effects on Detroit's auto makers. But Ford will have to overcome a host of manufacturing obstacles, plus convince die-hard pickup buyers that aluminum is as tough as steel. Ford is hoping the switch to the lighter metal will cut the weight of its F-150 truck by about 700 pounds, according to Ford executives familiar with the company's plans. The new Ford truck is being designed to come out in 2014 capable of hitting the increasing fuel economy standards through 2020, one of the executives familiar with its plans said. That would equate to roughly a 25% improvement in fuel economy. The aluminum body is being used for the F-150 only; the larger F-250 and other Ford heavy trucks don't fall under the new fuel-economy standards.
GM, Ford's longtime rival, which outsells Ford some years in trucks with Chevy and GMC combined, also looked into increasing the use of aluminum to improve fuel-economy in future pickups. But GM concluded customers will balk at paying more. "Pickup buyers have enjoyed this bandwidth of cheapness, in which they get size, capability and aesthetics at affordable prices," said Mark Reuss, who runs GM's North American operations. Instead, GM plans to address the fuel-economy challenge by producing two different trucks. Next year, GM is expected to launch a full-size truck for customers who need power and towing performance. GM is working on improved engines and transmissions to reduce fuel consumption. The new trucks will also have a sleeker design to improve aerodynamics, and use aluminum to cut weight, but not to the same level as Ford. Then, about two years later, GM will add a smaller truck. It won't be able to haul quite as much gravel or tow as much gear as the bigger model, but GM is counting on it to offer 20% better gas mileage, without the extra cost of heavy use of aluminum parts, a person familiar with GM's plans said.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
•From the Chaplaincy Committee: There will be an in plant memorial for Ronald “Ron” C. Crisler today at 4:45 pm in the Chassis Chapel located at column C-42. All are welcome.
•The traffic lights on Highway A at the body (#2) and chassis (#4) entrances have been activated. Unfortunately we had no advance notice that this would be done this week. As soon as we find out the schedule for these lights we will let you know. For now assume that they will be operating when you are coming to and leaving the plant.
• Second quarter financial results from our competitors continue to come out. Volkswagen AG’s operating profit rose 3.4% to $3.98 billion on revenue of $58.4 billion, which was up 19%. That equates to a profit margin of 6.8%. Nissan reported operating profit of $1.5 billion, which was down 19.5% compared to last year. Revenue was $26.7 billion and profit margin was 5.7%. Hyundai reported profits of $2.2 billion, up 10%, on revenue of $25.4 billion for a profit margin of 8.7%. Kia had profits of $960 million, down 10%, on revenue of $14.4 billion, a 6.7% margin.
• From the Wall Street Journal: Ford Motor Co. is working on one of the biggest gambles in its 108-year history: a pickup truck with a largely aluminum body. The radical redesign will help meet tougher federal fuel-economy targets now starting to have wide-ranging effects on Detroit's auto makers. But Ford will have to overcome a host of manufacturing obstacles, plus convince die-hard pickup buyers that aluminum is as tough as steel. Ford is hoping the switch to the lighter metal will cut the weight of its F-150 truck by about 700 pounds, according to Ford executives familiar with the company's plans. The new Ford truck is being designed to come out in 2014 capable of hitting the increasing fuel economy standards through 2020, one of the executives familiar with its plans said. That would equate to roughly a 25% improvement in fuel economy. The aluminum body is being used for the F-150 only; the larger F-250 and other Ford heavy trucks don't fall under the new fuel-economy standards.
GM, Ford's longtime rival, which outsells Ford some years in trucks with Chevy and GMC combined, also looked into increasing the use of aluminum to improve fuel-economy in future pickups. But GM concluded customers will balk at paying more. "Pickup buyers have enjoyed this bandwidth of cheapness, in which they get size, capability and aesthetics at affordable prices," said Mark Reuss, who runs GM's North American operations. Instead, GM plans to address the fuel-economy challenge by producing two different trucks. Next year, GM is expected to launch a full-size truck for customers who need power and towing performance. GM is working on improved engines and transmissions to reduce fuel consumption. The new trucks will also have a sleeker design to improve aerodynamics, and use aluminum to cut weight, but not to the same level as Ford. Then, about two years later, GM will add a smaller truck. It won't be able to haul quite as much gravel or tow as much gear as the bigger model, but GM is counting on it to offer 20% better gas mileage, without the extra cost of heavy use of aluminum parts, a person familiar with GM's plans said.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
State of the Union July 25, 2012
July 25, 2012 online at www.uawlocal2250.com
The 7th annual SOS – Support our Soldiers – motorcycle ride and rally will be Saturday, Aug. 18. Registration will begin at 9 am at the Union Hall with the last bike out at 11am. Cost is $20 per bike, $5 per passenger and $5 for each extra hand. The ride ends at Crazy Horse Saloon in Wentzville at 6 pm. All bikes and cages are welcome. Proceeds will benefit Operation Homefront. If you have any questions you can contact Steve Melson at 636-262-1234.
From the Wall Street Journal: Ford Motor Co.’s second-quarter net profit slid 57% as its overseas operations and a higher tax rate held back strong results from North America. Ford also lowered its full-year profit forecast as well as its budget for capital spending. The company's results give a hint into its expanding economic problems abroad, particularly in Europe and how much it now relies on its home market for profits. Overall, Ford posted second-quarter net profit of $1.04 billion, down from $2.4 billion in the year-earlier period. Revenue fell 6.2% to $33.3 billion from $35.5 billion. Ford's operating earnings of $1.8 billion or 30 cents a share—after-tax profits excluding some charges for asset write-downs and cuts to workers—were better than the 28-cent a share profit forecast by analysts. Ford said it now expects its annual losses in Europe to exceed $1 billion, up from the $600 million loss forecast earlier in the year.
"This is structural in nature," said Bob Shanks, Ford's chief financial officer, in an interview after the release of the earnings. "And we think this is a situation that we will have to deal with for the foreseeable future." Mr. Shanks said Ford is expecting difficulties in Europe to last at least five years. He suggested that Ford will announce a restructuring initiative there in the future. Ford posted a pre-tax loss of $404 million in the region, a reverse from the $176 million it made a year earlier in the quarter. Revenues in Europe fell $1.9 billion to $7 billion.
Ford's North American operations produced $2 billion in pre-tax profit, up $1.9 billion a year earlier. Its profit margin in its home market increased to 10.2% from 9.8%. The company said its South American posted a $5 million pre-tax profit— positive, but a plunge from the $267 million year-ago result as competition forced it to lower prices or use incentives to sell cars. Ford said it expects the region to remain profitable for the year. Ford's Asia and Africa operations also lost $66 million on a pre-tax basis as higher revenues from car sales were offset by heavy capital spending for new plants and products. Ford Motor Credit's pre-tax results also declined to $447 million, down from $604 million a year earlier. The lending arm is getting less revenue and profit from vehicles returned on leases.(General Motors will report 2nd quarter financial results Thursday, Aug. 2)
Chevrolet topped three categories in the latest J.D. Power and Associates’ Automotive Performance, Execution and Layout study, released today. The APEAL survey measures what consumers like about their vehicles based on rankings of 80 attributes collected between February and May of this year. The Chevrolet Sonic subcompact, Volt compact car and Avalanche pickup all place first in their respective categories. Results are spread across U.S., Asian and European auto makers alike, with Audi, Dodge, Ford, Kia, Mini, Nissanand Porsche each receiving two first-place honors, and BMW, Infiniti, Range Rover, Mercedes-Benz and Volkswagen each taking home one. At 887 out of a possible 1,000 points, Porsche is the highest-ranking nameplate in the APEAL study for an eighth consecutive year. The industry average is 788 points. Cadillac was GM’s highest rated brand at 823 points, followed by Buick (784), GMC (780) and Chevrolet (777).
From Torque News: The Chevrolet.com website page dedicated to the Chevrolet Volt has three interesting “gauges” showing the actual number of miles driven by Chevrolet Volt owners around the United States. The Volt communicates with company computers to keep a running, up to the second total of the miles driven by Volt owners around the country, including how many of those miles are driven on electricity. It is really a very interesting feature.
As this piece goes live here on Torque News.com, the Chevrolet Volt has traveled roughly 105,790,000 miles on US roads and roughly 67,020,000 of those miles have been driven on pure electric power – meaning that roughly 64% of the Volt mileage over the last 21 months has been electric. The result of all of this electric driving is over 3.5 million gallons of gasoline saved by using electric power as opposed to gasoline. Considering that the national gas price average right now for the required premium fuel is $3.75, Volt owners have saved a whopping $13.24 million dollars.
From Digital Trends: The Nissan Leaf may be able to drive quickly in reverse, but it may not be able to handle intense summer heat. Several Leaf owners in Arizona say their cars are losing range, CBS5-TV Phoenix reports, and they think the heat is to blame. One Leaf owner said that when they bought their car a year ago it returned 90 miles on one charge, enough to get them to work and back. Now the Leaf will only go 44 miles on a single charge. In addition, owners have seen two or three of the 12 lights on the Leafs’ battery capacity gauges stay off, even with a full charge. That indicates that the battery is no longer holding the extra charge. There are 400 Leafs on the road in Arizona, and five owners have complained of reduced battery range so far. They say their Leafs have lost 30 percent of their battery capacity, despite impeccable maintenance, proper driving techniques, and a clean bill of health from Nissan dealers. According to Nissan, a battery should not lose 30 percent of its charge until the car is seven years old. However, director of product planning Mark Perry said the company does not consider the Arizona complaints a problem, although it is investigating them.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
The 7th annual SOS – Support our Soldiers – motorcycle ride and rally will be Saturday, Aug. 18. Registration will begin at 9 am at the Union Hall with the last bike out at 11am. Cost is $20 per bike, $5 per passenger and $5 for each extra hand. The ride ends at Crazy Horse Saloon in Wentzville at 6 pm. All bikes and cages are welcome. Proceeds will benefit Operation Homefront. If you have any questions you can contact Steve Melson at 636-262-1234.
From the Wall Street Journal: Ford Motor Co.’s second-quarter net profit slid 57% as its overseas operations and a higher tax rate held back strong results from North America. Ford also lowered its full-year profit forecast as well as its budget for capital spending. The company's results give a hint into its expanding economic problems abroad, particularly in Europe and how much it now relies on its home market for profits. Overall, Ford posted second-quarter net profit of $1.04 billion, down from $2.4 billion in the year-earlier period. Revenue fell 6.2% to $33.3 billion from $35.5 billion. Ford's operating earnings of $1.8 billion or 30 cents a share—after-tax profits excluding some charges for asset write-downs and cuts to workers—were better than the 28-cent a share profit forecast by analysts. Ford said it now expects its annual losses in Europe to exceed $1 billion, up from the $600 million loss forecast earlier in the year.
"This is structural in nature," said Bob Shanks, Ford's chief financial officer, in an interview after the release of the earnings. "And we think this is a situation that we will have to deal with for the foreseeable future." Mr. Shanks said Ford is expecting difficulties in Europe to last at least five years. He suggested that Ford will announce a restructuring initiative there in the future. Ford posted a pre-tax loss of $404 million in the region, a reverse from the $176 million it made a year earlier in the quarter. Revenues in Europe fell $1.9 billion to $7 billion.
Ford's North American operations produced $2 billion in pre-tax profit, up $1.9 billion a year earlier. Its profit margin in its home market increased to 10.2% from 9.8%. The company said its South American posted a $5 million pre-tax profit— positive, but a plunge from the $267 million year-ago result as competition forced it to lower prices or use incentives to sell cars. Ford said it expects the region to remain profitable for the year. Ford's Asia and Africa operations also lost $66 million on a pre-tax basis as higher revenues from car sales were offset by heavy capital spending for new plants and products. Ford Motor Credit's pre-tax results also declined to $447 million, down from $604 million a year earlier. The lending arm is getting less revenue and profit from vehicles returned on leases.(General Motors will report 2nd quarter financial results Thursday, Aug. 2)
Chevrolet topped three categories in the latest J.D. Power and Associates’ Automotive Performance, Execution and Layout study, released today. The APEAL survey measures what consumers like about their vehicles based on rankings of 80 attributes collected between February and May of this year. The Chevrolet Sonic subcompact, Volt compact car and Avalanche pickup all place first in their respective categories. Results are spread across U.S., Asian and European auto makers alike, with Audi, Dodge, Ford, Kia, Mini, Nissanand Porsche each receiving two first-place honors, and BMW, Infiniti, Range Rover, Mercedes-Benz and Volkswagen each taking home one. At 887 out of a possible 1,000 points, Porsche is the highest-ranking nameplate in the APEAL study for an eighth consecutive year. The industry average is 788 points. Cadillac was GM’s highest rated brand at 823 points, followed by Buick (784), GMC (780) and Chevrolet (777).
From Torque News: The Chevrolet.com website page dedicated to the Chevrolet Volt has three interesting “gauges” showing the actual number of miles driven by Chevrolet Volt owners around the United States. The Volt communicates with company computers to keep a running, up to the second total of the miles driven by Volt owners around the country, including how many of those miles are driven on electricity. It is really a very interesting feature.
As this piece goes live here on Torque News.com, the Chevrolet Volt has traveled roughly 105,790,000 miles on US roads and roughly 67,020,000 of those miles have been driven on pure electric power – meaning that roughly 64% of the Volt mileage over the last 21 months has been electric. The result of all of this electric driving is over 3.5 million gallons of gasoline saved by using electric power as opposed to gasoline. Considering that the national gas price average right now for the required premium fuel is $3.75, Volt owners have saved a whopping $13.24 million dollars.
From Digital Trends: The Nissan Leaf may be able to drive quickly in reverse, but it may not be able to handle intense summer heat. Several Leaf owners in Arizona say their cars are losing range, CBS5-TV Phoenix reports, and they think the heat is to blame. One Leaf owner said that when they bought their car a year ago it returned 90 miles on one charge, enough to get them to work and back. Now the Leaf will only go 44 miles on a single charge. In addition, owners have seen two or three of the 12 lights on the Leafs’ battery capacity gauges stay off, even with a full charge. That indicates that the battery is no longer holding the extra charge. There are 400 Leafs on the road in Arizona, and five owners have complained of reduced battery range so far. They say their Leafs have lost 30 percent of their battery capacity, despite impeccable maintenance, proper driving techniques, and a clean bill of health from Nissan dealers. According to Nissan, a battery should not lose 30 percent of its charge until the car is seven years old. However, director of product planning Mark Perry said the company does not consider the Arizona complaints a problem, although it is investigating them.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Monday, July 23, 2012
State of the Union July 20, 2012
July 20, 2012 online at www.uawlocal2250.com
We have been informed that as a result of already achieving full production after the model change this week, mandatory overtime relating to the model change is no longer in effect.
Reminder: It is General Motors policy that no weapons are allowed on company property, which includes inside the plant, the parking lots and surrounding areas such as the ball fields.
The Women’s Committee golf tournament has been rescheduled for Sunday, Sept. 23. Start time will be 1 pm and the location is still Country Lake golf course in Warrenton.
GM has announced increased Employee Vehicle Allowance (EVA) cash on most 2012 models. You can combine this with the preferred price, consumer cash and other offers like trade in allowance or Chevy confidence cash to get a great deal on a new car, truck or SUV. Models with increased EVA include the Chevrolet Camaro, Equinox, Impala, Silverado (reg. and ext. cab) and Traverse; Buick Enclave and LaCrosse; Cadillac Escalade and CTS; and GMC Acadia, Terrain and Sierra (reg. and ext. cab).
You must take delivery by July 31. Here are a couple of price examples:
From Automotive News: Automakers are pretty good at keeping future product secrets but occasionally suppliers let cats out of bags unintentionally, and General Motors has been burned twice recently. Canadian toolmaker Omega Tool recently showed off its capabilities in a video on its Web site. In the process it inadvertently revealed the injection-molded bumper cover for the redesigned 2014 Corvette -- a big deal among Vette devotees. The car is to debut at the Detroit auto show in January, and Chevy is doing its best to keep the car under wraps. Omega yanked the video after its miscue gained fame on the Internet, but Corvette fans have sent it speeding around cyberspace. And another GM supplier helped confirm plans for a redone GMC Canyon pickup, even though GM hasn't acknowledged the truck's existence. This is the last year for the current Canyon and Chevy Colorado pickups, and GM is winding down the plant that builds them. GM announced a redone Colorado but has been mum on plans for GMC. But Rugged Liner Inc., of Owosso, Mich., has put out a release saying that it will supply bed liners for the 2015 Chevy Colorado -- and GMC Canyon. Obama made the right call on the auto bailout
By UAW President Bob King:
The bankruptcy restructuring General Motors and Chrysler in 2009 through the creation of new companies formed with assets purchased from those troubled companies was highly successful. Today GM and Chrysler are profitable, investing in America and creating jobs. President Obama’s decision to act to save GM and Chrysler prevented an economic catastrophe that would have thrown the nation into a full-blown depression and resulted in dozens of additional bankruptcies in the auto industry and across industrial America. Instead, the auto industry today accounts for an outsized share of economic growthand is helping lead our nation's economic recovery.
Yet, for political critics of the Obama administration, this achievement, completing a process started by President Bush, is barely worth mentioning. The problem for these critics is that the public, especially in states with a large auto industry presence, knows better. People who lived through the ups and downs of the auto industry remember well what happened and how it turned out. So when Republican presidential candidate Mitt Romney insists that GM and Chrysler should have been restructured in a deal financed by private lenders, the public remembers that no entity besides the U.S. Treasury would provide that funding. Without the Treasury, "Let Detroit Go Bankrupt" would have turned into "Force Detroit to Liquidate," with all the economic calamity that would have followed. U.S.Judge Arthur Gonzales found exactly that in the order authorizing the sale of Chrysler's assets to the new Chrysler: "The sale transaction is the only alternative to liquidation available to the debtors." Another oft-repeated criticism is the claim that bankrupt Chrysler's secured creditors got less than they were entitled to under the bankruptcy code. In fact, the secured creditors received the highest possible amount available to them. Judge Gonzales affirmed this point in the sale order: "The sale transaction will provide a greater recovery for the debtors' creditors than would be provided by any other practical available alternative, including, without limitation, liquidation whether under chapter 11 or chapter 7 of the Bankruptcy Code." The Chrysler creditors group agreed, with 90% supporting the sale as ordered. The U.S. Appeals Court and the Supreme Court also agreed: Challenges to the treatment of various categories of creditors were rejected. Yet, well after the questions of fact and law were settled in court, claims to the contrary are common among the president's opponents.
The latest salvo comes from the Heritage Foundation, repeating the idea that the United Auto Workers' retiree health care trusts received more money than they were entitled to under the principles of bankruptcy reorganization when compared with unsecured creditors. But the comparison is hardly apt. The creditor's recovery is still occurring as a part of the bankruptcy restructuring, while the health care funding was approved by the court under the specific part of the bankruptcy code that deals with retirees, resulting in agreements with the new GM and Chrysler. The companies prudently bargained new contracts with the employees (and suppliers) they needed to be successful as newly formed entities. That amounts to good business judgment that is difficult to second-guess when both GM and Chrysler are performing better than they have in decades. This improvement was not achieved without significant sacrifice on the part of UAW members.
Many plants were closed, and tens of thousands of UAW members lost their jobs. Those hired before 2007 haven't had a raise since 2003. They also gave up cost-of-living raises, bonuses, vacation pay, overtime pay, holidays and break time. Those hired since 2007 are working for lower pay and benefits that have allowed the companies to hire thousands of workers at a greatly reduced cost. Retiree health care liabilities were shifted to the retiree trusts; retirees lost vision and dental coverage and face increased out-of-pocket costs. Last year, UAW members approved four-year collective bargaining agreements with the domestic automakers that contain no raises, but the deals have the possibility of increased at-risk compensation through profit sharing. In return, the companies agreed to invest in U.S facilities and create at least 20,000 new direct jobs that will result in tens of thousands of supporting jobs at suppliers and other businesses supported by the auto industry in communities across the country. In those communities, we are seeing plants retooled for new products and new technology, especially as manufacturers race to meet consumer expectations for more fuel-efficient vehicles. While the political opponents of the auto rescue package are sure to continue their flawed criticisms, those who live and work in auto communities across the nation see the success, the employment growth and the sense of a brighter future, and that is the real thing worth remembering about what President Obama did to save the U.S. auto industry.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
We have been informed that as a result of already achieving full production after the model change this week, mandatory overtime relating to the model change is no longer in effect.
Reminder: It is General Motors policy that no weapons are allowed on company property, which includes inside the plant, the parking lots and surrounding areas such as the ball fields.
The Women’s Committee golf tournament has been rescheduled for Sunday, Sept. 23. Start time will be 1 pm and the location is still Country Lake golf course in Warrenton.
GM has announced increased Employee Vehicle Allowance (EVA) cash on most 2012 models. You can combine this with the preferred price, consumer cash and other offers like trade in allowance or Chevy confidence cash to get a great deal on a new car, truck or SUV. Models with increased EVA include the Chevrolet Camaro, Equinox, Impala, Silverado (reg. and ext. cab) and Traverse; Buick Enclave and LaCrosse; Cadillac Escalade and CTS; and GMC Acadia, Terrain and Sierra (reg. and ext. cab).
You must take delivery by July 31. Here are a couple of price examples:
- MSRP of Equinox LTZ FWD with optional equipment - $ 31,045.00 Preferred Pricing: $29,955.36 Employee Vehicle Allowance -$2,000.00 Chevy Confidence Cash -$500.00 Price You Pay - $27,455.36 Your Discount $3,589.64
- MSRP of Sierra 1500 Ext. Cab SLE 2WD with optional equipment - $33,285.00 Preferred Pricing: $31,439.82 Employee Vehicle Allowance -$3,500.00 Consumer Cash -$3,000.00 Trade-In Allowance -$1,000.00 Loyalty/Conquest Cash -$500.00 Price You Pay - $23,439.82 Your Discount - $9,845.18
From Automotive News: Automakers are pretty good at keeping future product secrets but occasionally suppliers let cats out of bags unintentionally, and General Motors has been burned twice recently. Canadian toolmaker Omega Tool recently showed off its capabilities in a video on its Web site. In the process it inadvertently revealed the injection-molded bumper cover for the redesigned 2014 Corvette -- a big deal among Vette devotees. The car is to debut at the Detroit auto show in January, and Chevy is doing its best to keep the car under wraps. Omega yanked the video after its miscue gained fame on the Internet, but Corvette fans have sent it speeding around cyberspace. And another GM supplier helped confirm plans for a redone GMC Canyon pickup, even though GM hasn't acknowledged the truck's existence. This is the last year for the current Canyon and Chevy Colorado pickups, and GM is winding down the plant that builds them. GM announced a redone Colorado but has been mum on plans for GMC. But Rugged Liner Inc., of Owosso, Mich., has put out a release saying that it will supply bed liners for the 2015 Chevy Colorado -- and GMC Canyon. Obama made the right call on the auto bailout
By UAW President Bob King:
The bankruptcy restructuring General Motors and Chrysler in 2009 through the creation of new companies formed with assets purchased from those troubled companies was highly successful. Today GM and Chrysler are profitable, investing in America and creating jobs. President Obama’s decision to act to save GM and Chrysler prevented an economic catastrophe that would have thrown the nation into a full-blown depression and resulted in dozens of additional bankruptcies in the auto industry and across industrial America. Instead, the auto industry today accounts for an outsized share of economic growthand is helping lead our nation's economic recovery.
Yet, for political critics of the Obama administration, this achievement, completing a process started by President Bush, is barely worth mentioning. The problem for these critics is that the public, especially in states with a large auto industry presence, knows better. People who lived through the ups and downs of the auto industry remember well what happened and how it turned out. So when Republican presidential candidate Mitt Romney insists that GM and Chrysler should have been restructured in a deal financed by private lenders, the public remembers that no entity besides the U.S. Treasury would provide that funding. Without the Treasury, "Let Detroit Go Bankrupt" would have turned into "Force Detroit to Liquidate," with all the economic calamity that would have followed. U.S.Judge Arthur Gonzales found exactly that in the order authorizing the sale of Chrysler's assets to the new Chrysler: "The sale transaction is the only alternative to liquidation available to the debtors." Another oft-repeated criticism is the claim that bankrupt Chrysler's secured creditors got less than they were entitled to under the bankruptcy code. In fact, the secured creditors received the highest possible amount available to them. Judge Gonzales affirmed this point in the sale order: "The sale transaction will provide a greater recovery for the debtors' creditors than would be provided by any other practical available alternative, including, without limitation, liquidation whether under chapter 11 or chapter 7 of the Bankruptcy Code." The Chrysler creditors group agreed, with 90% supporting the sale as ordered. The U.S. Appeals Court and the Supreme Court also agreed: Challenges to the treatment of various categories of creditors were rejected. Yet, well after the questions of fact and law were settled in court, claims to the contrary are common among the president's opponents.
The latest salvo comes from the Heritage Foundation, repeating the idea that the United Auto Workers' retiree health care trusts received more money than they were entitled to under the principles of bankruptcy reorganization when compared with unsecured creditors. But the comparison is hardly apt. The creditor's recovery is still occurring as a part of the bankruptcy restructuring, while the health care funding was approved by the court under the specific part of the bankruptcy code that deals with retirees, resulting in agreements with the new GM and Chrysler. The companies prudently bargained new contracts with the employees (and suppliers) they needed to be successful as newly formed entities. That amounts to good business judgment that is difficult to second-guess when both GM and Chrysler are performing better than they have in decades. This improvement was not achieved without significant sacrifice on the part of UAW members.
Many plants were closed, and tens of thousands of UAW members lost their jobs. Those hired before 2007 haven't had a raise since 2003. They also gave up cost-of-living raises, bonuses, vacation pay, overtime pay, holidays and break time. Those hired since 2007 are working for lower pay and benefits that have allowed the companies to hire thousands of workers at a greatly reduced cost. Retiree health care liabilities were shifted to the retiree trusts; retirees lost vision and dental coverage and face increased out-of-pocket costs. Last year, UAW members approved four-year collective bargaining agreements with the domestic automakers that contain no raises, but the deals have the possibility of increased at-risk compensation through profit sharing. In return, the companies agreed to invest in U.S facilities and create at least 20,000 new direct jobs that will result in tens of thousands of supporting jobs at suppliers and other businesses supported by the auto industry in communities across the country. In those communities, we are seeing plants retooled for new products and new technology, especially as manufacturers race to meet consumer expectations for more fuel-efficient vehicles. While the political opponents of the auto rescue package are sure to continue their flawed criticisms, those who live and work in auto communities across the nation see the success, the employment growth and the sense of a brighter future, and that is the real thing worth remembering about what President Obama did to save the U.S. auto industry.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119
Tuesday, July 10, 2012
State of the Union July 10, 2012
July 10, 2012 online at www.uawlocal2250.com
The Women’s Committee golf tournament has been rescheduled for Sunday, Sept. 23. Start time will be 1 pm and the location will still be Country Lake golf course in Warrenton.
To celebrate the transformation of its portfolio, Chevrolet will begin offering the Chevy Confidence program today for customers in participating U.S. retailers. Although employees and their families are not eligible for the program, we encourage you to share this news with your friends and social circles. Chevy Confidence includes:
Although employees and family members are not eligible for the 60 day return (we get cash off of $250 or $500 instead), it is a great opportunity for employees to try and get individuals into our products. Not only will they get the 60 day guarantee, but they get Preferred Pricing as well.
From Wards Auto: Small cars and motorcycles are the primary means of transportation on the crowded streets of Bangkok. But that changes quickly and dramatically once one gets out of town. Beyond the city limits, pickup trucks are a commanding presence on Thailand’s roadways, from expressways to back roads. “One-ton pickups rule the world here,” says Martin Apfel, president of General Motors Thailand. This nation of 66 million people is second only to the U.S. in pickup sales. “But on a per-capita basis, Thailand is No.1,” says Michael Diamente, managing director of a Dana-Spicer plant that makes truck parts in Thailand. Thais go more for midsize pickups, compared with Americans who tend to prefer fullsize models. Double-cab and 1-ton midsize pickups account for 60% of Thailand’s total vehicle production. It is expected to reach 2.2 million units this year, according to The Thai Automobile Industry Assn.
GM bills its 4-door crew-cab Colorado as “perfect for family applications or where carrying passengers in comfort is a priority. GM builds that model as well as 2-door extended-cab and single-cab Colorados at its plant in Rayong province southeast of Bangkok. The Colorado is “a big vehicle for the future of Chevrolet in Thailand,” an upbeat Apfel says at the truck’s launch. It’s “the most clean-sheet midsize truck program” in GM’s history. GM believes it has put daylight between itself and rivals. “It’s right at the top in terms of refinement,” Apfel says of the Colorado. “It is a true global truck,” he reckons. “We have designed, engineered and manufactured this truck to compete anywhere in the world – it’s the truck we always wanted to build.” The new Colorado offers seven body colors, with the 2.5L turbodiesel kicking off here at TB537,000 ($17,435) for the single cab (all prices include air-conditioning). The price rises through three versions of the extended cab – standard, high stance and 4x4 – ranging from TB584,000-TB737,000 ($18,961-$24,000), and three similar versions of the double cab, from TB659,000-TB808,000 ($21,396-$26,234).
Fuel economy of all new vehicles sold in the United States has dropped for the third month in a row-likely reflecting the continuing reduction in gas prices, say researchers at the University of Michigan Transportation Research Institute. Average fuel economy (window-sticker values) of cars, light trucks, minivans and SUVs purchased in June was 23.6 mpg-down from 23.7 in May, 23.9 in April and 24.1 in March-but still a 17 percent increase (3.5 mpg) from October 2007, the first month of monitoring by UMTRI researchers Michael Sivak and Brandon Schoettle. Sivak and Schoettle also reported the unadjusted Corporate Average Fuel Economy performance. This index is based on a different set of EPA ratings than window-sticker values. For June, unadjusted CAFE performance was 29 mpg, down from 29.1 in May, 29.3 in April and 29.6 mpg in March, but an increase of 17 percent (4.3 mpg) since October 2007.
The Women’s Committee golf tournament has been rescheduled for Sunday, Sept. 23. Start time will be 1 pm and the location will still be Country Lake golf course in Warrenton.
To celebrate the transformation of its portfolio, Chevrolet will begin offering the Chevy Confidence program today for customers in participating U.S. retailers. Although employees and their families are not eligible for the program, we encourage you to share this news with your friends and social circles. Chevy Confidence includes:
- Love it or Return it: a 60-day vehicle return program on every new 2012 or 2013 model year vehicle purchase. It’s simple – if you don’t love it, return it.
- Total Confidence Pricing: all 2012 model year Chevrolets will be offered at the best possible prices in addition to all current vehicle-specific incentives. No mystery about it – the price you see is the price you pay.
Although employees and family members are not eligible for the 60 day return (we get cash off of $250 or $500 instead), it is a great opportunity for employees to try and get individuals into our products. Not only will they get the 60 day guarantee, but they get Preferred Pricing as well.
From Wards Auto: Small cars and motorcycles are the primary means of transportation on the crowded streets of Bangkok. But that changes quickly and dramatically once one gets out of town. Beyond the city limits, pickup trucks are a commanding presence on Thailand’s roadways, from expressways to back roads. “One-ton pickups rule the world here,” says Martin Apfel, president of General Motors Thailand. This nation of 66 million people is second only to the U.S. in pickup sales. “But on a per-capita basis, Thailand is No.1,” says Michael Diamente, managing director of a Dana-Spicer plant that makes truck parts in Thailand. Thais go more for midsize pickups, compared with Americans who tend to prefer fullsize models. Double-cab and 1-ton midsize pickups account for 60% of Thailand’s total vehicle production. It is expected to reach 2.2 million units this year, according to The Thai Automobile Industry Assn.
GM bills its 4-door crew-cab Colorado as “perfect for family applications or where carrying passengers in comfort is a priority. GM builds that model as well as 2-door extended-cab and single-cab Colorados at its plant in Rayong province southeast of Bangkok. The Colorado is “a big vehicle for the future of Chevrolet in Thailand,” an upbeat Apfel says at the truck’s launch. It’s “the most clean-sheet midsize truck program” in GM’s history. GM believes it has put daylight between itself and rivals. “It’s right at the top in terms of refinement,” Apfel says of the Colorado. “It is a true global truck,” he reckons. “We have designed, engineered and manufactured this truck to compete anywhere in the world – it’s the truck we always wanted to build.” The new Colorado offers seven body colors, with the 2.5L turbodiesel kicking off here at TB537,000 ($17,435) for the single cab (all prices include air-conditioning). The price rises through three versions of the extended cab – standard, high stance and 4x4 – ranging from TB584,000-TB737,000 ($18,961-$24,000), and three similar versions of the double cab, from TB659,000-TB808,000 ($21,396-$26,234).
Fuel economy of all new vehicles sold in the United States has dropped for the third month in a row-likely reflecting the continuing reduction in gas prices, say researchers at the University of Michigan Transportation Research Institute. Average fuel economy (window-sticker values) of cars, light trucks, minivans and SUVs purchased in June was 23.6 mpg-down from 23.7 in May, 23.9 in April and 24.1 in March-but still a 17 percent increase (3.5 mpg) from October 2007, the first month of monitoring by UMTRI researchers Michael Sivak and Brandon Schoettle. Sivak and Schoettle also reported the unadjusted Corporate Average Fuel Economy performance. This index is based on a different set of EPA ratings than window-sticker values. For June, unadjusted CAFE performance was 29 mpg, down from 29.1 in May, 29.3 in April and 29.6 mpg in March, but an increase of 17 percent (4.3 mpg) since October 2007.
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