Friday, May 31, 2013

State of the Union May 31, 2013

May 31, 2013 online at www.uawlocal2250.com

The June production schedule has been released. Daily production will continue to be 652 for the first 2 weeks (excluding team meeting days). Beginning Monday, June 17, which is model change, the schedule will revert back to 8-hour days of 544. The first 2 days of that week will have some relief to account for the model change and we will hit full 8-hour production Wednesday, June 19.

From the Wall Street Journal:
Domestic brands have the most American-made content in the U.S. according to a new index released by American University’s Kogod School of Business. Professor Frank DuBois, a global supply chain management expert, led the analysis, which considered not only where each vehicle’s parts were produced, but also the location of the manufacturer’s headquarters and other details, all in an effort to help consumers buy American.
“If you break down a single ‘American-made’ transmission, you’ll find many smaller parts, each stamped with its own country of origin. You may well find 80% of the parts inside that transmission didn’t come from the U.S.,” said Dubois. To narrow down the options, DuBois’ team collected data from several sources, including recent American Automobile Labeling Act reports. The AALA was enacted in 1992 to inform consumers about the percentage of American content which comprises each car. AALA data specifies the percentage of U.S./Canadian parts content for each vehicle, including where the engine and transmissions were built. DuBois’ index used these details as well as each vehicle’s overall AALA score, but also factored in: where the manufacturer’s headquarters is located; where most research and development occurs and where assembly occurs. Some highly similar vehicle models that varied on the basis of trim lines or engine and transmission options were aggregated together for ease of comparison, resulting in 253 total vehicles indexed. As there were multiple tie scores, there are a total of 72 ranked positions. Here are 13 vehicles that made the top-five most American-made 2013 models from DuBois’ index. Several vehicles ended up with tied scores, resulting in multiple winners for each position.
  • 1. GMC Acadia (3-way tie)
  • 1. Buick Enclave (3-way tie)
  • 1. Chevrolet Traverse (3-way tie)
  • 2. Dodge Avenger (2-way tie)
  • 2. Ford F-series pickup (2-way tie)
  • 3. Chrysler 200
  • 4. Jeep Compass, Jeep Patriot and Jeep Wrangler
  • 5. Chevrolet Corvette, Ford Mustang, Chevrolet Equinox, GMC Terrain (4-way tie)


From Automotive News:

State officials in Mississippi are defending Nissan -- and themselves -- from the public backlash of a UAW-sponsored study that claims the automaker stands to receive far more in public incentives than has ever been publicized. The study by the Washington research nonprofit Good Jobs First calculates that Nissan will receive $1.33 billion in state and local tax breaks and public support over the first 30 years of its Canton, Miss., vehicle assembly plant. That would be more than four times the $295 million incentives package publicized when Nissan announced the project in 2000. Mississippi Gov. Phil Bryant dismissed the debate as a union-organizing tactic. Canton's 5,000 nonunion workers are being solicited by UAW organizers. "This is just another desperate attempt by big union bosses to scare Nissan's Canton employees," Bryant said. "We are proud that Nissan calls Mississippi home, and we look forward to the company's continued success here." The discrepancy in incentives figures is largely explained by the study's inclusion of ongoing tax benefits over their entire 30-year eligibility period. The original 2000 figure did not extend the incentives into the future. Also, some incentives, such as Job Tax Credits, were tied to the number of employees at the plant. Increasing employment from the 2,000 jobs Nissan originally planned there earns the automaker more incentives. Dorsey said that the official figure for Nissan incentives at Canton is now $378 million.


Chevrolet today unveiled the 2014 Malibu – a roomier, more refined and more efficient execution of its midsize sedan. Updated styling, a revised interior, a new 2.5L standard engine and suspension enhancements highlight the changes. It goes on sale this fall. “The 2014 Chevrolet Malibu builds on the strengths established by the all-new 2013 Malibu to make it a stronger choice for customers,” said Mark Reuss, president, General Motors North America. “The midsize sedan segment is the most contested in the industry and we’re not sitting still with the 2014 Chevrolet Malibu.” The new and enhanced features include:
  • Revised front-end appearance
  • Roomier rear seat with 1.25 inches (31.7 mm) more knee room
  • Redesigned center console
  • New 2.5L engine with variable valve lift control and start/stop technology helps deliver estimated fuel economy of 23 city / 35 highway – a 5-percent improvement in city mileage and 3-percent greater highway efficiency
  • Nearly 14 percent more torque from the available 2.0L turbo engine – 295 lb-ft of torque (400 Nm) – engineered for a greater feeling of power on demand
  • Suspension enhancements derived from the all-new 2014 Impala engineered to contribute to a more refined driving experience
  • New available Side Blind Zone Alert and Rear Cross Traffic Alert safety features
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Tuesday, May 21, 2013

State of the Union May 21, 2013

May 21, 2013 online at www.uawlocal2250.com

In case you missed it, temporary hourly employees are now eligible for the GM employee discount on new vehicle purchases. To register, go to www.gmfamilyfirst.comand check out the latest deals.

From WardsAuto: General Motors North America President Mark Reuss says stocks of the auto maker's large pickups are at healthy levels as it juggles production ahead of redesigned models hitting the market soon. "We're selling through them very successfully," Reuss tells WardsAuto on the sidelines of a community event here today. GM's inventory of Chevrolet Silverado and GMC Sierra pickups closed April at 229,706 units, down 4.7% from 241,098 at the end of March, according to WardsAuto data. Day's supply stood at 103. Typically, 103 days would be high even for pickups, which auto makers keep at higher levels because of the various body styles.
But GM needs stocks to remain above the industry average of roughly 80 days because it has been idling assembly plants to change tooling for the '14 model trickling to dealers now. If stocks fall too low, GM could jeopardize future market share of its most profitable vehicle, especially if rivals start incentivizing. If inventories get too high, the auto maker might have to discount to move the extra models. "We're hitting this perfect," Reuss adds. "Whatever the truck, there's demand right now." The executive speculates the industry might be riding Wall Street's tailwind. Earlier this month, the Dow Jones Industrial Average closed at more than 15,000 for the first time. "The confidence piece is staggering," he says. "I think the industry is catching a little bit of what the stock market is feeling." Reuss sees May sales stacking up nicely against last year's result, when auto makers delivered a strong 1.3 million units, and says GM will skip the industry's annual summer shutdown again this year.
"We'll have some rolling changeovers, but we're in launch," he says, referring to GM's aggressive product cadence this year as it turns its product portfolio over from the oldest in the business to the newest. GM's redesigned 7-passenger cross/utility vehicles have been among the products benefitting from a re-freshening. The Chevrolet Traverse, Buick Enclave and GMC Acadia have logged double-digit sales increases this year, although they did cool off slightly in May by rising just 5.5% in April. Deliveries of the trio jumped a combined 62.4% in March. Reuss says shoppers are migrating to the vehicles for other reasons as well, such as their combination of capability and fuel economy. "There's a niche there we own - a little bigger vehicle, a lot better fuel economy; and everybody does not have to buy all-wheel drive," he says. "People are tuned in to that, and the mid-cycle enhancement is dynamite. We put a lot of money into (the large CUVs) and it's paying off."

From the Chattanooga Times Free Press: A national right to work group is offering free legal aid to Volkswagen’s Chattanooga employees who feel they’re being pressured to associate with the United Auto Workers. “Recent media reports suggest that UAW union officials are working to negotiate the workplace conditions of Volkswagen’s Chattanooga employees even though the workers are not represented by the UAW’s union hierarchy,” said Mark Mix, president of the National Right to Work Legal Defense Foundation, said in a statement. The Springfield, Va.-based group said that it has “seen again and again the UAW union hierarchy pressure companies to cut backroom deals designed to push workers into union ranks whether the employees like it or not,” he said. VW’s board member in charge of human resources said last month that the automaker is in talks with the UAW about setting up a German-style works council labor board.

From Automotive News: Gone are the days when Toyota expected to challenge Detroit's dominance in full-sized pickups. "We're never going to challenge the Big 3 in terms of volumes," Jim Lentz, CEO of Toyota's North American region, said in an interview. Now, he says Toyota will combine compact and full-sized pickup volumes when measuring its success in the truck market. The redesigned Tundra coming this summer will have plenty of competition.
The redesigned Chevrolet Silverado and GMC Sierra full-sized pickups will be introduced in June. The Ford F-150 will be redesigned next year. And the Ram was re-engineered last year. Lentz's outlook marks a change from when Toyota came out with its first full-sized Tundra in 2006. At the time, Toyota targeted 300,000 Tundras a year -- within spitting distance of the Dodge Ram. It engineered a massive $100 million marketing launch to conquest Detroit loyalists. Toyota also prepared its Princeton, Ind., plant to backstop Tundra production in San Antonio, should the big truck exceed the Texas plant's 200,000-unit capacity.
But after a couple of years near 200,000 units, the recession hit and Tundra volumes fell. Last year was the first time since 2008 that Toyota sold more than 100,000 Tundras. Both the Tundra and Tacoma now come off the same assembly line in San Antonio. If the Tundra can't reach its numbers, Toyota can crank up Tacoma production. "Tacoma is so strong in the [compact] marketplace; there are some months where we are over 60 percent share," Lentz said. "The sweet spot [for Tundra and Tacoma combined] is 250 to 300,000 units." Toyota sold 242,986 pickups in 2012; 101,621 of them were Tundras and 141,365 were Tacomas. "Some shoppers will only consider compact," Lentz said. "Some will only consider full-sized. But in the middle, there is some interchangeability between those two."

Can Shaquille O'Neal really fit into a Buick LaCrosse?
During a recent episode of the "Inside the NBA" postgame show on the TNT network, analyst Charles Barkley kidded the 7-foot-1-inch Shaq about his LaCrosse ads by saying O'Neal had to be rubbed down with Gold Bond Lotion to slide in (Gold Bond is one of the products Shaq endorses)
Here was the exchange: Barkley: "Had to grease your body to get in that Buick." O'Neal: "It takes me two seconds to get in my Buick." Barkley: Co-analyst Kenny Smith "told me only you and one of your kids can fit. You have to go to the amusement park with just one kid at a time." O'Neal: "It's probably true." But Shaq does indeed drive a Buick, brand spokesman Nick Richards said. Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Tuesday, May 14, 2013

May 14, 2013 online at www.uawlocal2250.com

Union meeting is after 2nd shift tonight and tomorrow at 7:15 am, 1 pm and 15 minutes after the longest first shift line time.

Anyone who has a Union related or special interest story to tell should submit their articles to their committee person or the Union Hall by May 23 for inclusion in a paper to be published after the Memorial Day holiday.

From the Civil Rights Committee: The 125th annual Annie Malone Parade will be Sunday, May 19 beginning at 1 pm. For those who wish to participate in the parade, we will be meeting at Behlmann Buick GMC, 820 McDonnell Blvd. at 10:30 am. We will be departing for the parade staging area no later than 10:45 am. For those wishing to help decorate the float, the staging area is located on Market Street between Compton Ave. and Jefferson Ave. at 12 noon. Remember, admittance to the staging area is by entry sticker only. There is street parking in the downtown area and near the staging area. For questions or detailed directions call Dan Williams at 314-616-2271. Mark the date and hope to see you there.

The Civil Rights Committee is raffling off a Samsung Galaxy 2 Tablet 7.0 to support the Annie Malone Parade. Tickets are $5 apiece or 3 for $10 and available from any committee member. Thanks in advance for your support.

Weekly build options: 32 E-26 vans; 1075 cutaways (34%); 587 slider doors; 466 r/h door deletes; 420 15-pass vans; 23.0% 07 loop; 145 diesels; 25 YF7s; 70 brake deck spare tire; 585 Onstar; 6% AWD; .7% tan interior trim; 80 exports (33 Israel, 19 China); 70 CNG vans; 150 Penske; 175 U-Haul; 170 AT&T; 456 Enterprise; 77.3% white vans.

From the Veterans Committee: There will be a meeting this Thursday, May 16 between the shifts at the Union Hall. Also, this coming Monday, May 20, the 25th annual “Run for the Wall” will be coming through Wentzville. There will be hundreds of motorcycle riders arriving that are bringing attention to POW/MIAs. The riders will be stopping here and we will be shuttling them to the plant from the VFW hall to use our showers. This group always stops in Wentzville on their way from Los Angeles to Washington DC because the first Vietnam memorial ever dedicated is here. If you want to help out you can attend the meeting Thursday for more information.
Labor Voices: The people must re-take the U.S. House in 2014 - By Bob King Together with our progressive allies nationally, we made history in 2012. We scored a huge victory in November when we re-elected President Barack Obama — the first time since Dwight Eisenhower that a president won a majority of votes for two terms.
We gained seats in the House of Representatives and grew our majority in the Senate. We rightfully felt a sense of optimism and hope that the Republican Party would recognize that its extreme stands were not in step with the American people, and that a new era of reasonableness, focused on the common good, would ensue.
Unfortunately, rather than moderate their positions, right-wing Republicans in Congress have doubled down on their views and their intransigence. Attacks on the middle class, women's rights, voters' rights, and worker rights have not diminished. They have increased. Congressman Paul Ryan of Wisconsin doesn't seem to have learned anything from his resounding defeat in his run for vice president. By cutting $4.6 trillion from spending over the next decade, his 2013 budget proposal would reverse the country's budding economic growth, kill millions of real and potential jobs and take social assistance from those suffering the most. All of the tired ideas from 2011 and 2012 are back:
  • Eliminating Medicare's guarantee to retirees by turning it into a voucher plan.
  • Dispensing with Medicaid and food stamps by turning them into block grants for states to cut freely.
  • Repealing most of the reforms to health care and Wall Street.
  • Shrinking beyond recognition the federal role in education, job training, transportation and scientific and medical research.
The public's opinion of these callous proposals was made clear in November, but Ryan is too ideologically consumed to have learned that lesson. Since congressional Republicans have made it clear that they will resist all efforts for the common good and working families, we must elect people to Congress who are not bound by a right-wing ideology.
We need to recapture the energy and enthusiasm that we mustered last year — and now focus on taking back the House of Representatives in 2014. To do this, we need to flip a minimum of 17 seats. We definitely can achieve this goal, but we cannot do it alone.
We need to solidify our winning 2012 coalition of labor, women, African-Americans, Latinos, environmentalists, the faith community and other allies. We must build a massive movement for real justice, dignity and fairness for all.
We need the active participation of every active and retired member to rebuild fairness in America, to rebuild our middle class, to work for the common good of all citizens, to make America the great middle-class democracy that so much of the world admired, respected and wanted to emulate. We cannot allow the radical right and super wealthy to destroy our middle class and our democracy. What is very exciting is that if we elect a majority in the House and maintain our Senate majority, we could pass more "common good" legislation than was even passed during FDR's administration. Instead of just blocking bad legislation, we could pass outstanding, positive legislation.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Thursday, May 9, 2013

State of the Union May 9, 2013

May 9, 2013 online at www.uawlocal2250.com

From the Civil Rights Committee:
The 125th annual Annie Malone Parade will be Sunday, May 19 beginning at 1 pm. For those who wish to participate in the parade, we will be meeting at Behlmann Buick GMC, 820 McDonnell Blvd. at 10:30 am. We will be departing for the parade staging area no later than 10:45 am. For those wishing to help decorate the float, the staging area is located on Market Street between Compton Ave. and Jefferson Ave. at 12 noon. Remember, admittance to the staging area is by entry sticker only. There is street parking in the downtown area and near the staging area. For questions or detailed directions call Dan Williams at 314-616-2271. Mark the date and hope to see you there.

The Civil Rights Committee is raffling off a Samsung Galaxy 2 Tablet 7.0 to support the Annie Malone Parade. Tickets are $5 apiece or 3 for $10 and available from any committee member. Thanks in advance for your support.

From the Benefits Department:
There will be a change in physical therapy providers beginning July 1. The new provider will be TheraMatrix. More details to come.

From the Chaplaincy Committee:
The annual Blessing of the Bikes will be Tuesday, May 21 from 4 pm – 5 pm at the flagpoles. If you are unable to attend the group blessing, individual blessings will be available.

From BusinessWeek:
Wheelchair van maker Vehicle Production Group LLC, a closely held startup that received $50 million in Energy Department financing, has ceased operations and fired almost all of its employees, its former chief executive officer said yesterday. VPG, based in Allen Park, Michigan, shut down because it didn’t have enough cash to make payroll, said John Walsh, who left about a month ago as its chief executive officer. The Energy Department seized the $5 million in VPG’s reserve account, he said. VPG last year finished drawing down its full loan amount and didn’t make any repayments, Walsh said. “We did have to suspend operations,” Walsh said yesterday in a telephone interview. “We just didn’t have the funding to pay them, so they had to move on to other jobs.”
VPG had said it would produce about 6,000 vehicles this year (only 1500 were built). The company hasn’t produced vehicles for about six months, Walsh confirmed. The company hasn’t filed for bankruptcy and has two potential buyers, Walsh said, declining to name them. There haven’t been bids for VPG’s assets, according to an investment source who asked not to be identified because the process is private. The company’s vans, which sell for about $40,000, were made at an AM General LLC plant in Indiana that had been used to produce Hummer sport-utility vehicles for then-General Motors Corp.(in case you’re wondering, Dept. of Energy loans were for a CNG version of the van)

The Women’s Committee, along with the plant WIM group, is developing a team to participate in the Women Build of 2013. We will help build a home for a deserving family. We invite all to participate (women & men).
The kickoff is this Saturday, May 11 from 9 am to noon at The Enclaves at Eisenhower, 110 Clinton Ct, St. Peters (which is also where the home will be built). Since the plant is going to be down the month of July we have scheduled our work days for Wednesday July 17than 24th. They will be 4 hour shifts starting at 8am each day. There are T-shirts available to purchase. The price of the T-shirt is $20. You needn’t be a work volunteer to buy a T-shirt. The money will go towards our pledge to the Habitat House.
Please fill out the form below and include your T shirt money. The shirts will be delivered before we go down in July.
The forms can be dropped in the suggestion boxes at all the main entrances along with the T shirt money. Please include a location in the plant and a phone number so you can be contacted about scheduling your work day.

Name  
Phone  
Plant Location  
Preferred Day to Work

July 17

July 24

AM PM  
T-Shirt Color Pink Gray    
Size SM
MED
LARGE XL XXL XXXL



Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Tuesday, April 30, 2013

State of the Union April 30 2013

April 30, 2013 online at www.uawlocal2250.com


The Recreation Committee is raffling off 4 tickets to a Cardinals/Cubs game Sunday, Aug. 11 (1:15 start) to help support this Saturday’s Cinco DeMayo celebration. Ticket prices are $5 apiece or 3 for $10 and can be bought from any committee member, at the Union Hall or the night of the celebration. Drawing will be held at the celebration and you need not be present to win. Doors open at the Union Hall at 6 pm for the celebration.
Poage Chevrolet (formerly Cox & Cohea) in Wentzville is offering a special vehicle service program to all Wentzville Assembly employees, including spouses and children. The following are benefits of the program:
  • Courtesy pick-up and delivery of your vehicle to and from the plant
  • 10% off labor on any non-warranty repairs
  • 20% off all genuine GM parts and GM accessories
  • $10 off oil change/tire rotation on all vehicles
When scheduling your service, non-warranty repairs, or buying your parts or accessories all you have to do is present your GM plant ID to receive you discount. You can call 636-327-6268 or toll free at 866-688-4045.
Following up on the article about UAW President Bob King’s suggestion for another vote at Opel’s Bochum plant in Germany: "With every new discussion and any kind of delay we are wasting precious time," wrote Manfred Gellrich, Opel Bochum plant director, in a letter to the employees. In Rüsselsheim, Opel rejected the debate about new voting as absurd. A spokesman stated: "You can't just vote until you get the desired result." Rainer Einenkel, head of the Bochum works council, is being accused of not having informed the employees sufficiently enough. At issue is a wage freeze and cuts to “fringe benefits” as well as money saving work rules changes. Union workers at GM's Russelsheim, Kaiserslautern and Dudenhofen factories voted with majorities exceeding 83 percent to accept the reorganization agreement. According to the Russelsheimer Echo, more and more employees are changing their minds and wish for a new vote. But recent statements make that seem very unlikely. Einenkel is not going quietly, however. “This would be the most expensive plant closure of all times,” warned Einenkel a week after the failed vote. “This would cost GM billions. Opel would not survive this.”
Even though Honda’s quarterly profits reported last week were only 6.6% higher year-over-year, they are predicting a robust 58% rise in 2014 fiscal year profits (their fiscal years run April 1 through March 31). Why the stunning increase in profits? One reason: the weakened yen. Since the beginning of his administration late last year, Prime Minister Shinzo Abe has set about weakening the yen in what is known as “Abenomics”. And so far the yen is down roughly 25% against the dollar. How does this help companies like Honda? Let’s say the average transaction price of a Honda vehicle is $28,000. With the yen at 100 per dollar (it is slightly less today) that means Honda receives 2.8 million yen. A few months ago the yen was at 80 per dollar, which generated only 2.24 million yen – a difference of 560,000 yen, or $5600 at current exchange rates. So Honda (and Toyota and Nissan) will reap windfall profits by merely exchanging dollars for yen. Expect the Japanese big 3 to use that money to bump up incentives to take market share, as well as adding content to next generation vehicles with their new found largesse (which is exactly what they did a few years ago when the yen was trading at the absurd rate of 120 per dollar).

From Autoblog: By the end of this year, the Mercedes-Benz Sprinter will be the second-oldest nameplate in its segment here in the States (guess which is the oldest), but with hot new competition waiting in the wings, Mercedes-Benzis giving its hauler a freshened look and more equipment to stave off rivals. The US market is expected to get the new Sprinter for the 2014 model year. Some of this new technology includes a Crosswind Assist feature as standard equipment and the availability of Collision Prevention Assist and Blind Spot Assist as optional safety measures – Mercedes-Benz says that all three are firsts for any van in the world. Also added to the updated Sprinter is a new 1.8-liter supercharged gasoline (or CNG) engine producing 156 horsepower, which will complement the line of diesel engines that carry over and help make the Sprinter the first cargo van to meet the upcoming Euro VI emissions standards. Buyers will get to choose between a six-speed manual or a seven-speed automatic, which ought to further aid fuel economy. Additionally, a lower ride height is said to improve fuel economy and should improve handling while aiding ingress and egress for both people and cargo.
From Automotive News: Daimler and Renault said they are holding discussions to build a large van together as part of a possible expansion of their existing partnership. "We're in early talks with Renault," said Uta Leitner, a Daimler spokeswoman. "No decisions on possible production sites have been taken." Daimler currently works with Volkswagen in the European large van segment. The contract runs out at the end of 2016 and VW has announced plans to develop a new Crafter model on its own. Daimler first partnered with Renault in 2010.
Nissan will recall more than 123,000 new Altima sedans after a spare tire blew out - while locked away in the trunk of a car. The recall affects 2013 model year Altimas that were produced for about a year-long period, ending on March 26.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Friday, April 26, 2013

State of the Union April 26, 2013

April 26, 2013 online at www.uawlocal2250.com
Thanks to everyone who contributed their money and time to the March of Dimes, March for Babies gate drive. A total of $3761 was collected for this great cause!

From the Civil Rights Committee: We’re seeking ANY Hispanic collectibles, books, etc. to put on display for Mexican Heritage Day, which will be Thursday, May 2. If you would like to share your items, please see Denise Black, Civil Rights chairperson (1st shift trim, E-32 or Nextel #61) or Larry Mosbey, Civil Rights member (2nd shift chassis frame line) no later than April 26, 2013. All items will be returned after one day display. Thank you in advance.

From Automotive News: The head of the UAW suggested German hourly workers at a General Motors plant should accept a deal they previously rejected in order to keep their jobs. UAW President Bob King, who is a member of Opel's supervisory board, said on Tuesday that workers at GM's Opel plant in Bochum, Germany, should ask to vote again on the restructuring deal they rejected last month that would have kept the plant open through the end of 2016 and retained 1,200 of the more than 3,000 employees. The 50-year-old plant is now scheduled to close by the end of 2014, when Opel will end production of Zafira MPVs. The plant closure is part of management's strategy to achieve profitability in 2015 after what will be by then 15 straight years of losses for GM in Europe. "I would really hate to see that plant closed when so much effort was put in by IG Metall and the works council to save it," King said in a telephone interview. A revote, while rare, has been done before in the United States, he said. In 2008, workers at a former Ford Motor Co. glass plant petitioned for a revote, while in 1999 union leaders in the Flat Rock, Mich., assembly plant then run by Ford and Mazda Motor Corp. suggested a second vote. "I'm hoping if I talk about how that's one of the things that happened in the U.S., that maybe the (Bochum) workers will do that," King said. "I don't know if that's possible, but at least that would open up a door of opportunity for people to talk." GM officials said the workers had voted and the company was now focused on supporting the development agency 'Bochum Prospects 2022,' an initiative to attract new companies to the economically depressed Ruhr region of northwest Germany where the plant is located. "We gave the employee a clear choice," spokesman Harald Hamprecht said in an email. "We respect the outcome. The Opel supervisory board acted accordingly and we are moving on."
GM previously said no further negotiations on the labor deal would take place. The management board at GM's money-losing Opel unit approved the closing of the Bochum plant last week. King said it was up to union leaders in Germany to ask for a revote. He declined to say whether he had discussed the idea with the German union IG Metall. King emphasized that keeping the plant open would allow workers the opportunity to regain jobs later when the struggling European economy improves. The UAW took a similar approach at GM's Spring Hill, Tenn., plant, where vehicle assembly ended in November 2009 but engine and stamping operations continued. In November 2011, the union reached a new labor deal with GM that include resumption of vehicle assembly at the plant in the third quarter of last year.
Workers in Bochum had the same opportunity and perhaps didn't understand or it was not explained well enough, King said. Labor leaders in Bochum, a former coal mining town, led opposition against a compromise deal, betting GM would not take the unusual and costly step of shifting production and tooling of the Zafira prior to 2017. King, who was appointed by IG Metall to Opel's supervisory board in March 2012 and is up for reelection for a four-year term, said GM has not announced where Bochum production will be shifted.
He also said there have been discussions about shifting more production work to European plants, but declined to discuss further. King is trying to win the support of IG Metall as part of the UAW's efforts to organize the U.S. plants of German automakers Volkswagen and Daimler's Mercedes-Benz. He has said organizing the U.S. plants owned by foreign automakers is critical to the UAW's future success. King said the UAW's relationship with IG Metall was strong. Last month, IG Metall President Berthold Huber said in a letter that the hourly workers at VW's plant in Chattanooga, Tennessee, should pick the UAW to represent them. "UAW doesn't have a better advocate than Berthold Huber," said King, who added there were no new developments in the union's efforts to organize workers at the VW plant.


Here are some more quarterly earnings reports from our competitors:
  • Hyundai Motor Co. today posted a 15 percent year-on-year fall in quarterly net profit, broadly in line with market forecasts, as it was hamstrung by weekend production stoppages and unfavorable currency moves. Net profit fell to 2.1 trillion won ($1.88 billion), Hyundai said.
  • Kia Motors Corp. posted a 35 percent drop in first-quarter profit after production at its main domestic factories fell and the won strengthened against the yen. Net income declined to 783.9 billion won ($707 million), from 1.2 trillion won a year earlier.
  • Honda Motor Co. said it posted a 6.6 percent rise in quarterly net profit, helped by the yen's rapid depreciation and strong sales of its Accord and CR-V models the United States. In the quarter ended March 31, Honda booked net profit of 75.7 billion yen ($760.88 million), compared with 71.5 billion yen in the same period last year. Honda's operating income from North America for the quarter fell 65 percent to 29 billion yen ($296 million) in the quarter and missed the 61.2 billion yen average analyst estimate.
Tom Brune
UAW/GM Communications Coordinator
Wentzville Assembly
636-327-2119

Tuesday, April 23, 2013

State of the Union April 23, 2013

April 23, 2013 online at www.uawlocal2250.com

(ul)
  •   From the Civil Rights Committee: We’re seeking ANY Hispanic collectibles, books, etc. to put on display for Mexican Heritage Day, which will be Thursday, May 2. If you would like to share your items, please see Denise Black, Civil Rights chairperson (1st shift trim, E-32 or Nextel #61) or Larry Mosbey, Civil Rights member (2nd shift chassis frame line) no later than April 26, 2013. All items will be returned after one day display. Thank you in advance.
  •   Attention Entry Level employees: Participants in the Flexible Spending Account program must apply for reimbursement of eligible expenses for the 2012 plan year (Jan. 1, 2012 – March 15, 2013) by next Tuesday, April 30. For employee claims, go to benefitsolutions.bankofamerica.com or call (866) 567-3993. For dependent claims go to acclarisonline.comor call (866) 203-9358.
  • From Bloomberg: Ford Motor Co. may post its highest first quarter North American profit ever, the latest sign the automaker's comeback is gaining momentum. Ford probably earned a record $2.7 billion pretax profit in North America during the first three months of the year, according to analyst estimates at Morgan Stanley and JPMorgan Chase & Co. First-quarter automotive revenue, to be released Wednesday, probably rose 10 percent to $33.6 billion, the average of 11 estimates compiled by Bloomberg, from $30.5 billion a year ago. Profit margins may have hit 12%. Just as Detroit's cars are making strides, the full-size pickup market is coming back. Led by rebounding demand for F-Series, the best-selling vehicle line in the U.S. for 31 years, large trucks' share of the U.S. auto market climbed to 11.7 percent in the first quarter, from 10.6 percent a year earlier, according to researcher Autodata Corp.
  • Kentucky is rolling out the (dollar covered) red carpet for Toyota to agree to produce the Lexus ES at their Georgetown plant. The state, whose senior senator argued vehemently against any taxpayer aid to the domestic auto makers, is willing to pony up $146.5 million in “tax incentives” to attract another 570 full-time jobs and 50,000 units of production. Toyota is expected to invest $530 million (on top of the $6 billion already plowed into the facility) to secure the incentives. The factory employs about 6,600 people and can build more than 500,000 vehicles and 600,000 engines annually. The new project could add 750 jobs when contract workers are included, according to the Kentucky statement.
  • The American University’s Kogod School of Business recently released its Made in America Auto Index that ranks vehicles sold in America as “Most American” by taking into account various criteria. The index was compiled by Associate Professor Frank DuBois, an (as described) expert in global supply chain management, and takes into account the following factors:
  • Profit Margin: where the automaker’s global headquarters is located
  • Labor: where the car is assembled
  • Research and Development: where R&D of the car took place
  • Inventory, Capital, and Other Expenses: location of assembly
  • Engine and Transmission: location of production
  • Body, Interior, Chassis, Electrical, and Other: location of production
  • National Highway Traffic Safety Administration AALA “Domestic Content” Score The index contains 32 General Motors models in 12 spots in the following order:
    1. GMC Acadia, Buick Enclave, Chevy Traverse
    2. Chevy Corvette, Chevy Equinox, GMC Terrain
    3. GMC Sierra, Chevy Silverado, Chevy Avalanche, Cadillac Escalade, Chevy Suburban, Chevy Tahoe, GMC Yukon, Chevy Express, GMC Savana, Cadillac ATS, Cadillac CTS, Cadillac XTS, Chevy Malibu, Buick LaCrosse, Buick Regal
    4. Chevy Colorado, GMC Canyon
    5. Chevy Cruze, GMC Verano
    6. . Chevy Sonic
    7. Chevy Camaro
    8. Chevy Volt
    9. Chevy Impala
    10. Chevy Captiva (fleet-only vehicle in the U.S.)
    11. Cadillac SRX
    12. Chevy Spark


    The index contains 253 total vehicles and has a total of 72 positions, since there were multiple tie scores and similar models that varied on the basis of trim lines or engine and transmission options were combined for ease of comparison. The top score was 88.5 for the GM triplets. The Express/Savana vans scored 83. Tied for 72nd place were 21 different Toyota models, 13 different Nissan models, 11 Mercedes, 4 Hondas and Subarus, 3 Mazdas, 2 Mitusbishis, 1 BMW (and a partridge in a pear tree). The score for all of these vehicles? ONE. In fact, there were 110 foreign brand vehicles that scored 3.5 or less. This index stands in stark contrast to the Cars.com version, which has 4 of the top 5 most American made vehicles as Japanese brands. The Cars.com index seems to minimize the importance of domestic parts bought. GM doesn't have a single car in the top five of the index, yet consider that GM alone buys as many U.S. parts as Toyota, Honda, Nissan, Subaru, Mitsubishi, and all other Japanese automakers combined. And Detroit's Big Three are all headquartered here and have eight times the numbers of workers here that Toyota, Honda, and Nissan do. Detroit spends more on R&D here in the U.S. per year than juggernaut companies such as Boeing, Intel, Google, Apple, Hewlett-Packard, and ExxonMobil -- again, combined.

    Tom Brune
    UAW/GM Communications Coordinator
    Wentzville Assembly
    636-327-2119