The WSJ gets a little closer to the truth about the UAW’s incredible disappearing transplant organizing campaign, reporting

On Tuesday, UAW leaders meeting here described plans to reach out to foreign unions and consumers in what would be their first major campaign since failed efforts in the last decade at Nissan Motor Co. and auto-parts supplier Denso Corp. They hope to be more successful by reaching out to foreign unions at the auto makers’ overseas plants and bringing pressure from prayer vigils, fasts or protests at dealerships.

A person familiar with the matter said the union is now planning to target one foreign auto maker and has narrowed its list to three or four companies. Inside the union, much of the talk centers on targeting the now-struggling Japanese auto maker Toyota or Korea’s Hyundai, this person said.

The UAW has set aside tens of millions of dollars from its strike fund to bankroll its campaign. International actions are to be coordinated with foreign unions and run by some three dozen student interns recruited globally, UAW officials said. When the interns return to their home countries after learning about the UAW efforts in the U.S., they’ll be expected to organize protests against the auto maker, UAW officials said.

OK, so it’s a little bit strange that the UAW is entrusting a campaign that UAW President Bob King calls “the single most important thing we can do for our members ” to a bunch of interns. Still, with “tens of millions of dollars” allocated towards the campaign, some automaker somewhere will be feeling the union’s hot breath on its neck in due course. So, which automaker will the UAW target? Which automaker should they target? And with the UAW apparently refusing to fight the two-tier wage structure, will any transplant or foreign workforce want to join up?

The world’s largest automotive supplier, Bosch, is investing big into the world’s largest car market, China. The company has 283,000 employees worldwide. 26,000 of them work in China. Soon, that n umber will nearly double to 50,000, reports Bosch’s hometown paper, the Stuttgarter Nachrichten. Read More >

Our daily run-down of  delays, shut-downs, shortages, and postponements.

• Toyota will delay the introduction of the wagon version of the Prius hybrid in Japan. A launch event was planned for late April. This event is cancelled; a new date has not been set. The Nikkei [sub].
• Toyota will also delay the minivan version of the Prius, Reuters adds. Read More >

The Freep reports

General Motors plans to add a second shift worth as many as 1,000 jobs to its Detroit-Hamtramck plant late this year, as the automaker prepares to ramp up production of its Chevrolet Volt extended-range electric car.

Current plans have second-shift workers arriving for training late this year and starting production in earnest in early 2012,

Now, it makes sense that any “more assembly jobs are coming” story would play big in Detroit, but does this mean GM has its suppliers lined up for a second shift of Volt production? Can the market support the increased volumes GM has been talking about (25k instead of 10k this year, 60k+ instead of the planned 45k next year)? As it turns out, those questions haven’t actually been answered yet…

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The Daily Beast reports:

As General Motors Co. gets closer to emerging from government oversight, the automaker is trying to hire Bob Lutz, its former chief of vehicle development, as a consultant…
The U.S. Treasury has opposed Lutz’s appointment on the grounds that, since he left the company last May, paying him so close to his retirement could look like a sweetheart payout. The government could soften its opposition in three months, once a year has passed since Lutz’s retirement.

Could it be true? Could the man credited with all of GM’s success and none of its failures really be coming back for more? More to the point, as a consultant? Bob’s current gigs are advising an electric scooter company and the Lotus “revival”… does GM really want to put itself in that company? Oh, who are we kidding? We want Lutz back. The industry just seems so damn boring without him…

In order to build the Chevrolet Sonic subcompact in America, the UAW agreed to a deal in which Tier One workers earning $28/hr could be forced to take a 50% paycut to keep the Sonic profitable for GM. Because the union membership never voted on the deal and can not strike against it, the agreement has rubbed salt in the wounds opened by the two-tier wage system. Some 40 percent of Tier One workers at the Orion Township plant where the Sonic will be built were supposed to be bumped to Tier Two, but thanks to strong truck sales, the Freep reports that all of the workers facing a cramdown have been able to transfer out of Orion and keep their Tier One status.

nearly 470 of Orion’s 1,100 first-tier workers have accepted GM’s offer to transfer to Flint, which is adding a third shift by the third quarter to help build heavy-duty pickups, the person familiar with the planning said. Another 71 have elected to stay at other factories where they’ve worked while Orion was idled to retool.

That means the rest of the first-tier workers at Orion will be able to return to the factory at their original pay.

And the good news keeps on coming: the NLRB appears to have rejected the complaints filed against the UAW by its members, and GM’s profit-sharing bonuses are said to be the biggest in the company’s history. In a few months, the UAW appears to have beaten back one of its biggest challenges since the bailout. Of course, if HD Pickup demand declines, the workers who transferred to Flint will be looking for work again, and they may be forced to accept wage cuts to go back to Orion. Meanwhile, the two-tier system will likely continue to create tensions on shop floors around the country. For now though, it seems the crisis has passed… just in time for a new negotiating session.

Mitsubishi is set to release a “mid-term” global business plan in the coming weeks, and the company says it will use that opportunity to resolve the lingering questions about its Normal, Illinois plant. Automotive News [sub] reports that four midsize (PS) platform vehicles currently built their will give way to a “new family of vehicles” based on the firm’s compact (GS) platform that currently underpins the Lancer, Outlander and Outlander Sport. The only problem: Mitsu’s midsizers will have to struggle along until April 2013, by which time the model changeover will be complete. Mitsubishi Motors North America has dismissed the report as “speculation,” but frankly, wouldn’t you be more surprised to see a new “family” of compact Mitsus in less than two years? Meanwhile, breakeven at the 240k unit capacity Normal plant has already been lowered to 70k units, but only about 27k vehicles were built there last year. With less than ten percent of Mitsubishi’s global sales volume coming from the US, maybe it would be better if Mitsu simply called it a game… but instead the firm is “planning” to quadruple sales volume. And hey, why not?

Did you know that there is rogue SUV production? Not to worry, it will be brought under control: Nissan will move production of its Rogue crossover from Kyushu, Japan, where it is built now, to Smyrna, Tennessee in 2013, Nissan’s America chief Carlos Tavares told The Nikkei [sub] today. Read More >

Ford introduces something totally new and unexpected at NAIAS: Jobs! 7,000 of them. The Freep has it from “a person familiar with the planning.” Read More >

As the biggest week in the American auto industry, the annual North American International Auto Show in Detroit regularly attracts a sideshow of protesters bent on sending a message to the hordes of executives and analysts who cram Cobo Hall. In 2009, UAW members marched against the possibility that the auto bailout (then still a work-in-progress) would require union concessions. Last year, Tea Party groups rallied to protest the government’s ownership of GM and Chrysler, while UAW members counter-rallied in support of the bailout (apparently those concessions weren’t so bad). This year will be no exception to the trend, as dissident UAW members will be protesting the union’s two-tier wage system, a pre-bailout concession that has created considerable controversy of late. And they’ll be getting support (if only in word, not action) from across their friends from the North, as the Canadian Auto Worker boss has recently called for an end to the two-tier system, saying

That has to be a strategy of the UAW to gradually get out of the two-tiered system. I don’t know if it can happen overnight, but they’ve got to start sending signals to future employees that the low, tiered wages are not something that can sustain families long term

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With some 60k Italian jobs and a $20b investment at stake, Fiat’s “Fabbrica Italia” renovation of its home-country production plans are crucial to the integration of Fiat and Chrysler. And rather than negotiating a national labor agreement with Italy’s fractious unions, Fiat has been revamping its Italian plants on a case-by-case basis. This strategy has already backfired at the firm’s Naples-based Pomigliano plant, where the Italian metalworker’s union Fiom decried Fiat’s plans as “discriminatory.” Since then, Fiat has moved onto its Mirafiori plant in Turin, where Fiat wants to build the next-generation Compass/Patriot models for Chrysler and a derivative SUV for Alfa-Romeo on the firm’s new “Compact Wide” platform. And once again, Fiom is up to its old tricks. The WSJ reports that every other union has approved the new Mirafiori deal with Fiat, except Fiom, which has been banned from representing workers at the plant, pending a January vote by workers. However, Fiom represents some 22 percent of Mirafiori workers, and the union has announced an eight-hour strike for January 28.

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If there’s a face of Toyota’s overinvestment in the United States market, it’s the company’s Blue Springs, Mississippi assembly plant. Construction on the billion-dollar plant was begun in 2007, but was halted in 2008, when plummeting demand for new automobiles forced Toyota to cut back on is US manufacturing capacity. For the past two years, Toyota’s 170 workers at the Mississippi plant have been doing their best to stay busy, but the Wall Street Journal reports that hiring has now been restarted and the plant will begin producing Corollas next fall. But will demand be high enough for Toyota to justify its eighth production plant in the US? Not everyone seems to think so…
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Ever since being hand-picked to succeed Ron Gettlefinger as President of the UAW, Bob King has made it clear that his focus would be on organizing transplant factories, the US-based assembly plants operated by foreign automakers. And why not? Having been given ownership stakes in GM and Chrysler during their bailout, the UAW can’t even protect the wages of its existing members, let alone lobby for higher wages. As a result, this year has been marked by UAW protests against Toyota (for pulling out of a joint venture that GM had already abandoned and getting caught in a media circus), and Hyundai (for getting caught up in a convoluted Korean union spat), and threats of organization campaigns against Toyota, Honda, Nissan, Hyundai, Kia and Volkswagen. Now, King tells Automotive News [sub] that it’s time for the transplants to batten down the hatches: UAW organizers are coming to town…

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Automotive News [sub] reports that Mitsubishi Motors North America has reached a deal with the workers of UAW Local 2488 to keep its assembly plant in Normal, Il open for the foreseeable future, building vehicles based on a new platform. Mitsubishi previously missed a deadline to assign new products to the Normal plant, forcing the firm to increase base wages there. With wages increasing and no new products in the offing, many have speculated that Mitsu would exit the US market, a move its CEO has strongly rejected. In fact, it now appears that Mitsubishi will cut back or abandon its European production rather than exit the US. But the new deal with its US labor force hasn’t shed any new light on how Mitsubishi will achieve its goal to quadruple sales… and until the firm announces new products for US production, this mystery will only deepen.

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Bailing out the U.S. auto industry was all in the name of jobs, jobs, jobs, and the recent sales increases in new cars should have made a decent dent into the jobless rate. It just didn’t work out quite as expected. By the end of the year, J.D. Power expects that 11.8 million units will have been made in North America, up 38 percent from 8.5 million units in 2009. And where did the jobs go? They went mostly south. Read More >