Ford is in-sourcing important parts of their hybrid-electric vehicles, and they are putting $135m behind the effort to bring the parts home and in-house. Currently, core parts are made abroad. Moving the making home to Michigan will create a whopping 170 jobs in Rawsonville and Van Dyke. But it’s a start. “I am proud of the tremendous success of the UAW and Ford in working together to keep good manufacturing jobs in the U.S.,” said Bob King, UAW vice president, National Ford Department. (Read More…)
Opel has received a new lease on life. Nobody knows how long the lease will last, but Opel is an important step ahead and gained an even more important ally in its beggathon for state aid. Opel cut a deal with its unions, led by labor leader Klaus Franz.
“For much of the past year, Klaus Franz has been a thorn in General Motors Co.’s side,” wrote the Wall Street Journal. Franz “has blamed the European car unit’s troubles on its American parent, saying GM was ‘filled with yes-men’ and that it had a ‘centralized planning system worse than in East Germany.’ Now, GM needs to make nice with Mr. Franz.” With their backs to the wall, GM finally paid the price and made nice. (Read More…)
Bloomberg reports that Ferrari workers walked off the job for four hours yesterday, in protest of planned job cuts and production idling. Ferrari has announced that it plans to eliminate 120 office jobs and 150 production jobs, or nearly ten percent of its workforce. The Italian sportscar firm has also said it will put 600 workers on a week-long furlough next week, as it idles production of engines for its sister brand Maserati at a Maranello plant. Last year, Ferrari built about 4,500 engines for Maserati, about half of the 2008 number, as sales of the brand fell.
Speaking at the same Detroit conference on the auto bailout that Steve Rattner and Ron Bloom attended, the Center for Automotive Research’s Sean McAlinden proclaimed the end of Detroit’s era of unsustainable high wages. In 2007, said McAlinden, building a car in North America cost GM about $1,400 more per car than it did Toyota, thanks largely to a $950 health care charge. Since then, GM’s bailout and renegotiated wage and benefit contracts with the union have actually brought GM’s hourly compensation to just under what the CAR says the transplants pay. The AP reports that McAlinden’s estimate of GM’s average hourly worker salary is $69,368 while the transplant average is $70,185. Better still is McAlinden’s prediction that
between 2013 and 2015, Toyota could even be paying $10 more per hour than GM unless the Japanese company reacts and lowers wages.
And all it took was giving the UAW a $17.5 stake in the new GM!
GM’s restructuring of its Opel division has long been seen as one of the greatest threats to The General’s US taxpayer-supplied cash pile, and the bleeding has now officially started. Reuters reports that GM has agreed to pay four hundred million Euros ($532,000) for worker termination benefits as it closes operations at its Opel plant in Antwerp, Belgium. The 2,600 employees who once built Opel Astras at the factory will be out of work by the end of the year, with about 1,250 planned to be terminated by June. The Flemish government has until September to find a new investor for the plant location; if it is successful, and the new tenant rehires the former Opel workers, GM could be off the hook for some of their termination costs. Considering that Europe has some of the worst auto overcapacity around though, the odds of another automaker taking over the plant don’t look good. Which means the fate of Opel’s Flemish workers, and the health of GM’s cash pile are likely in the hands of a non-auto industry investor. Meanwhile, with Opel planning on cutting 20 percent of its European capacity, the bleeding is only just beginning. But hey, is there a better use for American tax dollars than paying off European workers to the tune of $205k per job?
Unheard-of news are emanating from Rüsselsheim. So unheard-of that Automobilwochefound it necessary to send out an Extra! Extra! Lesen Sie all about it e-mail to its subscribers: GM’s Opel, the very same company that wants to shed 8,000 of its 48,000 jobs in Europe, is short of people. They are hiring! One reason: Jobs are being exported from the U.S.A. to Europe. (Read More…)
Opels head shop steward Klaus Franz is mightily mad at Opel’s CEO Nick Reilly. Reilly told the London Times that the Ampera, Opel’s counterpart to the Volt, may be built in the Ellesmere Port plant in the UK:“The chances are quite good that the Ampera will come to Ellesmere Port as it is close in production terms to the Astra and will share many components,” Reilly said. In the meantime, Berlin cues Roberta Flack’s “Killing me softly” as a prelude for Opel’s funeral. (Read More…)
Media from Associated Press to The Business Standard of India are abuzz with reports that Fiat (the company) is planning to cut 5000 jobs and will be spinning off its car division this summer. The stock market seems to like the idea: Fiat’s shares rose 4.15 percent. (Read More…)
Workers at the former Toyota-GM joint venture NUMMI have approved a severance offer from Toyota. Union officials won’t reveal the exact amount involved, and while the Detroit Free Press reports that workers will make a “minimum” of $21,175, the San Jose Mercury says the deal “gives an average severance package of $54,000.” Could it be that some union brothers are more equal than others? What the Freep leaves out is that $21,175 minimum applies to 300 of NUMMI’s 4,700 workers who are already on disability leave. Workers with over 25 years of experience will receive $68,500.
The Detroit News reports that the United Auto Workers are gearing up for battle for a surprising new cause: greenhouse gas emissions standards. Alan Reuther, Legislative Director of the newly-green union, wrote congress recently to warn against a bill authored by Sen. Lisa Murkowski which would prevent the EPA from declaring C02 a danger to public health, saying:
The UAW also is deeply concerned that overturning EPA’s endangerment finding would unravel the historic agreement on one national standard for fuel economy and greenhouse gas emissions for light-duty vehicles that was negotiated by the Obama administration last year
Not, however, because of the threat of global climate change. Who needs to worry about that when you’re health care fund is tied up in two teetering nightmares that need IPO-ing quick-fast?
The former GM-Toyota joint-venture known as New United Motor Manufacturing Inc (NUMMI) in Fremont, CA is a big plant. Its nearly 5,000 employees can churn out over 400,000 compact cars and pickups in a year when operating at full capacity, which of course it hasn’t been for some time. With GM leaving the joint venture during bankruptcy, and Toyota currently winding down the remaining operations, those 4,700-ish employees and their 5.3m square foot plant need work. Local media call their outlook “gloomy,” noting that semiconducter workers will be first in line for the few new manufacturing jobs in the area, with a solar panel firm. But, in keeping with the green revival theme, an electric vehicle startup called Aurica says it’s in negotiations to take over NUMMI, where it says it will build unspecified EVs, in a venture that currently has an “undisclosed” finance plan. Are we buying this? Let’s look at some numbers.
The Toyota witch hunt inquiry is beginning to show its surely unintended effects – on American jobs, businesses, and lest we forget, tax revenue.
Toyota has notified its major parts suppliers that its North American production for the February-April period is expected to reach roughly 350,000 units, around 20 percent lower than the number originally planned for in January, The Nikkei [sub] reports this morning in Tokyo. (Read More…)
Fiat is acknowledging a “a collapse in orders” as Italian scrappage rebates expire, and as a result, all six Italian Fiat plants will close for two weeks [via the BBC]. The move is being justified as a break from past overproduction, with Fiat spokesfolks claiming “we’re only building to demand.” Though that might help CEO Sergio Marchionne justify his $6.5m paycheck, it couldn’t come at a worse time. Fiat is putting 30,000 employees out of work for the next 14 days, just as it faces widespread protests over the closure of its Sicilian Termini Imerese plant. With the Italian government (and even the Pope) condemning Marchionne’s decision to cut the perpetually money-losing plant, this unplanned vacation will give workers plenty of time to agitate and organize further resistance. Not that Marchionne could have avoided it. Italy’s consumer subsidies for new cars were keeping demand artificially high, and the Italian government was hoping it could offer their renewal in exchange for a Fiat commitment to the Imerese plant. But as the Wall Street Journal [sub] opines, Europe’s scrappage-swollen market has to come down to earth at some point. Just as Fiat has to rid itself of some of its terminally underperforming Italian capacity, at some point. And, as usual, there’s no time like the present.
UAW members protest a Modesto, CA Toyota dealer, as part of the union’s wider effort to punish Toyota for its decision to shut down the NUMMI factory in nearby Fremont [via the Modesto Bee]. “We are not telling people not to buy Toyota products,” explains one worker. “We’re telling people that Toyota needs to be a responsible corporation and keep jobs in California.” And though there couldn’t be a better time to blame Toyota for just about anything, the NUMMI plant was closed because GM ditched the joint venture during its bankruptcy and government bailout. Toyota, like GM, was faced with overproduction in the US market, and because GM had pulled out of NUMMI, the plant was an obvious candidate for closure. So really, these protesters would have some sinister version of GM’s logo on their sign if they were really interested in fairly assigning blame for the NUMMI shutdown. However, their UAW pension fund owns 17.5 percent of GM, so simply blaming Toyota is a lot more convenient. Especially since Toyota is already attracting so much well-deserved (if wholly-unrelated) negative media attention.
Recent Comments