From Reuters to The Nikkei [sub], the world is abuzz with the shocking news that Honda had to shut down assembly lines at all of their four Chinese auto assembly plants after workers at a Honda transmission factory in Foshan in southern China walked off the job. While the job action barely registers in the Chinese press, my phone in Beijing rings off the hook. Common question from abroad: “Are they allowed to do that?” There goes another myth. (Read More…)
You don’t want to be traveling in or to Europe these days. In Germany, Lufthansa’s pilots went on strike this morning, grounding 3200 planes. “The largest strike in the history of German aviation” (Die Welt) paralyzed German air traffic, and caused jams on the ground as travelers switched from planes to trains and automobiles.
Meanwhile next door in France, a nation is running out of gas. Workers at the six refineries owned by the country’s biggest oil group, Total, have been striking for more than a month. The work stoppage threatens to spread “to the two French oil refineries owned by US group Exxon Mobil, where strikes are planned for Tuesday,” reports the BBC. (Read More…)
GM’s Lordstown, OH plant was something of a poster boy for all that went wrong with the UAW over the past several decades, reports the New York Times. Poor quality, worker sabotage and crippling strikes led to the coining of the term “Lordstown Syndrome” as a symbol of UAW recalcitrance. Lordstown’s workers were so feisty that they even picketed their own union hall in the 1980s. Now, with the legacy of the Vega hanging over their heads, and the possibility of plant closure only narrowly avoided by securing the Chevy Cruze manufacturing assignment, the members of UAW Local 1112 are singing a different tune. “We were the bad dog on the street at one time,” 1112’s shop Chairman Ben Strickland tells the Times’ Nick Bunkley. “We’ve got 3,000 lives to worry about. The cockiness and the arrogance that we once portrayed — we definitely got a lot more humble.” That, it turns out, is in large part due to General Motors’ spectacular fall from grace.
Well, the “what makes an American car American” debate just got a little more interesting (and a lot more interesting than the “who ‘won’ the CTS-V Challenge” rigmarole). Automotive News [sub] reports that Ford’s Oakville, Ontario plant and GM’s Delta Township plant have ceased production of Flex, Edge, MKX, MKT, Acadia, Traverse and Enclave as supplier Rico Automotive is unable to supply key transmission components. The reason for the parts stoppage: labor violence… in India. Turmoil at Rico’s plant in Gurgaron (30 miles from New Delhi) came to a head on the 18th, when clashes between temporary workers and factory staff left an employee dead. Now GM stands to lose 7,200 units of production, while Ford admits “several thousand” units won’t be built over the next week. This striking illustration of how globalized the auto industry is, is causing some analysts to question the wisdom of using Indian suppliers. They argue that labor unrest like this is common in the subcontinent, compounding already-challenging logistical and shipping-cost issues. But GM and Ford aren’t exactly about to stop investing in Indian firms and production capacity either, since that market shows more growth potential than the US. One thing is for sure: there’s no such thing as an “American car,” let alone an “American car company” anymore. Government ownership notwithstanding.
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