Negotiations between Volkswagen and the United Auto Workers over the UAW’s possible representation of workers at VW’s Chattanooga, Tennessee assembly plant began last Friday, according to the German newspaper, the Handelsblatt and Automotive News. The newspaper also reported that UAW president Bob King and VW board member for human resources, Horst Neumann discussed the establishment of a German style “works council” to represent factory workers at the plant. VW and the UAW both declined comment. (Read More…)

This weekend was the end-of-summer graduation at Auburn, and like all such events, it brought an avalanche of rental cars to our Loveliest Village on the Plains™. Amidst the ubiquitous Chryslerbishis and engineering-excellence-cum-fleet-staple Camrys, I spotted a couple of newish Jettas and Passats wandering about town, crooked rental bar stickers applied with obvious indifference. I saw one particular rental Jetta sitting in the parking lot not far from the bookstore when I went to pick up some cut-price tomes. Coated in dust and wearing those ugly DUI-style New York plates, it was a forlorn sight. I couldn’t help but think of it as a reminder that the road to hell can be paved with tax breaks as often as it’s paved with good intentions; at least that’s the case if you happen to be governor of Tennessee.

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Sergio Marchionne’s plans to merge Chrysler and Fiat have been delayed because Fiat failed to convince a Delaware Chancery Court judge to set the value of Chrysler stock owned by the UAW’s health care fund known as VEBA. Judge Donald Parsons rejected Fiat’s request to find that a call-option agreement covering at least 54,000 Chrysler shares valued the stock at slightly less than $140 million. That decision means that the dispute over the shares’ value will now proceed to trial. (Read More…)

Having failed to learn from previous mistakes, Volkswagen is inexplicably bringing the Phaeton back to North America, despite being totally contradictory to their push downmarket to appeal to mainstream American car shoppers.

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Fiat bought another 3.3 percent of Chrysler, “bringing it a step nearer to its goal of creating the world’s seventh-largest automaker by sales,” says Reuters. What Fiat really wants is to consolidate loss-making Fiat with profitable Chrysler, and to get “access to some of Chrysler’s cash flow for investments in new models,” the wire says. (Read More…)

As Volkswagen gears up for a decision on expanding their Chattanooga factory, a member of Volkswagen’s supervisory board told the Handlesblatt that any new product would be contingent on VW adopting a works council (explanation by our own veteran of Volkswagen BS here) for the plant.

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The mantra before, during, and after the bailout was (and still is) that without the bailout, gadzillions of jobs would have vanished, the American car industry would have been wiped out, wheels would have come off the arsenal of democracy, and the sky would have fallen into Lake St. Clair.  Of course, that’s nonsense. There are more than enough other carmakers in America. They would have received the sales, and added the jobs.  They would have been mostly non-union jobs though.

The truth is, without the bailout, the UAW would have vanished, and with it millions of Democratic votes.  (Read More…)

Lower gas prices and a turn-around in the housing market rekindled America’s love for the pickup, resulting in 2,000 new jobs at Ford’s Kansas City Assembly Plant. (Read More…)

Bob King’s attempts to ingratiate himself with German unions, and to make Opel’s Bochum workers reconsider their decision to turn down Opel’s restructuring plan, are being ignored. Actually, it appears as if they had the opposite effect. Days after King’s comment, Bochum plant manager Manfred Gellrich rejected new discussions, saying Opel does not want to “waste precious time,” Reuters says. Over the weekend, Opel dropped another bomb: Bochum will be closed completely. A parts depot that was supposed to stay open, will also close its doors. (Read More…)

UAW boss Bob King told Opel’s Bochum workers to vote again, and to this time accept a deal that had been worked out between the German metal worker union IG Metall and GM. (Read More…)

Nissan workers will get a pay raise without the help of the Union. Or maybe they get a pay raise to help keep the union out.  (Read More…)

No works council without representation. Those are the words of UAW President Bob King, in an interview with Autoline Detroit, when asked about a possible works council at VW’s Chattanooga assembly plant.

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The head of Germany’s metal worker union IG Metall, Berthold Huber, urged workers at Volkswagen’s Chattanooga plant to join the UAW. In a letter distributed to Chattanooga workers, obtained by Reuters, Huber says: (Read More…)

The driving force behind the 12 man protest at Chrysler’s Warren, Michigan plant has gotten the boot.

The Detroit News, which broke the story, reported that protest organizer Alex Wassell was suspended without pay after nearly 20 years on the job. The protest was not sanctioned by the UAW, and led to the leaking of some documents outlining quality problems with the 2013 Ram 1500, a crucial product for Chrysler.

Since Wassell’s suspension, groups like the ACLU and Labor Notes, a union activist group, have spoken out about the firing, which Chrysler described as being due to “…engaging in activity constituting or appearing to constitute a conflict with the interest of the company.”

Meanwhile, the UAW has been curiously silent on the whole matter, which gives us an indirect example of the inherent conflict that occurs when the labor union and the corporate owners are one and the same.

The UAW is stepping up their organization efforts at Nissan’s Canton, Mississippi plant by taking their campaign to…Geneva?

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