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NEWS ARTICLE
INDEX

Ontario
dealers told
to end test
drives now
or face a
range of
penalties
________

Ford to make
100K face
shield in
Windsor Ont
to aid
in COVID-19
fight
_________

We Love You
Very Much,’
Chrystia
Freeland
Tells
Canada’s
Seniors

________

Detroit's auto
industry steps
up against
COVID-19

________

Ford vehicle
sales fell
12.5% in
first quarter
F-150 still
truck king

________

Ford CEO
Jim Hackett
received
$17.36
million in
compensation
in 2019
________

It won't be
'business as
usual for quite
a while,'
Unifor says
of auto
industry
________

Ford delays
restarting
production
indefinitely
________

As COVID-19
death toll
mounts, when
to reopen
North
American
plants?
_______

Ford to restart
some plants in
April;Toyota,
Honda, FCA
extend
closing
_______

Ford recalls
268K cars in
North America
to fix door
latches
_______

Ford Works
With 3M, GE,
UAW to Speed
Production of
Respirators
_______

Ontario
dealers can
complete
sales via
email during
coronavirus
pandemic
_______

Border closure
not expected
to affect
production,
supply chains
or dealer stock
________

GM and Ford
N.A. plants
to shutter
thru March 30
_______

Detroit
carmakers
will close
plants due to
coronavirus
concerns
_______

Unifor,
Detroit 3 form
coronavirus
task force

________

Windsor FCA
workers return
as carmakers
try keeping
plants running
during virus
crisis
_______

Ontario offers
more help
to laid-off
autoworkers
looking for
new careers
______

NY Auto
Show
postponed
due to
coronavirus
_______

FCA-UAW
bribery
scheme
'targeted
& directly
harmed'
automaker
_______

Charges
against ex-
UAW boss
inch union
closer to
federal
oversight
_______

USMCA update
puts Canada
in the role
of labour
watchdog for
Mexico
_______

Ford, Fiat
Chrysler
restrict air
travel for
employees
due to
coronavirus
______

USMCA update
puts Canada
in the role
of labour
watchdog
for Mexico
_______

FCA to end
third shift
at Windsor
Assembly
Plant in June
affecting
1,500
workers
_______

Ford v Ferrari
cars take a
victory lap
at Autorama
_______

Failed
execution,
culture weigh
on Ford
performance,
shares
_______

Retiree Nom
Evans Wife
Passes Away
Feb 27, 2020

______

Ford recalls
popular F-150
pickup to fix
headlamp
problem
________

Ford seeks
$1M in
damages and
to rescind
original GT
sale after it
was 'flipped'
_______

Ford’s
lending arm
is generating
more profit
than ever
_______

2021 Ford
F-150 design
cues, big
screen
exposed in
spy photos
_______

UAW's new
dissidents
not the
first to
call for
one-member
one-vote
_______

A Ford service
tech's newest
tool? Virtual
reality headset
________

Jim Farley
could get
32% pay
raise as
Ford chief
operating
officer
_______

Former UAW
President Owen
Bieber dies
at 90
________

Retiree
Guenther Gahs
Passes Away
Jan 12, 2020
________

Magna CEO
says USMCA
will mean
'more jobs,
more
investment'
in Canada
_______

Pensions are
a promise
________

Ford recalls
over 240K
vehicles
to fix
suspension
problem
______

Coronavirus expected to hit
automakers'
bottom lines
______

Ford
shakeup
signals
pressure
to perform
in present,
future
________

Ford completes
400 layoffs at
Oakville plant
_______

Ford’s Hinrichs
to retire, Farley
becomes COO
________

Ford shakes
up leadership
after missing
2019 earnings
targets
_______

Ford's profits
fall nearly 99%
for year, due to
Explorer woes
_______

Ford to pay
UAW members
$6,600 in profit
sharing
_______

Frank Marek
Passes Away
Feb 1, 2020
________

Trump signs
new USMCA
trade deal,
clearing way
for Commons
debate
______

GM wants to
see documents
UAW gave
to federal
government
in corruption
probe
_______

Unifor to
pay $36,000
of Nemak's
legal costs
associated
with wildcat
strike
_______

Lincoln's first-
ever electric
vehicle will
be built
with Rivian
______

Ford reaches
new settlement
over Focus,
Fiesta
transmissions
_______

The original
Bullitt
Mustang The
incredible
story behind
the car
that few
people know
_______

REGINA CO-OP
REFINERY
PICKET LINE
Jan 20, 2020
_______

Ford proposes
$30M-plus
settlement in
transmission
suit
_______

Fiat Chrysler
says GM's
racketeering
suit fatally
flawed
_______

NDP caucus
will discuss
whether to
support new
NAFTA
_______

Unifor
President
Jerry Dias
Arrested Amid
Union Protest
Against Regina
Oil Refinery
______

USMCA
ratification
a top priority
for MPs when
Parliament
returns
______

Ford preps
dealers for
its first-ever
battery-electric
Mustang SUV
_______

2020 Ford
Mustang
Shelby GT500
test drive
_______

FCA trims
output at
4 plants,
including
Windsor, Ont.
after backlog
_______

U.S. Senate
Republicans
expect USMCA
vote Thursday
_______

Ford, GM see
sales in China
fall with
another tough
year ahead
______

GM says Fiat
Chrysler not
cooperating in
racketeering
suit
_______

Bullitt' Mustang
fetches a cool
$3.74 million
at auction
_______

UAW President
Rory Gamble
under federal
investigation
_______

Ford sales
were off 3%
last year, but
industry-wide
totals still hit
17.1 million
_______

10 vehicles
that defined
the decade
_______

If Oshawa
Assembly can
close, what’s
next?
______

Judge
issues
order
restraining
Unifor from
impeding
refinery
traffic
________

Turbulent
decade for
automakers
in Washington
comes to
a close
_______

Orville Shaw
Wife Helen
Passes Away
Dec 30, 2019
_______

Dec 2019
Articles

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News

Ontario dealers told to
end test drives now or face
a range of penalties

Stephanie Wallcraft
Automotive News
April 9, 2020

TORONTO – Ontario dealers are being warned to no longer offer test drives, including those conducted at customers’ homes, or risk being in contravention of the province’s most recent COVID-19 Emergency Order released on April 3.

Dealers who continue to offer them will be subject to administrative action up to and including a proposal to revoke registration, said spokesman Terry O’Keefe, spokesman for the Ontario Motor Vehicle Industry Council (OMVIC)

“Failing to comply with the province’s Emergency Order may result in administrative action by OMVIC, ranging from a discipline hearing to the issuance of a proposal to revoke registration,” O’Keefe told Automotive News Canada. “Since dealers were ordered closed by Ontario’s Emergency Order [except for online sales], it is OMVIC’s opinion that taking a vehicle to a customer’s home for the purpose of a test drive violates the Emergency Order and its intention to protect the health of all Ontarians and lessen the spread of Covid-19.”

Ontario’s most recent order also declared dealer showrooms to be non-essential businesses and forced them to close. O’Keefe says that violating the order in any capacity would be viewed as being in violation of its Code of Ethics.

“Ontario’s Emergency Order is in place to save lives – ignoring it, or seeking ‘work arounds’, is illegal and/or unethical,” he said. “The [Motor Vehicle Dealers Act] requires dealers to conduct themselves with honesty, integrity and in accordance with the law, and the Code of Ethics requires registrants not engage in any act or omission that, having regard to all of the circumstances, would reasonably be regarded as disgraceful, dishonourable, unprofessional or unbecoming of a registrant.

“OMVIC is confident the vast majority of registrants agree that protecting Ontarians must be our number priority.”

The Trillium Automobile Dealers Association, which represents more than 1,000 new-vehicle dealers across the province, supports OMVIC’s position, said Frank Notte, director of government relations.

“We are in lockstep with OMVIC that test drives should not be undertaken,” Notte said. “Our legal analysis of the Emergency Order also does not permit test drives at this time. Furthermore, test drives are not conducive to social distancing, which is a top directive from all public health organizations and governments as the world fights COVID-19.”

OMVIC suggests that dealers include cancellation clauses in sales contracts while customers are unable to assess vehicles with test drives, said O’Keefe.

“To help protect consumers and to ensure confidence and trust in the online purchase process, OMVIC encourages dealers to provide remote customers with a contract cancellation period,” O’Keefe said.

 

Ford to make 100K face shields
in Windsor, Ont., to aid
in COVID-19 fight

Unifor Local 200 President John D'Agnolo displays one of the face shields his members are making Ford's engine plant in Windsor, Ont.

Canadian Automotive
Greg Layson
April 8, 2020

Ford Motor Company of Canada Ltd. says it has started production of 100,000 face shields in Windsor, Ont., in an effort to help protect Canadian medical personnel and first responders on the front lines of the COVID-19 pandemic.

The automaker said in a news release late Monday that it is working closely with the Ontario and federal governments to distribute the face shields throughout the province, and across Canada. Shipments are scheduled to start this week.

“Ford of Canada has a long history of supporting Canada and its communities in times of need,” Dean Stoneley, president and CEO, Ford Motor Co., of Canada Ltd., said a joint statement with the union, Unifor. “By repurposing our production facilities in Windsor to meet the urgent demand for face shields, we can help protect the lives of our heroic health-care professionals and first responders as they continue to treat the most vulnerable among us.”

A Ford spokesperson said the "initial donation of 100,000 face shields" will be made at the Windsor Engine plant, which normally produces 6.8-litre V10 two-valve and three-valve engines.

Neither Ford of the union said how many employees will be needed to make the shields.

“I am incredibly grateful to our members at Ford in Windsor for doing a tremendous service for their community and their country during this national emergency,” Unifor President Jerry Dias said in the statement. “I commend Ford for working with Unifor to ensure that strict health and safety protocols are in place that will ensure our members can manufacture badly needed medical supplies and return home safely to their homes and families.”

The automaker said that at the advice of government and health officials, Unifor and Ford of Canada remain in continuous communication at the national and plant level to ensure all safety actions and precautions are taken to help keep workers and their families protected.

 

We Love You Very Much,’ Chrystia
Freeland Tells Canada’s Seniors

Zi-Ann Lum
April 7, 2010

OTTAWA — Deputy Prime Minister Chrystia Freeland shared a moving message to Canada’s seniors at a daily press conference with public health officials on the coronavirus pandemic Friday.  

“I’ve been thinking about you a lot,” Freeland said in a sparsely populated room in Parliament’s West Block. “You raised us. You built our amazing country. Now you are staying inside and you are physically separated from your loved ones.” 

She said she knows the situation is hard for many people.

“I want you to know that we love you very much. And we are doing everything in our power to keep you safe.”

Freeland’s message comes a day after a leading health columnist, The Globe and Mail’s André Picard, warned people to pull their relatives from seniors’ homes if they can.

Citing how COVID-19 cases have been confirmed in at least 600 seniors’ residences across the country, Picard warned, “This is a wildfire that could soon grow far worse.”

Pinecrest Nursing Home, a long-term care home in Bobcaygeon, Ont., has become a case study in how fast the highly contagious respiratory disease can spread. As of Friday, 20 residents have died at the 65-bed facility in just over two weeks. The virus also claimed the life of Jean Pollock, who wasn’t a resident at the facility. 

Pollock visited her 91-year-old husband, a resident at Pinecrest, every day and volunteered at the nursing home, according to CBC News.

There are 11,747 confirmed cases of COVID-19 in Canada as of Friday morning, according to Chief Public Health Officer Theresa Tam. At least 152 deaths have been linked to the disease.

Symptoms include cough, fever, difficulty breathing, and pneumonia in both lungs. The disease is spread through the respiratory droplets from an infected person. 

Enhanced testing coming, Ontario health minister says

Canadians have been told to respect physical distancing, from staying at home as much as possible to keeping a two-metre distance from people in public. Crowd control measures have also been widely adopted across the country, from bans on public gatherings to limits on the number of people who can shop in grocery stores at one time.  

Public health officials have said a majority of people who get COVID-19 recover and do not need hospitalization. But because the prevalence of pre-existing conditions is higher among seniors, they are considered at a higher risk of contracting potentially life-threatening pneumonia associated with the disease.

In Ontario, there have been 1,047 confirmed cases of COVID-19 among people over age 60 since January 15, according to statistics released by the province. The case fatality rate of those who contract the disease is significantly higher for people over 80.

Ontario Health Minister Christine Elliott told reporters Friday it’s not realistic that every long-term care home resident will be released into their care of family.

“Most people will remain in homes,” she said.

The health minister offered reassurance saying that the province is taking the situation facing seniors very seriously. “We are really trying to build that iron ring of protection around them.”

Enhanced testing measures are coming, Elliott said, adding that incoming strict no-visitor rules may be difficult for some family members to accept. 

 

Detroit's auto industry steps
up against COVID-19

Pat Tucker, 55, of Roseville makes face shields at the Troy Design Manufacturing facility in Plymouth. (Photo: Courtesy Ford Motor Company, The Detroit News)


Breana Noble and
Kalea Hall,
The Detroit News
April 6, 2020

Pat Tucker could have waited it out when Ford Motor Co. shut down North American manufacturing. Instead, she's helping to make thousands of face shields a day for health care workers and first responders.

"If it’s to help, then I’m in," the 55-year-old employee of Ford subsidiary, Troy Design & Manufacturing Co. in Plymouth, recalled saying when asked about the opportunity. "Because something has got to be done. We are working 12 hours a day now. The more we can get out the better. We have so many people emailing and needing them. We are

Hundreds of autoworkers and engineers and thousands of global suppliers are answering the call for help with remarkable speed in an effort becoming known as the "Arsenal of Health," a reference to Detroit's military production surge during World War II.

In a matter of days to weeks, Detroit's three automakers and key suppliers have gone from producing parts and vehicles to preparing facilities to make equipment desperately needed to save lives of severely sick patients and protect front-line workers combating the COVID-19 pandemic.

General Motors Co. CEO Mary Barra told the company task force created for the effort: "Every day we slow down is a day someone's life is at risk," Shilpan Amin, GM's vice president of global purchasing and supply chain, recalled from the meeting. "We didn't have any experience in doing this. In our minds, we didn't know it couldn't be done, so we made it happen."

Scaling up

The pace of progress is unlike anything Troy Design President Todd Jaranowski, a more than 30-year Ford veteran, has seen. The face shield project took over 200,000 square feet of the Plymouth facility on Tuesday, March 24.

"We ran like 1,000 units and then ramped up to 4,000," Jaranowski said, "and then by Thursday, we ran 25,000."

Elastic for the shields' head bands were in short supply from the start. But a Ford supplier, which the company declined to name, opened its doors and its parts bins at 4 a.m. to provide weather stripping to supplement, Howard Lew, Ford vehicle components and system engineering strategy and initiatives manager, said in a statement.

The electric staplers being used, however, weren't cutting through the rubber tube. But Ford found a non-latex rubber band that worked, and it made a "very automotive request to a very un-automotive supplier" to provide 200,000 bands in about 48 hours, Lew said. The supplier had them ready in 26.

Meanwhile, Doug Randlett, Troy Design engineering supervisor, learned something: instead of stapling the weather stripping to the shields, the company could use common push pins used all over vehicles to fasten parts.

"Doug hit such a grand slam we named it 'The Dougie,'" Lew said. "We had three viable designs for the face shield. ... Based on available supply, it looked like we had design solutions that could be produced anywhere in the world if needed."

Now, about 1.2 million face shields have been shipped to medical workers across the country to Detroit, California, Florida and New York. The goal is to make 1 million a week — but, Jaranowski said, there's demand for 9 million.

Likewise, the United States needs ventilators, devices that help patients with the respiratory illness to breathe in severe cases. In mid-March, the Society of Critical Care Medicine estimated that 960,000 U.S. COVID-19 patients would need ventilators with only about 200,000 available. Medical equipment manufacturers are scampering to increase production exponentially.

"The biggest challenge is taking a product that just over two a day is made or 10 a week and scaling that to over 7,000 a week in the future as we ramp up," said Adrian Price, director of Ford's global manufacturing core engineering division.

The Blue Oval plans to produce by Independence Day 50,000 copies of Florida-based Airon Corp.'s simple, approximately $7,000 air-powered ventilator at its Rawsonville Components Plant in Ypsilanti. Ford will provide the devices to GE Healthcare.

The request echoes the historic "Arsenal of Democracy" transformation by GM, Ford and Chrysler Corp. during World War II when they converted plants to make bombers, tanks and trucks. They simplified the machines and put assembly lines to work. Instead of taking one month to build one plane, Ford by 1944 was making one per hour at its Willow Run plant. In the 1940s, Ford also developed a portable baby incubator and an "iron lung" for polio patients.

Ford's Airon ventilator project is part of the Trump administration's goal of producing 100,000 ventilators in 100 days. President Donald Trump also called on GM to contribute, last month taking action under the Korean War-era Defense Production Act. He signed a presidential memorandum ordering GM to make ventilators for the government — despite the Detroit automaker hours earlier saying it was moving forward with building the devices for Washington-based Ventec Life Systems at its Kokomo Operations electric components plant in Indiana.

“We could not be prouder of the UAW members that have volunteered to make such a difference at this critical time in our history," UAW Vice President Gerald Kariem said in a statement. "These UAW Ford Members have sacrificed beyond themselves for all of us."

Trump later changed his tone, saying GM was doing a "fantastic job." But the automakers' efforts began well before the president called upon the companies to help.

'Project V'

On March 17, GM's Barra took a phone call from Kenneth Chenault, a former American Express Co. CEO who founded StoptheSpread.org to activate companies to help combat COVID-19. Their chat led to a conversation with Ventec the next day. On Thursday, a GM team flew to Seattle to figure out how to boost Ventec's production from a couple hundred to several thousand a month.

By the evening of March 20, GM had organized a conference call with its suppliers to ask for their help with an effort dubbed "Project V." Barra tasked Amin's team to determine within 48 hours where all 419 of the ventilator's parts, as well as their thousands of sub-assemblies, could be acquired.

"It was kind of a call to action: Are you in, or are you out?" recalled Dan Kennedy, executive director of sales for Illinois-based Flex-N-Gate, which makes metals, plastics and other parts for GM. He texted the company's executives: "'You can't imagine the call I am on right now.' Literally within seconds, they were responding, 'We're in.' You don't know what you are in for, you just know we are in."

Ventec had FedExed one of its devices to Michigan. GM disassembled it, laying the pieces on a conference room table inside the idled Warren Transmission Plant. The company disinfected the space between teams of suppliers — each donning masks and gloves — taking photos and measuring the parts to determine what the companies could make. 

Each of GM's 120-member purchasing team became the "CEO" of at least one part with the responsibility for coordinating manufacturing, logistics and quality, Amin said. Some were more complex: One circuit board has 1,200 components sourced from companies in India and Malaysia, deep in the supply chain.

"These are where one of the biggest bottlenecks are happening," Amin said. "We built incremental capacity based on our suppliers' capabilities, and it starts opening the doors across the ventilator production industry."

After 48 hours, 95% of the parts were sourced. The last 5% was secured by the early afternoon the following day. Starting this week, Flex-N-Gate will begin manufacturing seven injection molds for each device in Grand Rapids with its presses. Illinois-based Tenneco Inc.'s headlights wire harnesses will light up the ventilators; it sent sample parts to Kokomo on Wednesday.

"It's been a blur," said Mike Bugbee, Tenneco's global customer director for GM and lighting product line general manager. "That fast decision-making, decisiveness is what really got us here."

GM last week began training the 1,000 paid volunteers in Kokomo who eventually will build 10,000 of the devices per month with shipments starting in mid-April.

 

 

Ford vehicle sales fell 12.5% in
first quarter, F-150 still truck king

Henry Payne,
The Detroit News
April 5, 2020

Ford Motor Co.'s sales fell 12.5% in the first three months of the year, the automaker said Thursday, following the dismal results of other carmakers who reported their numbers the previous day, as the pandemic closes dealerships across many parts of the country.

The sales drop was the largest of the Detroit Three automakers with Fiat Chrysler Automobiles down 10% for the quarter and General Motors Co. off 7% as government-mandated stay-at-home orders and a souring economy slowed buyer traffic to a crawl.

But the Detroit truck wars raged on, with Ford maintaining its crown as best-selling truck brand.

Other bright spots included Lincoln and the Mustang, which both gained sales ahead of what is sure to be a harrowing April. With most of the country anticipated to be in lockdown against the coronavirus storm, analysts expect auto sales to erode by 80%.

"Our Ford team is working around the clock on everything from building healthcare equipment, assisting our dealership network and providing our customers peace of mind through deferred vehicle payments," said U.S. Ford marketing chief Mark LaNeve. 

Dealer incentives were a big reason that Ford's overall pickup sales were off only 5.4% as J.D. Power reported that automakers shoveled truckloads of incentives, including no-interest loans, to maintain volume in their most profitable segment. Ford's truck line includes F-Series and Ranger pickups, medium- and heavy-duty trucks, Transit vans, Transit Connect and E-Series vans.

Though even the mighty F-series was not immune to COVID-19's effects with sales off 13.1%, it maintained its status as America's best-selling vehicle with 186,562 units sold. Chevy SIlverado sales were 143,698 while Ram clocked in at 128,805.

Overall, GM, FCA, and Ford gained a whopping 11 points in U.S. market share thanks to healthy pickup sales.

Another Ford icon, the Mustang, also continued to dominate sales in the muscle car segment. With the twin GT350/Shelby GT500 performance snakes in the showroom for the first time ever, Mustang sales gained 6.8% to 18,069 vehicles, outdistancing second-place Dodge Challenger at 12,138.

Mustang's success has inspired a sub-brand that is moving full speed ahead despite the coronavirus. The first-ever electric car, the Mustang Mach E, is due later this year.

Lincoln sales jump of 6.9% bodes well for Ford’s resurgent luxury brand for when markets return to normal. The gain came in the face of deep luxury sales losses from Lexus, BMW, and Audi as key premium markets like California and New York shuttered (although they are still permitted to do online sales, unlike Michigan). New York alone accounts for 14% of U.S. luxury sales.

Lincoln has recast itself as an SUV-oriented brand with the all-new, mid-size Aviator and compact Corsair lifting sales. Once a geriatric brand, Lincoln's fastest rate of growth for Q1 came from the 35-44 year old demographic.

Analysts cautioned, however, that luxury and performance cars are likely to see the steepest falls in the current climate, putting more pressure on automakers like Ford to incentivize the sales of meat-and-potatoes trucks and vans.

“As the situation wears on, we may see that buyers in the next weeks will be interested in more practical automotive purchases, along with many buyers opting to delay planned purchases," said IHS Markit analyst Stephanie Brinley. "The delay could impact discretionary vehicle purchases, like sporty cars and sedans or high-performance cars and utilities, even more sharply than daily-use vehicles." 

 

Ford CEO Jim Hackett
received $17.36 million
in compensation in 2019

Breana Noble,
The Detroit News
April 4, 2020

Ford Motor Co. CEO Jim Hackett in 2019 received $17.36 million in total compensation, the Dearborn automaker reported in a Friday filing with the Securities and Exchange Commission.

Hackett's income last year, his second full year as CEO, fell 2.2% from the $17.75 million the chief executive was paid in 2018. While Hackett's base salary was steady at $1.8 million and his stock awards were up 3.5% at $13.19 million, incentive bonuses fell 32% to $1.75 million.

Ford's $6.379 billion in earnings before interest and taxes in 2019 missed the lowered guidance the automaker set of between $6.5 billion and $7 billion. The start of production of the company's redesigned Explorer SUV faced manufacturing problems, resulting in delays and fallen sales.

Hackett's compensation was 157 times more than the median employee compensation of $110,706, which was up from $64,316 in 2018 because of increased pension contributions.

The annual report filed Friday with the SEC details the pay for Ford's top executives.

Executive Chairman Bill Ford Jr. made $16.76 million in 2019. That's more than the $13.83 million total compensation he received in 2018 mostly from a $2.65 million change in pension value and deferred compensation earnings. Ford's base salary in 2019 was $1.7 million, the same as in 2018.

Jim Farley, Ford's former president of new businesses, technology and strategy who became chief operating officer last month, made a total of $8.36 million in 2019, down from $5.86 million in 2018. Farley's base salary in 2019 was $1.1 million, up from $1.07 million in 2018. Farley received a discretionary bonus that valued $185,600.

In his new role, Farley's compensation includes a $1.4 million base salary, a performance-based incentive bonus target of $1.89 million and an annual stock grant of $5 million, the automaker recently disclosed.

Joe Hinrichs, Ford's former president of automotive, received $11.02 million in total compensation in 2019. That was more than the $5.81 million he made in 2018 when he received a $97,920 bonus. Although Hinrichs did not receive a bonus in 2019, he received more in stock awards valued at $6.09 million and $2.65 million from a chance in pension value and deferred compensation earnings. Hinrichs' base salary last year was $1.3 million, up slightly from $1.1 million in 2018. Hinrichs retired last month after Ford reported its disappointing 2019 earnings results.

Tim Stone, Ford's chief financial officer, received $8.32 million for the first year the automaker publicly reported his compensation. That included a $783,338 base salary, a $1.48 million discretionary bonus, $4.3 million in stock awards and $742,500 in incentives.

Bob Shanks, Ford's former chief financial officer, was paid $8.32 million in total compensation in 2019, down from $8.42 million in 2018. His base salary was $1 million, up from $971,250 in 2018.

All of Ford's top executives had to meet performance goals in quality; automotive-segment operating cash flow and operating margin; Ford Credit pre-tax profit; and automotive revenue to receive the bonuses included in their total pay. These incentive bonuses ranged from $1.75 million for Hackett to $486,000 for Bill Ford.

Farley's was $742,5000, Hinrichs' was $850,500, Stone's bonus was $742,500 and Shanks' was $675,000.

Ford also paid $419,275 for Bill Ford's personal use of company aircraft and $899,219 for security. The company paid $91,523 for Hackett's use of the aircraft. Stone received $692,652 to relocate from California.

Hackett's compensation in 2019 tops that of Fiat Chrysler Automobiles NV CEO Mike Manley, who received $12.46 million. GM has not yet reported 2019 salaries.

The Detroit automaker typically releases its annual report in April. GM CEO Mary Barra was the highest-paid executive of Detroit's three automakers in 2018, earning $21.87 million.

Tesla Inc. also has not filed its proxy statement. In 2018, Elon Musk, CEO of the Silicon Valley electric-vehicle maker, received $2.28 billion in total compensation — the most by far, according to The New York Times, of the largest 200 publicly traded corporations in the United States.

 

It won't be 'business as usual
for quite a while,' Unifor
says of auto industry

John Irwin
Automotive News
April 2, 2020

Unifor President Jerry Dias said he anticipates assembly plants coming back online will do so initially as one-shift operations whenever it is determined that they can safely re-open.

“Even if they open up, it’s not going to be business as usual for quite a while,” Dias said. “They’ll ease into it based off of parts [availability] and based off the cleanliness of the facilities. They’ll likely rotate shifts and have groups at home. There’s going to have to be extended periods of time for cleaning.”

The COVID-19 pandemic has rattled the North American auto industry this month, virtually shutting down manufacturing in a matter of days and sending new-vehicle demand plummeting. All of Canada’s auto assembly plants have been temporarily shuttered as government and health officials urge people to stay home.

It remains unknown when automakers will restart their factories. Ford Motor Co., announced on Tuesday it was indefinitely delaying the restart of North American vehicle production, after previously saying it would ramp some of its factories back up starting April 6.

General Motors, after initially offering a reopening date of March 30, told Automotive News it does not have “firm return-to-work dates,” while Fiat Chrysler Automobiles said its shutdowns would last until at least April 14, “dependent upon the various state stay-in-place orders and the readiness of each facility to return to production.”

Dias, whose union represents workers at the four Canadian Detroit Three vehicle assembly plants, said Ford was being “incredibly optimistic” with its prior return timetable. He cautioned that more shutdowns are possible even after plants restart.

“The bottom line is this is going to be based on the virus, and the scary part of this is that the [health] professionals are saying we’re going through the first episode and that there’s quite likely to be a second episode,” Dias said.

He said how quickly plants can restart after it’s determined to be safe to do so will depend in large part on how easily the automakers are able to source parts. Due to the regional and global nature of the supply chain, that means how quickly Canadian plants come back online would be determined in part on how quickly the United States can get the virus under control, he said.

“I’m more concerned about the United States than I am with Canada because I think the Canadian government got off the mark a hell of a lot faster than the U.S. government,” Dias said.

With more than 180,000 confirmed cases as of Wednesday morning, the United States has more COVID-19 cases than any other country, according to a count by National Public Radio in the U.S. The New York Times, meanwhile, reported that several epidemiological models studied by the White House show that the pandemic “is likely to ravage the country over the next several months, killing close to 100,000 Americans and infecting millions more.”

According to Health Canada, there are 8,548 confirmed cases as of yesterday.

 

Ford delays restarting
production indefinitely

Breana Noble,
The Detroit News
March 31, 2020

Ford Motor Co. on Tuesday said it will further delay restarting production at its North American plants as the COVID-19 outbreak continues to spread in the United States.

The Dearborn automaker last week had shared its intentions to begin manufacturing again at Hermosillo Assembly in Mexico starting next Monday and at select U.S. plants, including Dearborn Truck, on April 14. The plants will remain idled indefinitely.

“The health and safety of our workforce, dealers, customers, partners and communities remains our highest priority,” Kumar Galhotra, Ford president of North America, said in a statement. “We are working very closely with union leaders — especially at the UAW — to develop additional health and safety procedures aimed at helping keep our workforce safe and healthy.”

The decision comes after the Trump administration this week extended federal social distancing guidelines through end of April as medical consultants said the United States could see more than 100,000 deaths from the COVID-19 outbreak. And Gov. Gretchen Whitmer on Monday indicated Michigan could be weeks away from a peak in cases.

Unlike Ford, General Motors Co. has not announced a restart date for production since extending its shutdown beyond this past Monday. Some employees, however, have been told to file for unemployment until as late as May 1 in states that require an end date to make the request.

Fiat Chrysler Automobiles NV last week also said its U.S. and Canadian plants would remain closed through April 13, though it is continuing to monitor the situation.

Industry experts have said it is unlikely most plants will restart before May, not only to keep workers safe but because of declines in demand as stay-at-home orders keep people from buying cars and close non-essential businesses, putting people out of work.

But as of Monday, foreign-owned automakers were holding onto plans to restart production in April. Toyota Corp.'s North American plants are set to open April 17 with production resuming April 20. Volkswagen AG intends to restart production at its Tennessee plant at 10 p.m. April 5. Honda Motor Co. Ltd.'s 12 manufacturing facilities, Nissan Motor Co. Ltd.'s Mississippi and Tennessee plants and Subaru Corp.'s Indiana plant are closed through April 6. Hyundai Motor Co. has suspended production in Alabama until April 10.

The United Auto Workers had expressed "great concern and caution" over Ford and Fiat Chrysler's plans to restart production in the coming weeks.

“Today’s decision by Ford is the right decision for our members, their families and our nation,” UAW President Rory Gamble said in a statement. “Under Vice President Gerald Kariem, the UAW Ford Department continues to work closely with our local unions and Ford to make sure that as we return to production all members are safe, and our communities are protected from this spreading pandemic.”

Ford's decision does not affect the automaker's plans to build ventilators at its Rawsonville Components Plant in Ypsilanti starting the week of April 20. Three shifts of 500 total paid UAW volunteers will work to produce 50,000 ventilators in the next 100 days.

The volunteers will have to self-certify online every day. Work stations will be six feet apart, and shifts will be scheduled so the workers from different shifts have no contact. Other high-tech solutions, Ford added, are in the works, as well.

 

As COVID-19 death toll mounts,
when to reopen North American
plants?

Vince Bond Jr.
Automotive News
March 30, 2020

DETROIT — Whenever Fiat Chrysler Automobiles restarts North America production, the UAW members working the lines will have to cope with the grim reality that COVID-19 has claimed the lives of several colleagues.

While it hasn’t been reported that an autoworker is among the dead in Ontario, Unifor is skeptical about a quick return to work.

The rising U.S. death count from the global coronavirus pandemic is personal for UAW members now. It includes familiar faces who walked the same halls and toiled on the same factory floors they did.

Clocking in won't be the same for Aric Holloway, a longtime worker at FCA's Warren Truck Assembly Plant north of Detroit. A co-worker who would greet people at the door died Wednesday, March 25.

"He would usually be there in the morning when you come in the front door, shaking your hand and telling you, 'Thanks for coming to work.' It was a joke that we" had, Holloway told Automotive News. "He would be in front of the plant every morning."

These deaths loom as automakers plot their courses of action. Mid-April appears to be the earliest that most North America production could come back on line. Ford Motor Co. last week said it planned to restart operations April 6 at one assembly plant in Mexico before reviving several U.S. factories April 14.

FCA said its production suspension will last until April 14, "dependent upon the various state stay-in-place orders and the readiness of each facility to return to production."

General Motors, after initially aiming to reopen its plants Monday, March 30, said last week, "The situation is fluid and can change week to week. We don't have firm return-to-work dates at this time."

Previewing what could be a battle over when workers should come back, UAW President Rory Gamble said the union was reviewing "with great caution and concern decisions being made about restarting workplaces, especially at advanced dates." Gamble said automaker executives must be guided by one simple question: "Would I send my family — my own son or daughter — into that plant and be 100 percent certain they are safe?"

In Canada, one local Unifor president said last week his members will take the lead from health agencies, not automotive executives.

“We’re going to go with what the medical professionals say. There’s a lot of things that need to be put in place,” Unifor Local 444 President David Cassidy said.

He represents about 4,500 workers at FCA’s Windsor, Ont., assembly plant, which produces the automaker’s minivans.

His members walked off the job nearly two weeks ago in fear of the virus after they found out one member was self-isolating after possibly secondhand contact with an infected person.

“We’ll play this by ear. The safety of our membership is No. 1,” Cassidy said.

Unifor Local 200 President John D'Agnolo, who represents workers at Ford’s engine plants in Windsor, Ont., told the CBC on March 25 that he wants to make sure his members are safe before returning to work.

"Right now, we're going to be going back to work as of April 20," he told the public broadcaster. "They haven't given us any more details after that.

“"They're ordering more supplies, like masks, like shields, to protect people that are going to be working within a six-foot radius. But that doesn't mean that they will be entirely safe. That's the dynamic we have right now."

TOUGH DECISIONS

In picking dates to restart idled factories across North America, automakers are attempting to balance worker safety with financial stability. They book revenue as vehicles are produced, and their cash reserves shrink with each day plants remain dark. But whenever production resumes, fear of COVID-19 could still linger among the work force.

The decisions are becoming even more difficult as the number of blue-collar workers who test positive for the virus — and die from it — grows.

"There is going to be some risk/reward calculation about when we go back to work, how we go back to work and what changes about that work," said Kristin Dziczek, vice president of industry, labor and economics at the Center for Automotive Research in Ann Arbor, Mich. "It would be really hard to go back into a plant when you know someone who contracted the disease and died."

Plants are like small cities where word travels fast. Workers could be shunned if colleagues find out they've been exposed to the virus.

"What happens when word spreads [that] your co-worker's spouse, or someone in their family that they live with, has COVID-19?" asked one former auto executive who asked to remain anonymous. "That is going to spread like wildfire through the plant. No one is going to want to work near that person."

The former executive also wondered how workers with medical conditions will feel about returning. He said automakers will need a plan to deal with worker uneasiness.

Companies, for instance, may need to back off on some disciplinary measures for absenteeism and try to loosen restrictions on the number of temporary employees they can use at a given time to make up for absences. Panicked workers could end up on short-term disability leave because of stress instead of going into the plants during this uncertain time.

Companies will need to "recognize that certain people just would rather not have the money, or have a reduced amount of money, and not be exposed to it," the former executive said. "How many deaths is it going to take before they shut the plant down once it gets going? It's more of a moral thing. What's acceptable?"

Through last week, at least four FCA union workers — three in Michigan and one in Indiana — had died in connection with COVID-19, as had two Ford workers in Michigan, according to the UAW.

A nonunion technical support worker at FCA's technology center in Auburn Hills, Mich., also died, two Detroit newspapers reported, prompting the postponement of work associated with its test laboratories and pilot plants there. FCA declined to comment on employee health matters, citing privacy restrictions.

The automakers face dire economic forecasts.

The Detroit 3 have borrowed billions of dollars in recent weeks to help weather the crisis. Ford and GM each withdrew their financial guidance for the year.

"Automakers have done all kinds of planning and girding their balance sheet for a recession, but no one planned for things to go down this quickly, and no one planned for zero production," Dziczek said. "Automakers are only making money when they're making vehicles. They're going to try and be down for the least amount of time necessary."

Jeff Schuster, president of Americas operations and global vehicle forecasts at LMC Automotive, said any extended downtime would significantly hurt margins and upcoming vehicle launches.

"It's like a strike, in a lot of ways, across the entire industry," he said.

While the ultimate cost of the current plant downtime is unknown, GM said it lost nearly $4 billion over the course of the 40-day UAW strike last fall during contract negotiations.

 TAKING CARE OF FAMILIES

Whenever assembly lines start to move again, automakers face another potential problem: excess inventory as a result of low demand. Unemployment claims soared last week, and most consumers still working are more focused on buying groceries and other essentials right now and thus are liable to put off a big purchase such as a new vehicle.

LMC predicts full-year U.S. auto sales will fall to 14.2 million units, a 17 percent drop from 2019.

Art Wheaton, a professor of labor at Cornell University, said automakers could try to ease into production by running fewer shifts at first.

"I think there's going to be people who will take the sick days, or take the vacation days, and try to exercise the time off," Wheaton said. "But there's also a lot of people that [could say], 'I'm ready to go back to work. This is what we're paid to do. Let's go and make money so we can have a profit-sharing check and we can take care of [our] families in the future.' "

Of course, the longer the plants are down, the smaller next year's profit-sharing checks will be.

 

Ford to restart some plants in April;
Toyota, Honda, FCA extend closing

Automotive News
Michael Martinez
March 27, 2020

Ford Motor Co., Toyota Motor Corp. and Honda Motor Co. on Thursday updated plans to resume North American light-vehicle output. Here’s the latest:

FORD

Ford Motor Co.will restart production at some of idled North American plants in early April.

It expects to reopen a Hermosillo assembly plant in Mexico with one shift on April 6 and plans to restart production April 14 at Dearborn Truck, Kentucky Truck, Kansas City Assembly and Ohio Assembly.

Ford did not offer restart dates for Chicago Assembly, Flat Rock Assembly, Michigan Assembly, Louisville Assembly, Cuautitlan Assembly in Mexico or Oakville Assembly in Canada.

The company's plans raised more concerns at the UAW, which has pressed the Detroit Three to shutter plants to protect workers. Several FCA hourly workers have died of COVID-19, the disease caused by exposure to the coronavirus.

"We are reviewing with great concern and caution today's announcement," the UAW said in a statement Thursday. "Our priority is the health and safety of our members, their families and the American public."

The Hermosillo plant builds sedans: The Ford Fusion and Lincoln MKZ, although both vehicles will be discontinued in coming years. The four U.S. assembly plants slated to restart production all build Ford’s most profitable vehicles; F-Series pickups, vans and full-size SUVs.

Dearborn Truck produces the F-150 pickup, Kansas City builds the F-150 and Transit vans, Kentucky Truck builds Super Duty pickups, Expedition and Lincoln Navigator SUVs, and Ohio Assembly builds larger pickups and E-Series cutaway and stripped chassis vans.

The automaker said a number of other operations also are scheduled to restart April 14 to support the assembly plants. Those are Dearborn Stamping, Dearborn Diversified Manufacturing, integrated stamping plants inside Kansas City Assembly and Kentucky Truck, Sharonville Transmission and portions of Van Dyke Transmission, Lima Engine and Rawsonville Components.

"We will continue to assess public health conditions as well as supplier readiness and will adjust plans if necessary," Kumar Galhotra, Ford's president of North America, said in a statement.

The automaker's North American plants have been down since March 20. Ford originally planned to restart production March 30 but pushed back the deadline after many states, including Michigan, issued stay-at-home orders that extend beyond those dates.

Michigan's order ends April 13. In Ontario, Premier Doug Ford ordered all non-essential businesses to close for 14 days. They can reopen April 8.

TOYOTA

Toyota, citing a decline in vehicle demand, said it will extend the shutdown of all light-vehicle and components plants in North America, including Canada and Mexico, through April 17, with output to resume April 20.

The company planned to restart plants on April 6.

"Our service parts operations and finished vehicle logistics centers will continue to operate in order to continue meeting the needs of our customers," the company said. "We will continue to monitor the situation and take appropriate action in a timely manner."

HONDA

Honda Motor Co. will extend the shutdown of U.S. and Canada plants by a week, resuming production April 7, as the coronavirus saps consumer demand for cars and light trucks. The company's suspension was originally scheduled for March 23-30.

Honda operates four vehicle assembly plants in the U.S. and one in Ontario. It also manufactures engines, transmissions and other components.

The company, in a statement Thursday, said it will continue to provide opportunities for workers to be paid, including providing full pay for some nonproduction days and pulling ahead vacation for others.

FCA

FCA plants across the U.S. and Canada, as well as headquarters operations and construction projects, are intended to remain closed until April 14, dependent upon the various states' [and provinces'] stay-in-place orders and the readiness of each facility to return to production.

FCA had originally said its plants would shut down through the end of March.

  

 

Ford recalls 268K cars in North
America to fix door latches

The Associated Press
March 26, 2020

Detroit – Ford is recalling more than 268,000 cars in North America to fix doors that could open unexpectedly or may not close.

The recall covers the 2014 through 2016 Ford Fusion and Lincoln MKZ, and the 2014 and 2015 Ford Fiesta. Cars in Mexico, U.S. territories and 16 states with high temperatures are affected.

Ford says a lever in the door latch can crack and fail. Typically doors won’t close when it fails, but customers may be able to latch it after repeated attempts. If that happens, the doors could open while the cars are in motion.

Ford says it’s not aware of any crashes or injuries caused by the problem.

Dealers will replace the side door latches. Owners will be notified starting May 4.

Vehicles that are or have been registered in Alabama, Arizona, Arkansas, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, Nevada, Oklahoma, Oregon, South Carolina, Texas, Utah, and Washington are affected.

 

Ford Works With 3M, GE, UAW
to Speed Production of Respirators
for Healthcare Workers, Ventilators
for Coronavirus Patients

Mar 25, 2020 | DEARBORN, Mich.

  • Ford is working with 3M to manufacture at scale Powered Air-Purifying Respirators (PAPRs). Ford and 3M are collaborating on the new design leveraging parts from both companies to meet urgent demand for first responders and health care workers; Ford is exploring production of the new PAPR in a Ford facility in addition to 3M production
  • Ford and GE Healthcare are working together to expand production of a simplified version of GE Healthcare’s existing ventilator design to support patients with respiratory failure or difficulty breathing
  • Ford, in cooperation with the UAW, will assemble more than 100,000 critically needed plastic face shields per week at a Ford manufacturing site to help medical professionals, factory workers and store clerks; Ford also will leverage its in-house 3D printing capability to produce components for use in personal protective equipment

DEARBORN, Mich., March 25, 2020 – Ford Motor Company, joining forces with firms including 3M and GE Healthcare, is lending its manufacturing and engineering expertise to quickly expand production of urgently needed medical equipment and supplies for healthcare workers, first responders and patients fighting coronavirus.

In addition, Ford plans to assemble more than 100,000 face shields per week and leverage its in-house 3D printing capability to produce components for use in personal protective equipment.

“This is such a critical time for America and the world. It is a time for action and cooperation. By coming together across multiple industries, we can make a real difference for people in need and for those on the front lines of this crisis,” said Bill Ford, Ford’s executive chairman. “At Ford, we feel a deep obligation to step up and contribute in times of need, just as we always have through the 117-year history of our company.”

Powered Air-Purifying Respirators

Ford team members are working with 3M to increase the manufacturing capacity of their powered air-purifying respirator (PAPR) designs and working jointly to develop a new design leveraging parts from both companies to meet the surge demand for first responders and health care workers. This new respirator could be produced in a Ford facility by UAW workers.

To go as fast as possible, the Ford and 3M teams have been resourcefully locating off-the-shelf parts like fans from the Ford F-150’s cooled seats for airflow, 3M HEPA air filters to filter airborne contaminants such as droplets that carry virus particles and portable tool battery packs to power these respirators for up to eight hours.

Ford is looking at how it might produce these new-generation PAPRs in one of its Michigan manufacturing facilities, helping 3M boost production potentially tenfold.

“Working with 3M and GE, we have empowered our teams of engineers and designers to be scrappy and creative to quickly help scale up production of this vital equipment,” said Jim Hackett, Ford’s president and CEO. “We’ve been in regular dialogue with federal, state and local officials to understand the areas of greatest needs. We are focusing our efforts to help increase the supply of respirators, face shields and ventilators that can help assist health care workers, first responders, critical workers as well as those who have been infected by the virus.”

“We’re exploring all available opportunities to further expand 3M’s capacity and get healthcare supplies as quickly as possible to where they’re needed most – which includes partnering with other great companies like Ford,” said Mike Roman, 3M chairman of the board and chief executive officer. “It’s crucial that we mobilize all resources to protect lives and defeat this disease, and I’m incredibly grateful to Ford and their employees for this partnership.”

Ventilators

In addition, Ford and GE Healthcare are working together to expand production of a simplified version of GE Healthcare’s existing ventilator design to support patients with respiratory failure or difficulty breathing caused by COVID-19. These ventilators could be produced at a Ford manufacturing site in addition to a GE location.  

“We are encouraged by how quickly companies from across industries have mobilized to address the growing challenge we collectively face from COVID-19,” said GE Healthcare President & CEO Kieran Murphy. “We are proud to bring our clinical and technical expertise to this collaboration with Ford, working together to serve unprecedented demand for this life-saving technology and urgently support customers as they meet patient needs.”

Work on this initiative ties to a request for help from U.S. government officials.

Respirators and Face Shields

Meanwhile, Ford’s U.S. design team also is quickly creating and starting to test transparent full-face shields for medical workers and first responders. The face shields fully block the face and eyes from accidental contact with liquids and when paired with N95 respirators can be a more effective way to limit potential exposure to coronavirus than N95 respirators alone.

The first 1,000 face shields will be tested this week at Detroit Mercy, Henry Ford Health Systems and Detroit Medical Center Sinai-Grace Hospitals. Roughly 75,000 of these shields are expected to be finished this week and more than 100,000 face shields per week will be produced at Ford subsidiary Troy Design and Manufacturing’s facilities in Plymouth, Mich.

Ford is leveraging its Advanced Manufacturing Center in Redford, Mich., and in-house 3D printing capabilities to manufacture components and subassemblies for use in personal protective equipment.

Ford is evaluating a separate effort not involving GE Healthcare with the U.K. government to produce additional venitlators.

In China, Ford of China joint venture partner Jiangling Motors also has donated 10 specially equipped Transit ambulance vans to hospitals in Wuhan, where the coronavirus outbreak began. Ford is also reacquiring 165,000 N95 respirators from China that were originally sent by Ford to China earlier this year to help combat coronavirus.

Ford has also kicked off a working team to help hospitals locate and secure urgently needed surgical and N95 respirators. Ford has so far committed sending Henry Ford Health Systems 40,000 surgical masks while it locates additional supplies.

Additional companies and individuals who are interested in contributing to this effort can submit their information here at www.fordnewideas.com.

Ford, along with the companies it is supporting, will provide additional updates as these special projects progress. 

 

Ontario dealers can complete
sales via email during
coronavirus pandemic

John Irwin
Automotive News
Sept 20, 2010

Ontario dealers can complete sales via email during coronavirus pandemic

Ontario’s regulations prohibiting the signing of contracts off of a dealership’s property remain in effect during the coronavirus pandemic, although there are legal workarounds for dealers, according to a new bulletin by the province’s vehicle-sales regulator.

Today’s Ontario Motor Vehicle Industry Council (OMVIC) bulletin said all trading — including buying, selling and leasing vehicles — still must take place either entirely on a dealership’s physical premises or completely online. And dealers still cannot take a contract to a customer’s home for a signature, as “that would constitute trading off-premises,” according to OMVIC.

However, a dealer can email contracts to customers for them to sign at home before scanning and emailing the contract back to the dealership. Alternatively, e-signatures are allowed. Once the contract is signed, a dealer can deliver the vehicle directly to the consumer’s home.

The bulletin comes as dealers in Canada’s largest province are scrambling to adjust their businesses in the wake of the pandemic as more consumers stay home and limit physical contact with others. Many dealers have indicated they would be looking into ways to increase remote offerings to prop up sales and service while customers choose to stay home.

“The bulletin was sent in response to inquiries and to address some confusion in the dealer community regarding these issues,” OMVIC spokesman Terry O’Keefe wrote in an email.

O’Keefe said OMVIC has received numerous inquiries from dealers about what is or is not allowed. He said that no regulations have changed as a result of the pandemic, as rules are set by the Ontario legislature.

The OMVIC bulletin said sales to remote customers “may be allowed if appropriate measures are enabled to comply with the [Motor Vehicle Dealers Act] and ensure consumer protection.” Examples of those measures include explaining contract terms to customers and ensuring that any vehicle sold is “fit for purpose,” according to the regulator.

“To help facilitate consumer protection, some dealers have agreed to terms and conditions of registration that provide remote customers with a contract cancellation period,” the bulletin reads.

OMVIC said dealers are allowed to take a vehicle to a customer’s home or elsewhere for a test drive, on the condition that the person delivering the vehicle is a registered salesperson. Additionally, the test drive should be “offered solely for evaluating a vehicle’s performance, suitability and/or condition prior to purchase or lease,” and for no other reason, OMVIC said.

In the event that a vehicle is sold to a customer who has not seen the vehicle in person, OMVIC said it requires dealers give them “full, clear and comprehensible disclosures” and to give those customers the chance to drive the vehicle and cancel the contract if it is “not suitable or not as represented.”

 

Border closure not expected to
affect production, supply
chains or dealer stock

Greg Layson
Automotive News
March 19, 2020

North American auto production and dealer inventory shouldn’t be affected by the mutually agreed upon decision by Canada and the United States to close its border, say industry stakeholders.

However, it might not matter if automakers continue to shutter plants during the pandemic. Ford, Honda and General Motors have all stopped production to some extent in North America.

Prime Minister Justin Trudeau and President Donald Trump agreed Wednesday morning to close the border to non-essential traffic in both directions.

Trump first posted the news on Twitter just after stock markets opened.

“We will be, by mutual consent, temporarily closing our Northern Border with Canada to non-essential traffic. Trade will not be affected. Details to follow!” Trump tweeted, the morning after CNN first reported a closure was coming.

Trudeau then confirmed the news at a news conference in Ottawa.

“Travellers will no longer be permitted to cross the border for recreation and tourism,” Trudeau said.

The prime minister said it was “critical to maintain supply chains” that link the two countries.

Neither leader made it clear when the restrictions would go into effect.

About $2 billion dollars worth of goods crosses the border in bilateral every day, according to the Canadian government.

Trudeau said the policy ensures “the smooth flow of goods” and essential materials” as well as medical supplies as the two countries continue to try and contain the spread of the novel coronavirus, also known as COVID-19.

Trudeau said “supply chains are critical” and promised “trucking will not be affected.”

David Adams, president of the Global Automakers of Canada, which represents the interests of overseas automotive companies who do business in Canada, says the announcement was not unexpected.

“I think both Trump and Trudeau have been clear that trade and commerce between the two nations will continue,” he said in an email to Automotive News Canada. “I do not see any immediate impact on the membership or in the integrated North American automative industry.”

Flavio Volpe, head of the Automotive Parts Manufacturers’ Association in Canada, agreed.

He said his association has been in constant contact “all day long” with the federal government “for about week now.” He said policy makers consulted with his association before they made any decision on the border.

Volpe said the closure “might thicken the border” as screening for non-essential travel ramps up.

“But with the demand for cars declining, it balances out,” Volpe said.

The Dow Jones Industrial Average took another tumble early Wednesday morning, a day after modest gains. The Toronto Stock Exchange was also down early Wednesday.

Volpe said parts from the United States destined for assembly plants in Canada and parts from Canada destined for the United States will all still flow.

“That’s the intention, anyway,” Volpe said.

David Worts, spokesman for the Japan Automobile Manufacturers Association of Canada doesn’t believe production at Honda and Toyota plants in Ontario will be affected.

“This should not impact just-in-time manufacturing,” he said. “The temporary closure of the Canada/US border ‎will still allow trade in goods which is essential given the deeply integrated auto industry supply chains, particularly between Canada and the U.S.”

Volpe essentially said it will be business as usual, for as long as possible.

“The core principal is that business continue as long as it doesn’t affect health and safety,” he said. “Sending people home and stopping pay is going to be a bigger problem than anything we’ve seen so far.”

 

Detroit carmakers will close plants due to coronavirus concerns

Breana Noble and Kalea Hall,
The Detroit News
March 18, 2020

Detroit — Ford Motor Co. will close all of its plants in North America starting Thursday evening through March 30, the Detroit automaker said Wednesday.

All of Detroit's three automakers have agreed to close plants due to worker fears about the coronavirus, according to two sources familiar with the talks. It wasn't immediately clear how long plants would be closed or the number of them.

“We’re continuing to work closely with union leaders, especially the United Auto Workers, to find ways to help keep our workforce healthy and safe – even as we look at solutions for continuing to provide the vehicles customers really want and need, Kumar Galhotra, Ford’s president of North America, said in a statement. “In these unprecedented times, we’re exploring unique and creative solutions to support our workforce, customers, dealers, suppliers and communities.”

UAW and Ford leaders say they will work together on how to best structure plant restart plans.

“Today’s action is the prudent thing to do. By taking a shutdown and working through next steps, we protect UAW members, their families and the community,” said Rory Gamble, president of the UAW. “We have time to review best practices when the plants reopen, and we prevent the possible spread of this pandemic. We commend Ford for working with us and taking this bold step.”

The other automakers are expected to release details of their closures later Wednesday. The United Auto Workers union has been pushing for factories to close because workers are fearful of coming into contact with the virus.

The Detroit automakers' decision to close plants comes after Honda Motor Co. said Wednesday it would suspend production at its plants in North America for six days beginning Monday, with current plans to return to production on March 31. Honda has U.S. plants in Ohio, Indiana and Alabama.

The 27,600 Honda workers affected by this will continue to receive full pay. The company says it will use the down-time to continue deep-cleaning of its production facilities and common areas.

Multiple Michigan auto assembly plants shut down Wednesday amid positive cases of coronavirus among workers and just one day after rejecting union calls for broader two-week plant closures.

Ford on Wednesday temporarily closed its Michigan Assembly Plant final-assembly building in Wayne, Michigan building after one of the employees there tested positive for COVID-19, the illness caused by the coronavirus. Stamping and the body shop operations are still running, Ford said.

Michigan Assembly employs about 3,000 workers who make the Ford Ranger pickup truck; about 2,800 of those are hourly employees.

Fiat Chrysler Automobiles earlier Wednesday suspended production at its Sterling Heights Assembly Plant a second time in less than 12 hours after an employee there tested positive for coronavirus.

The shutdowns came after a task force made of officials with the United Auto Workers and Detroit's three automakers met into the evening Tuesday about how to continue production amid the pandemic. Although the UAW earlier this week had pushed for a two-week shutdown, the group agreed the companies would schedule rotation shifts that would partially close plants and allow for greater space between workers.

FCA sent home the first shift at Sterling Heights and directed the second shift to not show up for work at the plant that produces the Ram 1500 pickup trucks. Fiat Chrysler also had shut down the plant the evening prior, Tinson confirmed.

"Out of an abundance of caution for the health and welfare of the employees at the Sterling Heights Assembly Plant, FCA is suspending production on Wednesday," company spokeswoman Jodi Tinson said in a statement. "The company is working to align the plant’s shift pattern with yesterday’s announced agreement with the UAW."

"Employees did not walk out," she added, following some reports that they had. "They were released so the plant could be deep cleaned."

The sick hourly employee at Sterling Heights had not been in the plant for a week, according to Fiat Chrysler, and was receiving medical attention. The company's medical team was contacting colleagues who may have come into contact with the individual and were recommending self-quarantine. The employee's workstation was sanitized.

The case was the second COVID-19 case in one of Fiat Chrysler's plants after a salaried worker in Indiana's Kokomo Transmission Plant tested positive last week.

Autoworkers have contacted media and government officials over their concerns about the cleanliness of the plants and the resources available to ensure their health and safety. Last week, 17 paint shop employees at Fiat Chrysler's Warren Truck plant walked off the job, though operations there resumed shortly thereafter and production was not impeded, according to the company.

While experts say the automakers could make up production volumes from a two-week shutdown, the companies continue to receive orders for new vehicles. That is unlike in Europe, where many dealers' sales operations have closed and demand almost has disappeared. Ford Motor Co. and Fiat Chrysler have joined other automakers in shutting down plants there.

A salaried employee at General Motors Co.'s Cole Engineering Center on its Warren Technical Center campus tested positive, the automaker said Tuesday. Co-workers were being contacted about possible exposure. A salaried employee at Ford Motor Co.'s Building 5 in its Dearborn product development campus also tested positive. The individual, however, had been exposed to the virus after leaving the facility and had not returned since, the company said.

GM and Ford N.A. plants to
shutter through March 30

DETROIT – Ford Motor Co. and General Motors said that all manufacturing sites in the United States, Mexico and Canada will close through at least March 30 as the automakers battle the coronavirus epidemic. 

GM said it will begin cutting production today in a cadence. 

“We’re continuing to work closely with union leaders, especially the United Auto Workers, to find ways to help keep our workforce healthy and safe – even as we look at solutions for continuing to provide the vehicles customers really want and need,” Kumar Galhotra, Ford’s president of North America, said in a statement. “In these unprecedented times, we’re exploring unique and creative solutions to support our workforce, customers, dealers, suppliers and communities.”

Ford said it would work with the UAW on plans to restart U.S. production. 

“Today’s action is the prudent thing to do. By taking a shutdown and working through next steps, we protect UAW members, their families and the community,” Rory Gamble, president of the UAW, said in a statement. “We have time to review best practices when the plants reopen, and we prevent the possible spread of this pandemic. We commend Ford for working with us and taking this bold step.”

A Ford spokeswoman said Ford’s parts distribution facilities will remain open so they  can supply parts to customers. 

Earlier Wednesday, a source told Automotive News that the Detroit 3 automakers have agreed to shut down their U.S. manufacturing facilities due to the spread of the novel coronavirus.

FCA did not immediately respond to requests for comment.

The status of FCA’s Canadian plants remained in limbo.

Unifor officials told Automotive News Canada at 1 p.m. ET they were in talks with FCA.

 

 

Unifor, Detroit 3 form
coronavirus task force

John Irwin, Greg Layson
Automotive News
March 18, 2020

The Detroit Three and Unifor said late Tuesday they are forming a joint task force to implement enhanced protections for manufacturing and warehouse employees at all three companies during the global coronavirus pandemic.

It’s similar to the task force created by the automakers and the United Auto Workers union in the United States.

The announcement came just hours after Unifor Local 88 called for a two-week shutdown of General Motors’ CAMI plant in Ingersoll, Ont., where members assemble the Chevrolet Equinox. Local 88 Unit 1 chairperson Mike Van Boekel told Automotive News Canada that he called on GM to put the roughly 2,500 workers at the CAMI plant on layoff beginning March 23 for a minimum of two weeks.

"This may be the first time any union official has asked for a layoff of their entire membership, but these are not normal times," Van Boekel said.

Last week, members of Unifor Local 444 in Windsor, Ont., refused to work at FCA's minivan plant there after it became aware one of its members had come into what the company called "secondary contact" with a person who was being tested for COVID-19.

The task force consists of:

Jerry Dias, president, Unifor

Scott Bell, president and managing director, GM Canada

Dean Stoneley, president and CEO, Ford of Canada

David Buckingham, chairman, president and CEO, FCA Canada

In a joint news release, the automakers said that preventative actions currently under review at the three companies’ Canadian auto facilities include visitor screening, increased cleaning and sanitizing of common areas and touch points, safety protocols for people with potential exposure and those who exhibit flu-like symptoms.

“The task force members today discussed progress with additional safety practices and actions including break and cleaning schedules, health and safety education, health screening, food service and any other areas designed to improve protections for employees,” GM Canada said in the statement. “Unifor and the three Canadian automakers are in continuous communication at the national and plant levels to ensure they take appropriate actions and continue to follow the advice of medical staff and experts to help keep workers and their families protected from the COVID-19 virus. They are also maintaining ongoing communication with government and health officials at all levels.”

Van Boekel declined to comment on the task force, but said he still wants GM Canada to shut down the Ingersoll plant.

The local's call for a two-week layoff came as automakers and suppliers prepared for the fallout from the global coronavirus pandemic, which is expected to lead to a downturn in new-vehicle sales as people are forced to stay home or are at risk of losing their jobs.

“Everyone is likely very aware that vehicle sales across North America are likely slowing down tremendously during this period and I believe this may cause down weeks in the future once the field stock builds up,” Van Boekel wrote in a letter to General Motors Canada on March 15.

According to Van Boekel’s letter, there were two employees in self-quarantine as of Sunday. He said GM has paid those workers full wages and has acted “in good faith” on the issue. Asked today if that figure has changed, he said it was be difficult to say as workers and their families return from travel and are asked to stay home.

“It’s time to get home now, so most are getting home,” he said.

GM Canada says it has taken safety precautions at its Ontario facilities.

“These include an ongoing focus on production plans, break and cleaning schedules, social distancing, health and safety education, health screening, food service and any other areas that have the potential to improve protections for employees,” GM Canada’s Jennifer Wright said previously.

 

Windsor FCA workers return
as carmakers try keeping plants
running during virus crisis

Breana Noble and Kalea Hall
The Detroit News
March 16, 2020

Detroit — Production at Fiat Chrysler Automobiles NV's Windsor Assembly Plant restarted at 3 p.m. Friday after coming to a standstill a day earlier when employees refused to work because a colleague was in self-quarantine amid the new coronavirus pandemic.

Work resumed at the minivan plant after Dave Cassidy, president of Local 444 for the Unifor Canadian labor union, urged members to stand down. The quarantined employee may have come into contact with an infected individual, but there were no confirmed cases of the virus in the plant, the automaker said.

"Folks, I know these are scary times but we need to take a breath," Cassidy wrote on Facebook. "We are currently not in a full-blown crisis here."

Vehicle assembly is a hands-on activity with thousands working in the same facility, often in close proximity to each other. Shutting down plants would be costly to automakers, though Ford Motor Co. has indicated it could shut down facilities for a day to clean if an employee there tests positive. General Motors Co. is adjusting production schedules to allow for cleaning.

The work stoppage in Windsor came as the United States and Canada were put on high-alert over preventing the spread. U.S. President Donald Trump called a national state of emergency, and Michigan Gov. Gretchen Whitmer banned gatherings of more than 250 people and shut down grade schools into April. The Detroit automakers escalated measures to protect employees, including allowing many to work from home.

Canada's Ministry of Labour on Thursday visited the Windsor plant to investigate and determined the work environment was safe.

Unifor's Cassidy said the union cannot dictate whether Fiat Chrysler closes its doors and that the union "has made it clear with our workplaces that we need to be kept up to date with their plans of actions and precautions they are taking to keep our members safe."

Windsor Assembly builds the Chrysler Pacifica, Chrysler Voyager and soon-to-be-discontinued Dodge Grand Caravan minivans. It employs more than 5,800 people, though the automaker is eliminating the 1,500-person third shift this summer. On Thursday, Fiat Chrysler extended the deadline to July 13 from June 29.

A Fiat Chrysler employee at the company's Kokomo Transmission Plant in Indiana tested positive for the coronavirus earlier this week, but production there "continued as normal," company spokeswoman Jodi Tinson said. The employee is the first known person in the United States employed by one of Detroit's three automakers to test positive for COVID-19.

The company has placed into home quarantine the Kokomo employee's immediate co-workers and others in the facility with whom he may have come into direct contact. While the United Auto Workers' contract with the automakers provides some paid sick leave to employees, the union is in discussions with "all sectors" about compensation for employees who cannot work because they are quarantined but not sick and other issues.

"The UAW and FCA are working together during this unprecedented and challenging situation to address issues on a case by case basis," Cindy Estrada, UAW vice president and FCA Department director, said in a statement. "The UAW feels strongly that no member should be disadvantaged in response to the COVID-19 process. Our first priority is to ensure the health and welfare of our members."

FCA's Tinson echoed Estrada's remarks, saying the company is working with the union on "how best to handle a number of issues."

GM and Ford did not have any known coronavirus cases in the United States, representatives said. GM, however, will pay quarantined employees — whether sick or exposed to someone who tests positive — the hours for which they were scheduled, spokesman Jim Cain said. At Ford, it has not been an issue to date, spokesman Mark Truby said Friday on a conference call.

The workspace of the infected FCA employee in Kokomo was sanitized, breaks were rescheduled to avoid crowding and distance was increased between employees, the automaker said. The company has taken similar measures at several plants, CEO Mike Manley wrote Thursday evening in an email to employees. Fiat Chrysler is stepping up cleaning and sanitization at all facilities and providing masks where deemed necessary.

Fiat Chrysler also is "accelerating the deployment of working remotely" that is being rolled out "department-by-department," Manley wrote. The practice already is the "new normal," he said, at offices in China, Korea, Japan and Italy.

GM on Friday followed with CEO Mary Barra sending a message to employees saying starting Monday the Detroit automaker was making a work-from-home allowance "if the nature of your work allows for it." The policy applies globally, though not in China, and will not halt production at GM's manufacturing facilities.

"These are important steps to lower the probability of spreading the coronavirus to coworkers, families and communities and to relieve the burden on public resources," Barra wrote. "It also helps conserve critical resources like cleaning crews, medical staff and supplies so they can be deployed where they are most needed."

GM also is increasing sanitization efforts at its plants and adjusting production schedules to do so. For example, it called off its third shift starting Saturday for the night at its Flint Assembly plant producing heavy-duty Chevrolet Silverado and GMC Sierra pickup trucks.

Ford also starting Monday is permitting those who work in jobs that are not "business critical" to work remotely "for the foreseeable future" if they can perform their duties off-site, Truby said. The global policy does not apply to China, "where the conditions there are improving and more in a back-to-work mode." Manufacturing is not expected to be affected.

"Obviously we need to keep our factories moving," Truby said. "That's the goal. We're taking all the precautions we can to do extra sanitization and social distancing where possible."

Ford, however, will "close a specific facility where there was exposure to a confirmed coronavirus case for at least 24 hours so the building can be disinfected," CEO Jim Hackett wrote in a letter to employees.

Truby did not have an immediate figure of how many employees could be working from home, but said it would be "many thousands" and the "vast majority of our white-collar workforce outside of China." Ford also canceled the debut of its highly anticipated off-road Bronco SUV next week.

Fiat Chrysler is postponing or canceling "most company events," including large employee gatherings, auto shows and sponsored commercial events, Manley added.

The automakers have said they are working to ensure a consistent flow of parts and components to continue production. But experts say demand could be the greatest challenge. Auto sales dropped almost 80% year-over-year in February in China because of the virus. There has been some impact on showroom traffic in certain parts of the United States, Ford's Truby said.

Company leaders called on their employees to continue to perform at their best, despite the disruptions.

"Given the current drop in use of public transportation and extensive flight cancellations," GM's Barra wrote, "our customers are looking to us more than ever to ensure they have the vehicles, parts and services they need."

 

Ontario offers more help to laid-off
autoworkers looking for new careers

Greg Layson
Automotive News
March 12, 2020

The Ontario government is making it easier for thousands of laid-off autoworkers in that province to find a second career.

Ontario has loosened the rules governing the Second Career Program, which helps the unemployed pay for retraining costs, including tuition, books and even some transportation.

Effective April 1, laid-off manufacturing workers will no longer be required to search for a job for 26 weeks in order to qualify for the benefits of the Second Career Program. They will also be able to apply regardless of how long they had been working in the manufacturing or auto industry. Previously, applicants had to disclose where they worked before, for how long and what skills they needed for that work. That is no longer the case for those in the manufacturing sector.

The changes to Second Career will apply to manufacturing and auto workers who were permanently laid off on or after Jan. 1, 2019. All other laid-off workers will be able to apply for Second Career under the previously established eligibility rules.

That means approximately 4,700 workers who have recently lost their jobs — or soon will — at GM’s Oshawa plant, FCA’s Windsor factory, Ford’s Oakville facility and GM supplier Nemak in Windsor, are all eligible.

All those workers are represented by Unifor. Union officials weren’t immediately available for comment.

 "We're ensuring our manufacturing workers are given every opportunity to be successful in their career,"' said Vic Fedeli, minister of economic development, job creation and trade.

On average there were over 10,000 manufacturing workers per month in receipt of employment insurance across Ontario from January to November 2019, the province said.

According to the government, some of the most popular occupations that Second Career clients train for include transport truck driver, heavy equipment operator (except crane) and social and community service worker.

 

NY Auto Show postponed
due to coronavirus

March 11, 2020

The upcoming New York International Auto Show is being postponed because of coronavirus fears, organizers said on Tuesday.

The show tweeted: “The health and well-being of all those involved in this historic event is our top priority. We’ll be rescheduling this year’s #NYIAS to August 2020. Stay tuned to our social channels for more info in the coming weeks,"

Recently the 10-day event, which produces more than $330 million in economic benefit, was planning to go on as scheduled April 8, as organizers were working with the venue on measures to control the potential spread of the coronavirus.

The New York International Auto Show is among the largest in the world, with an annual attendance of approximately 1 million.

“We are taking this extraordinary step to help protect our attendees, exhibitors and all participants from the coronavirus,” said Mark Schienberg, president of the Greater New York Automobile Dealers Association, the organization that owns and operates the New York Auto Show.

 “For 120 years, ‘the show must go on’ has been heavily embedded in our DNA, and while the decision to move the show dates didn’t come easy, our top priority remains with the health and well-being of all those involved in this historic event. We have already been in communication with many of our exhibitors and partners and are confident that the new dates for the 2020 Show will make for another successful event,” Schienberg added in a statement.

The virus has infected more than 800 people in the U.S. and killed at least 29, with one state after another recording its first infections in quick succession.

Worldwide about 118,000 have been infected and more than 4,200 have died.

For most people, the virus causes only mild or moderate symptoms such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia. Most people recover in a matter of weeks, as has happened with three-quarters of those infected in China.

 

FCA-UAW bribery scheme 'targeted
and directly harmed' automaker

Breana Noble,
The Detroit News
March 10, 2020

Fiat Chrysler Automobiles NV executives accused of bribing United Auto Workers officials "targeted" General Motors Co. in an attempt to do it harm, the Detroit automaker claimed Monday in its rebuttal to FCA's request for the civil racketeering case against it be dismissed.

In November, GM filed an unprecedented civil racketeering lawsuit against the Italian American automaker. GM argued bribes offered by FCA executives to union officials corrupted three rounds of bargaining and cost the Detroit automaker "billions." Fiat Chrysler has called the allegations "meritless," and in January requested the suit be dismissed for not meeting RICO's requirement that the plaintiff be directly harmed by wrongdoing.

"Defendants assert that GM is suing for lost 'market share,' is a 'bystander,' has only been '“derivative[ly]" harmed, and that GM was only the 'third in line' victim of FCA’s bribery scheme (behind UAW members and the IRS)," GM attorneys Hariklia Karis and Jeffrey Lamb wrote. "None of these characterizations is remotely accurate. GM’s detailed allegations establish that FCA’s bribery scheme targeted and directly harmed GM for years by imposing higher costs on GM in at least the areas of workforce composition, manufacturing costs, and prescription drug costs."

The crosstown battle comes amid the continuing years-long federal investigation into UAW corruption that has convicted 13 union and FCA officials and charged a former UAW president. Payoffs from Fiat Chrysler executives to UAW officials, according to federal prosecutors, began within days of Chrysler Group LLC emerging in 2009 from bankruptcy with $12.5 billion in taxpayer money under the control of a foreign company, Italy's Fiat SpA.

GM says FCA's former CEO, the late Sergio Marchionne, schemed with UAW officials in an attempt to take over and merge with the Detroit automaker. FCA corrupted negotiations in 2009, 2011 and 2015, according to GM, to inflict high, unanticipated labor costs on GM and force the companies to combine.

But Fiat Chrysler says UAW members and the Internal Revenue Services would be the entities directly hurt by the bribery scheme, not GM. It also asserted it did not have ownership of the union to control it for its bidding. But GM asserts that is not necessary.

"Here, FCA successfully bribed top UAW leaders to influence critical and long-term binding decisions of the UAW," Karis and Lamb wrote. "No more is required."

Finally, Fiat Chrysler also claimed GM does not meet the four-year statute of limitations because it would have known it was harmed before UAW members ratified the 2015 contract. GM, however, states it could not have discovered its injuries to the scheme before January 2018 when former FCA labor negotiator Alphons "Iacobelli revealed Defendants' scheme to corrupt the collective bargaining process."

Fiat Chrysler in a statement said it will continue to defend itself and pursue all available remedies to GM's lawsuit.

"As we have said from the date this lawsuit was filed, it is meritless," according to the statement. "It will not distract FCA from its mission to provide its customers with outstanding and exciting cars, trucks and SUVs and the continued implementation of its long-term strategy to create further significant value for all its stakeholders. This includes the landmark agreement to combine with Groupe PSA to create the world's third largest global automaker by revenues."

GM has not said how much it is seeking in damages, which could be tripled under RICO. Some analysts have estimated if GM is successful, payouts could be as high as $15 billion.

Fiat Chrysler secured a minor victory last month when U.S. District Judge Paul Borman ruled the automaker could wait until after the court determines whether to dismiss the case before complying with GM's document requests.

 

Charges against ex-UAW boss inch
union closer to federal oversight

Daniel Howes,
The Detroit News
March 6, 2020

The biggest of the United Auto Workers’ many bad apples fell to earth Thursday in the federal crackdown on corruption inside the union.

The government charged former President Gary Jones with embezzling union funds in a racketeering conspiracy and with defrauding the IRS of income taxes. Each of the counts could land the 63-year-old union leader in prison for up to five years.

The charges, though widely anticipated, mark a stunning fall for the one-time leader of a cornerstone of the modern American auto industry — and likely bring the union closer to a federal takeover that could broom the top layer of leadership, install strict financial oversight and impose direct election of officers, including for the powerful president.

Reforms like those, and more, would shake the union's clubby leadership culture to its core. It would empower the rank-and-file to directly elect (and hold accountable) their leaders, and likely would imperil the powerful "Reuther Administrative Caucus" that effectively has selected leadership "slates" dating back to the end of World War II.

If Jones cooperates with investigators, as expected, the ex-president alleged to have masterminded an interstate conspiracy to embezzle member dues and pocket some of the cash, the leader whose scheming proved too shocking to ignore, could be the same guy who helps build the case for a federal takeover of the union in exchange for less jail time.

Should federal control of the UAW become a reality, the stain would prove indelible. It would undermine rank-and-file confidence in leadership; would strain trust with Detroit's automakers, suppliers and other employers; would become a recruiting poster for anti-union activists down south trying to block organizing efforts.

It would be humiliating for the UAW and its reputation as a “clean union”; would gut credibility with members whose dues fueled poolside villas and booze, cigars and rounds of golf played far from icy Detroit; would imperil the status of the leaders who survive — for now, until a federal takeover demands an entire layer of leadership be removed.

This is no theoretical threat. U.S. Attorney Matthew Schneider used his news conference Thursday to say a government takeover of the union remains under consideration. And he pointed to the International Brotherhood of Teamsters’ decades-long experience as a potential model to emulate, especially its move to direct elections.

"This isn't a situation where we're looking the other way," he said. "People at the top aren't getting away with it anymore. If it worked for the Teamsters, maybe that's something we need to look at here."

That’s exactly what Jones’ successor, President Rory Gamble, wants to avoid — a federally imposed end to the UAW's self-governance. He says he wants to, quote, “save my union” and prove it can responsibly run its own affairs. But the expanding record of charges, evidence and convictions — much of it clustered in the uppermost reaches of leadership — suggests that will be increasingly hard to demonstrate.

The federal investigation has produced charges against one former president and enmeshed two others. Two former vice presidents have been convicted, a third was implicated after his death from cancer a few years ago, and a fourth is said to be under federal scrutiny. Current and former regional directors and staffers were charged in schemes financed by training center funds, member dues or both.

Altogether, 14 individuals —11 of them connected to the UAW, three once employed by Fiat Chrysler Automobiles NV — have been charged in the corruption roll-up. And federal authorities signaled in toughly worded language that they are not close to done.

A Department of Labor official, Thomas Murray, condemned “an outrageous abuse of power." An IRS official, Sarah Kull, accused Jones of creating “a culture of corruption that became standard practice … for over a decade … using other people’s money.”

The FBI’s special agent in charge of the Detroit office, Steven D'Antuono, expressed “collective disgust at the illegal conduct of auto executives and union officials.” And the U.S. attorney said the federal investigation is “another step closer to ridding the UAW of its corrupt leadership.”

The message was unmistakable. Even as federal oversight technically remains “an option” to consider, the array of law enforcement agencies detailing the case against Jones signals that federal oversight is a near certainty — especially if the arc of corruption widens as the investigation continues.

The tool to make it happen would be the kind civil racketeering lawsuit that summarily retired an entire cadre of Teamsters leaders, excised elements of organized crime and imposed direct elections on the union Hoffa built.

With each new set of charges, and the convictions that follow, the UAW looks increasingly likely to get its turn — and the members would get their union back.

 

USMCA update puts Canada in the
role of labour watchdog for Mexico

John Irwin
Automotive Canada
March 5, 2020

Late changes made to the new North American trade pact place Canada into the role of an “honest broker” to assess whether Mexico’s manufacturing operations comply with new labour standards, a trade expert says.

In late 2019, Democratic legislators in the United States sought new provisions that would make it easier to enforce higher labour standards in Mexico as part of the new United StatesMexico-Canada Agreement, which is set to replace the North American Free Trade Agreement.

After balking at the proposal to allow for increased oversight, Mexico signed on after being assured that Canada would assist to sort out remedies for Mexican auto facilities deemed out of compliance with the USMCA.

“What the Mexicans really feared was that, because they didn’t trust the Trump administration to, in essence, not put their thumb on the scale and use what they would see as spurious grounds to justify imposing tariffs or other measures against certain facilities,” said Eric Miller, president of the Washington-based Rideau Potomac Strategy Group and a fellow at the Woodrow Wilson Center Canada Institute.

“They wanted to have mechanisms that were rules-based, and they wanted Canada to come and look at the situation as need be,” said Miller, who sits on the Canadian deputy minister of trade’s external advisory committee on international trade policy.

The USMCA boosts labour standards and oversight at Mexican plants and requires 40 per cent to 45 per cent of a vehicle’s parts to be made with labour making at least US $16 an hour. While the United States and Mexico have ratified the USMCA, that process is just beginning in Canada.

RILED OVER LABOUR RULE

As part of the deal, Mexico will overhaul its labour code. Its legislature has followed suit, voting, for instance, to allow workers the right to secret-ballot votes on labour contracts and union representation.

House Democrats in the U.S. Congress, in turn, sought additional oversight to make sure the reforms were enacted at Mexican plants. A provision also was added to USMCA legislation in the United States that allows the country to designate labour attaches to Mexico to do just that.

This briefly led to a dispute in December, when Mexico signaled it had issues with the move, seeing it as an unnecessary infringement on its sovereignty.

The dispute was resolved days later when Robert Lighthizer, the U.S. trade representative, clarified in a letter to his Mexican counterpart that the attaches would not act unilaterally, and an independent panel would look over any labour violations found.

The attaches would “work with their Mexican counterparts, workers and civil society groups on implementation of the Mexican labour reform, including by providing technical assistance and disbursing capacity-building funds, and provide assistance to the new U.S. government interagency labour committee,” Lighthizer’s Dec. 16 letter reads.

“These personnel will not be labour ‘inspectors’ and will abide by all relevant Mexican laws.”

EASING MEXICO’S WORRY

Miller, who has been involved in the development of six international trade pacts and has advised 40 countries on trade and economic policy, said Mexico likely felt comfortable resolving that dispute in part because it had agreed to separate “facility-specific, rapid-response labour mechanisms” with Canada and the United States. In essence, that means Mexico agreed to two bilateral deals outlining the process for dealing with automotive facilities, including factories, found to not be in compliance with the USMCA’s labour standards, he said.

Separating Canada and the United States on this issue was crucial to Mexico, Miller said.

“Canada, in some ways, is being brought in as a bit of an honest broker. Canada and Mexico have had their differences over time, but fundamentally, Mexicans feel that within the Canadian DNA is an orientation toward living by the rules. So Canada isn’t going to go up and say that facility violates rules unless it violates rules.”

Having attaches in Mexico will likely lead to more compliance, Miller said though he cautioned that surprises “inevitably pop up” when enacting new rules.

“It’s kind of like when you post a police officer by the side of the highway. Everybody slows down,” he said “The idea of being able to do it, at leas for a while, is likely to push people to ensure that they are being more careful than they might have been about how these things will play out.”

Canada’s reputation as a country that can “broker peace rather than imposing it” proved to be crucial to getting the USMCA passed, said Flavio Volpe, president of the Automotive Parts Manufacturers’ Association (APMA).

“Canada’s brand and reputation has not suffered through this process,” Volpe said.

Miller said the deal will increase manufacturing in Canada and the United States, with the APMA estimating up to $8 billion in new annual parts orders in Canada.

“There is actually truth behind the claim that this deal succeeds in delivering more purchases for manufacturing,” he said. “You’re looking at a significant increase in purchases [of auto parts] in Canada, and it increases purchases in the United States.”

 

Ford, Fiat Chrysler restrict
air travel for employees
due to coronavirus

Kalea Hall and Breana Noble,
The Detroit News
March 4, 2020

In moves that signal automakers are intensifying precautions amid the expanding coronavirus, Ford Motor Co. and Fiat Chrysler Automobiles NV are restricting non-essential employee air travel — both domestic and international — after two Ford workers contracted the respiratory illness last week in China.

"Those two employees in China are both getting better," said Ford spokesman T.R. Reid on Tuesday, noting that for the safety of its employees, the Dearborn automaker decided to sharply restrict air travel until at least March 27. "We just think caution is the right thing for our folks."

The spread of the virus is heightening the vigilance of automakers to protect employees and others, but the companies are careful to insist they are not banning all air travel. Ford is allowing "business-critical" travel provided it is approved by senior-level management. Fiat Chrysler has requested travel be prioritized to "essential needs" only and be pre-approved by a member of its leadership team, spokesman Mike Palese said in a statement.

Meanwhile, General Motors Co. this week — ahead of a media and investor event on Wednesday showcasing its electric vehicle plans — began requiring all visitors to complete a questionnaire prior to entering GM facilities.

Visitors who say they have experienced cold or flu-like symptoms, or have traveled to China, Italy, Iran, Japan or South Korea within the last 14 days (or have been in close contact with someone who has), will be denied access. Similar restrictions have been put in place at Fiat Chrysler facilities in Europe.

GM employees are not allowed to travel to China, Italy, Japan and South Korea, and additional non-domestic travel is restricted, though travel deemed critical can be approved by senior management. 

Ford said it is not aware that any other employees have been exposed to the virus, and Fiat Chrysler is unaware of any. GM could not immediately provide details on if any employees have been infected.

Ford's move to restrict travel "is not in response to a specific risk, but in the name of caution and good responsibility," Reid said. Instead, according to a source familiar with the situation, Ford's move is an attempt to ensure other facilities and the employees in them are not forced into 14-day quarantines that could be avoided.

BMW AG this week told 150 employees in Munich to stay home after a worker there tested positive for the virus, according to reports.

Coronavirus worries have yet to affect upcoming domestic auto shows in New York next month and in Detroit in June, organizers said, even as the Swiss government forced the cancellation of the Geneva Motor Show this week. The Beijing Motor Show has been indefinitely "postponed."

No automakers have told the North American International Auto Show organizers in Detroit they are pulling their plans for the show, there are no program changes under consideration and the auto show hasn’t asked anyone to refrain from attending.

"We are closely monitoring the latest information about the novel coronavirus and are reviewing our policies and procedures," NAIAS Executive Director Rod Alberts said in a statement. "We remain optimistic that these health issues will be resolved before the 2020 NAIAS occurs in June."

But George Sboukis, owner of the Caucus Club restaurant in downtown Detroit near the TCF Center, thinks the outbreak is making some attendees skittish. The restaurant has had conversations with Asian or domestic brands and organizations about hosting events during the auto show's media week ahead of the consumer show.

"We've had several conversations, and then in the last couple of weeks we've seen everything stall," said Sboukis, noting the restaurant doesn't offer refundable deposits, though in the past, it typically has had confirmations four months ahead of the auto show when it was held in January. "I think it's those worries that have led these companies to have tabled these things for the moment."

Across West Congress Street, the London Chop House says half of its private rooms are reserved for events during press week by both domestic and foreign suppliers and automakers, general manager Bjorn Lagerfeldt said. Typically by now, however, the restaurant would be booked fully.

"The virus has posed certain challenges," Lagerfeldt said. "We have more clients asking for a clause of postponement and cancellations than I think in years past when I think it has been included but hasn't been verbal."

In the interim before the auto show, GM still plans to unveil its new electric Cadillac crossover April 2 in Los Angeles and its electric GMC Hummer truck in May, though no details have been released.

"At this time, we are continuing with our plans," GM spokesman David Barnas said in a statement to The Detroit News. "But we continue to monitor the situation closely, with health and safety being the number one priority."

Ford's plan to reveal further details on the new off-road Bronco SUV this spring also remains unchanged. Other major automakers said they, too, are monitoring the situation for how it might affect their future plans. Volkswagen AG canceled a media event for the T-Roc convertible next week in Germany.

"When it comes to New York and Detroit, we are planning to be there and are monitoring the situation to see where it goes," Volkswagen spokesman Mark Gillies said.

Organizers of the New York International Auto Show, which typically has a million attendees every year, haven't had any automakers back out of the mid-April show, and they aren't prohibiting anyone from coming to the event at this time. The auto show still has 18 automaker press conferences scheduled.  

Organizers of the New York show are staying in touch with government officials and the Jacob K. Javits Convention Center. There are more safety measures being taken to limit the spread of the virus, including 70 hand-sanitizing stations throughout the convention center, increased cleaning and having a team of paramedics on-site.

Following the cancellation of the Geneva auto show, Volkswagen, Honda Motor Co. and others live-streamed events to reveal new technology and vehicles. Fiat on social media teased followers to "stay tuned" for more information Wednesday about the new electric Fiat 500 for the European market.

Craig Erlich, executive vice president and general manager at Auburn Hills-based George P. Johnson, a brand and event marketing company that helps automakers showcase their products and their brand at auto shows, hasn’t noticed any concern from automakers about the coronavirus leading to canceling their auto show or product-showing plans. George P. Johnson’s clients include Fiat Chrysler, Honda and Nissan Motor Co.

“None of our clients have expressed interest in pulling out of shows or canceling new vehicle launches,” he said. “I think the way they are looking at it is they are monitoring the situation, and they know how important these events are to the sales of the brand.”

Meanwhile, automakers still are monitoring how supply-chain disruptions in China could interrupt production in North America. The Original Equipment Suppliers Association is working with suppliers and industry partners to monitor the impact of the coronavirus on auto parts.

"Due to the complex, global nature of the supply chain and the expanding virus containment efforts, we expect an increase in short-term part shortages and premium shipments during the coming weeks," OESA President and CEO Julie A. Fream said in a statement.

"Suppliers are working vigorously to mitigate supply issues. At this time, we are unable to predict the long-term impact of the virus on the global automotive supply chain."

 

USMCA update puts Canada in the
role of labour watchdog for Mexico

John Irwin
Automotive Canada
March 3, 2020

Late changes made to the new North American trade pact place Canada into the role of an “honest broker” to assess whether Mexico’s manufacturing operations comply with new labour standards, a trade expert says.

In late 2019, Democratic legislators in the United States sought new provisions that would make it easier to enforce higher labour standards in Mexico as part of the new United StatesMexico-Canada Agreement, which is set to replace the North American Free Trade Agreement.

After balking at the proposal to allow for increased oversight, Mexico signed on after being assured that Canada would assist to sort out remedies for Mexican auto facilities deemed out of compliance with the USMCA.

“What the Mexicans really feared was that, because they didn’t trust the Trump administration to, in essence, not put their thumb on the scale and use what they would see as spurious grounds to justify imposing tariffs or other measures against certain facilities,” said Eric Miller, president of the Washington-based Rideau Potomac Strategy Group and a fellow at the Woodrow Wilson Center Canada Institute.

“They wanted to have mechanisms that were rules-based, and they wanted Canada to come and look at the situation as need be,” said Miller, who sits on the Canadian deputy minister of trade’s external advisory committee on international trade policy.

The USMCA boosts labour standards and oversight at Mexican plants and requires 40 per cent to 45 per cent of a vehicle’s parts to be made with labour making at least US $16 an hour. While the United States and Mexico have ratified the USMCA, that process is just beginning in Canada.

RILED OVER LABOUR RULE

As part of the deal, Mexico will overhaul its labour code. Its legislature has followed suit, voting, for instance, to allow workers the right to secret-ballot votes on labour contracts and union representation.

House Democrats in the U.S. Congress, in turn, sought additional oversight to make sure the reforms were enacted at Mexican plants. A provision also was added to USMCA legislation in the United States that allows the country to designate labour attaches to Mexico to do just that.

This briefly led to a dispute in December, when Mexico signaled it had issues with the move, seeing it as an unnecessary infringement on its sovereignty.

The dispute was resolved days later when Robert Lighthizer, the U.S. trade representative, clarified in a letter to his Mexican counterpart that the attaches would not act unilaterally, and an independent panel would look over any labour violations found.

The attaches would “work with their Mexican counterparts, workers and civil society groups on implementation of the Mexican labour reform, including by providing technical assistance and disbursing capacity-building funds, and provide assistance to the new U.S. government interagency labour committee,” Lighthizer’s Dec. 16 letter reads.

“These personnel will not be labour ‘inspectors’ and will abide by all relevant Mexican laws.”

EASING MEXICO’S WORRY

Miller, who has been involved in the development of six international trade pacts and has advised 40 countries on trade and economic policy, said Mexico likely felt comfortable resolving that dispute in part because it had agreed to separate “facility-specific, rapid-response labour mechanisms” with Canada and the United States. In essence, that means Mexico agreed to two bilateral deals outlining the process for dealing with automotive facilities, including factories, found to not be in compliance with the USMCA’s labour standards, he said.

Separating Canada and the United States on this issue was crucial to Mexico, Miller said.

“Canada, in some ways, is being brought in as a bit of an honest broker. Canada and Mexico have had their differences over time, but fundamentally, Mexicans feel that within the Canadian DNA is an orientation toward living by the rules. So Canada isn’t going to go up and say that facility violates rules unless it violates rules.”

Having attaches in Mexico will likely lead to more compliance, Miller said though he cautioned that surprises “inevitably pop up” when enacting new rules.

“It’s kind of like when you post a police officer by the side of the highway. Everybody slows down,” he said “The idea of being able to do it, at leas for a while, is likely to push people to ensure that they are being more careful than they might have been about how these things will play out.”

Canada’s reputation as a country that can “broker peace rather than imposing it” proved to be crucial to getting the USMCA passed, said Flavio Volpe, president of the Automotive Parts Manufacturers’ Association (APMA).

“Canada’s brand and reputation has not suffered through this process,” Volpe said.

Miller said the deal will increase manufacturing in Canada and the United States, with the APMA estimating up to $8 billion in new annual parts orders in Canada.

“There is actually truth behind the claim that this deal succeeds in delivering more purchases for manufacturing,” he said. “You’re looking at a significant increase in purchases [of auto parts] in Canada, and it increases purchases in the United States.”

 

FCA to end third shift at
Windsor Assembly Plant in
June, affecting 1,500 workers

Canadian Press
March 1, 2020

WINDSOR, Ont. — Fiat Chrysler Automobiles is cutting the third shift at its Windsor Assembly Plant beginning June 29.

The automaker says it notified Unifor Thursday about the change that will affect about 1,500 employees.

The move keeps the shift operational for an additional three months. Originally scheduled to shut down last September, the shift's closing was given a four-month reprieve in November to last until March 31.

FCA says it made the decision to match volumes with demand as production of the Dodge Grand Caravan is phased out at the end of May.

"The company will make every effort to place indefinitely laid off hourly employees in open full-time positions as they become available based on seniority and will offer retirement packages to eligible employees," spokeswoman LouAnn Gosselin wrote in an email.

Unifor Local 444 president Dave Cassidy held a news conference in Windsor to discuss the impact.

"We worked to prevent this shift loss with the full understanding of the devastating affect that this would have on our membership," he said in a news release.

"Now we will ensure that these workers receive the support that they need in this process as we continue to fight for new product for Windsor Assembly with the goal of preserving and increasing these good paying auto manufacturing jobs."

The decision will lead to significant job loss in the parts supply chain, and inflict damage to both the local and national economy, the national union said in a statement.

"Unifor is very disappointed that FCA was unable to find a solution that would have avoided job losses," said national president Jerry Dias. "There is no question that the economic ramifications will be felt across the region and throughout the country."

He said investment in Canadian automobile production will be a priority during negotiations that get underway this summer with FCA, General Motors and Ford. It will also continue to press various levels of government about the need for a national auto strategy to stabilize and grow the sector.

The plant, which produces the Chrysler Pacifica and its hybrid version, as well as the Dodge Grand Caravan, has about 6,100 employees.

FCA announced last year that it would invest US$4.5 billion in Michigan to build a new assembly plant and upgrade other operations and create 6,500 jobs in the process.

The planned cut in Windsor will come about six months after General Motors ended production at its assembly plant in Oshawa, Ont., at a loss of about 2,600 unionized workers.

 

'Ford v Ferrari' cars take a
victory lap at Autorama

The actual Ford GT40 and P330 Ferrari from the movie "Ford v Ferrari" on display at Autorama. (Photo: Daniel Mears, The Detroit News)

Henry Payne,
The Detroit News
Feb 29, 2020

Detroit — Autorama is playing the classics this weekend.

In addition to the hot rods vying for the coveted Ridler Award, the 68th annual Autorama will roll out the red carpet at TCF Center from Friday through Sunday for the historic 1966 Ford GT40 Mark II and Ferrari 330 P3 race cars featured in the film “Ford v Ferrari."

Showgoers can revel in more '60s racing nostalgia with the 1969 Trans Am Camaro on display that will be piloted by racing legend Lyn St. James in May as part of the Detroit Grand Prix at Belle Isle. And five of the 20th century’s most storied hot rods will be featured including the Bubble Top Beatnik Bandit, the model for one of the 16 original Hot Wheels toys.

The green-and-white No. 95 GT40 was predominantly used in filming the 24 Hours of Daytona scenes as the lead car that is passed in the closing laps by Ken Miles (Christian Bale). The same car was repainted as the red No. 3 and yellow No. 8 cars that appeared in the Le Mans scenes. It was loaned to Autorama by the Volo Auto Museum outside Chicago.

The Ford was built for the movie by Race Car Replicas of Fraser, Michigan, using a Chevy engine and Porsche transaxle. California’s Superperformance replica shop crafted two, period-perfect GT40s that raced across the finish line in Le Mans scenes.

The muscular GT40 will appear next to a curvaceous replica of the Ferrari 330 P3 (also built by Race Car Replicas), one of the most beautiful race cars ever built.

The pair will evoke the famous line from "Ford v Ferrari" as the cars rolled onto the grid at Le Mans: “If this were a beauty pageant, we just lost," said racer Ken Miles, played by Christian Bale.

Movie producers didn’t have access to the remaining 330 P3s remaining in the world — Autorama producer Peter Toundas says there are only two — so they turned to the Fraser shop to make replicas. Toundas estimates an original P3 today is worth over $30 million.

“'Ford v Ferrari' costs $97 million to make. If they bought one of those cars for the movie it would have cost a third of their budget!” said the Autorama chief.

While Ford was dominating international endurance racing in the '60s, the Camaro was scoring wins in America’s Trans Am series.

That series will come alive again in May at Belle Isle featuring some of the original — not replica — cars from the era. The 1969 Camaro on display here was a unique entry that was built by a student team at the University of Pittsburgh with assistance from Detroit racing icon Roger Penske.

Racing pioneer St. James, one of Sports Illustrated’s top 100 female athletes of the 20th century, will pilot the University of Pittsburgh Camaro in the Belle Isle race and will be available for autographs at Autorama on Friday and Saturday.

“I’ve always loved the racing fans in the Motor City and I’m looking forward to seeing everyone at Autorama this weekend,” said St. James, the first woman to win Rookie of the Year honors at the Indy 500.

Autorama has helped popularize hot rods for seven decades and the show will honor its roots: Tommy Ivo’s 1925 T Bucket, Bob McGee’s 1932 Ford Roadster and Norm Grabowski’s Kookie T Bucket (made famous in the “77 Sunset Strip” TV show) will join Ed “Big Daddy” Roth’s Outlaw and Hot Wheel’s Bubble Top Beatnik Bandit.

Ultimately, though, the museum pieces will take a backseat to Ridler competitors which will be front and center in TCF Center.

They headline 800 of the world’s best chopped, channeled, dumped and decked custom rods at TCF Center. Autorama Extreme – a collection of lowriders, cars and bikes inspired by the 1950s – will be featured down below.

The 30 Ridler competitors will be pared by judges to the “Great 8” finalists before Meguiar's presents the winner with the $10,000 cash prize and trophy. For 57 years the Ridler has honored the best new custom car.

“This is the Motor City," Toundas said, "and Detroit is where hot rod, custom car shows started,”

 

Retiree Norm Evans
Wife Passes Away


Karen Frances Evans
1944 - 2020

Our Condolences go out
to the Evans Family

Obituary of Karen Frances Evans

EVANS, Karen Frances suddenly at her residence early Thursday morning February 27, 2020.  Karen Evans (nee Nicholson) of Wiarton in her 76th year.  Beloved wife of Norman 'Ted' Evans for 59 years.  Devoted mother of Linda, Larry (Denise) and Lisa (Gord).  Adoring grandmother of Tyler, Michelle (Mark), Alex (Jay), Billy, Erin, Karl, Lucas and Liam.  Proud great grandmother of Levi, Cali, Piper and Riley.  Dear sister of Allan (Brenda) and Lois.  Predeceased by parents Bert and Eva Nicholson, sisters Donna and Evelyn and granddaughter April. 

Karen will always be remembered for her love of her family, flowers and as a good friend and neighbour.  Karen's culinary skills will be missed by all. 

Private family funeral arrangements entrusted to the GEORGE FUNERAL HOME, Wiarton.  Expressions of remembrance to the Wiarton Hospital would be appreciated. 

Messages of condolence may be sent to the family through www.georgefuneralhome.com

 

Failed execution, culture weigh
on Ford performance, shares

Daniel Howes,
The Detroit News
Feb. 27, 2020

When historians record the six years since Alan Mulally retired as CEO of Ford Motor Co., the chapter could be entitled “A Chronicle of Wasted Time.”

Here was COO-designate Jim Farley using a Wednesday presentation to investors to deliver a message as bracing as a bucket of ice water: “I can see it on the face of my colleagues, and it takes me back to about 10 years ago” — to the Great Recession, to the dark days before the Mulally way led the Blue Oval from a wilderness largely of its own making.

Wasted time, indeed. Instead of using some of the best years since the 1960s to retool Ford thoroughly for today’s and tomorrow’s automotive world, Farley is telegraphing a reality that is proving easier to understand than to do. That is, strategic realignment of the past few years under CEO Jim Hackett means almost nothing without the action to achieve it.

And if there are two words that encapsulate Ford’s recent performance, underscore investor impatience and explain the Dearborn automaker's woeful share price, they’re “failed execution.” The question is whether Farley, once a rising star at Toyota Motor Corp., is the guy to increase the collective metabolism of yet another Ford turnaround.

"Ford people are good in crisis," a source familiar with Farley's thinking texted this week. That's true, but it signals a deeper problem that has vexed at least the past five CEOs to lead the automaker. Instead of using in good times the same discipline needed to navigate bad times, Ford's culture tends to follow grace under pressure with complacency.

The net results too often are lower margins and botched launches, rising warranty costs and declining retail market share, products ill-suited for developing markets and business units whose profitability relies almost exclusively on, say, large F-Series pickups and midsize SUVs.

In his pitch to investors, Farley touted the "family" working inside the Blue Oval, a mythic extension of the founding Ford family that regards the automaker's employees as an extension of their own lineage. Maybe so. Or maybe that kinship, spared the pitiless rigors of bankruptcy reorganization, is a big reason the Ford team repeatedly struggles to overcome its bias for complacency.

A "new" Ford tempered in bankruptcy might not have that tendency. But as everyone around here knows, Ford is the only automaker in this town that "didn't take the money" — a theoretically noble ideal whose legacies since have included higher debt levels and a dubious sense of urgency.

"The company shrank dramatically in the crisis and it almost added all the cost back," Hackett said in an interview nearly two years ago. "We had a chance to come back and have scale advantages, but we let that slip away."

We're now a decade removed from the taxpayer-financed bankruptcies of General Motors Corp. and Chrysler Group LLC. Generally speaking, their ignominious bailouts fueled a sort of "never again" mentality among executive decision-makers determined to reckon — and act — with competitive pressures as they are, not as they want them to be.

"Imagine the whole industry goes bankrupt at that same time, and out of that is birthed more fit competitors," Hackett told me 18 months ago. "They are there now. All of them are much better than back in the day because of the bankruptcy, because of all the restructuring they had to do. What's worse than GM going bankrupt is GM coming out of it and the kind of competitor they became."

That's truer today than the day he said it. As much as this town's automakers hate comparisons to each other, the simple fact is that GM's strategic execution, solid financial performance and cohesive senior management team tend to make Ford's look, well, less so. And that is not lost on sharp-eyed investors, as the performance of Ford shares amply demonstrates.

Farley is setting the right tone. He's stressing urgency, demanding execution, warning of the enormous costs for botching launches of high-profile products like a new F-150, a revived Bronco SUV and an all-electric Mustang Mach-E. In short, Ford simply cannot afford to repeat last year's flawed launch of the iconic Explorer SUV.

And Ford deserves credit for attacking trouble spots in its sprawling automotive business: restructuring its troubled European and South American businesses; shifting its North American product portfolio to higher-margin pickups and SUVs; streamlining its product development processes that too often produced the wrong vehicles for crucial markets.

All of it and more — the redesign of the European business, a revival in China, headway with Mahindra Group in India and Volkswagen AG on EVs and autonomous vehicles — must be delivered before investors believe in the Blue Oval again.

Understanding that reality is not the same as delivering it. Farley calls it "go time," and he's absolutely right.

 

The Associated Press
Feb 26, 2020

Detroit – Ford is recalling more than 217,000 pickup trucks mainly in North America to fix a problem with the daytime running lights.

The recall covers certain F-150 trucks with LED headlights from the 2018 through 2020 model years. The Dearborn, Michigan, automaker says the running lights will keep working if the driver moves the headlight switch from auto to the low beam position. U.S. safety standards require vehicles to change to parking lights in that case.

The problem could reduce visibility to other drivers, but Ford says it doesn’t know of any crashes.

Dealers will update software to fix the problem.

 

 

Ford seeks $1M in damages
and to rescind original GT
sale after it was 'flipped'

Ford charges the defendants with flipping a new GT model worth $690,800 and selling it for more than double that price within a few weeks, in violation of the manufacturer’s 24-month prohibition against reselling the vehicle, according to a case in the Ontario Superior Court of Justice.

Eric Freedman
Automotive News
Feb 25, 2020

Ford Motor Co. is suing participants in an alleged civil conspiracy to improperly acquire a custom-built 2018 Ford GT supercar, resell it for a profit and swiftly resell it again for yet another profit, all within a matter of weeks.

Ford charges the defendants with flipping a new GT model worth $690,800 and selling it for more than double that price within a few weeks, in violation of the manufacturer’s 24-month prohibition against reselling the vehicle, according to a case in the Ontario Superior Court of Justice.

The defendants are Timothy Quocksister, president of Silver Arrow Cars in Victoria, B.C.; Bradley Nullmeyer, former CEO of Element Fleet Management Corp. of Toronto; Steven Hudson, former CEO of Element Financial Corp.; and Engineered Automotive, a vehicle servicing firm in Concord, Ont.

It’s a complex, high-stakes tale in which all defendants deny wrongdoing while sometimes pointing an accusing figure at others among them. The dispute has generated a brown banker’s box full of documents filed with the court clerk.

Ford said in court papers that it learned the GT was offered for sale in Europe, and Justice Edward Morgan said an “undisclosed buyer” in Hong Kong had purchased it from an exotic car dealership in Richmond, B.C., SR Auto Group.

In a Nov. 13 decision, Morgan upheld a temporary injunction blocking the transfer or sale of the high-performance car pending trial, which isn’t yet scheduled.

Ford’s suit seeks to rescind the original sale deal and block any transfer or resale of the GT. It also demands $1 million in damages for misrepresentation and breach of contract, plus attorney fees.

“Ford’s evidence is that very few ‘supercars’ like this are manufactured and that it is very selective about who can buy this kind of vehicle,” Morgan wrote in his decision. “A very expensive automobile like this is often sold to dealers and collectors who use it for promotional purposes.”

To prevent flipping, the order confirmation form explicitly prohibited its resale or reconveyance for 24 months.

OWNERS CAREFULLY CHOSEN

A Ford spokesman said the resale restriction, “common for the world’s most exclusive cars,” is part of an extensive owner-selection process to “ensure the passion surrounding the Ford GT” is maintained. Ford selected owners “in part based on the likelihood they would showcase their Ford GT on an ongoing basis at events, on social media and on the road and at [race] tracks.” The spokesman said the company cannot comment on the suit itself.

Ford custom-built only eight 2018 model year GTs for Canadian purchasers at prices starting “in excess of” $500,000, the company said in court papers.

Pennsylvania lawyer Bryan Shook, who specializes in vintage-car law and transactions involving collectible and antique cars, said: “If you look at it from Ford’s business standpoint, it’s not good for business suing customers, but it has an interest in maintaining the brand and the value of the vehicle.” That includes requiring purchasers to prequalify and to “protect the price point.”

Concerns include use of “straw” buyers to hide the identity of the real purchaser or so the real purchaser can avoid disclosing his or her assets to the manufacturer, said Shook, who is not involved in the Canadian case.

At the same time, there are situations where a buyer’s financial or family situation may change within the two-year no-transfer period, he said.

THE STORY

Here’s what apparently happened, according to Morgan’s decision and documents filed by the parties:

Ford says it negotiated with co-defendant Hudson to sell the GT supercar through co-plaintiff Downtown Ford in Toronto. Hudson never consummated the deal.

Ford claims it was unaware at the time that Hudson had no ownership interest in the eventual purchaser, a holding company allegedly controlled by co-defendant Nullmeyer, Hudson’s then-business associate.

Hudson declined an interview, but the statement of defence filed in court said, “he was not aware of any allegation or suggestion that Nullmeyer had misled Ford.” The statement denies “any involvement in a conspiracy” and “making any misrepresentations to Ford.”

Hudson’s lawyer, Chris Paliare of Toronto, told Automotive News Canada: “Mr. Hudson is now aware someone else used his name without authorization. When Ford brought this purchase to his attention, Mr. Hudson cooperated fully in the process (and) provided proof he had no involvement in the initial purchase...nor any subsequent sales transactions.”

Paliare said, “Mr. Hudson has testified in this matter to clear his name and will continue to defend his reputation.”

Downtown Ford’s general sales manager, Tim Foster, said he cannot discuss the case until it is resolved.

Nullmeyer didn’t respond to requests for comment, but his lawyer told Ford’s lawyer in a letter that Nullmeyer “vehemently denies the allegations in the claim.”

‘SECRET COMMISSION’

Only 20 days after the initial sale, and despite the two-year ownership restriction, Nullmeyer’s holding company sold all its shares to Quocksister, the decision said. Quocksister’s Silver Arrows Cars is a collectible and luxury vehicles dealership. “Most of the cars Silver Arrows sells go to global buyers,” according to an August 2018 profile in the Victoria News. He denied any wrongdoing but declined to discuss the case with Automotive News Canada.

Quocksister negotiated the deal with the assistance of Concord, Ont., vehicle broker Jeffrey Seigel, who allegedly received a $126,560 commission from Quocksister, plus what Morgan described as a $200,000 “secret commission” from Nullmeyer.

Engineered Automotive allegedly stored the car for about a month on Nullmeyer’s behalf. Its court filing denied being “party to any conspiracy” or being involved in negotiations to sell the GT.

Quocksister contends he didn’t know about the resale restriction, but Morgan’s decision cited evidence that he did, including his admission that the confirmation order was in the package of material Seigel gave him. Seigel testified that he discussed the restriction with Quocksister, the decision said.

The decision said Seigel lied under oath by trying to hide his dealings with the owner of the holding company that bought the GT from Ford. In a court filing Siegel denied lying.

The judge continued: “Given the notoriety of these rare, ultrahigh-end cars among car dealers, Seigel’s statement [about talking with Quocksister about the restriction] makes a certain amount of sense. One does not pay $1,500,000 for an automobile without knowing a little something about it.

 

Ford’s lending arm is generating
more profit than ever

Molly Smith and Keith Naughton,
Bloomberg
Feb 24, 2020

Aside from F-Series pickups hauling in gobs of profit, Ford Motor Co.’s automotive business isn’t carrying much weight lately.

Thank goodness for the finance guys.

Ford Credit, the lending arm that’s become accustomed to propping up the company in good times and bad, now generates about half the automaker’s profit, up from 15% to 20% in the past.

Ford Credit is designed to perform a relatively simple task: make loans to the dealers stocking vehicles, then the consumers who buy them. Now, Ford is relying on its finance unit to help fund multibillion-dollar outlays on electric and self-driving cars while it simultaneously racks up $11 billion in charges from a restructuring that could take years.

“It’s like the ballast that keeps the ship steady,” said Lawrence Orlowski, an analyst at S&P Global Ratings. “It’s a balancing act.”

Ford’s been selling fewer and fewer U.S. vehicles for the last three years, and it’s losing billions overseas, including in China, where its annual vehicle deliveries fell by half during that time span. On Tuesday, analysts expect the company to report lower fourth-quarter automotive revenue and a 44% plunge in adjusted net income. Profit on that basis could be the lowest since 2009.

Ford shares rose as much as 3.6% and traded up 2.7% to $9.06 as of 10:30 a.m. in New York. The stock rose 22% last year.

The second-largest U.S. automaker would be far worse off without its Ford Motor Credit Co. unit, which is effectively funding turnaround efforts by routinely borrowing in the debt markets and paying a dividend back to the parent company. The credit unit is expected to contribute almost $3 billion annually to Ford over the next two years, according to Benchmark Co. analyst Mike Ward. That’s up from just a $400 million contribution in 2017.

Ford Credit borrowed around $10 billion in the U.S. investment-grade bond market in the past year, apart from funds raised in other currencies and securitized debt. By contrast, it’s been more than three years since Ford Motor last issued bonds, according to data compiled by Bloomberg, as investors fretted about the company’s high debt load and slowing sales.

Credit graders are responding to Ford’s poor automotive performance, with Moody’s Investors Service the most aggressive so far. It downgraded Ford to junk in September, casting doubt on Chief Executive Officer Jim Hackett’s turnaround plan in the process.

S&P then cut Ford to the lowest investment-grade rating in October after the carmaker lowered its full-year profit forecast. Another downgrade by S&P would take Ford out of major high-grade indexes, which investors and analysts have contemplated for more than a year. If cut, Ford would be the largest U.S. nonfinancial high-yield issuer, which could add near-term pressure to its funding costs. It has about $35 billion of debt in the Bloomberg Barclays U.S. investment-grade index.

It’s not going to get any easier for the carmaker. Amid growing fears of an industry wide downturn, Ford is rolling out a critically important series of new sport utility vehicles and redesigning the F-150, its most profitable and best-selling model. Analysts are already flagging cost and execution risk tied to those introductions, especially after Ford botched the launch of its Explorer SUV last year.

“It’s quite clear Ford is not where it should be, but the finance arm is a bright spot,” said David Whiston, an equity strategist with Morningstar in Chicago who rates the automaker’s shares the equivalent of a buy. “Obviously you want the whole company operating at full power, which you don’t have right now.”

Ford Credit is contributing more and more to the parent’s earnings. In a normal operating environment, manufacturing cars and trucks should drive most of earnings, with credit only generating 15%-20% of profits, said Bloomberg Intelligence analyst Joel Levington. For much of last year, Ford Credit constituted somewhere around half the company’s profit.

Ford and its finance arm are inextricably linked. Each supports the other operationally and financially under a a relationship agreement that governs the connection between the two.

Ford Credit is also protecting the automaker’s prized dividend. The unit paid $2.4 billion back to its parent in the first nine months of 2019, covering the dividend cost for the entire year. That may be “unsustainable” in the long run, because Ford’s dividend consumes a much greater percentage of its cash flow than peers, according to BI’s Levington. Ford has repeatedly said it will not cut the dividend.

In a recession, Ford Credit’s role becomes even more important. It doesn’t play much in the subprime market, so the ratio of its losses to total customer bills outstanding stayed below 2% during the Great Recession, a low level. Its repossession rate never got higher than 3.2%.

Those strong metrics allowed Ford’s captive finance unit to generate a dividend for the parent even in 2009, when U.S. auto sales slumped to a 27-year low.

“With a healthy portfolio, a captive balance sheet in an economic downturn actually starts generating and kicking off a bunch of cash flow,” Tim Stone, Ford’s chief financial officer, said during a November interview at Bloomberg News headquarters in New York. “We take a very thoughtful approach to that business.”

Over the past two decades, Ford Credit has sent $28 billion up to Ford, according to company data.

“That’s not a bad thing – that’s exactly the reason you want to have a healthy financial-services company,” said Hitin Anand, a senior analyst at CreditSights. “Ford Credit will come to the rescue of Ford Motor in more ways than one. It’s one of the best-run captive-finance companies in the entire universe.”

Finance companies can be a burden for manufacturers in downturns, as General Electric Co. discovered in the financial crisis. The conglomerate’s credit arm weighed on its share price as investors grew more concerned about complicated financial institutions. GE has been selling off and shrinking the unit’s assets for most of the last decade.

Ford Credit is a bright spot in Ford’s portfolio, and also among its peers. It prides itself on lending to consumers with higher credit scores, which keeps asset quality high and defaults low compared with rivals General Motors Financial Co. Inc. and Santander Consumer USA Holdings Inc.

In the third quarter, Ford Credit’s 60-day delinquency rate was just 0.14%. That’s low in an industry where 4.71% of auto loans were at least 90 days late, the highest in more than nine years, according to Federal Reserve data.

“As a credit analyst, I focus on glass half empty. Ford Credit is the positive part of the story,” said Olesya Zhovtanetska, senior director of public fixed income at SLC Management. “They need that cash cow.”

 

2021 Ford F-150 design cues, big
screen exposed in spy photos

Michael Martinez
Automotive News
Feb 23, 2020

Spy photographers have captured the best look yet at the redesigned Ford F-150.

The next-generation pickup, due out later this year as a 2021 model, was spotted this week in light camouflage near the automaker's Dearborn, Mich., headquarters.

The crew cab caught undergoing road testing features what appears to be more stacked headlights, more horizontal fog lamps and a grille that closely mimics the midsize Ranger pickup. The F-150 also appears to have a more raised hood than the current model.

The interior of the vehicle will undergo a more radical overhaul with at least a 12-inch touch screen, following the success of a similar-sized screen in Fiat Chrysler Automobiles' recently redesigned Ram pickup.

Ford is planning a hybrid model that's expected to debut this year, as well as a battery-electric version expected out in 2021.

A smooth launch is critical for Ford. The F-Series line of pickups, of which F-150 is a part, has been the bestselling vehicle line in the U.S. for 38 straight years, and the bestselling pickup line for 43 straight years.

 

UAW's new dissidents not
the first to call for
one-member, one-vote

The Detroit News
Kalea Hall,
Feb 22, 2020

Detroit — A group of dissidents in the United Auto Workers is the second in 30 years to attempt change in the democratic union they say has really been ruled by one party: the Reuther Administrative Caucus.

That caucus has nominated the winning candidates for the union's executive board members for most of the past 70 years — with the exception of one notable exception, a challenger from the New Directions movement that rose up in the mid-1980s.

Formed in the union's now-defunct Region 5 based in St. Louis, the New Directions movement called for amending the UAW constitution for a "one-member, one-vote" system. The current process has member-elected delegates from each local elect the international leaders.

The late Jerry Tucker, shown here in 1992, challenged the old guard at the UAW as part of the New Directions movement beginning in the mid-1980s. (Photo: Detroit News photo archive)

"It was a spirited group … who just wanted a better union for the workers," said Mike Cannon, a former New Directions member and retired international representative for the UAW from Region 5. "It was that energy that propelled us into the victories that we were able to accomplish. I don’t regret any of the decisions we made. It was just such an enlightening moment to fight for a great union."

The New Directions efforts inspired the current push from a reform group calling itself Unite All Workers for Democracy. The new group — created as the labor union has been shaken by a federal corruption investigation implicating top UAW officials — has been gathering support from union locals in calling for a special convention to implement the direct election of union officials.

"They were fighting for the same things we are fighting for," said Chris Budnick, a seven-year UAW member at Ford's Kentucky Truck Plant and founding member of Unite All Workers for Democracy.

The New Directions movement was born from the frustration of how the region was being run and who was running it. Ken Worley was the region's director at the time, but Cannon said Worley was an ineffective leader who depended on his assistant, Jerry Tucker, who was on the front line fighting for better contracts. Local presidents in the region formed New Directions and asked Tucker to run as director in 1986.

Members of New Directions were concerned about the future of work for union members, and about losing wages and benefits. The movement was suspicious of the union's interest in working with companies on joint programs.

Tucker was elected in 1988 as Region 5 director only after a federal investigation found election-rigging in the 1986 race between Tucker and Reuther Administrative Caucus-backed incumbent Worley. A new election was ordered under the supervision of the Department of Labor, leading Tucker to take office.

But Tucker, who died in 2012, wasn't able to make much headway while on the international board of directors because he was from an opposing party, New Directions members say.

Peter Downs, a former auto worker and New Directors member from Region 5, joined the movement because he felt it “was more true to what I thought unions were supposed to be about.”

“Having one party ruling anything paves the way for a lot of corruption because you have less accountability,” he said.

Supporting Tucker came with a cost. As an international representative who was expected to back the establishment's Worley, Cannon was transferred in 1989 from Region 5 to the UAW president's office at Solidarity House in Detroit. It was a post that international staff members called "Lepers' Row," because it was where that those who challenged the powers-that-be were sent, Cannon said.

"You essentially have leprosy and you are ostracized because of your disease," Cannon said.

The Reuther Administrative Caucus took back power of Region 5 in the 1990s. Tucker challenged Owen Bieber for the presidency in 1992 and lost. The New Directions movement lost momentum and fizzled out.

"People started to lose interest because we were fighting this powerful machine," Cannon said.

The most recent move toward direct elections is “a significant response to the wave of scandal that has beset the UAW,” said Marick Masters, a business faculty member at Wayne State University.

Masters said direct elections of international union officers would be a step in the right direction for the union. He said it would show greater reform than what’s already been implemented by the UAW, including more financial and ethical oversight from within.

Direct elections would maybe do more than anything else to forestall a government takeover, Masters said, because "you would clearly have competition for the current leadership positions."

 

A Ford service tech's newest tool?
Virtual reality headset

Michael Martinez
Automotive News
Canada
Feb 20, 2020

Ford Motor Co., in partnership with automotive supplier Robert Bosch, will use virtual reality to teach service technicians at dealerships how to work on the upcoming Mustang Mach-E electric crossover.

Through the use of a VR headset, techs can learn how to service the crossover's battery pack and how to remove and install the main battery. Bosch said it's working on updates that would allow techs to virtually enter the vehicle.

Ford is the first automaker to pilot the application in its service technician powertrain repair course, the company said. The automaker confirmed the technology will be used in both the United States and Canada.

"Technicians will be immersed in a simulated and gamified world, meaning they won't need to rely on actual Mustang Mach-E vehicles to learn about its components, including the electric SUV's new high-voltage system," Dave Johnson, director of Ford service engineering operations, said in a statement Friday. "This new virtual reality training tool allows technicians to understand the components and steps required to service these high-voltage systems, then confidently perform diagnosis and maintenance."

The Mach-E, due this year as a 2021 model, is Ford's first battery-electric crossover. Ford told its dealers that if they want to sell the vehicle, they'll have to get recertified to be able to service EVs. Officials have said the brand has 9,500 trained EV technicians and 2,000 dealerships certified to work on EVs.

Ford says the VR system allows service techs to learn skills without a physical vehicle. It hopes the technology can attract new workers to the profession.

The system uses the Oculus Quest virtual reality headset from Facebook. Ford has dabbled with virtual and augmented reality in other areas of its business, including product development and vehicle design, previously testing devices such as Microsoft's HoloLens.

 

Jim Farley could get 32% pay raise
as Ford chief operating officer

Breana Noble,
The Detroit News
Feb 19, 2020

Ford Motor Co.'s new chief operating officer could see up to a 32% pay increase, the Dearborn automaker revealed Tuesday in a federal filing.

Ford's board of directors increased Jim Farley's annual compensation package to a potential $8.29 million from $6.295 million effective March 1.

Since April, Farley, 57, had been Ford's head of new businesses, strategy and technology. Earlier this month, the Blue Oval said Farley was being promoted to chief operating officer. The promotion came as the company said Joe Hinrichs, Ford's president of automotive, was retiring at the age of 53 following poor 2019 financial results.

"The compensation reflects his better role, and it is comparable to people with similar positions in large, publicly traded corporations," Ford spokesman T.R. Reid said.

Farley's compensation will include a $1.4 million base salary, a 27% increase from his current $1.1 million pay. His performance-based incentive bonus target is now $1.89 million, up 37% from $1.375 million. And his annual stock grant has been upped to $5 million, a 31% increase from $3.82 million.

In his new role, Farley will oversee Ford's global automotive business and look to converge the traditional retail business with the new mobility sector focused on autonomous, connected and electric vehicles. His promotion also positions him as the top contender to replace 64-year-old CEO Jim Hackett.

Final CEO compensation for 2019 for the Detroit Three automakers is expected to be announced this spring. Hackett received $17.75 million in total compensation in 2018. General Motors Co. CEO Mary Barra's $21.87 million package was the most of the three companies that year.

Executive compensation was a frequent criticism among United Auto Workers members last year during labor negotiations. The new contracts guarantee wage increases over the four-year term.

 

Former UAW President
Owen Bieber dies at 90

Kalea Hall and Breana Noble,
The Detroit News
Feb 18, 2020

Detroit — Former United Auto Workers President Owen Bieber died Monday. He was 90.

Bieber led the UAW for 12 years, longer than anyone except the legendary Walter Reuther. Bieber was the union's seventh president, from May 1983 to June 1995.

He's known for leading the union during turbulent times when the auto industry was starting to feel the effects of foreign competition gaining market share while the economy was in a downturn.

"He led the UAW at a challenging time for auto workers and all working people, and he fought for social change in this country and around the world," Ron Bieber, Owen's son and president of the Michigan AFL-CIO, said in a statement. "His loss is felt deeply by his family and all of those whose lives he touched. Owen Bieber left behind a world that is better off because of his activism and dedication to service to others."

UAW President Rory Gamble called Bieber "a man of incredible leadership" who didn't shy away from "tough battles or taking a stand on controversial issues."

“He was not only a devoted trade unionist but a social activist whose impact was felt around the world," Gamble said in a statement. "Whether it was his support to end apartheid in South Africa or in Poland, Owen stood on the right side of history for the nation and the world.”

Bieber, the son of Albert and Minnie Bieber, was born in North Dorr, Michigan, in December 1929.

He worked at McInerney Spring and Wire Co. in Grand Rapids, the same auto supply plant where his father worked. At age 19, Bieber's co-workers elected him Local 687’s shop steward. By 1955, he was elected to the local bargaining committee.

In 1972, Bieber was appointed director of UAW Region 1D, a position he had until 1980, when he was elected vice president. Bieber served as director of the union’s General Motorsdepartment, the union's largest department with more than 400,000 members.

In a statement, GM said: “Owen Bieber will be remembered for his commitment to workers and his leadership of the UAW through challenging times for more than a decade. The entire General Motors family would like to extend its deepest sympathies and condolences to his family.”

Ford Motor Co. Executive Chairman Bill Ford said in a statement: “I knew and respected Owen Bieber and he was instrumental in guiding the UAW through some of its most challenging times.  He was an advocate for the union’s membership and his leadership has had a lasting impact. Our thoughts go out to his family at this difficult time.”

In a statement Fiat Chrysler Autombiles NV said: "Owen will be remembered for his unwavering commitment to championing the causes of working people, and fighting tirelessly to protect the standard of living for millions of UAW members and their families. Owen’s leadership in calling attention to labor and civil rights movements, whether here at home or around the world, will be part of his legacy."

Taking the president's seat

Bieber was elected UAW president in 1983 during the union’s 27th Constitutional Convention in Dallas. He succeeded Douglas Fraser and served four consecutive three-year terms.

He oversaw one of the nation's largest unions at a time when Japanese automakers were cutting into the market shares of GM, Ford and the former Chrysler Corp. The external threats from international competition "sort of blindsided the auto industry, and it was on the heels of the energy crisis," said Marick Masters, business professor at Wayne State University.

Bieber was put in the difficult position of balancing the interests of his members and fighting to keep the companies competitive.

Early in his tenure, Bieber negotiated the creation of the jobs bank, which paid laid-off workers most of their salary to do no work or for community service. It was intended to deter downsizing by automakers but became a symbol of union excess during the Great Recession and the bankruptcies of GM and Chrysler, when it was eliminated.

Bieber provided a “steady hand” to the union after it had endured the most troubling times economically since the Great Depression, said Harley Shaiken, a professor at the University of California, Berkeley who studies labor issues.

“It was a particularly critical period and deeply troubling period at times economically during his presidency,” Shaiken said. “He had a very large challenge before him. He was a person that was very, a person of integrity, someone who provided a steady hand and effective leadership through some very troubled times.”

Bieber is credited with diversifying the UAW by inviting new members from areas outside of industrial sectors, including government and private employers.

He experimented with some new approaches to organizing. Although advances at Japanese automaker plants failed, the UAW had some success at joint venture operations with Mazda Motor Corp., Mitsubishi Motors Corp. and Fremont, California’s New United Motor Manufacturing Inc. project between GM and Toyota Motor Corp. that explored new management-labor relations.

With the Detroit Three, Bieber oversaw the growth of joint training programs with the companies that have been the subject of the federal government’s recent investigation into union corruption.

“Under Bieber was when the union did embrace new ways of organizing work that is the joint programs in the plants with things like quality circles, union participation on quality and things that had been associated with the Japanese automakers,” Shaiken said.

In 1990, Bieber allowed the creation of the innovative Saturn small-car project in Tennessee that functioned under a separate contract and work rules. But over time, Saturn's independence was reined in by Bieber's successors, and the brand died.

'Dependable guy'

Outside of UAW leadership, Bieber took on missions abroad including in South Africa.

He traveled there twice, and while there checked on labor activist Moses Mayekiso, a leader in the National Union of Metalworkers of South Africa, who was imprisoned for leading a rent boycott. Bieber and others raised the international profile of Mayekiso’s case and the activist was eventually acquitted.

While in South Africa, Bieber captured more evidence of the real impact of apartheid when he smuggled images out of the country showing the scarred bodies of people in South Africa who challenged the country’s apartheid government.

Bieber could be a voice for the workers when needed, but personally came off as a bit shy and quiet, Shaiken said.

“He was a big guy,” he said. “You noticed him in the room. He could very tough, and he had a gentle side to his character. He started on the shop floor. He essentially had jobs at all levels of the union.”

Masters said Bieber wasn't known "for being charismatic or colorful, but he was a steady force and one who had the best interest of the union and the members in mind."

"He was a very dependable kind of guy," he said.

When he exited the union in 1995, Bieber advocated that unions and companies needed to develop mutual goals and work together to accomplish them.

"Labor and management have forged a collective bargaining relationship through which we can find common ground," he said during one of his final speeches as president in Detroit. "The beauty of the process we have created is that it offers a structured and rational means of solving problems."

Bieber voiced opposition to the North American Free Trade Agreement and was a fighter for the auto industry.

"He was pushing for an industrial policy ... to try and protect the companies from unfair competition and to find domestic assistance to build a strong workforce," Masters said. "He stands out as being a stalwart."

 

Magna CEO says USMCA
will mean 'more jobs, more
investment' in Canada

Automotive
News Canada
John Irwin

Feb 17, 2020

TORONTO — The new United States-Mexico-Canada Agreement should bring more jobs and investment to Canada, provided details surrounding local content and labour requirements are sorted out, Magna International Inc. CEO Don Walker said.

“There’s a lot of detail here, but overall I think it will be good for the industry,” Walker said Thursday at the Automotive News Canada Congress in Toronto. “There should be more jobs here and more investment here and more trading with great trading partners, the U.S. and Mexico.”

In order to ship between the countries duty-free under the USMCA, 75 per cent of a vehicle’s content must be sourced from within the three countries, up from 62.5 per cent under the North American Free Trade Agreement. It also requires 40 to 45 per cent of parts on a vehicle to be made by workers who make at least US$16 (C$21.21) per hour.

The deal was designed by the three countries to level the playing field after automakers under NAFTA opened numerous assembly plants in Mexico due to its cheaper labour costs. Suppliers in Canada have expressed optimism that regional content requirements would increase business for them. The Automotive Parts Manufacturers’ Association has estimated the USMCA would bring in up to C$8 billion in additional annual parts orders in Canada.

Walker said the USMCA makes the North American region as a whole more competitive with the rest of the world, particularly China.

In launching trade discussions in North America, the United States’ “real objective [was] to level the playing field with China,” he said. “I think it was probably 10 years too late, and they’d probably admit that. But China is going to roll over [North America] if we don’t get a stronger position and better negotiation with them. They’re a scary competitor.”

Walker cautioned that the transition from NAFTA to the USMCA’s rules could be too quick to allow the industry to properly understand and adjust to new regulations. Under the terms of the deal, the USMCA will go into effect 90 days after the final country ratifies the deal. Canada has yet to ratify the bill, while the United States and Mexico have.

Walker said he said he wrote a letter to Deputy Prime Minister Chrystia Freeland and United States Trade Representative Robert Lighthizer urging them to push that back to the start of 2021.

“We’re going to have to make sure all the OEMs approach it the same way, but there’s no way we’re going to get it done,” he said. “The fact is regional value content is going up. That should mean there’s going to be more local sourcing, unless it gets so complicated where they can’t meet the target, in which case somebody may say, ‘I’m going to make the vehicle outside of NAFTA, pay the duty and ship it in.’”

Walker also warned that if wages rise too quickly in Mexico as a result of the new trade pact, supply work could go overseas where it might still be cheaper.

"Be careful what you wish for," he said. 

Prime Minister Justin Trudeau’s Liberal Party, now in a minority, requires votes from one of the opposition parties in Parliament in order for Canada to ratify the agreement. Walker urged the House of Commons to move quickly to ratify the USMCA.

“I hope there’s not going to be a lot of political debate for the sake of political debate,” he said. “I think it will get passed. You can’t really change it at this point.”

 

Pensions are a promise

Respect the Locked-Out Refinery Workers

By Melissa Keith  
February 14, 2020

Four workers walking the picket line at the Regina Co-op Refinery were arrested on February 4, charged with public mischief. While they were subsequently released from police custody, the bizarre nature of the incident stands out for Unifor Local 594 president Kevin Bittman. “It’s a little hard for people, in two aspects: the company isn’t even trying to get a deal, and they’re trying to hurt us and using the police to do it.”

With video cameras at every gate of the 85-year-old diesel and gas processing facility, workers are under surveillance as they draw attention to the dishonest dealings and unfair demands of their employer, Federated Co-operatives Limited (FCL). On February 5 — day 61 of the Regina Co-op Refinery lockout — Bittman said the conflict showed no signs of ending.

He has spent 23 years working at the Saskatchewan refinery, where he is a process operator overseeing all the processing units that create diesel fuel and gasoline. More than 1,000 workers are employed throughout the complex. “We’ve had quite a bit of turnover,” Bittman notes of the job, in which expansions typically create waves of new employees. “We have over 400 members under the age of 35.” Now, the Unifor Local 594 members of all ages find themselves on the literal front lines of the Canadian labour movement in the fight for defined benefit pension plans.

“It all started three years ago, when the company wanted concessions on pensions,” he explains. “The company wanted more this time. The company was adamant that we had to go backwards on our pension.” Contrary to the view promoted by the business owners, the unionized refinery workers originally agreed to concessions around pensions. “Three years ago, we agreed that all new hires would no longer be on the defined benefits plan. This contract is now attacking the ability [of veteran members] to stay on the defined benefits pension,” adds Bittman.

 The Company Wants Us to Go Backwards

Defined benefit pension plans differ significantly from defined contribution plans, and the latter is what Regina Co-op Refinery management is trying to force on the employees. “We offered six per cent, when we were paying nothing before; six per cent of each individual's income would go into the defined benefit plan. Right now, the company is contributing all of it,” the Local 594 president tells Our Times.

Moving to a defined contribution plan places employees in a risk-bearing situation similar to when someone makes RRSP investments for their retirement: Unlike defined benefit plans, defined contribution plans do not provide a guaranteed monthly income that is protected from market fluctuations and their effect on personal investments. In the case of defined contribution plans, the employer is not expected to ensure that the monthly pension amount keeps up with inflation and cost of living increases. Bittman says he will have to work an extra six years because of pension changes.

Bargaining with FCL has proved elusive and disheartening. “They never officially gave us an offer,” says the process operator. “They never gave us anything to vote on.” Instead, the $3-million-a-day-in-profits company has spent freely on helicopter transportation and camp accommodations for 120 management workers and 400 “replacement workers,” while also buying ads asserting that locked-out Unifor members are acting contrary to “Prairie values.”

 Bittman says that support from other unions and even federal NDP leader Jagmeet Singh has encouraged the Regina Co-op Refinery employees, who are surviving on strike pay as the dismal situation drags on. “The labour movement is onside,” he says. At the time of this interview, there was a Western Canadian boycott of FCL-owned businesses, and the picket line had kept fuel from leaving the Regina plant for 15 days.

But there is a battle for public perception underway, and the Local 594 president fears that FCL is successfully deploying anti-union stereotypes to fuel community resentment against the locked-out workers. “What power do we have?” he asks, frustrated. “The labour movement has understood it, but you’re in this Conservative province where a lot of people just hate unions. They say, ‘These greedy union people  They should just get back to work ’ But we can't get back to work — we're locked out.”

 Workers Fight for Safety, Too

Back on December 4, Local 594 members delivered an unmistakable 97.3 per cent strike vote to their leadership. Since then, Bittman says that despite $20-million in savings offered to the company, FCL has rejected the union’s offer and instead “gutted” the pension plan. But there’s even more at risk. Bittman notes that safety measures ensuring that adequate numbers of properly trained workers handle specific duties are being altered in dangerous ways by the company’s proposed changes to the collective bargaining agreement’s “letters.”

“The ‘letters’ refer to maintenance duties that are defined in the collective bargaining agreement and the company wants to remove them, and then remove language that prevents workers doing work that is someone else’s job in the bargaining unit,” says Bittman. “This would allow anyone to do anything. The other change would be removing a minimum maintenance-complement number. Without this number, the company could reduce the maintenance department to zero [employees]. They also want to add language to have the ability to change workers’ hours of work whenever they want.” 

FCL has used the positive associations people have with the co-op's image and its history to evoke hostility against the very refinery that generates the bulk of the Western Canadian Co-op brand’s revenue. “If it wasn't for the refinery, those little [Co-op] stores would close,” Bittman observes. “It's really fractured Regina. Our members alone put $50 million into the community.”

The man who is in the next-highest job to supervisor in his workplace notes that the 36 highest-paying positions in his bargaining unit are under threat, with no resolution on the immediate horizon. Federal legislation cannot bring a ready conclusion to the lockout, which falls under provincial jurisdiction, so Bittman says a provincially appointed mediator is likely the next step in resolving the ugly impasse with FCL. “We are hoping that they give that mediator some power,” he adds.

Shobna Radons is president of the Regina and District Labour Council. She says that in the early days of the refinery lockout, “it was all peaceful.” FCL’s subsequent refusal to bargain in good faith with Unifor members changed the tone, and the company has taken a more aggressive stance by invoking police contact. “Now they are awarding tickets to everyone parked on the shoulder [of the road] or in the ditch, knowing that they are the workers on the picket line,” she says with disgust.

Radons believes that the workers have more public support than they may realize. “These guys are our neighbours, our family members, our friends. They’re in the community,” she stresses. “FCL has billboards posted up, saying ‘Why is Unifor striking?’ They’re blaming them, but they [FCL] have dug their heels in and are the ones that are perpetuating the division.”

She says that Scott Banda, the CEO of FCL, is responsible for the lockout at the Regina Co-op Refinery; his recent media releases suggest that he wants to work out a fair deal with the workers, and that he has been speaking with employees at Western Canadian Co-op retail stores who want the impasse to end. But the FCL has not dealt with Unifor Local 594 members in good faith, leading Radons to one conclusion: “Don’t blame the union. Blame the CEO for damaging the legacy of the Co-op.”

In a February 3 FCL media release on the company website, a quote from Banda paints the Regina Co-op Refinery workers as lawless and self-interested. “Unifor said this labour dispute can only be resolved at the bargaining table, and on that we agree. But the bargaining table doesn’t look like setting up blockades, breaking the law and defying court orders. You can’t have meaningful bargaining when your business is being held hostage.”

 Union blockades were erected at the Regina refinery, as well as the FCL Carseland Fuel Terminal, and Weyburn and Regina Co-op locations. The Weyburn Crossroads Co-op blockade ended January 13, and on Sunday, February 9, the Carseland Fuel Terminal blockade was dismantled to comply with a February 6 court order. On February 10, 20 Unifor members set up a new blockade at a Co-op bulk fuel depot in Moose Jaw, Saskatchewan. FCL has repeatedly sought court injunctions to remove the locked-out workers' main line of protest for their pensions and rights.

Radons says that Saskatchewan’s Conservative premier would expect union members to make even more concessions than those already offered, in order to end the ongoing labour dispute. “Scott Moe would only appoint a special mediator if the union agrees to take the barricades down,” for starters, thus abiding with a Queen's bench court injunction.

 The barricades are both symbolic and actual shows of strength by the locked-out members of Unifor Local 594. Bus driver Balkar Sandhu says that members of his union local responded when Unifor’s national office put out the call for all locals across Canada to support the Regina Co-op Refinery workers. Sandhu notes that six different transit garages operate out of the Lower Mainland in Vancouver, where he and his bus-driving fiancé, Tracy Milne, are based. The 3,800 bus drivers there are members of Unifor Local 111, while an additional 1,200 mechanics belong to Unifor Local 2200.

Local 2200 president Mike Smith was one of the first people arrested during protests at the Regina refinery. Sandhu and Milne were among the 30-plus Unifor members to leave Vancouver to join the locked-out Co-op Refinery workers in Saskatchewan in January. Since then, hundreds of members from different unions across the country have shown up in support of the locked-out refinery workers. “Eight hours a day, we picketed with our brothers and sisters of Local 594,” Sandhu tells Our Times. “Sometimes we would get an email saying ‘Something is going down,’ and we’d jump back in our cars and go back up there [to the refinery].”

Sandhu describes the scene of the protest as inspiring, despite the ongoing lockout. “There were a couple of mobile homes there, people were bringing food, coffee was always available, and there was a proper DJ booth, to keep warm and show the faith ” he recalls. “The amount of different unions there was mind-blowing: longshoremen, CUPE, nurses. . . .” Cold temperatures and long hours did not detract from the workers’ message, echoed by Sandhu. “This is a show of force for the rights of Canadians and what is right for blue-collar workers, busting their butts for the right to retire,” he stresses. “Some of these guys now have to work another 10 or 15 years.”

The lockout is having a serious impact on FCL’s bottom line and day-to-day operations, as Sandhu points out. “I just got an email [. . .] saying the Winnipeg stations just ran out of gas” on February 8; Co-op and Shell stations selling FCL Refinery gas products were both reportedly affected. He notes that some 300 truckloads per day were being held back by 30 truck drivers who are part of the protest.

The effects of the lockout go beyond the gas stations, directly to the heart of public safety. “Here’s the scary part, which the public needs to now,” explains the Local 111 member. “The Master Operator, who has run the plant in Regina for 20 years, [is locked out]. […] These scab workers are so unqualified to work with propane and diesel that it’s dangerous. There’s only one guy there who’s qualified, and everyone else is Facetiming him saying, ‘Is this right? Is this right?’”

That alarming scenario is only worsened by the lack of pipe inspections within the refinery, he adds. As of February 8, it had been 67 days without pipe inspections by the qualified veteran employee who normally handles this essential safety measure. “A six-millimetre crack in a pipe resulted in an explosion several years ago,” advises Sandhu. “Why isn’t the premier involved yesterday, bringing in the mediator?”

 That question remains, as workers await the reopening of negotiations. “What it comes down to is the rights of hard-working Canadians paying taxes,” argues Sandhu. “They need to get back to the table and call on a mediator, for a fair contract that benefits both sides.” He recounts how Unifor Local 111 was on the brink of a strike last March, when the transit drivers’ contract was up for renewal; employer TransLink returned to the bargaining table to help hammer out what Sandhu terms “what a collective agreement should be, and the best contract we’ve had in the time I’ve been there.”

As law enforcement is called upon to intervene in what is fundamentally a labour dispute, Sandhu wonders how police officers feel about arresting locked-out workers and those who stand with them in solidarity: “Getting the police doing things that they probably really don’t want to do, because they are actually in a union,” as he phrases it.

“This is not just about Unifor or Local 594,” argues Sandhu. “This is about all Canadians who work for a living.”

Supporters of the Regina Co-op Refinery workers can check out the calls to action on two websites: boycottcoop.ca and unifor594.com.

 

Ford recalls over 240K vehicles
to fix suspension problem

The Associated Press
Feb 13, 2020

Dearborn – Ford is recalling over 240,000 SUVs and cars worldwide because a suspension part can fracture and increase the risk of a crash.

The recall covers the Ford Flex, Taurus police car, Taurus SHO and Lincoln MKT from the 2013 through 2018 model years. Most of the recalled vehicles are in North America.

Ford says if the suspension moves a lot on the vehicles, the rear toe links can fracture. Toe links help keep the rear suspension stable and the tires on the pavement.

The company says it’s not aware of any crashes or injuries caused by the problem in this batch of recalled vehicles.

Dealers will replace toe links on both sides with new ones that are stronger.

Owners will be notified starting March 2.


 

Coronavirus expected to hit
automakers' bottom lines

Kalea Hall and Breana Noble,
The Detroit News
Feb 12, 2020

Detroit — As some automakers restart production in China this week and others extend downtime amid the coronavirus crisis, industry experts predict their bottom lines will take a hit.

All three Detroit automakers extended a production shutdown in China because of the outbreak following the week-long Lunar New Year holiday. But General Motors Co. has now extended its downtime for its 15 Chinese assembly plants to at least Saturday.

Meanwhile, Ford Motor Co. on Monday began staggering resumption of production at its nine Chinese plants to get assembly lines moving again, a process that's expected to take several days. Fiat Chrysler Automobiles NV also reopened its two Chinese assembly plants to start production in the coming days, and Tesla Inc.'s Shanghai factory returned to action Monday after the company said last week that Model 3 sedan deliveries would be delayed.

As a result of the outbreak, the world's largest auto market will lose production of 1.2 million vehicles for the first quarter and see a 50%-80% decrease in sales in February, analysts forecast. The coronavirus scare is an added complication as automakers there face declining demand, trade tensions and stricter emissions regulations.

It is too early to tell by how much the virus will affect business, the automakers said. Even before the first person was diagnosed, GM's sales had declined there 15% in 2019, while profits were cut nearly in half to $1.1 billion. Ford's sales fell 26% in China, though it cut its losses there in half amid a turnaround plan and the introduction of new models. Fiat Chrysler, which has less than 1% of the Chinese market, saw sales drop 41% to 73,000 vehicles, according to Hong Kong-based consulting firm ZoZo Go LLC.

“There probably will be starts and stops,” said Jeff Schuster, LMC Automotive’s president of global vehicle forecasting. “You may see some factories back up and then shut down again, whether it’s because of an actual case of the virus or a shortage of something. Even if something gets up and running, we expect some interruption further into this week, next week and into March.”

LMC forecasts that automakers will be unable to make up two-thirds of the 1.2 million in lost production. The outbreak could cause a net decrease of nearly 800,000 new vehicles, a decline to 23.5 million from the originally projected 24.3 million vehicles for the year.

China's Automobile Dealers Association predicts sales will fall as much as 80% in February as consumers avoid going out to shop. China sells about 2 million vehicles a month.

Automakers are relying heavily on digital advertising to encourage consumers to place orders, said Michael Dunne, CEO of ZoZo Go.

"Everyone is on edge because ... this thing is still not defined," Dunne said. "No one wants to go out to a crowded showroom to pick up a new car. It's not a priority right now."

Volkswagen AG has the largest risk for exposure because it produces roughly 40% of its vehicles in China, more than any other foreign automaker there, said Patrick Anderson, CEO of East Lansing's Anderson Economic Group consulting firm.

Honda Motor Co. is also vulnerable because it assembles vehicles in the province around Wuhan, the disease’s epicenter in central China.

So does GM, whose largest market is China. “They’re essentially an American-Chinese company,” Anderson said. “Undoubtedly, the public health crisis has a serious and negative effect on General Motors in China.”

Production startup at GM plants will vary by plant depending on the safety of employees, parts availability and available vehicles on dealer lots, the automaker said.

GM expects the virus will dent sales, but GM China President Matt Tsien told investors during the automaker's Capital Markets Day event in New York last week that he expects to see pent-up demand after the coronavirus crisis subsides. Tsien said it was too early to predict how the virus will affect GM's earnings.

Production at Honda Motor Co.'s Wuhan plant will remain down through Thursday, though two other plants several hours south of Wuhan in Guangzhou are operating again. Toyota Motor Corp. said it was preparing to resume China production this week.

Nissan Motor Co. is expected to restart production Feb. 17 at its Huadu and Dalian plants, with other factories ramping up at other times. A parts shortage also has strained Nissan's production in southwest Japan, where it is making temporary adjustments at its plant in Kyushu.

Likewise, Hyundai Motor Co. and Kia Motors Co. had suspended production in South Korea. Hyundai planned to restart some assembly lines starting Tuesday.

Fiat Chrysler has identified a manufacturing facility in Europe that is at risk of closing because of a parts shortage in the next two to four weeks if the outbreak continues to worsen. The automaker has not specified which plant that is.

Any impact on North American production should be minimal, ZoZo Go's Dunne said, because most parts used here are made here. The availability of parts in the aftermarket are more exposed.

Automakers say they are monitoring their supply chains and have developed contingency plans. It's standard to have alternate supply sources for situations like this, Dunne said.

But for electric vehicles, there is a limited global supply of batteries and their components — many of which come from China, Anderson said. That exposes companies like Tesla to disruption.

“Tesla is critically dependent on battery-electric assembly, notably battery assembly,” Anderson said. “By far the largest share that goes into these lithium-ion batteries are made in China. They made a huge bet on battery-electric and are an innovator to their great credit, but they are also very vulnerable to any disruption in supply.”

Battery assembly is the single biggest risk for a parts shortage in North America, Anderson said, though such vehicles still only account for a small portion of the market. Although the Buick Envision and a Volvo model are built in China, access to such vehicles in the United States likely won’t be affected.

“There are very few vehicles that are assembled in China and brought over here,” Anderson said. “We haven’t identified any models that would be difficult to find in the United States.”

The largest source of anxiety for automakers right now is not knowing how long the spread of the virus will continue and when consumers will return to dealerships. It likely won't be this week, especially in hard-hit areas, LMC's Schuster said.

"I’d be surprised if normal operations resume in any areas before the end of the month," he said. "Wuhan will be impacted at least through part of March."

 

Ford shakeup signals pressure
to perform in present, future

Daniel Howes,
The Detroit News
Feb 11, 2020

When former Ford Motor Co. CEO Mark Fields was trying desperately to keep his job nearly three years ago, he floated a plan with the automaker’s directors that proposed organizing his one-time rival, Joe Hinrichs, out of a job.

The board pushed back amid a “strategic review” of Fields’ tenure that instead got the CEO got fired in May 2017. Hinrichs survived, appeared to flourish during Ford's years-long "redesign" and became president of the Blue Oval’s global automotive operations, thought a springboard to the top job.

Until Friday. Until a high-level mandate to integrate the traditional auto business and next-generation autonomy and electrification under a single executive — and to atone for a disastrous Explorer launch that tanked last year's financial performance — left Hinrichs, 53, on the outside looking in. Under-delivering financial expectations, especially in another good year for auto sales, can do that.

The restructuring atop the Glass House is a bid by Ford to achieve one interrelated goal: drive toward realizing the future of personal transportation while delivering the present profitably, on schedule and with quality. In nearly three years as CEO, Fields struggled to maintain that balance; so did Hinrichs, judging by Ford’s lagging financial performance in regions where it operates.

Now Jim Farley, promoted to chief operating officer, is heir apparent to CEO Jim Hackett. Theoretically, anyway. The move is less a “coronation” to anoint Farley as Ford’s chief executive in waiting, as one source close to the situation described it, and more a prolonged audition.

It should be. Farley’s management style can be mercurial, to put it kindly, his manner quirky and sometimes brusque. He has a reputation for decisiveness, candor and taking calculated risks like pushing for the Mustang Mach-E electric vehicle — traits Ford needs to juice its competitive metabolism and complement Hackett's professorial bent with employees, investors and the media.

A former Toyota Motor Corp. executive with familial ties to the Blue Oval, Farley is said to understand the vital role of technology in many aspects of the industry's future. Now's his chance to prove it, and quickly, because rival GM is garnering positive investor attention for its all-in on EVs strategy coupled with the coming launch of its suite of full-size pickups and SUVs, rolling licenses to print money.

Ford's new executive structure should enable directors to see Farley, 57, operate at a global level, to balance the traditional auto business that generates virtually all of the company's revenue and profit with the technology-driven spaces of what's widely called "Auto 2.0."

Senior leadership increasingly concluded such a construct — Auto 1.0 and Auto 2.0 — to be an artificial creation that failed to recognize just how closely linked each side is with the other. Namely, that world-class trucks and SUVs are platforms for new technology, and that the artificial intelligence expected to one day guide Ford's self-driving vehicles has applications for assembly lines, plant management, parts logistics.

More, the directors led by Executive Chairman Bill Ford are hedging their bets. In addition to elevating Farley, the automaker said its chief product development officer, Hau Thai-Tang, would shoulder more responsibility — a signal that Farley's ascendance to the top job is not preordained, and neither is a perceived bias to promote an insider to replace Hackett.

This shakeup was inevitable. Ford's turnaround is proving slow-in-coming. And the botched launch of its all-important Explorer SUV last week slammed fourth-quarter earnings and contributed to modest guidance for this year, pounding Ford shares that had been rising much of the year.

Investors are voicing growing frustration, underscoring their concern by trading Ford shares generally lower. Meanwhile, rivals General Motors Co. and Fiat Chrysler Automobiles NV are delivering fatter North American margins, faster cash generation and, in GM's case, what's considered a more cohesive electrification strategy.

In a note Monday outlining Ford's headwinds, Morgan Stanley cited lower North American margins, "substantial continued losses" in China, costs associated with emissions compliance in Europe, continued investments in new hybrids instead of a "straight-to-EV' chosen by such rivals as GM, and lower cash-flow projections for this year compared to GM and FCA.

"Ford is currently lagging peers in operating performance in N. America, China and S. America at the same time," Morgan Stanley wrote. "Friday's management changes are, at some level, acknowledgment of the need for change from the company."

The irony is that Hinrichs said as much in a letter he wrote to his team touting accomplishments his critics would tend to overlook in favor of the challenges apparently he, alone, was expected to overcome. It doesn't work that way.

"We used to talk about Profitable Growth for All," he wrote, channeling a mantra repeated continually by superstar CEO Alan Mulally before retiring six years ago. "The plans over the last three years, combined with the dramatic collapse of our sales in China after we had built such a strong business, have delivered significant losses in global volume and market share."

In other words, Ford's core business has not been delivering when competitors have — and that's a big problem in Dearborn that can no longer be ignored.

 

Ford completes 400 layoffs
at Oakville plant

John Irwin 
Canadian Automotive News
Feb 10, 2020

About 400 workers were laid off this week at Ford Motor Co.’s Oakville, Ont., assembly plant, shortly after the automaker ended production of the Ford Flex there.

The layoffs, which took effect Monday, were announced late last year, and come ahead of negotiations between Unifor and the Detroit 3 automakers later this year. Job security and product commitments figure to be major priorities for the union, while the automakers attempt to navigate slowing sales in a declining North American new-vehicle market.

“Our plant is in desperate need of new product,” said Mark Sciberras, president of Unifor Local 707, which represents the 4,200 hourly workers at the plant. “Hopefully new product brings those people back.”

In an email to Automotive News Canada, Ford spokeswoman Lauren More said the move to end Flex production, alongside the discontinued Lincoln MKT, would allow the automaker to “strengthen [its] focus on products in the heart of the fastest growing segments to meet shifting consumer demands.”

This week’s layoffs were the second at the Oakville plant since 2019. Ford said in July that it would cut around 200 jobs at the plant while slowing production there amid slowing sales. It followed that up in October with an announcement that it would end Flex production and would lay off workers as a result.

Flex and MKT production ended in 2019 amid slow demand for both vehicles in North America. The Flex debuted in 2008, and annual volume peaked the following year in the United States at 38,717 units sold. Ford in the U.S. sold 24,484 Flex units in 2019, according to the Automotive News Data Center in Detroit, making it the lowest-selling light-truck in the Ford brand’s lineup. It sold 2,470 units in Canada.

The MKT, meanwhile, was replaced in Lincoln’s lineup by the Aviator crossover, which is assembled at Ford’s Chicago assembly plant.

Oakville continues to assemble the Ford Edge and Lincoln Nautilus crossovers, which accounted for the bulk of the plant’s production in 2019. The Oakville plant assembled 247,615 vehicles in 2019, up about 4.3 per cent from a year earlier, according to the Data Center. The Flex and MKT accounted for about 11 per cent of all vehicles produced there.

 

Ford’s Hinrichs to retire,
Farley becomes COO

Michael Martinez
Canadian Automotive
News
Feb 9, 2020

DETROIT  Ford Motor Co.’s Joe Hinrichs, 53, is retiring as president of the company's global automotive operations, and Jim Farley, 57, president of new business technology and strategy, will become COO, Ford said.

The management shakeup, effective March 1, comes three days after Ford posted disappointing fourth-quarter earnings and profit guidance, with Wall Street analysts pressing company leaders for more details about a transformation plan that has yet to produce positive financial results amid a period of profound disruption across the industry.

Hinrichs had been at Ford for 19 years. He was CEO of Ford of Canada for about 10 months in 2005. Speaking at the 2019 Automotive News Canada Congress in Toronto, he reflected on his tenure there and on the strength of the Canadian auto industry, which has dealt with the threat of plant closures and layoffs in recent years.

Ford CEO Jim Hackett on Friday stressed the need to move with more urgency as the company attempts to implement elements of his self-described “fitness” plan.

Hackett is targeting 8 percent operating margins on the company's global automotive business, and 10 percent margins in North America, or roughly double what the company has achieved in recent quarters, and well below recent margins at rivals General Motors and Fiat Chrysler.

“Ford has struggled with execution -- potentially explaining this move,” Dan Levy, an analyst for Credit Suisse who cut his rating on the company's shares to the equivalent of a hold earlier Friday, said in a note to clients. “Farley’s promotion to COO positions him as a successor to the CEO role.”

Ford, which is preparing to launch a redesigned F-series pickup, the all-new Mustang Mach-E and a revived Bronco SUV, is targeting adjusted free cash flow of $2.4 billion to $3.4 billion ($3.2 billion to $4.5 billion Canadian) to this year and adjusted earnings of $5.6 billion to $6.6 billion, below analysts’ expectations.

In addition to steep investments in electrification and autonomous vehicles, Ford and other automakers face a U.S. new-vehicle market that is expected to fall below 17 million units for the first time since 2014, even as rising transaction prices help pad revenues and profits.

Farley, who joined Ford in 2007 from Toyota, is expected to retain his role as head of Ford Smart Mobility, the company's  autonomous vehicle unit, and its partnership with Argo AI, a Pittsburgh-based autonomous technology firm.

"Jim Farley is the right person to take on this important new role," Hackett said in a statement. "Jim's passion for great vehicles and his intense drive for results are well known. He also has developed into a transformational leader with the imagination and foresight to help lead Ford into the future.

In addition, Hau Thai-Tang, Ford’s chief product development and purchasing officer, will take on an expanded role and will report to Farley, Ford said. He will add responsibility for the company’s Enterprise Product Line Management and connectivity arms.

“Hau will be the primary architect as we bring together the vehicle architecture and software stack to create products, services and experiences our customers will love,” Hackett said. “ We are moving forward with an integrated approach to vehicles and connected services, all anchored in an obsession for the customer, great design and a commitment to strong returns.”

Hinrichs has been steering Ford's automotive operations since May and is well-respected in Ford’s factories and among dealers, and was seen by many as a likely successor to Hackett. He had broad authority over Ford’s automotive operations, including product development, and recently helped the automaker come to terms on a new four-year labor contract with the UAW.

Hackett called him a “really good friend and accomplished global leader” who was “instrumental” in helping Ford survive the Great Recession and also played vital roles on issues ranging from labor to manufacturing to trade.

“To a person, he was beloved,” Hackett said. “Joe’s going to have a wonderful career. But everybody believes the momentum that we’re talking about building here is the right thing to do.”

Ford’s disappointing earnings were due in part to the botched launch of the redesigned Explorer crossover, one of the company's most profitable nameplates, but Hackett on Friday said Hinrichs' decision to retire was “not tied to that at all.”

Hinrichs also holds Ford’s seat on the board of directors at startup Rivian. A Ford spokesman said Friday that no decision has been made on replacing Hinrichs with another executive. Ford invested $500 million last year in the Plymouth, Mich., EV maker and said recently that an upcoming Lincoln EV will be based on Rivian technology.

The Wall Street Journal first reported the latest management changes at Ford.

In May 2017, former Ford CEO Mark Fields attempted to force Hinrichs out as president of Ford's Americas unit, a post Hinrichs had held since December 2012.

With Hinrichs in the key role, the company earned about $38 billion in North America, or 92 percent of the automaker's total pretax profits during the period. He also oversaw the successful redesign of Ford's best-selling and most profitable vehicle, the F-series pickup.

Still, days before his ouster as Ford CEO in May 2017, Fields moved to fire Hinrichs in part to relieve some of the pressure Fields was facing from a skeptical board of directors, Automotive News reported at the time.

Fields intended to get approval from company directors for his decision to fire Hinrichs during the week of May 14, sources told Automotive News.

Fields' plan backfired, however, when directors decided instead to part ways with him, along with communications chief Ray Day, following a May 19 board meeting.

Instead of a pink slip, Hinrichs was given a promotion to a newly created post -- president of Ford's worldwide automotive business, including global product development; manufacturing and labor affairs, among other things.

 

Ford shakes up leadership after
missing 2019 earnings targets

Breana Noble,
Detroit News
Feb 8, 2020

The elevation of Ford Motor Co. strategy chief Jim Farley to chief operating officer signals growing impatience with the speed of the automaker’s restructuring, experts say, and implicitly makes him the top contender to succeed CEO Jim Hackett.

The major leadership shakeup, which includes the retirement of Joe Hinrichs, president of automotive, comes as the Dearborn automaker blamed the botched launch of its top-selling Explorer SUV for missing 2019 earnings expectations and forecasted a disappointing 2020 — signs the company is under pressure to show results from its ongoing $11 billion global restructuring plan.

"It would seem logical for Farley to be a possible replacement unless there's another Alan Mulally out there," David Cole, chairman emeritus of the Center for Automotive Research in Ann Arbor, said in reference to the former Ford CEO who came from Boeing Co. "This is just typical of the chaos of the industry today."

Farley, 57, and Hinrichs, 53, had been considered potential successors to Hackett when the former CEO of Grand Rapids-based furniture maker Steelcase Inc. came to the automaker in 2017. His appointment was perceived as a short-term move to develop a vision for an Auto 2.0 future of autonomous, connected and electrified vehicles.

"I think there's pressure on Hackett and everybody else at Ford," said Michelle Krebs, executive analyst at Cox Automotive Inc.'s Autotrader. "They announced a restructuring plan, (and) everybody's been waiting for those results. It's been a while. And there's extra pressure because we're at a point where sales are not growing."

But Hackett used a conference call Friday to reiterate he has no plans on leaving Ford soon: "I plan on staying in this job and working with Jim tightly to now realize the value that we’ve been promising."

In addition to overseeing Ford's global markets, Farley will continue to lead Ford's mobility and autonomous-vehicle ventures as he has since April. The transition, which Hackett said has been in the works for more than a year, is meant to combine under one executive the traditional auto business with the new Auto 2.0 sectors and manage them as a single business.

"It is my judgment the time is to move with urgency now to fully integrate and accelerate Ford's transformation into this higher-growth and higher-margin business, and leverage the smart, connected vehicles," Hackett said during a conference call. Farley is charged with nearly doubling global margins to 8%, the company said.

Hinrichs, a manufacturing expert, leaves as Ford expects to replace 40% of its portfolio this year. Hackett, however, said the company "won't miss a beat" as it rolls out a small off-road vehicle; the all-electric Mustang Mach-E SUV; and the redesigned F-150 pickup, including a plug-in hybrid version. Ford also will introduce region-specific vehicles in places like China.

Farley is "more of a sales and marketing guy where the other guy (Hinrichs) is basically the engineer, manufacturing guy," Cole said. "My bet would have been (Hinrichs) would be the next CEO."

A former Toyota Motor Corp. executive, Farley joined Ford in 2007 as its global head of marketing and sales. He was a key member of Mulally's team to return Ford to profitability and launched the "Drive One" advertising campaign that lasted several years after Ford was frequently switching strategies. Farley went on to lead the Lincoln luxury unit, the South American division and then the European business, which he helped turn around at least for a short period.

"We have all the foundation elements of this transformation Jim talked about," Farley said on the conference call. "Now it's go-time, execution. I'm really excited to lead the team to bring this mission toward visions to life."

The Explorer is Ford's best-selling SUV, but sales declined more than 26% last year as production problems led to vehicles coming off the line with buggy software, loose wiring and faulty seats. Ford shipped many of the vehicles 268 miles from Chicago to Flat Rock to be repaired, causing months-long delays.

"There are only three programs you don’t screw up at Ford: F-150, Mustang and Explorer," Marcus Hudson, executive director of Calderone Advisory Group in Birmingham, said in a statement. "The Explorer launch was Hinrich’s audition for the top post; his leaving speaks directly to the internal view of how well manufacturing is doing at Ford. The Explorer launch obviously didn’t go well; couple that with ongoing warranty issues which imply a drop in quality, which has a direct correlation with customer loyalty, then someone’s head had to roll.”

Hackett denied the Explorer's problem had to do with Hinrichs' departure: "The launch of the Explorer is a company issue that involved a lot of aspects, including Joe's role and others. We share that with others. This, in fact, is not tied to that at all. I want to make that really clear that we're all accountable for that performance."

Ford shares continued to fall by 1.5% Friday afternoon — more than equity indexes — after hitting a 52-week low earlier in the day before the news. The automaker's stock was about $8.12 per share, down from $9.21 prior to Ford reporting earnings Tuesday after the market closed.

Tuesday's results had led Adam Jonas, managing director of research at Morgan Stanley, to blast the Dearborn automaker a day later during an investor presentation held by General Motors Co. that highlighted its future plans.

“I noticed that you were videotaping today’s investor day; it’d be great if someone could send that tape to Ford in Dearborn," he said. "I’m serious. I’ll hand-deliver it myself to them if you don’t send it to them. Your team is really airtight. You should be very proud of this presentation you gave. ... You are executing.

Hackett praised Hinrichs' contributions to Ford in helping it to survive the Great Recession without bankruptcy or bailouts; leading the launch of Ford in China; playing an influential role in negotiations with the United Auto Workers; and representing the automotive industry's interests in trade deals such as the newly signed United States-Mexico-Canada agreement.

Additionally, Hau Thai-Tang, chief product development and purchasing officer, will take over oversight of connectivity and enterprise product-line management in addition to his current roles. Thai-Tang, 53, will report to Farley.

The leadership changes will take effect March 1.

 

Ford's profits fall nearly 99%
for year, due to Explorer woes

Breana Noble,
The Detroit News
Feb 6, 2020

Dearborn — The botched introduction of the new Explorer SUV caused what CEO Jim Hackett said would be Ford Motor Co.'s "year of execution" to fall flat, with the Dearborn automaker posting a net income of just $47 million last year — a 99% decline from 2018.

Hackett had hailed 2019 to be a turning point "toward a really bright future" as Ford undergoes an $11 billion global restructuring, which included cutting costs and layoffs. But the 117-year-old company's flubbed launch of its best-selling SUV plagued the latter half of the year and sent SUV sales down 5%.

"We fell short of our financial expectations and yours in 2019," Hackett said on an earnings conference call Tuesday. "What is particularly disappointing is the primary reason for that shortfall was our operational execution. This is an area where we typically are effective.

"Our leadership is determined to return to world-class levels of operational execution. We will do that without losing any momentum in creating a Ford Motor Company that will drive and generate long-term value in these fast-changing times."

Ford's $6.379 billion in earnings before interest and taxes missed the lowered guidance the automaker set last quarter of between $6.5 billion and $7 billion. Its expectations for 2020 are even lower: between $5.6 billion and $6.6 billion — and that doesn't include potential losses related to the coronavirus outbreak in China.

The company's shares in post-market trading slid more than 9%, losing gains made over the past year as major indexes closed higher. The sell-off, coming as rivals General Motors Co. and Fiat Chrysler Automobiles NV are set to detail their results this week, signals growing concern about the pace of Ford's turnaround, its European restructuring, efforts to repair its business in China and its troubled Explorer launch.

"Given the economy Ford was handed in 2019, the operational miscues resulted in missed opportunities to the bottom line," David Kudla, chief investment strategist of Grand Blanc-based Mainstay Capital Management LLC, said in a statement ahead of the earnings results.

The Explorer was the most complicated launch for Ford since the aluminum F-150 pickup in 2015, said Tim Stone, chief financial officer. The rush to production led to months-long delays and SUVs coming off the lines with such major problems as faulty seats, loose wiring harnesses and digital displays with buggy software. It delivered 26% fewer Explorers in 2019.

Ford will have the chance to prove it corrected its mistake in 2020 with launches of a new off-road SUV and the all-electric Ford Mustang Mach-E SUV. It also is investing $700 million in Dearborn for the next-generation, F-150 pickup, including a plug-in hybrid version, and $750 million to Michigan Assembly Plant in Wayne for the returned Bronco SUV in 2021 and the Ranger pickup. By the end of the year, Ford is expected to have replaced 75% of its product line since 2017 and decrease its average age by two years to 3.3 years old.

The Dearborn automaker reported it made 1 cent per share on $155.9 billion in revenue for the year, a 3% decrease. Ford lost $1.672 billion in the last three months of 2019, which was 13 times the company's loss for the same period last year. A $2.2 billion charge on pensions largely drove the fourth-quarter loss.

"From an execution standpoint, clearly 2019 was below our expectations attributable to the operational challenges we had with the Explorer, for example, higher warranty costs," Stone said. "Fundamentally what we are seeing in our results are the benefits of fitness and the redesign through 2024."

Stone pointed to decreased structural costs in 2019 compared to flat structural costs in 2018 as an example of this, but Ford did not disclose further details on them. Operating costs fell 1% to $155 billion.

The automaker made $6.612 billion before interest and taxes in North America, a decrease of 13%. Ford will give eligible hourly full-time United Auto Workers employees up to $6,600 profit-sharing checks this year, down $1,000 from a year ago.

The automaker's North American business was operating at a 6.7% margin in 2019, down from 7.9% in 2018. The teams are targeting 10% margins. In 2019, Ford lost before interest and taxes $704 million in South America, $47 million in Europe, $23 million in Asia Pacific and $142 million in the Middle East and Africa. The company also lost $771 million in China.

Although the Chinese market contracted, Ford's earnings rose 50% year-over-year as it introduces newer models such as the Ford Territory crossover, remodeled Ford Focus car and Lincoln Aviator SUV. The new Ford Escape SUV and Lincoln Corsair will launch this year there.

The coronavirus outbreak, however, has the company extending the Chinese New Year holiday factory shutdown a week to Feb. 9 under the government's recommendation. It is not yet clear how much it will affect business, Stone said. Ford also is halfway through its planned 12,000 layoffs in Europe, where it closed six manufacturing facilities last year.

The company lost $1.186 billion in the "mobility segment" in 2019 and plans to increase its spending on the development of future technology in 2020. Ford Credit made $2.998 billion with Ford projecting earnings would decrease again this year because of auction values and higher taxes.

Ford had just under $1 billion more cash on hand at the end of 2019 with $17.7 billion. The company's operating income was $574 million.

Since the start of 2019, Ford has announced partnerships with Volkswagen AG and India's Mahindra Group to boost performance outside the U.S. Ford also announced plans to develop an electric vehicle for Lincoln with Plymouth-based Rivian Automotive LLC and expand autonomous vehicle testing with Argo AI.

 

Ford to pay UAW members
$6,600 in profit-sharing

Breana Noble,
The Detroit News
Feb 5, 2020

Dearborn — Ford Motor Co. will pay 53,000 eligible hourly United Auto Workers employees profit-sharing checks of up to $6,600 this year.

The Dearborn automaker, which made $47 million last year, announced profit-sharing as part of its full-year 2019 earnings report Tuesday. Its pre-tax profits in North America — the figure profit-sharing is based on — totaled $6.612 billion.

Workers should see the payments in March, according to the company.

Last year, Ford paid about $7,600 to eligible hourly full-time UAW members on a $7.6 billion North American profit.

“UAW Ford members negotiate profit-sharing in their contracts so that they can share in the success of the company and its profits," Gerald Kariem, UAW vice president and Ford Department director, said in a statement. "Today’s announcement is a testament to UAW Ford members' hard work and the great products that they make.”

General Motors Co. and Fiat Chrysler Automobiles NV will announce their profit-sharing amounts when they report full-year earnings on Wednesday and Thursday respectively.

 

Trump signs new USMCA
trade deal, clearing way
for Commons debate

The Canadian Press
Feb 3, 2020

WASHINGTON — President Donald Trump finally signed NAFTA's death warrant Wednesday, his distinctive Sharpie scrawl on the American road map for the U.S.-Mexico-Canada Agreement heralding the start of a new era of managed continental trade and what could be an acrimonious debate in the House of Commons.

Trump signed the implementation bill — approved by Congress after extensive negotiations with Democrats in the House of Representatives and the U.S. Trade Representative's office — during an hour-long ceremony on the South Lawn of the White House that featured Vice-President Mike Pence, trade ambassador Robert Lighthizer and a long roster of Republican lawmakers.

"This is something we really put our heart into — it's probably the number 1 reason I decided to lead this crazy life I'm leading right now, as opposed to that beautiful, simple life of luxury that I led before this happened," Trump said to laughter, standing before a working-class backdrop of American manufacturing and oilpatch workers in coveralls and hard hats.

"I love doing it, and the reason I love doing it is that nobody in a period of three years has done so much, as all of us have — nobody."

The signing leaves Canada as the only member of the trilateral deal still to ratify the agreement, a process that began almost on cue Wednesday as MPs voted on a motion to begin the process of debating a Canadian version of the bill in the Commons.

The motion carried, but without the support of the Bloc Quebecois.

"Various industries, various groups have questions and concerns," Prime Minister Justin Trudeau said before his weekly Liberal caucus meeting.

"There will be a certain amount of pressure on Canada from both Mexico and the United States, who want to see this move forward, but we have questions and we have a process for ratification. I just look forward to getting through it responsibly and rapidly, because it's so important to Canadians."

The 13 months of negotiations, which began in 2017, put pressure on Canada's relationship with its largest trading partner. Trump, an outspoken critic of NAFTA, mentioned Trudeau only once Wednesday, acknowledging his "close partnership and co-operation" while in the same breath hailing an "incredible friendship and relationship" with Mexican President Andres Manuel Lopez Obrador.

"Canada's opening up," he said, promising substantially higher exports of U.S. poultry, eggs and wheat to Canada.

"Where is the Canadian folks, where are they?" he asked, peering in the crowd. "You guys did a good job on us before this deal, I'll tell you. Canada was very tough. But they're good. They're our friends, so we appreciate it."

The USMCA — christened in Canada as CUSMA but known more widely simply as "the new NAFTA" — is expected to feature prominently in Trump's re-election efforts, which is why House Democrats were also clamouring to take a share of credit.

"We rescued the final NAFTA 2.0," said Oregon Rep. Earl Blumenhauer, touting Democrat efforts to negotiate more stringent labour and environmental enforcement mechanisms. "We now have an agreement that will be worth the paper it is printed on."

USMCA "can't undo the damage" wrought by the 26-year-old NAFTA, but the changes negotiated by Democrats earned her support, added Rep. Debbie Dingell, who blames free trade for hollowing out the auto sector in her home state of Michigan.

"Our work is just beginning to strengthen U.S. manufacturing ... it sets a floor from which we will fight."

Even once Canada passes the needed legislation, it will still take several months before the new rules are fully in place. All three parties need the time to develop so-called "uniform regulations" used to interpret the terms of the deal.

Once that happens, a welcome measure of predictability and confidence will return to the continental trade corridor, said Kirsten Hillman, Canada's acting ambassador to the U.S., who was on hand for Wednesday's ceremony.

"Trade agreements as public policy tools do two things: they open markets and liberalize trade between parties so as to incentivize mutual benefits — supply chains, investment, business partnerships — and they create predictable rules that Canadians can count on in deciding to make business choices," Hillman said in an interview.

"One of the challenges over the past couple of years has been that this instrument that underlines and underpins a $2-billion-a-day trading relationship we have with the United States has been under negotiation, creating a certain sense of instability within our trading community."

The Democrat changes commit Mexico to a suite of changes that include protections that would allow workers to organize, form and join the union of their choice, among other measures.

"In my view, the labour reforms being undertaken in Mexico are the largest labour reforms ever undertaken in North America, including the New Deal in the U.S.," said Dan Ujczo, an international trade lawyer and U.S.-Canada expert with Dickinson Wright in Columbus, Ohio.

"It is a huge undertaking, and so every Canadian and U.S. company that has operations in Mexico had better get ready for a significant adjustment period on labour and employment issues in Mexico."

Hillman said a Canadian delegation, part of a working group to support the implementation of those reforms, is in Mexico this week to determine precisely how Canada can help.

"I'm not saying it's going to be easy, but I think these obligations are very much something that are very consistent with the policies and objectives of the Mexican government."

 

Celebration of Life
for Frank Marek



Sunday February 16, 2020

1 pm to 4 pm


Memoriam Funeral Services.

633419 Hwy 10,
Unit B1 
Mono, ON
L9W 6Z1
Tel: 1-519-415-4687

Mono Plaza, Hwy 10 - 2 miles north of Orangeville.
It is on the northernmost end of the plaza around the back.

https://www.imfunerals.com/obituary/Frank-Marek

https://www.imfunerals.com/directions

Frank Marek fighting for Retiree Pension Cost of Living - Video
Recorded at the ratification meeting held Sept 23, 2012


FRANK MAREK
PASSES AWAY

Retired October 1, 2003
38.3 Years of Service

It is with great sadness that we inform you of the passing of a great
friend and Union activist Frank Marek. Frank passed away Feb 1, 2020.

Frank was Local 584's Chairperson from 1967 to 1998. For 25 years
and 9 sets of negotiations he was instrumental in bringing
most of the benefits, wages and pensions that we enjoy today.

Frank has always been a fighter for worker rights and a strong voice for retirees especially in our fight to regain our pension cost of living.
Frank also served as Vice-Chair of local 584 Retirees
executive for many years.

Frank will not only be remembered as a fighter but also for being a very generous man with a great sense of humour, a kind person and a real gentleman. Franks biggest passion was fishing.  

He will be sadly missed by all who had the pleasure and
honour to know him.

Our sincerest condolences go out to his entire family
for their loss of a true icon.

*************************************

Celebration of Life
for Frank Marek


Sunday February 16, 2020

1 pm to 4 pm


Memoriam Funeral Services.

633419 Hwy 10,
Unit B1 
Mono, ON
L9W 6Z1
Tel: 1-519-415-4687

Mono Plaza, Hwy 10 - 2 miles north of Orangeville.
It is on the northernmost end of the plaza around the back.

https://www.imfunerals.com/obituary/Frank-Marek

https://www.imfunerals.com/directions

Obituary

Marek, Frank

May 14, 1942 ~ February 1, 2020 (age 77)

Departed to ride The Great Fishing Boat in the Sky on Saturday, Feb 1, 2020 at the ripe old age of 77 after complications due to heart surgery. Joining his beloved wife Eileen, who has been calling him since her earthly departure in 2014 to finally get home and help her redecorate their heavenly living room and dining room.

Eternal fishing guide to his sons Paul and Kevin (Dana), and beloved tall-tale storyteller to his grandchildren Vann and Ty. Frank also joins his dearly missed sister Vilma (Rick) and beloved brother Stevie (Diane) at The Great Dinner Table with their angelic parents Steve and Rita. Leaving some pickerel and lake trout for his much-loved brothers Jimmy (Joan), Joseph (Elaine), David (Irene) and Johnny (Linda) to catch. Frank's tales were also deeply cherished by sister/brother in-laws Janet (Mark), Lorraine and Dennis, as well as being a dearly-loved patriarchal uncle by over a dozen nieces and nephews, as well as many children of friends that called him "Uncle Frank".

Frank very much enjoyed letting his closest friends Chris, Peter, Pete and Dan actually catch the fish, while he'd fib about it to his dearest friends George & Ann and Donna who've been awaiting his heavenly arrival with wife Eileen. While not fishing, Frank touched many lives in the labour movement as the longest-standing Local Union Chairman in CAW (UNIFOR) history, at Ford's Brampton Local 584.

Frank will be fondly remembered by his many union brothers and sisters for being instrumental in bringing vacation time to union workers across Canada. A private cremation service was held, but Paul and Kevin would like to extend a warm invite to all family, friends and neighbours whom Frank's loving and humorous energy touched, to join them in sharing great food, beer & wine, stories and lots of laughs in loving memory of this wonderful fisherman (or so he thought).

Please bring your favourite funny story to share - help us put the "fun" in funeral. The memorial party will be from 1pm to 4pm on Sunday February 16th, at the In Memoriam Life Celebration Center, Mono Plaza, 633419 Hwy 10, Unit B1, Mono. In lieu of flowers, please make donations to Headwaters Hospital Palliative Care Unit.

Online condolences and donations may be made at www.imfunerals.com

In Memoriam Funeral Services Inc. has been given the honour to serve the Marek Family.

To send flowers to Frank's family, please visit our floral section.

 

 


 

 

GM wants to see documents UAW
gave to federal government
in corruption probe

Breana Noble and Robert Snell,
The Detroit News
Feb 1, 2020

General Motors Co. is demanding to see the 1.9 million documents the United Auto Workers has supplied to federal investigators amid a years-long corruption probe, along with internal communications involving collective bargaining, as the Detroit automaker pursues a racketeering case against Fiat Chrysler Automobiles NV.

The details come as the UAW on Thursday joined Fiat Chrysler in requesting a judge delay a subpoena demanding a "staggering" amount of documents concerning GM's allegations that a bribery conspiracy between the Italian American automaker and UAW officials corrupted three rounds of labor bargaining. GM says Fiat Chrysler attempted to harm the Detroit automaker so it could be taken over by Fiat Chrysler.

Fiat Chrysler has denied the claims and on Friday called for the suit to be dismissed.

Abigail Carter, the UAW's attorney, wrote that complying with the subpoena while motions to dismiss are pending would pose an undue burden for the union. "Compliance with the Subpoena will consume a substantial amount of UAW resources," she wrote, "while, at the same time, exposing elements of its confidential bargaining strategy to General Motors (and, potentially, its competitors)."

GM provided a list of 36 demands to the union, which is not a party in the case. In addition to the documents the UAW has supplied to the U.S. attorney, and documents and communications concerning negotiations with Fiat Chrysler and GM in 2009, 2011 and 2015, the subpoena requests all communications between the UAW and Fiat Chrysler's late CEO Sergio Marchionne and the three executives who have been convicted in the federal probe.

It also requested all documents and communications concerning any meetings between UAW leadership and GM CEO Mary Barra and former GM Chief Financial Officer Chuck Stevens in 2015. Marchionne made advances that year to merge Fiat Chrysler with GM.

"The UAW is one of several non-parties to the litigation that possess directly relevant evidence about FCA’s conspiracy to corrupt the collective bargaining process," GM spokesman Jim Cain said in a statement. "Given that the conspiracy covered over a decade, we believe it is imperative to begin the discovery process now in order to obtain evidence before it is lost or destroyed. We disagree with UAW’s motion on multiple grounds, and will respond in Court."

Most of the UAW's motion is spent defending itself against GM's claims that evidence could be in jeopardy following a July 2019 fire at the union's Solidarity House headquarters.

"The fire has had a negligible effect on the UAW's ability to fully respond and to continue producing documents in the ongoing government investigation," wrote Jeffrey Sodko, the UAW's deputy general counsel.

Pat McNulty, the Detroit Fire Department chief in charge of arson, on Friday said the department is still waiting for lab results to come back. Investigators sent computer batteries to a lab in Connecticut for a CT scan shortly after the fire, but haven’t heard back. The official cause remains undetermined and is still under investigation.

In October, fire officials had determined that the blaze started in a storage area with unused electronics and was not suspicious. The federal government has scrutinized the fire, as well, subpoenaing the union for security camera footage and visitor logs from that day, The Detroit News reported in December.

Sodko said the union in June 2018 implemented a "litigation hold," which instructed employees not to delete permanently any emails from the server, to preserve all hard-copy documents and not to modify or overwrite existing electronic documents. Email and electronic files have been stored in cloud-based servers for more than two years and are maintained off-site by a third-party vendor. Hard-copy documents, however, are stored at Solidarity House along with other satellite locations.

Approximately 13,000 boxes of paper records were transported off-site for cleaning following the fire, Sodko wrote. Roughly 80% have returned to the UAW as cleaning continues.

"If anything, UAW's ongoing cooperation with the U.S. Attorney's investigation, and its efforts to preserve documents following the fire that occurred on July 13, 2019, stand as strong evidence that the UAW will cooperate fully with its discovery obligations, if and when the case proceeds," Carter wrote.

U.S. Attorney Matthew Schneider in November said he did not think reform efforts in the UAW demonstrated that the union was cooperating with the U.S. Justice Department.

GM also has served Fiat Chrysler with 55 document and four interrogation requests covering the interested bargaining agreement, communications between Fiat Chrysler's chairman and various UAW employees, communications concerning a potential merger with GM and communications between the Italian American automaker and French automaker Groupe PSA, with which FCA is looking to merge now.

In addition to the UAW, GM has sent subpoenas to eight people and organizations that are not parties in the case, including the UAW retirees' health care trust, former President Dennis Williams and former Vice President Norwood Jewell.

Jewell last week reported to a minimum-security prison to serve his 15-month sentence. He is one of eight UAW officials along with three Fiat Chrysler executives who have been convicted in the federal probe. Thirteen in total have been charged and Williams and his predecessor, former UAW President Gary Jones, have been implicated in the corruption.

 

Unifor to pay $36,000 of
Nemak's legal costs associated
with wildcat strike

Automotive News
Jan 31, 2020

Unifor must pay part of Nemak’s legal costs the auto supplier incurred during a court battle over the union’s blockade and wildcat strike at a factory in Windsor, Ont., last year.

A judge has ordered the union pay Nemak $36,000 in legal costs and other expenses. The company was seeking more than $59,000, but a judge ruled the smaller amount was fair and just.

About 200 workers walked off the job on Labour Day in 2018, saying that Nemak’s decision to close the plant in early 2020 — ahead of the end of the collective bargaining agreement — breached the terms of that contract.

Union members staged a blockade at the plant for two weeks. The Ontario Labour Relations Board ordered the blockade to end, a judge ruled it illegal yet Unifor stood its ground and the two sides ended up in court, where Unifor was found in contempt of court and fined.

Unifor, the Local 200 chapter and four local union members were fined a total of $89,000. Unifor paid $75,000. The judge deemed that fair enough.

Nemak employees build engine blocks for a Cadillac vehicle assembled in China, the I-6 engine blocks for the Chevrolet Silverado assembled in Flint, Mich., and the Corvette engine block and bedplate.

Nemak announced the pending closure in July 2019. It said the decision came on the back of “the expected withdrawal from an export program by a client in China,” which would lead the plant to use less than 10 per cent of its installed capacity by 2020. Nemak previously said the Windsor plant is now too small and too inefficient to remain open as the company expands elsewhere in the world. The company says it recently purchased larger businesses outside of Canada that came with existing plants and capacity.

As a result of under-utilization in Windsor, that work is being moved to Mexico.

Arbitrator Norm Jesin concluded the union “has not established that the Employer violated the collective agreement, and that the grievance of Unifor regarding the closure of the Nemak Windsor Aluminum Plant must be dismissed.”

The binding arbitration came after Unifor staged a 13-day blockade at the Windsor plant, defied an Ontario Labour Relations Board (OLRB) order to remove the blockade and ignored Superior Court Justice Terry Patterson’s ruling to end the standoff.

The union is appealing the arbitration. In what might be Unifor’s last chance to make its case, a judicial review is set for Friday, Feb. 7 in Toronto.

 

Lincoln's first-ever electric vehicle
will be built with Rivian

Ian Thibodeau,
The Detroit News
Jan 30, 2020

Ford Motor Co. plans to partner with Plymouth-based electric-vehicle startup Rivian Automotive LLC to develop the first-ever fully electric Lincoln.

The SUV would be the product of a $500 million Ford investment in Rivian that was announced less than a year ago. Ford is expected to partner with Rivian on a Ford-branded product, too. The companies have not given a timeline for any products born out of the partnership, but Rivian expects to have its plant in Normal, Illinois running by the end of 2020.

"Working with Rivian marks a pivotal point for Lincoln as we move toward a future that includes fully electric vehicles," Joy Falotico, Lincoln president, said in a statement. "This vehicle will take Quiet Flight to a new place – zero emissions, effortless performance and connected and intuitive technology. It’s going to be stunning."

Lincoln in recent years has pivoted to an SUV-heavy lineup. The brand saw sales increase more than 8% in 2019 despite a continued transition away from sedans. Of the seven vehicles in Lincoln's lineup, five are either an SUV or a crossover. The automaker plans to end production of the MKZ sedan later this year.

The Lincoln-Rivian vehicle would use Rivian's "skateboard" architecture as the base for the SUV. It would carry Lincoln badging. An all-electric SUV is vital to Lincoln as the brand continues a push to be a flagship brand in the increasingly competitive Chinese market.

The Chinese government backs electric vehicles. Lincoln has found a market hungry for plush SUVs there, too. The automaker currently offers hybrid variants of two of its SUV models.

“Our vehicle development partnership with Ford is an exciting opportunity to pair our technology with Lincoln’s vision for innovation and refinement," RJ Scaringe, Rivian CEO, said in a statement.

Meantime, Rivian closed 2019 with a $1.3 billion investment from a Baltimore investment firm. The company — which has yet to build or sell a vehicle — received  nearly $3 billion in investments last year. Amazon.com, Inc. invested $700 million in Rivian earlier this year. Ford later invested $500 million. In September, Cox Automotive said it would invest $350 million.

Amazon and Rivian in September said Rivian would build 100,000 electric vans for the e-commerce giant. The first batch of vans is expected to hit U.S. roadways by 2021, with 10,000 on the road by late 2022. All 100,000 are to be operating in Amazon's fleet by 2030.

Those vans would be built alongside Rivian's planned R1T pickup and R1S SUV. The company says its R1T pickup and R1S SUV will have a 400-mile-plus range, and offer off-road capability. Its base $69,000 model has "frunk" storage behind the grille and a 105-kWh battery. An upscale, $100,000-plus model would increase that to 180 kWh.

Rivian officials have said the vehicles it builds are aimed at off-road and adventure enthusiasts.

Experts have said Rivian needs partnerships and orders from companies like Amazon to fill capacity at the old Mitsubishi plant it's converting in Illinois.

 

Ford reaches new settlement over
Focus, Fiesta transmissions

Michael Martinez
Automotive News
Jan 28, 2020

DETROIT — Ford Motor Co. has agreed to an updated settlement affecting nearly 2 million customers in a years-old class-action lawsuit over faulty Focus and Fiesta transmissions.

The automaker has agreed to a minimum $30 million in cash reimbursement and has simplified the compensation and vehicle-buyback process, according to a filing with the U.S. District Court for the Central District of California. Ford has spent more than $47 million buying back vehicles from thousands of customers.

The amount each customer would receive depends on how many claims are submitted. The new deal includes $20 payments to customers who say a dealership refused to repair their car's transmission when they reported issues with it.

The automaker in 2017 initially proposed a settlement that, in part, would have awarded $35 million in cash reimbursement, but it was challenged on the grounds that not enough owners would be compensated.

The proposed settlement is up for final approval Feb. 28 by a district judge.

"Ford believes the settlement is fair and reasonable, and we anticipate it will be approved by the court following the hearing next month," Ford spokesman T.R. Reid said in a statement.

The Detroit Free Press first reported the revised settlement.

The DPS6 transmission used in the Focus and Fiesta has haunted Ford for years, with customers complaining the gearboxes would shudder, jerk and hesitate. No deaths or injuries have been attributed to the problem, and the National Highway Traffic Safety Administration has said it found "no evidence of an unreasonable risk to safety," after reviewing complaints.

Ford in August extended the warranty on certain 2014-16 model year Focus and Fiesta cars with dual-clutch transmissions by two years and 40,000 miles. The company also said it would offer a software update for customers who continue to have issues with the problematic gearboxes.

In 2012, the Los Angeles-based law firm Capstone Partners APC filed the first of multiple lawsuits on behalf of owners who claimed their vehicles suffered repeated breakdowns.

 

REGINA CO-OP REFINERY
PICKET LINE
Week of January 20, 2020

alt_text


Lisa Gergenti, Debbie Kent and Sandy Knight
brave the cold while picketing in Regina


Local 584 President Sandy Knight with Local 707 Retirees Chair Arnie De Vaan

 

The original Bullitt Mustang --
The incredible story behind
the car that few people know

Greg Laurie | Fox News
Jan 27, 2020

In case you haven’t heard, the original Bullitt Mustang, from the film “Bullitt,” just sold for a staggering $3.74 million.

An anonymous bidder walked away with a piece of Hollywood history on wheels.

The car’s name comes from the classic 1968 film “Bullitt.” In the movie, Det. Frank Bullitt, played by the iconic actor Steve McQueen, drove the Mustang as he solves a murder mystery.

Described as a “Mona Lisa” car because it had long been thought of as lost to history, the Bullitt had sat hidden in a garage for four decades. It’s recent rediscovery made headlines and thrilled car enthusiasts.

McKeel Hagerty, CEO of the largest classic car insurer in the world and founder of the Historic Vehicle Association, said, “The Bullitt Mustang has it all – a great chase scene, the McQueen connection, and a fantastic backstory. The fact that it had disappeared for decades, only to reemerge as an unrestored, movie-car time capsule is something we’ll likely never see again in our lifetimes.”

Therein lies what to me is the real appeal of the car: the McQueen connection.

The movie icon chose the car himself for the film, figuring that is what a detective like Frank Bullitt with his pay-grade would have driven. What amazes audiences to this day is the Bullitt chase scene, which still is regarded by many as the greatest car chase scene in cinematic history. Steve McQueen did some of the driving himself, which makes it all the more impressive.

A few years after the film was completed, McQueen tried to purchase the Mustang but without luck.

I have a replica of the Bullitt car, a 1968 Highland green Ford Mustang 390 GT. I pull it out of the garage every now and then. Younger people tend to ignore it, but those who watched “Bullitt” in theaters get very excited when they see my car.

Believe it or not, I am often asked, “Is that the Bullitt car from the movie?”

The original car that just sold has the patina that comes with age, and if we are honest, there isn’t much that is extraordinary about it. It’s basically a stock 1967 Ford Mustang with some modifications which include aftermarket wheels and a blacked out grille minus the Mustang Pony emblem.

What makes the car appealing is who drove it.

Steve McQueen still captures the imagination of the public, and you still see his image pop up on ads for TAG HEUER watches and Persol sunglasses.

Coming from a broken family — his father abandoned him, and his mother was an alcoholic — Steve spent time bouncing from his mom, to his uncle, his maternal grandparents and ultimately to a reform school.

He served a three-year stint in the Marines and decided to try his hand at acting. As they say, the rest is history.

After the huge success of his TV show, “Wanted: Dead or Alive,” McQueen starred in the classic Western, “The Magnificent Seven.” It was followed by his breakout role in “The Great Escape” and, of course, the legendary “Bullitt,” which established him as the #1 actor in the world.

The No. 1 actor in the world became a follower of Jesus Christ.

Steve McQueen was the whole package: global superstar, motorcycle rider, fashion icon, race car driver and more. But there was a hole in his life left by an absent father who Steve tried to find in his adult life. Steve descended into heavy drinking, drugs and womanizing on an epic scale.

Fed up with the misery of it all, he eventually left Hollywood and moved to Santa Paula, California, an agricultural community where he purchased a hanger for his ever-growing collection of classic cars and motorcycles. Though he was offered many of the prime roles of hugely successful movies of that era – “Close Encounters of the Third Kind,” “Superman” and “Apocalypse Now” to name a few – Steve simply lost interest. He charged $50,000 to even read a script.

One thing Steve always wanted to do was to learn to fly.

He purchased a PT Stearman biplane for $35,000 but needed lessons. The only man who was qualified to teach him was a no-nonsense former test and acrobatic pilot named Sammy Mason, who was also a civilian trainer during World War II. Mason, a committed Christian, lived his faith in a way that intrigued Steve. They had many conversations during their flying lessons, and Steve actually asked Mason if he could attend church with him. Their relationship resulted in Steve becoming a Christian himself.

I became so fascinated by this story that I wrote a book with McQueen biographer Marshall Terrill, titled, “Steve McQueen: The Salvation of An American Icon.” It was followed by a documentary film, “Steve McQueen: American Icon.” The film includes exclusive interviews with those that knew Steve best, including his widow, Barbara Minty McQueen, who personally told me the story of Steve’s conversion. The film also contains never heard before audio recordings of McQueen talking about his faith on his deathbed.

What Steve was looking for was not to be found on the soundstage of a Hollywood movie but rather on the balcony of a church in Ventura, California.

Steve was eager to learn the Bible and was there every Sunday with family and friends in tow. He even asked the pastor if he could serve as an usher in church.

Tragically, McQueen found out he had cancer about six months after his conversion and eventually died in a clinic in Juarez, Mexico after doctors in the U.S. gave him no hope for survival. But Steve McQueen died with faith in God and a Bible given to him by evangelist Billy Graham tightly clutched in his hand.

The lost boy finally found the father he was looking for — in God.

Toward the end of his life, Steve McQueen said, “My only regret in life is that I was not able to tell people about what Christ did for me.”

I’m glad that almost 40 years after his death — around the same time his Bullitt sat hidden in a garage — Steve McQueen was finally able to tell people what Christ did for him.

 

Ford proposes $30M-plus
settlement in transmission suit

Sarah Rahal,
The Detroit News
Jan. 26, 2020

Detroit — Ford Motor Co. has proposed a $30 million settlement in a class-action lawsuit regarding faulty transmissions Focus and Fiesta vehicles it no longer sells in the U.S.

Multiple lawsuits, including a class-action suit that began in April 2017, have been filed on behalf of car owners unhappy with the transmissions, known internally as the DPS6.

Dual-clutch gearboxes like the DPS6 typically shift rougher than other automatic gearboxes to which North American drivers are accustomed. The Ford transmissions also needed frequent repairs for quality issues the developed over time with the clutch and clutch seals, among other things.

Ford spokesman T.R. Reid said the company believes the settlement is “fair and reasonable” and expects it to be approved at the hearing on Feb. 28.

"It's an amendment to a 2017 lawsuit that has been proposed to the court and we anticipate it'll be approved at the hearing next month," he said. "There has been a variety of back and forth since then and we believe the amount is fair."

The lawsuit represents nearly 2 million people who own or formerly owned a 2011-2016 Ford Fiesta or 2012-2016 Ford Focus. In addition to the $30 million in cash reimbursement, there will be an easier process for people to get compensated and a buyback program for defective vehicles, according to the Associated Press.

The National Highway Traffic Safety Administration has found no evidence that the transmissions are a safety risk. Lawsuits allege Ford knew the transmissions were faulty before the vehicles went to market, but no judge or jury has ruled that to be true.

Dual-clutch gearboxes like the DPS6 typically shift rougher than other automatic gearboxes to which North American drivers are accustomed. The Ford transmissions also needed frequent repairs for quality issues the developed over time with the clutch and clutch seals, among other things.

In December, Ford was ordered to pay $23,000 to the owners of a 2014 Ford Focus for violating consumer protection laws. Plaintiffs, Salvador and Yvonne Quintero, told a federal court of the Central District of California that their Focus, which was leased through 2017, had problems with the dual-clutch PowerShift Transmission that "caused them to feel unsafe." It was the same transmission Ford extended warranties in August on 560,000 vehicles to cover.

Judge Andre Birotte Jr. of the U.S. District Court for the Central District of California, threw out the fraud claims against Ford in the Quintero case.

The automaker has previously pushed back against allegations in lawsuits that it knew the transmissions were faulty, or that they ever made those Ford vehicles dangerous to drive. Ford has said repeatedly that the transmission works, and the vehicles are safe to drive. The transmission hasn't been tied to any injury or death. Owners mostly report the transmission "slipping" or "stuttering."

The automaker settled a $35 million class-action lawsuit in the U.S. that would have it pay current or former owners or lessees of a 2011-16 Ford Fiesta or 2012-16 Ford Focus vehicles up to $2,325 to cover repair costs or up to $4,650 for the purchase of a new vehicle. The automaker paid out millions in Thailand and Australia for consumer issues tied to the transmission.

In February 2018, an appeal filed in U.S. Court of Appeals for the 9th Circuit argued that that the $35 million settlement was too lenient, and called for the settlement to be vacated.

 

Fiat Chrysler says GM's
racketeering suit fatally flawed

Breana Noble and Robert Snell,
The Detroit News
Jan 25, 2020

Fiat Chrysler Automobiles NV asked a judge Friday to dismiss General Motors Co.'s multibillion-dollar racketeering lawsuit, saying its claims express "fatal flaws" and make "hyperbolic assertions."

In an unprecedented move in November, GM sued Fiat Chrysler under federal laws typically used to prosecute organized crime. GM alleged the Italian American automaker's late former CEO, Sergio Marchionne, orchestrated a multimillion-dollar conspiracy that corrupted three rounds of bargaining with the United Auto Workers to harm GM in an attempt to engineer a takeover. GM says the scheme cost it "billions."

In court filings, Fiat Chrysler argues General Motors' allegations do not meet the requirements of the Racketeer Influenced and Corrupt Organizations Act as it was not directly harmed by the alleged wrongdoing. FCA also denies that it exhibited the control over the union that GM says it did and that its claims make "no sense as a matter of basic economics." The UAW chose Fiat Chrysler as the first company with which it would negotiate contracts in 2015, forcing GM to follow its lead.

"It is ridiculous for GM to contend that FCA made large concessions to the UAW that harmed FCA itself without any corresponding benefit," FCA US LLC attorney Steven Holley wrote. "Even if FCA assumed those concessions would also harm GM, nothing in the Complaint explains why increased labor costs would make GM more amenable to merging with FCA, or why FCA would want to saddle both FCA and GM with unfavorable long term (contracts) if it hoped to run the merged company."

The racketeering battle comes amid the continuing federal investigation into UAW corruption that has charged 13 union and FCA officials, convicted 11, implicated Marchionne and two former UAW presidents. Payoffs from Fiat Chrysler executives to UAW officials, according to federal prosecutors, began within days of Chrysler Group LLC emerging in 2009 from bankruptcy with $12.5 billion in taxpayer money under the control of a foreign company, Italy's Fiat SpA.

The findings in a years-long corruption probe into the union have tarnished the company's revival and the reputation of Marchionne, who has been held as a giant in the industry, as well as undermined the once-clean union's credibility and exposed it to federal takeover. GM's success in the feud would be another injury for FCA, though experts say the allegations will be difficult to prove.

"Today’s motion is no surprise," GM spokesman Jim Cain said in a statement. "It is a predictable tactic taken by the defendants, and we look forward to responding in court. We are confident in the legal and factual underpinnings of our case, which have already been documented in part through the guilty pleas and admissions of FCA executives made in connection with the government's ongoing criminal investigation."

Fiat Chrysler wants a judge to postpone further investigation into GM's claims until its request for dismissal is reviewed, saying the request for evidence is "massive" and expensive. And the federal investigation into union remains open, it notes, arguing "there is no reason to take the risk that discovery in this case will interfere with an ongoing criminal investigation."

Fiat Chrysler denies it had control of the UAW to further its intentions to merge with General Motors. And even if it had, based on GM’s argument, the direct victims would be FCA hourly workers who were paid, on average, lower hourly wages, and the U.S. government, which was defrauded by former UAW officials concealing illegal benefits and omitting them from tax forms, according to the filing Friday.

"The Racketeer Influenced and Corrupt Organizations Act authorizes civil actions only by '[t]he direct victim of th[e] [alleged]conduct' — meaning that persons who claim to have incurred harm 'beyond the first step' in the causal chain cannot assert a RICO claim," Holley wrote. "... At best, GM was third in line."

GM’s alleged damages are speculative and would be difficult to quantify, FCA’s lawyer wrote: “GM cannot simply point to the ‘labor cost disparity’ between FCA and GM, and then contend that the entire difference represents damages to GM."

Additionally, FCA takes issue with GM's timing. It argues that GM waited too long beyond the four-year statute of limitations, and that the Detroit automaker would have known its labor costs were greater than Fiat Chrysler's before Nov. 20, 2015 — the date when UAW members employed by GM ratified their contract with the automaker. Meanwhile, GM filed the lawsuit weeks after Fiat Chrysler said it intended to merge with French automaker Groupe PSA.

“Even if one could believe that GM’s intention was not to disrupt that transaction, its strategic delay is inexcusable,” Holley wrote.

GM says Marchionne schemed with UAW officials in an attempt to take over and merge with the Detroit automaker. The lawsuit portrays Williams, president of the UAW until last year and a longtime friend of Marchionne, as a willing participant in the conspiracy.

FCA's attempted takeover dates to 2009, GM says, when Fiat acquired the diminished Chrysler Group at the behest of the Obama administration's auto task force during the Great Recession. The attempts intensified, according to the lawsuit, in fall 2014 when Fiat and Chrysler merged into FCA, leaving Marchionne in control of the combined entity.

GM alleges FCA "corrupted the implementation" of UAW collective bargaining agreements in 2009 while exiting their federally induced bankruptcy. GM also says FCA under Marchionne "corrupted the negotiation, implementation, and administration of the 2011 and 2015 agreements."

The alleged end goal: to inflict high, unanticipated labor costs on GM and force the company to merge. Before the UAW selected FCA to lead 2015 negotiations, the union presented demands that cost under $1 billion on the 2015 contract. But it ultimately cost GM more than double that, according to the lawsuit.

Federal prosecutors have made reference to Marchionne's involvement in the bribery scheme. In August 2018, The Detroit News identified him as "FCA-1" in government filings. Sources revealed to The News that Marchionne gave an expensive Italian watch to UAW Vice President General Holiefield and failed to disclose the gift while being questioned by federal investigators. Marchionne was not charged before he died July 25, 2018, in a Zurich hospital at the age of 66.

GM has not said how much it is seeking in damages, which could be tripled under the Racketeer Influenced and Corrupt Organizations Act. Some analysts have estimated if GM is successful, payouts could be as high as $15 billion.

The threat has not had an effect on the Fiat Chrysler's intentions to combine with PSA. PSA CEO Carlos Tavares, who would lead the combined entity, has said he supports FCA's statement that the claims are meritless.

 

NDP caucus will discuss whether
to support new NAFTA

The Canadian Press
Jan 23, 2020

OTTAWA — New Democrat MPs will gather in Ottawa today for a two-day planning session to prepare the re-opening of the House of Commons next week.

Party whip Rachel Blaney says the party to discuss how to operate within the current minority Parliament.

Despite some interest in collaboration, NDP Leader Jagmeet Singh is signalling the Trudeau government won't get an easy pass from his party on Canada's new free-trade pact with the U.S. and Mexico.

Prime Minister Justin Trudeau said Tuesday that steps to ratify the new NAFTA, including legislation, will be among the first orders of business when Parliament resumes and that passing them will be a priority.

But Singh says the deal was negotiated in a "behind-closed-doors, take-it-or-leave-it way" and that his caucus will discuss whether to support it.

"How can Canadians trust the Liberals to get this right when they spent months saying they had the perfect deal and mocked us for saying it needed to be changed? Now they're trying to take credit for changes they said were impossible," he said in a statement Tuesday.

"Canadian workers shouldn't have to rely on American politicians to protect Canadian jobs. They can count on us to look carefully at this agreement. We're going to discuss it in caucus and in the debate in the House and see if it actually delivers for Canadians."

The NDP is also aiming to get the Liberals to deliver NDP priorities like pharmacare and publicly funded dental care.

"What I'm looking for is increased collaboration, more negotiating between the parties on key issues that matter," Blaney said.

"I think a lot of Canadians are going to be looking to see what the Liberals are doing in their government and who they're playing nicely with. There are three opposition parties at play ... but at the end of the day when you look at some of the key issues that many Canadians brought forward about affordability, about the climate — the NDP is a great place for them to work with."

Blaney says the caucus meetings will also include discussions on the downing of Ukraine Internatonal Airlines Flight PS752 and how MPs can support families of the 57 Canadian victims to get the transparency and answers they are looking for.

Singh delivers opening remarks this morning before the caucus hunkers down for its internal conversations.

 

Unifor President Jerry Dias
Arrested Amid Union Protest
Against Regina Oil Refinery

Premila D'Sa
HuffPost
Jan 22, 2020

REGINA — A union representing more than 700 workers in a contract dispute at the Co-op oil refinery tried to shut down the Regina facility Monday as police made arrests.

Unifor posted a video on Twitter late in the afternoon showing officers taking the union’s national president, Jerry Dias, and western regional director, Gavin McGarrigle, into custody.

Dias said earlier in the day that managers and replacement workers were being allowed to leave the refinery, but the union was going to stop fuel from being transported out of the complex.

“We’re not allowing any trucks in,” Dias said. “We’re going to shut (the refinery) down until they come back to the bargaining table.”

Workers on the picket line successfully blocked a bus filled with replacement staff and managers from entering the refinery, Dias said, and allowed six trucks to leave.

“Those six trucks are never going back in until this dispute is settled,” he said.

Co-op said the union is violating a court injunction if it blocks entrance points and called the move a bullying tactic.

It said it was “exploring all legal options.”

Throughout the day, police asked drivers to avoid the area. They said it’s up to both sides to avoid an escalation.

“Police involvement should be a last resort,” read a statement posted to the police service’s Twitter account.

“Unifor members have a right to picket; Co-op has a right to conduct business.”

Last month, a judge ruled the union could stop vehicles trying to get in and out of the refinery for a maximum of 10 minutes, so as to provide information on the dispute or until a driver declines the information.

Dias said the blockades don’t violate the court order.

“The court injunction was against Unifor Local 594 ... this is being done by the national union and the bodies that we have parachuted into the province.”

Unifor said hundreds of members from across Canada have come to the site to support the refinery workers.

Workers at the refinery were locked out in early December after the union voted in favour of a strike and issued a notice. The union has launched a national boycott of the facility’s owner, Federated Co-operatives Ltd., and picketed at Co-op retailers in Western Canada.

One of the main issues in the labour dispute is pensions.

The workers’ last contract expired in February. The union declared an impasse in contract negotiations in September, which led to the appointment of a mediator.

 

USMCA ratification a top priority
for MPs when Parliament returns

The Canadian Press
Jan 21, 2020

WINNIPEG — Ratifying the new North American Free trade deal will be a top priority for the Trudeau government when Parliament resumes next week.

When MPs return to work it will mark the first extended sitting of Parliament since the Oct. 21 election reduced Justin Trudeau's Liberals to a minority.

The prime minister may flesh out the agenda more today when he wraps up a three-day cabinet retreat aimed at setting the government's priorities and figuring out how to achieve them when the Liberals no longer hold a majority of seats in the House of Commons.

Every measure will require support from at least one major opposition party to pass; a defeat on matters of confidence, such as the coming budget, would topple the government.

The Liberals can probably rely on the support of the Conservatives to win ratification of the new United States-Mexico-Canada-Agreement, despite the fact that the Tories have accused Trudeau of caving in to concessions demanded by U.S. President Donald Trump.

The NDP and the Bloc are likely to oppose USMCA, which replaces the old North American Free Trade Agreement.

On Monday, government House leader Pablo Rodriguez said ratification of the new NAFTA is "an absolute priority" — a view echoed by Deputy Prime Minister Chrystia Freeland, who was the lead minister throughout the tortuous negotiations to renew the continental trade pact and who remains responsible for seeing it across the finish line.

"The new NAFTA was ratified last week by the U.S. Senate, it was ratified before Christmas by Mexico. Now it's Canada's turn," Freeland said.

"I think that is very important for certainty in the Canadian economy, very important for millions of Canadian workers, of Canadian businesses, of Canada families."

Rodriguez called upon opposition parties to ratify the deal "as quickly as possible."

"I think we should send a strong message that we are united in the ratification of this very, very important agreement," he said.

The government did introduce a ratification bill last year, but did not forge ahead with it, preferring not to get ahead of the ratification process in the United States. The bill died when the election was called.

 

Ford preps dealers for its first-ever
battery-electric Mustang SUV

Ian Thibodeau,
The Detroit News
Jan 20, 2020

Ford Motor Co.’s push to peddle the Mustang Mach-E later this year starts by getting more than two-thirds of its 3,000 U.S. dealerships ready to sell a battery-electric SUV company officials say represents an important part of the Blue Oval's future.

The automaker is in the midst of training sales staff and shop technicians at some 2,100 participating dealerships on the intricacies of the all-new EV due to launch in the fall. Ford requires any dealership that wants to sell the Mach-E to undergo training and buy new equipment to service and charge the vehicles — which could prove that the Mach-E isnt just another fad, experts say, if Ford gets a majority of its U.S. dealers on the same page.

“This is the first time that we're building a ground-up, all-new battery-electric vehicle,” said Jason Mase, Ford’s head of electrification marketing strategy. “We’ve got a lot of dealers that might not have sold high-voltage batteries. When you have a battery-electric versus a full gas or full diesel engine, you're going to have different types of repairs.”

Ford’s been here before. Much like when it launched its first aluminum-bodied F-150 pickup in 2014, the company is educating salespeople on the tech-packed Mach-E as dealerships pay to install new charging stations and tools to work on the high-voltage battery packs that will power the newest addition to the Mustang stable.

Ford officials also are training technicians in the dealerships’ shops on how to work with battery-powered vehicles and how to charge them. The automaker won't say how much dealerships must invest to become EV Certified by Ford, but one dealer said the cost would be made up by selling a few Mach-Es.

The ongoing process is voluntary and involves a series of webcasts and digital training for salespeople. Ford representatives also are visiting dealerships to assess what's needed to certify them to sell the Mach-E. Typically, dealerships need a handful of chargers installed to ensure they can "fill up" the vehicles when they're in for service. Mase said technical training to service battery-powered vehicles is also a priority.

The upcoming Mustang Mach-E is so different from its existing vehicles, that Ford is giving special training to salespeople and repair technicians at dealerships. (Photo: Ford)

That includes equipping dealer service shops with the necessary tools and equipment to pull the SUV’s battery out of the vehicle for maintenance and repairs, when needed. Mase’s team also answers directly with Mach-E questions from the dealer body.

The national initiative isn't unprecedented: GM offered something similar when it first introduced the Bolt EV. Educating the sales and service staffs on the Mach-E is vital for an automaker pinning its future to the vehicle's success. Automakers routinely educate dealerships on new vehicles — though the Mach-E has a number of new things packed into it.

“Our dealers are used to new products coming into the showroom,” Mase said. “They're very adaptable. The investment to get the service tools and chargers is fairly minimal.”

Not every Ford dealership is starting from scratch. The automaker for years has sold various hybrid and plug-in hybrid vehicles that dealers could get certified to sell and service. Tim Hovik, owner and general manager of San Tan Ford outside of Phoenix, said he's adding several chargers to the four he already has installed at his dealership because a top priority is getting the sales staff fully versed on the new vehicle.

“The reality is product knowledge has never been more important,” said Hovik, who operates one of Ford's top dealerships in the United States. “These vehicles anymore are like computers with four wheels. They do so many things that I think knowledge that the salespeople have is going to continue to be more and more important.”

It’s also important for automakers and their dealers to remember that a majority of Americans have yet to even sit in an electric vehicle. Most people will need answers to even the most basic questions about electric vehicles — such as how to charge it — until the vehicles become more mainstream, according to Jessica Caldwell, analyst with Edmunds.com.

“Technology is changing so fast, it's definitely hard to keep up,” she said. “You almost have to explain to people how to turn the car on. Those are things that can't be overlooked.”

Another big task, added Caldwell, is getting thousands of dealerships “on the same song sheet.” It will be tough for all automakers to get their diverse groups of dealerships to get behind the same vehicle, especially those who operate in areas of the country where electric vehicles aren't expected to be popular — even as Ford pickups and SUVs continue to be.

“This is an important product for Ford,” Caldwell said. “Not just from an image standpoint. It's also their first proof-point of the new Ford they've been talking about for years. To get this right is so important.”

 

FCA trims output at 4
plants, including Windsor,
Ont., after backlog

FCA invested $350 million in the Belvidere plant to produce the Cherokee starting in 2017. The vehicle had a 97-day supply Jan. 1.

Automotive News
Vince Bond Jr.
Jan 16, 2020

A year ago, the Jeep Cherokee was riding high, becoming the brand's biggest seller behind the Wrangler after a midcycle update gave it fresher styling and more cargo capacity.

But a 20 per cent plunge in Cherokee sales in the United States for 2019, including a 30 per cent drop in the fourth quarter, has prompted FCA US to idle its Belvidere Assembly Plant west of Chicago for the next two weeks. Cherokee sales were down 34 per cent in Canada last year.

The automaker is working to pare inventory of the Cherokee and other vehicles after winding up with a backlog of unordered vehicles that it attempted to unload on U.S. dealers with the help of incentives that rose to as much as $3,000 (all figures USD) by late December.

FCA also is temporarily shutting its minivan plant in Windsor, Ontario, for two weeks after sales slid 17 per cent for the Chrysler Pacifica and 19 per cent for the Dodge Grand Caravan last year. Canadian Pacifica sales were down 38 per cent to 3,731 in 2019. Grand Caravan sales in Canada were down 15 per cent to 27,362 last year.

Two assembly plants in Mexico — Saltillo Truck, which builds the Ram 1500 Classic and Heavy Duty pickups, and Toluca, which makes the Dodge Journey and Jeep Compass — will have scattered downtime this month as well.

All of the shutdowns were scheduled to ensure production is aligned with demand for the vehicles, a spokeswoman said.

The idlings follow FCA's implementation of a predictive analytics system tasked with anticipating what vehicles dealers would need to order, as Bloomberg reported in November.

"They start you out with a $300 marketing allowance," said one U.S. dealer, who spoke to Automotive News last week on condition of anonymity. "Then they bump you to $1,500 two weeks later, and then the day after that, two days after that, they give you double coupons worth $3,000.

"How can you possibly say that that is a good consumer experience?" said the dealer, who provided copies of emails from FCA representatives corroborating the incentives. "I'm on a couple of committees here, and my phone is lighting up with other dealers saying, "What are we doing?' "

The incentive fluctuations, the dealer said, could lead to consumers thinking they overpaid when a sweeter offer becomes available soon after their purchase.

FCA had 53,000 Cherokees in inventory on Jan. 1, a 97-day supply, the Automotive News Data Center estimated, up from a 91-day supply a month earlier.

Normal output at the Belvidere and Windsor factories will resume the week of Jan. 27, the company said.

FCA invested $350 million in the Belvidere plant to produce the Cherokee starting in mid-2017, when production was moved from Toledo, Ohio.

But last year, about 1,400 people were laid off when output was reduced to two shifts from three. The plant now employs around 3,700 workers. It also briefly shut down in August to match production with demand, according to the Rockford Register Star.

The contract with FCA that UAW members ratified in December calls for a $55 million investment in Belvidere. Cherokee production is slated to continue, with next-generation safety features added in 2020, according to the labor pact.

In Canada, the automaker has already announced it will end one shift of minivan production in Windsor at the end of March. Contract talks between FCA and Unifor are set to begin later this year.

Sam Fiorani, vice president of global vehicle forecasting for AutoForecast Solutions, said it's good to see FCA halting output for a few weeks to get inventory in line, but that won't solve the Cherokee's ills. Fiorani said the automaker also needs to increase sales of "what is already an old product two years before the next generation comes along."

Getting sales up will be a challenge with the Cherokee facing so much stiff competition, Fiorani said.

"Everybody's coming out with a really attractive product to compete against them — between new Hyundais and new Kias and new Toyotas and everybody else entering the space," Fiorani said. "It's a lot to deal with, and the Cherokee's just getting a little old right now."

 

U.S. Senate Republicans expect
USMCA vote Thursday

The new North American free-trade deal requires that 40 to 45 per cent of cars eventually be made in countries that pay autoworkers at least $16 an hour — that is, in the United States and Canada and not in Mexico.

The Canadian Press
January 15, 2020

WASHINGTON — Canada's hard-won continental trade deal with the United States and Mexico could be up for a vote in the U.S. Senate before the end of the week, thanks to the emerging timelines for the impeachment trial of President Donald Trump.

Republicans controlling the Senate say they expect the implementation bill for the U.S.-Mexico-Canada Agreement to be voted on as early as Thursday as they clear the decks of legislative business before next week's impeachment trial gets underway.

And they anticipate sweeping bipartisan support in replacing the 25-year-old North American Free Trade Agreement, which Trump and many lawmakers have long blamed for shipping U.S. manufacturing jobs to Mexico.

Senate Majority Leader Mitch McConnell, R-Ky., announced the vote at his weekly news conference Tuesday.

"We are, it looks like, going to be able to process the USMCA here in the Senate this week," McConnell said. "That will be good news for the Senate and for the country. And something I think we have broad bipartisan agreement on."

The Senate vote would follow a sweeping vote in the Democratic-controlled House last month and would send the legislation to Trump for his signature. House Speaker Nancy Pelosi played a central role in modifying the pact further to assuage allies in organized labour, such as AFL-CIO President Richard Trumka.

A final vote in the Senate would also clear the way for the federal Liberal government in Ottawa, which has long insisted it would wait for U.S. approval before proceeding, to introduce implementation legislation of its own.

The agreement is projected to have only a modest impact on the U.S. economy. But it gives lawmakers from both parties the chance to support an agreement sought by farmers, ranchers and business owners anxious to move past the months of trade tensions that have complicated spending and hiring decisions.

Trump made tearing up NAFTA a hallmark of his presidential run in 2016 as he tried to win over working-class voters in states such as Michigan, Ohio, Wisconsin and Pennsylvania.

The new pact contains provisions designed to nudge manufacturing back to the United States. For example, it requires that 40 to 45 per cent of cars eventually be made in countries that pay autoworkers at least $16 an hour — that is, in the United States and Canada and not in Mexico.

 

Ford, GM see sales in China fall
with another tough year ahead

Ford Motor Co. reported Monday that sales in China fell 26% in 2019 as the company pushed to freshen an aging lineup with new vehicles catered toward Chinese buyers. (Photo: Ng Han Guan, AP)

Ian Thibodeau,
The Detroit News
Jan 14, 2020

Detroit two largest automakers say things might get worse before they improve in China, now the world's largest and potentially most-lucrative automotive market.

Ford Motor Co. reported Monday that sales in China fell 26% in 2019 as the company pushed to freshen an aging lineup with new vehicles catered toward Chinese buyers. Last week, General Motors Co. reported its sales dropped 15% in China.

Fiat Chrysler Automobiles NV has yet to report full-year China results for 2019, but it has a tiny share of the Chinese vehicle market — less than 1%. Its sales and earnings were down in Asian markets through the third quarter of the year due largely to its struggles in China.

Industry-wide vehicle sales in China are expected to have dropped around 8% in 2019, which comes amid an ongoing trade war between the U.S. and China, a slowing Chinese economy, and growing demand for models the U.S. brands are just now launching, according to LMC Automotive.

"The market is going through a bit of a transition," said Jeff Schuster, industry analyst with LMC. "The economy was moving at an unsustainable pace. China is maturing. We've stopped labeling China as an emerging market for that reason. It's still growing, it's just not what it was previously. The future looks brighter than 2019 did."

While GM sold five times as many vehicles as Ford in China last year — 3.1 million vehicles to Ford's 568,000 — executives from both automakers have said the industry will continue to battle "downward trends" due to a slowing economy and global trade tensions there in 2020. But experts say the market is too important for automakers to give up, and new strategies from both could pay off as the market corrects.

The general slowdown in China’s economy, caused in part by the U.S. tariffs on Chinese goods, has affected U.S. automakers selling there, said Matt DeLorenzo, senior managing editor for Kelley Blue Book.

“Most of the downturn has been felt in the mass market,” he said. “The luxury market is least affected by it.”

GM's luxury brand Cadillac, for example, still saw a 3.9% sales increase for the year of 2019.The Chinese market provides “some additional sales that could be the difference of making money or going broke,” he said.

Michael Dunne, CEO of Chinese automotive adviser ZoZo Go, said Ford and GM might have to sacrifice sales volume in order to succeed with their luxury models in China. It's no longer good enough to build a bunch of unremarkable sedans to drive profit in China.

"You can thrive and grow and be highly profitable provided that you're differentiated on the high end," Dunne said. "The premium segment was up last year. It's almost a market in itself."

Said Dunne: "There is pressure on automakers, the likes of which no one has seen in China. They've really got to work hard at differentiating themselves."

The answer to growth, Ford and GM hope, lies in a fresh product lineup that can offer the luxury sought by some of China's most affluent buyers, and other more approachable models for the growing middle class.

Although 2020 is expected to be another tough year, Anning Chen, president and CEO of Ford Greater China, said the company will work to strengthen its lineup "with more customer-centric products and customer experiences to mitigate the external pressure and improve dealers’ profitability."

Said Matt Tsien, president of GM China, in a statement: "During the downturn, we are focused on bolstering our product lineup and improving cost efficiency to position our company for strong performance in China over the long term. We expect the market downturn to continue in 2020, and anticipate ongoing headwinds in our China business."

Other automakers are experiencing the same tightening market conditions in China as the Detroit Three, experts have said, but not all are hurting quite as much. Toyota Motor Co. and Honda Motor Co. had sales increases last year.

GM and Ford face different circumstances in the market, Schuster said. GM started selling vehicles in China years before Ford, and has a more established business there as a result. Since CEO Jim Hackett became Ford CEO in 2017, it has been overhauling what was a newer business there. GM has also seen success for its Buick and Cadillac brands that Ford hasn't seen for Lincoln until the last quarter of 2019.

GM introduced 20 new or refreshed models in China last year. The automaker plans to continue launching new SUVs, vans and electric vehicles that target the popular Chinese segments and adhere to government emissions and alternative fuel mandates, the automaker has said.

Ford, meantime, is pruning old sedans in favor of new SUVs and other utility vehicles. The automaker is also leaning on Lincoln. The automaker sales surge for some models last year, like the Lincoln Navigator, or the MKC and Nautilus.

The Chinese market has given a much-needed shot in the arm to GM's Buick brand as well as Ford's Lincoln brand, DeLorenzo said. Schuster said more targeted lineups that cater to Chinese customers could set up the automakers best in a market where they must succeed.

"It's the largest market in the world," Schuster said. "It's an extremely important market with a growing consumer base. You have a growing middle class and growing consumer as they come up through the economy. In China, a vehicle and vehicle ownership is a considerable status symbol. As that continues, you want to take part in that."

 

GM says Fiat Chrysler not
cooperating in racketeering suit

Ian Thibodeau,
The Detroit News
Jan 13, 2019

Detroit — General Motors Co. filed a motion Friday in U.S. District Court asking a judge to make Fiat Chrysler Automobiles NV hand over evidence related to a racketeering case against the Italian American automaker.

GM argues in the court filing that Fiat Chrysler has refused to participate in the discovery phase of the federal civil racketeering lawsuit filed by GM. The filing essentially demands documents related to the case.

The motion is "standard practice," according to Peter Henning, a Wayne State University law professor and former federal prosecutor.

"This isn't full-scale discovery yet," Henning said. "That will come probably after Fiat Chrysler files a motion to dismiss. This is the next step in the case. This is pretty standard. It's nothing outlandish."

The delay could allow third-parties to dispose of evidence, GM argues.

"FCA’s refusal to engage in any discovery until its motion to dismiss is ruled upon raises the real risk that important evidence about the RICO enterprise they led and the specific instances of bribery, fraud and other wrongdoing that FCA executives have already admitted may be lost," GM spokesman Jim Cain said in a statement. "Proceeding with discovery now is necessary to help ensure the preservation and production of irrefutably relevant evidence."

Fiat Chrysler officials did not immediately respond to Detroit News request for comment.

GM in November filed the lawsuit against Fiat Chrysler, alleging its late CEO, Sergio Marchionne, had orchestrated a multimillion-dollar racketeering conspiracy that corrupted three rounds of bargaining with the United Auto Workers union and harmed GM.

GM says it suffered "massive monetary damage" as a result of the conspiracy that it says included bribing UAW officials to provide its rival sweeter labor agreements such as hiring more lower-paid employees.

Fiat Chrysler has called the allegations "meritless" and has yet to file a response to the lawsuit. The company's deadline to respond is Jan. 24.

The lawsuit seeks to put a price tag on damage related to crimes committed by Fiat Chrysler executives who have been convicted in federal court during an approximately five-year-long corruption crackdown in federal court.

The probe has secured 11 convictions, produced charges against 13 and implicated Marchionne, former UAW President Gary Jones and Dennis Williams, Jones' predecessor atop the union.

The racketeering charges require GM to prove it has been financially harmed by the bribery scheme — a feat experts have said will be a challenge.

Henning said GM's Friday filing would likely be followed by a motion to dismiss the case by Fiat Chrysler.

 

Retiree Guenther Gahs
Passes Away Jan 12, 2020

Retired: Mar 1, 1995
29.3 yrs of service

February 9th, 1933 - January 12th, 2020

Our sincerest Condolences go out to his family.
We were only informed of his passing on Feb 7, 2020

Obituary

Guenther passed away peacefully on Sunday, January 12, 2020 at Joseph Brant Hospital, Burlington, with his family by his side. He was predeceased by his loving wife Jean (Brown) Gahs. He will be profoundly missed by his children Lorraine LaHay (Don) and David Gahs. Guenther was a proud Opa to Traci, Craig, Mitchell and Heather and Great Grandpa to Aislynn. He will be fondly remembered by his siblings Elsbeth (Franz Joseph) and Siegfried Gahs and their families, extended family, Nan and Michael Browne, Gordon and Kathy Brown and his nieces and nephews, Lesley, Louise (Larry), Ian, Linda, Gary, Craig and Patricia.

Many thanks to the staff of Joseph Brant Hospital Palliative Team for their care and compassion during this difficult time.

https://www.smithsfh.com/memorials/guenther-gahs/4073485/

 

 

Bullitt' Mustang fetches a
cool $3.74 million at auction

Francis X. Donnelly,
The Detroit News
Jan 12, 2020

The first two times the Mustang from the movie “Bullitt” was sold, it fetched $3,500.

On Friday, it garnered a bit more — $3.74 million, the most ever for a Mustang.

Then again, this was no ordinary car.

A 1968 Ford Mustang from the movie "Bullitt" sold for $3.74 million Friday. (Photo: Patrick Connolly, AP)

It starred in one of the most celebrated chase scenes in Hollywood history, throttling the hills of San Francisco in the 1968 movie. It didn’t hurt that it was driven by Steve McQueen.

The 1968 Mustang GT's charisma was evident as soon as Mecum Auctions staffers rolled it onto the showroom of an arena in Kissimmee, Fla., according to a video of the event.

Several hundred people stood, with many holding up phones to take photos.

“Holy smokes, look at all you,” Mustang owner Sean Kiernan said from the auction stage.

He asked that the auction start at $3,500 because that’s how much it had sold for the other two times it had been sold.

The first buyer was a police detective from New Jersey in 1970, and the second was Kiernan’s father, Robert, who had bought it in 1974. And that’s where the car remained until Robert’s death in 2014, when Sean took ownership.

It had disappeared for many years until Ford announced in 2018 that it had found it.

At the auction, the opening bid immediately jumped to $1 million and, a few seconds later, to $3 million.

Organizers kept urging the crowd to sit in their seats so the auctioneer could see bidders.

The name of the winning bidder wasn’t immediately available.

While the owner is unknown, the car certainly isn’t.

It’s a faded Highland Green with a blacked-out grille and rusted and dented panels. It has a rebuilt 390-cubic-inch V-8 and four-speed manual.

It was modified for the movie with additional horsepower, a beefed-up suspension and mounts to support the movie cameras.

The previous record-setter for a Mustang at auction was $2.2 million for a 1967 Shelby GT500 Super Snake sold in 2019, according to Hagerty, the classic-car insurance company.

Only one other muscle car has brought more at auction, according to Hagerty: A 1971 Plymouth Hemi Cuda convertible  — one of just two delivered with a 426/425-horse V-8 and 4-speed manual transmission — changed hands for $3.78 million in 2014.

All of those fell well short of the most expensive American car ever auctioned – a 1935 Duesenberg SSJ that went for $22 million.

 

UAW President Rory Gamble
under federal investigation

Robert Snell and Daniel Howes,
The Detroit News
Jan 9, 2019

Detroit — Federal agents investigating a kickback and bribery scandal within the United Auto Workers are probing financial ties between President Rory Gamble, retired Vice President Jimmy Settles and one of the union's highest-paid vendors, sources told The Detroit News.

The agents are investigating whether UAW leaders received cash kickbacks or bribes in exchange for awarding lucrative contracts to Huntington Woods businessman Jason Gordon to supply union-branded merchandise, according to two sources who spoke on the condition of anonymity because they were not authorized to discuss the investigation.

Agents are investigating a tip that secret cash payments were delivered to UAW officials at a Detroit strip club, which The News has been told is the Bouzouki Greektown.

Federal documents, interviews and public records shed light on Gordon, one of the union's highest-paid contractors. And they provide new details about Gamble, the new UAW president with a long trail of financial problems who last month was put in charge of a union with more than $1 billion in assets.

“I would not have accepted the role of president if I couldn’t withstand the scrutiny," Gamble, 64, said in a statement to The News. "Our union has suffered enough as a result of corrupt leaders. On my watch, we cannot and will not allow financial improprieties to rob our members of their hard-earned dollars. My sole focus as president is to strengthen the union’s financial controls, oversight and accounting system — and most importantly, to restore the trust of our union members.”

The probe is ongoing and the team of investigators has not proven the allegation. Gordon, 48, has not been charged with wrongdoing and his lawyer, Christopher Andreoff, said: “My client vehemently denies all of the allegations as being untrue.”

Gamble, appointed in November to complete the unexpired term of former President Gary Jones, is the third consecutive UAW president linked to the broad, years-long investigation into union corruption that has led to charges against 13 people, convictions of 11 and exposed the union to possible government oversight.

Prosecutors have accused Jones and past President Dennis Williams of participating in a racketeering enterprise that embezzled more than $1.5 million in union funds, but they have not been charged with wrongdoing. Jones resigned amid last fall's national contract talks with Detroit's automakers.

“This is a disaster for the union,” said Erik Gordon, a University of Michigan business professor, who is not related to Jason Gordon. “The union needs a president who is beyond reproach. Somebody cleaner than Mr. Clean. They don’t need somebody who is just cleaner than the prior guy.”

In a statement, UAW spokesman Brian Rothenberg said Gamble "can say he never took one red cent personally from Mr. Gordon or directly solicited anything from Mr. Gordon. And President Gamble has never been to that establishment with Mr. Gordon. It simply is not true and never happened."

Settles, meanwhile, was the union's top negotiator with Ford until retiring in 2018 and being appointed by Detroit Mayor Mike Duggan to a $155,000 job as head of the city's Department of Neighborhoods. Settles, 69, has hired prominent Detroit criminal defense attorney Steve Fishman in recent months, The News has learned. Fishman declined comment Wednesday.

The focus on UAW officials who oversaw labor negotiations with Ford Motor Co. — Gamble last year and Settles before him — marks a significant expansion of a years-long federal corruption investigation that largely has centered on labor leaders assigned to the union's General Motors Co. and Fiat Chrysler Automobiles NV departments.

It is unclear what prompted the investigation. But sources close to the investigation say the probe has intensified in recent weeks since three UAW officials — former UAW Vice President Joe Ashton and aides Mike Grimes and Jeff Pietrzyk — pleaded guilty for their roles in the bribery and kickback scandal involving union contractors.

Their criminal wrongdoing involved contracts for promotional union items totaling nearly $16 million. In return, Grimes admitted receiving at least $1.5 million in bribes and kickbacks.

“Assuming these allegations have merit, that puts the UAW in a very difficult situation. It raises fundamental questions about whether it is capable of governing itself,” said Marick Masters, a business professor at Wayne State University. “This brings us to a far different level of implications for the UAW going forward. This would substantially increase the likelihood that the federal government would want to come in and take over."

The ongoing investigation involves recurring characters and settings. Last year, The News reported that Jason Gordon had been subpoenaed to produce documents sought by a federal grand jury as part of an investigation into whether UAW leaders received kickbacks from promotions company executives in exchange for awarding contracts to produce union-branded clothes and trinkets.

Gordon is president of several companies, including Custom Promotions, Idea Consultants, and Organization Services of Michigan. He is a recurring focus of the investigation led by agents from the FBI, Internal Revenue Service and Labor Department.

Gordon's firms are part of the so-called "trinkets and trash" industry, a collection of companies vying for a piece of the more than $29 million spent in the last six years on promotion, advertising and UAW-branded items distributed at union rallies, conventions and factories. The items include shirts and lanyards, Frisbees and flash drives, pencils and ponchos, Kangol hats and key chains, as well as novelty items like bowling ball buffers.

Trinkets and trash companies vie for contracts awarded by the UAW — from training centers jointly operated with and funded by GM, Ford and Fiat Chrysler, from the union's political action committee, and from union Community Action Program (CAP) councils.

The joint-training centers, in the process of being disbanded in the wake of last fall's national contract talks, historically were funded by the automakers. The councils, however, are financed with a "per-capita" tax payment withheld from UAW worker paychecks.

Gordon's companies have been paid from several of those pots of money, according to Labor Department filings reviewed by The News. Custom Promotions also donated $12,285 worth of T-shirts to the UAW Region 1A CAP council in 2011, a Labor Department filing shows.

His companies have supplied UAW-branded jackets, bags, hats and towels in recent years and been paid approximately $3 million by the UAW, its political action committee and CAP councils since 2013, according to Labor Department filings. That total includes nearly $54,000 from a CAP council in UAW Region 1A, the region headed by Gamble from 2006 until he became vice president of the UAW-Ford Department in 2018.

It is unclear how much — if anything — Gordon's companies have been paid from the training centers. As vice presidents, Settles and Gamble oversaw the UAW-Ford training center.

Rothenberg, the UAW spokesman, wrote in an e-mail that Gamble "instituted a strict three-bid process for any purchases above $5,000 when he became vice president. If Mr. Gordon got any business ... during that time it would have been because he won a bid."

Custom Promotions, however, has donated more than $191,000 worth of backpacks, shirts and a handicap ramp to the UAW-Ford training center from 2016-17, according to tax filings. During that time, Settles served as co-chair and co-president of the training center, which had $31.9 million in net assets.

The subpoenas sent to Gordon and other UAW contractors are part of a broader investigation into whether UAW officials also received money or things of value directly or through their tax-exempt nonprofit charities.

The News reported in August that agents were investigating Jones, the former president, for a range of potential crimes, including financial dealings involving his nonprofit charity.

Gamble also had a nonprofit. After being appointed regional director in 2006, he became president of the charity GIVES — an acronym for Giving is Very Extra Special. The charity held annual golf events to raise money for various organizations, including Gleaners, Muscular Dystrophy Association, labor organizations, community groups and churches, according to annual tax filings.

The nonprofit also contributed money for funeral costs, low-income retirees and needy families. The nonprofit received $540,544 from 2008-14, according to the filings, which do not disclose donors. It spent $534,717 in that same period and had $28,812 remaining at the end of 2014.

"As Region 1A Director, President Gamble's CAP program did purchase items from Mr. Gordon as they did from other union vendors as well," Rothenberg wrote in an e-mail. "But President Gamble never personally solicited any money directly for the GIVES charity from Mr. Gordon or any other vendor, and we can say with certainty every proceed from that charity went to programs for the homeless and to provide lunches for underprivileged children. The charity has been shut down, but helped many children and many homeless in Detroit when it was operating."

Settles, meanwhile, is listed in tax filings as president of JUST, a Detroit-based nonprofit that has received almost $1.3 million in recent years. Donors are not identified in the filings.

In November, Gamble announced a package of reforms that includes banning all charitable contributions from joint-training centers, vendors or employers to charities run or controlled by UAW officials — direct reactions to the mounting legal troubles weighing on individuals and the joint-training centers.

The investigation is part of a broader probe entangling Ford. The News reported in October that agents were investigating whether Ford and other Detroit automakers indirectly paid for a lakefront retirement home for Williams, the retired union president, at the union's northern Michigan resort.

Investigators are focused on Gamble's tenure as director of UAW Region 1A, a geographic area that covers most of Wayne County, Monroe and Washtenaw counties and extends to the Ohio border. Gamble headed the region for 12 years before replacing Settles as vice president in 2018.

Gamble, meanwhile, experienced financial problems during his tenure heading Region 1A, according to public records. Since 2006, Gamble has lost two homes to foreclosure, including one on Eldorado Place in Lathrup Village, and owed approximately $18,000 in delinquent property and state income taxes despite receiving a six-figure salary.

"Like many in Detroit and across the nation, the property President Gamble had on Eldorado suffered in the economic collapse as the real estate market shifted downward," Rothenberg said. "As such, it was a short-sale that covered the cost of the property. Any filings were part of the short-sale process as was the income tax, which was part of the short-sale process."

Despite the tax problems, in 2009 Gamble paid $130,000 for a 3,480-square-foot home in a gated cul-de-sac in the Marina District of Detroit.

Rothenberg attributed Gamble's past housing problems to the Great Recession and a divorce. The back taxes have been paid.

"If you were looking to corrupt somebody, somebody who has money problems is a good target," Erik Gordon told The News. "And if the money problems are not gigantic, they’re a better target. You can solve their problems without a lot of cash."

Settles, who preceded Gamble as vice president of the UAW-Ford Department, also has had financial problems. He also lives on Gamble's cul-de-sac, a few doors away.

The state and his neighborhood association have filed liens against Settles and his wife for $3,889 in unpaid income taxes and assessments since 2007, according to Wayne County property records. The tax liens — which have been released — were filed when Settles was paid $158,964 a year by the UAW.

That same month he retired in 2018, Settles and his wife bought a $462,500 home near Orlando, Fla. They obtained a $370,000 mortgage for the 4,061-square-foot, five-bedroom, five-bathroom home, according to public records.

 

 

Ford sales were off 3% last year,
but industry-wide totals
still hit 17.1 million


Jan 8, 2019
Ian Thibodeau
Detroit News

Ford Motor Co.'s U.S. sales fell 3% in 2019, the automaker said Monday. The 2.4 million vehicles delivered by the automaker pushed industry-wide sales to 17.1 million in 2019.

That industry-wide figure marks a 1.6% decrease in the U.S. compared to a year prior, according to Edmunds, but keeps sales above the 17-million unit mark and near record levels.

Ford was the final automaker to report sales; others released theirs Friday. The automaker's annual sales fell by larger percentages than rivals General Motors Co. and Fiat Chrysler Automobiles. GM sales were off 2.3% in 2019; Fiat Chrysler's sales were off 1%.

More than half of the vehicles sold by Ford last year were trucks. The automaker aims in 2020 to add more SUVs to the mix to change that.

"We want to expand our SUV business over time," said Mark LaNeve, Ford vice president of marketing, sales and service. "I wouldn't say we're targeting specific mix, but we definitely want to expand our SUV business. We like good organic growth of our truck business as well."

Ford's results come as the automaker continues to transition its lineup to more profit-rich vehicles, pruning out sedans and compact cars in favor of more trucks, SUVs and crossovers. The Mustang Mach-E electric crossover, a new F-150 and the return of Bronco SUV are in the automaker's product pipeline.

Ford's passenger-car sales were off nearly 30% as it cuts those models from its lineup, while the truck segment was up 9%. Its SUV sales slid 5% for the year due largely to a rougher-than-expected launch of its new Explorer; sales of that model alone fell 26%.

LaNeve said the Mach-E and the yet-to-be-seen Bronco will boost SUVs over the next two years. The bumpy Explorer launch that slowed the rollout of new vehicles ate into sales until the fourth quarter, LaNeve said.

Meantime, the automaker said it sold 1.24 million trucks in the U.S. last year, a 9% increase over 2018. Ford SUV sales dropped to 830,471. Car sales plummeted 28% to 349,091. The automaker didn't sell a single Focus or C-Max in the U.S. in the fourth quarter. Taurus sales were down 65% last year.

Fiat Chrysler also boosted truck sales. Its Ram pickups surpassed the Chevrolet Silverado in U.S. sales in 2019 for the first time ever, though the Ford F-Series — composed of five pickups ranging from the F-150 to the F-550 — continues to hold the title of best-selling pickup.

Fiat Chrysler moved 633,694 Ram trucks in the U.S. last year; GM moved 575,600 Silverados. Counting the 40,000 Jeep Gladiator midsize trucks it sold, Fiat Chrysler sold 673,741 trucks last year. GM sold more than 963,000 trucks last year, accounting for its seven full- and midsize models.

Ford trucks, meantime, were helped by the new midsize Ranger pickup. The automaker reported F-Series sales fell 1.4% to 896,526 vehicles, but 89,571 Ranger sales helped lift the truck segment 9% last year. The automaker's heavy trucks and work vans helped push that segment, too.

LaNeve added that Ranger sales didn't "cannibalize" F-Series sales as much as the automaker anticipated, though Ford sold roughly as many Rangers as it expected in the first year.

Ford also saw Lincoln sales increase more than 8% last year as the automaker's luxury arm pivots to an almost all-SUV lineup. Nautilus and Navigator sales increased last year, and the automaker saw a boost from the new Aviator SUV, which was added to the lineup in the middle of the year.

Ford's sales figures should propel industry sales over the 17-million unit mark, which industry analysts expected. Auto analysts expect sales to surpass their expectations at 17.1 million, down 1.3% from 2018's 17.3 million.

Ford plans to launch new trucks, SUVs and crossovers over the next few years. LaNeve expects U.S. sales will get more competitive.

"That's all the more reason to have a refresh of really good products," he said. "We really haven't had a strong rate of incremental new nameplates in years. I think it's the exact right time."

 

10 vehicles that defined the decade

Jan 5, 2020
Henry Payne,
The Detroit News

The 2010s were historic years for the auto industry, and may rank as one of the most important. These vehicles were the most significant

Years from now, historians may rank the past decade as one of the auto industry’s most important.

The 2010s began with the United States crawling out of the worst recession since 1982. SUV sales fizzled as cash-starved consumers opted for cheap cars. Uber and Spotify didn’t exist. Tesla’s lone product, a Lotus-based sports car, was best known for a "Top Gear" episode showing it running out of juice.

But as the economy righted itself, the 21st century’s trends went into hyperdrive: sport-ute mania, digitization, horsepower, regulation, electrification.

These 10 vehicles defined the decade.

Ford F-150

The more things change, the more things stay the same. Nothing outsold the Ford F-150 in the last decade. Just like the previous three decades. But the pickup’s significance grew beyond sales numbers. With the enormous technological challenges facing automakers, F-150’s outsize profits became key to underwriting Ford Motor Co.’s investment in expensive, unproven autonomous and electric vehicles. The pickup itself became a change agent as turbocharged V-6s displaced V-8s as volume sellers, and lightweight aluminum replaced steel construction.

Google car

The “Skynet Marshmallow Bumper Bot” (as the Oatmeal.com website called it) announced Silicon Valley as a mobility leader. Self-driving cars suddenly seemed within reach. Without a steering wheel, the Livonia-built Google car felt like riding in a four-wheel subway car. The pioneering robot plied city streets in San Francisco and Austin for a time before giving way to more practical people-movers like Waymo (Google) minivans, Uber Volvos and Cruise Automation Chevy Bolts.
(Photo: Henry Payne/The Detroit News)

The “Skynet Marshmallow Bumper Bot” (as the Oatmeal.com website called it) announced Silicon Valley as a mobility leader. Self-driving cars suddenly seemed within reach. Without a steering wheel, the Livonia-built Google car felt like riding in a four-wheel subway car. The pioneering robot plied city streets in San Francisco and Austin for a time before giving way to more practical people-movers like Waymo (Google) minivans, Uber Volvos and Cruise Automation Chevy Bolts.

Chevy Volt

Before the battery-powered Chevrolet Bolt EV, there was the 2011 plug-in Volt. It was General Motors Co.'s answer to the Toyota Prius hybrid. With battery range of 50 miles, the Volt could cover most daily commutes — yet it eased range anxiety with a small gas engine that could kick in to get you home. Consumers didn't understand it, and the Volt didn’t survive the decade. The 2012 Cadillac ELR, kind of a Volt-in-a-tux, should have held more promise — but GM priced it at a nose-bleed $80,000. If Cadillac had introduced it for $35,000 (beating the Model 3 to market by five years), history might have been different.

Tesla Model 3

Elon Musk introduced the $35,000 Model 3 at a 2016 news conference. An affordable alternative to Tesla's $80,000 Model S sedan that had wowed luxury-buyers with its Ludicrous electric acceleration, the Model 3 was an instant sensation. Tesla Inc. was deluged by 400,000 pre-orders. In its first full year on the market in 2018, the made-in-USA sedan was the luxury market’s best-selling chariot, beating even the Lexus RX350 SUV. More than an EV, the Model 3 wowed buyers with such technology as a giant tablet screen, Autopilot driving and over-the-air software updates. Manufacturing consultant Sandy Munro declared its electronics “generations beyond what any other manufacturer is doing,” and the industry mobilized to catch up.

Toyota RAV4

No one could catch the RAV4 compact SUV, which became the best-selling non-pickup in America — dethroning perennial-champ Toyota Camry. In so doing, the RAV4 became the first SUV to reign at No. 1. Not only did the RAV4 displace Camry, it also felled cousin Prius as the best-selling hybrid in America as battery technology moved to mainstream vehicles.

Jeep Wrangler

If the RAV4 was the undisputed best-seller, then Jeep was the king of utes. The World War II-inspired Wrangler had long headlined the off-road niche brand, but all that changed with the Fiat-Chrysler merger of 2009. Call it Fiat-Jeep. Visionary execs Sergio Marchionne and Mike Manley saw the Jeep's potential as a global brand on a planet embracing all things SUV. More capable, comfortable and high-tech, the 2018 Wrangler doubled its sales. Jeep sales overall? Tripled since 2010 to nearly a million units a year.

Dodge Charger Hellcat

While the Detroit Three ditched poor-selling car lines, one sedan defied gravity. The Charger proved the power of bold marketing. President Tim Kuniskis and his merry band of elves took an aging chassis, injected it with unheard-of horsepower and called it the Hellcat (along with sister coupe Challenger). The Hellcat showcased how modern electronics have benefited not just infotainment systems, but the ability of family sedans to safely put 707 horses to the road. 

Ford GT

Fifty years after the legendary Ford GT40 won LeMans, the GT celebrated by winning the storied 24-hour race again. The 2016 GT is a state-of-the-art, carbon-fiber weapon. It demonstrated the important role motor racing plays in the industry. Nearly every major brand now races, from the exotic Cadillac IMSA prototype to the common Mazda Miata. Popular culture embraced Ford's achievement, too, as “Ford v Ferrari” — a movie chronicling the 1966 GT40's success — became a Hollywood blockbuster.

Ford Mustang 

The Mustang was birthed alongside the GT40 in the 1960s, becoming a symbol of Dearborn’s commitment to affordable performance. Ford observed its 50th anniversary in 2015 by taking the pony to new heights. With its daring redesign, the 'Stang went global with sales in 146 countries. The muscle car took back its sales crown from the Chevy Camaro, then looked toward the next half-century by expanding as a sub-brand with its first electric SUV — the Mustang Mach-E.

Volkswagen Golf



Diesel-engine tech, which began the 2010s as the globe’s answer to fuel efficiency, became a pariah. Cars like the Golf were found in 2015 to have systems that cheated on emissions tests in order to circumvent regulations. The so-call Dieselgate scandal inspired a historic transformation of the world’s largest automaker from a diesel-focused company to an electric-vehicle evangelist. Governments forced VW to build a national battery supercharger network as penance for its sins — and to power politicians’ pet drivetrain, electric motors. As the 2020s dawn, however, buyers of trucks and commercial vehicles still prefer the advantages of diesel range and infrastructure. Will EVs conquer the passenger car frontier? The next decade will tell the tale.

 

 

If Oshawa Assembly can
close, what’s next?

John Irwin 
Automotive News Canada
Jan 3, 2020

In many ways, Oshawa, Ont., has been synonymous with Canadian auto manufacturing since the turn of the 20th Century, its output a symbol of Canadian manufacturing might.

My fear is that we could look back at the end of vehicle assembly at the venerable factory this year as a sign of more bad news to come.

Since 1908, when the McLaughlin Motor Car Co. set up shop in Oshawa, the city has been shaped by automotive manufacturing. General Motors in particular has been a huge presence there since its purchase of McLaughlin in 1918.

As recently as 2003, General Motors once produced more than 900,000 vehicles per year in Oshawa. In 2020, it will produce zero vehicles.

GM closed its Oshawa truck plant in 2008, and now it will turn Oshawa Assembly into an aftermarket parts and stamping operation. A portion of the site will become a test track for autonomous- and connected-vehicle technology. The change will save about 300 jobs at the plant, but that still leaves about 2,000 people out of work.

When GM in late 2018 announced that it would end vehicle assembly in Oshawa, much was written and said about the state of the Canadian auto industry in the 21st Century, about how automakers were more inclined to produce vehicles in cheaper jurisdictions such as Mexico and the southern United States.

And it was easy to see why so many Oshawa workers there were angry with GM’s decision. Not only were most going to lose their jobs, they were going to lose jobs that many thought they would have until retirement. GM has been a part of Oshawa for 100 years, after all.

To be sure, GM will still have a large presence in Oshawa. In addition to the transformation of the Oshawa plant, the automaker’s Canadian headquarters and one of its technical centres remains in the city. And Canadian auto manufacturing is still alive, with Toyota’s recent $1.4-billion investment in its Ontario plants.

And vehicle assembly could one day return to Oshawa, at least in theory. Unifor — the union representing the workers — is hopeful that could happen in the future, though it would likely require a large upswing in the North American new-vehicle market. Considering the current downturn and the underutilized capacity at other GM plants, building cars at Oshawa Assembly is an unrealistic prospect, at least in the short- to medium-term, but a possibility nonetheless.

Still, it’s hard not to notice the symbolism of vehicle assembly ending in Oshawa, of all places. If no vehicles will be produced there, what does that say about the rest of Canada’s auto footprint?

The closure is sure to loom large over the 2020 contract negotiations between Unifor and the Detroit Three. The union, no doubt, will be looking to preserve and grow what remains at Oshawa and to secure product mandates for GM’s St. Catharines, Ont., propulsion plant. And securing investments and product mandates for Ford Motor Co.’s Oakville, Ont., assembly plant and Fiat Chrysler’ Brampton and Windsor factories in Ontario also figure to be a top priority in light of the Oshawa news.

We’ll see where the industry ends up. Doomsayers like to compare Canada to Australia and its now nonexistent auto sector, though there are meaningful differences between the two. Canada is in no danger of being completely without auto manufacturing in a few years, but Canadian vehicle assembly has taken some hits since the turn of the century and has failed to attract the type of major investments seen in the United States and Mexico. And now it’s losing its historic home.

 

Judge issues order restraining
Unifor from impeding
refinery traffic

Fuel trucks wait along the side of Fleet Street in Regina, Saskatchewan on Dec. 12, 2019. Unifor workers, who are currently locked out of the Co-op Refinery Complex, are disrupting the flow of traffic in and out of the complex. BRANDON HARDER / Regina Leader-

A judge has set out rules to be followed by Unifor in its impeding of traffic flow into and out of Co-op refinery properties.

Heather Polischuk,
Regina Leader-Post
Jan 2. 2020

The union representing locked-out refinery workers will have to follow specified rules while impeding traffic moving into and out of Co-op Refinery Complex (CRC) property.

The two sides argued the matter on Monday before Regina Court of Queen’s Bench Justice Janet McMurtry. The judge had issued an interim order last week in which members of Unifor Local 594 were restrained from “impeding, obstructing or interfering with the ingress or egress to or from the applicant’s property, except for the purpose of conveying information and/or soliciting support to a maximum of five minutes.”

McMurtry’s subsequent order, issued on Tuesday, places continued restrictions on Unifor but added “the restriction of access to or exit from the said premises, shall only last as long as necessary to provide information, to a maximum of 10 minutes, or until the recipient of the information indicates a desire to proceed, whichever comes first.”

The judge decided against making an order requested by Consumers’ Co-operative Refineries Limited (CCRL) pertaining to claims of intimidation, determining “it has occurred on both sides.”

“Moreover, the parties are two weeks into this labour dispute, and I am confident based on the evidence before me that the parties are exerting more control over the conduct of their members, employees and/or contractors,” McMurtry wrote in her 32-page decision.

“In any event, and as stated in the interim order, the police are responsible for enforcing breaches of the criminal law.”

On Dec. 3, shortly after receiving strike notice from Unifor, CCRL served a 48-hour lockout notice on the union. The lockout began on Dec. 5, and union members have been picketing CCRL facilities while CCRL has made efforts to continue operating by using non-unionized employees, replacement workers and contractors.

McMurtry noted union members are entitled, during a lawful lockout, to communicate with the public about the labour dispute. But during Monday’s hearing, each side claimed the other had engaged in improper practices, intimidation tactics and even assault.

In its request for the injunction, CCRL sought to restrict any delay to traffic flow. The union argued an injunction was not warranted but, if the judge found it was, requested more time for communicating its message to those seeking to enter or leave the facilities.

McMurtry determined “individuals aligned with CCRL and Unifor have attempted to intimidate those on the other side,” and that Unifor “has engaged in activity designed to impede and/or block the traffic flow in and out of CCRL premises” — activity running “beyond what is permitted.”

The judge agreed with CCRL that the first 1-1/2 weeks of picketing “was unlawful as the apparent purpose of some of the picketing was not to disseminate information to the public, or to solicit support of the public, but to intimidate replacement workers and others from entering CCRL facilities.”

“However,” she added. “I am also satisfied, based on the evidence before me, that Unifor has taken control of the unlawful behaviour, except with regard to replacement workers.”

McMurtry said her Dec. 24 decision was intended to strike a balance between Unifor’s right to picket and CCRL’s right to protect its premises, while bearing in mind long delays could cause rising tensions and therefore “unexpected incidents” to occur.

Since the judge’s interim decision last week, CCRL applied to the court, asking it to find the union in contempt of that order. The CCRL alleged Unifor members impeded a number of trucks and buses between Dec. 18 and 22. In a decision Friday on that matter, the judge dismissed the application, given the interim order in question is no longer in effect.

 

Turbulent decade for automakers
in Washington comes to a close

Keith Laing,
The Detroit News

January 1, 2020

Washington —  The 2010s have been a decade of crisis and transformation for automakers in Washington, D.C.

The decade began with General Motors and Chrysler emerging from Chapter 11 bankruptcy and Chrysler in a lifesaving alliance with Italian automaker Fiat that eventually led to a 2014 merger of the two companies now known as Fiat Chrysler Automobiles.

GM and Chrysler, recipients of $51 billion and $12.5 billion respectively in federal bailouts in 2008 and 2009 during the Great Recession, have since become leaner companies and attempted to move on from their legacies of being thrown lifelines by U.S. taxpayers. However, Congress, the president and segments of the public have not forgotten, evidenced by the anger GM faced on Capitol Hill when it announced plans in late 2018 to idle four U.S. plants.

GM found itself in hot water with lawmakers in 2014 over its failure to recall millions of small cars with defective ignition switches. The defect caused the ignition switches to abruptly shut down the engines while being driven, disabling air bags in the process. Some within the company knew of the problem for more than a decade but failed to sound the alarm. The failure to act by GM to ultimately was linked to 124 deaths and hundreds of injuries. GM paid $900 million in fines as part of a settlement with the U.S. Department of Justice in a criminal investigation. The company also was required to establish a $600 million compensation fund for those killed or injured.

Around the same time, the regulatory spotlight moved to Japanese air-bag manufacturer Takata Corp., which produced faulty air bag inflators installed in nearly 13% of the total registered vehicles in the United States. When propellants in the inflators degraded, they could explode with excessive force, throwing shrapnel at drivers and passengers. Exploding Takata air-bag inflators have been linked to at least 16 deaths and more than 250 injuries in the United States; at least 24 have died worldwide. The faulty inflators led to the recall of nearly 70 million air bags, the largest automotive safety recall in U.S. history.

Volkswagen AG became mired in the so-called Dieselgate emissions-cheating scandal in 2015. The automaker rigged hundreds of thousands of diesel vehicles with software that allowed them to meet emissions standards during testing, but allowed them to emit illegal exhaust-pipe pollutants while being driven. The U.S. government eventually indicted six present and former Volkswagen AG executives, and charged the company with three criminal felony counts for what regulators called a “10-year conspiracy.” Volkswagen was forced to pay $2.8 billion in criminal fines and $1.5 billion in civil penalties related to the fraud. CEO Martin Winterkorn was forced to resign.

A similar problem swept up Fiat Chrysler. The automaker in 2019 paid nearly $800 million to settle allegations from federal regulators that the company used software on about 104,000 diesel-powered pickups and SUVs that regulators said was similar to “defeat devices” used by Volkswagen. The settlement required the Italian-American carmaker to pay $280 million to compensate drivers of Jeep Grand Cherokees and Dodge Ram 1500 pickups from the 2014-16 model years with 3-liter V-6 diesel engines. Fiat Chrysler was not required to admit wrongdoing as part of the settlement and the company was not required to buy back any of the affected vehicles.

Detroit's automakers participated in a ceremony in the White House Rose Garden in 2012 with former President Barack Obama that heralded new gas-mileage rules. The rules would have required carmakers to produce fleets averaging 54.5 miles per gallon by 2025. The ceremony was seen at the time of the sign of a new era of cooperation between automakers and regulators. But by the time a 2018 mid-term review came around, Donald Trump was president, and his administration pushed to roll back the mpg rules.

California, which helped craft the Obama-era rules, resisted the proposed rollback and promised a lengthy court fight that is likely to stretch well into the coming decade. Ford Motor Co. sided with California, reaching an agreement with the state and three foreign automakers. GM and Fiat Chrysler sided with the Trump administration, making the battle lines clear for 2020 and beyond.

The years under Trump have been dominated by trade issues that created uncertainty for carmakers. In March 2018, he imposed stiff 25% tariffs on foreign steel and 10% tariffs on foreign aluminum in a move that prompted retaliatory threats from foreign governments and rattled financial markets. Later that year, he launched an investigation into the possibility of imposing tariffs as high as 25% on imported cars and parts in a move that united Detroit and foreign-owned manufacturers in opposition.

The debate about tariffs occurred as the Trump administration negotiated a replacement for the North American Free Trade Agreement with Canada and Mexico. Under the resulting agreement, known as the U.S. Mexico Canada Agreement, automakers will have to produce cars with 75% of parts originating from the U.S., Canada or Mexico to qualify for duty-free treatment. The requirement, referred to as “rules of origin,” would be an increase from 62.5% under current NAFTA rules. In addition, 40-45% of an auto's content must be made by workers earning at least $16 per hour. Vehicles not meeting the requirements would be subject to a 2.5% duty.

Prior to the announcement of the agreement, automakers and groups that lobby for the industry in Washington worried the president would follow through on campaign promises to pull out of NAFTA with no replacement, which would have upended supply chains and production plans for almost every automaker. The decade concluded with the U.S. House passing the USMCA a day after voting to impeach the president. The Senate is expected to take up the measure in the new year.

 

Our Condolences go out to
Retiree Executive Orville
Shaw on the passing
of his Wife Helen

Helen passed away peacefully on Monday December 30, 2019

She was 86 years of age.

Cremation has taken place and there will be no service

 

 

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