Total labour costs at Detroit Three plants in Canada have fallen to levels below those at the companies' U.S. factories, a sign the falling value of the Canadian dollar is helping improve this country's competitive position in the auto sector.
All-in labour costs – which include wages, benefits and pension costs – at the Canadian plants operated by the companies average $60 an hour, putting them below $48 (U.S.) with the dollar trading at 79 cents, said Jim Stanford, economist for Unifor, which represents hourly workers at FCA Canada (formerly Chrysler Canada Inc.), Ford Motor Co. of Canada Ltd. and General Motors of Canada Ltd.
From Canada
At less than $48, hourly labour costs at the Canadian plants are also lower than Honda Motor Co. Ltd. and Toyota Motor Corp. factories in the United States, according to data compiled by the Center for Automotive Research (CAR), an industry think-tank based in Ann Arbor, Mich.
While the currency advantage helps, the changing work force at General Motors Co. plants in Oshawa, Ont., will be an even bigger advantage than the dollar, Unifor officials said Monday as they released a report that examined the impact a closing of GM's two Oshawa plants would have on the federal and Ontario economies.
"The decline in the dollar is almost icing on the cake," Mr. Stanford told a news conference.
The report, released at the Ontario legislature, comes as Unifor lobbies the Ontario and federal governments to help save the Oshawa plants, one of which is scheduled to close next year. The other plant has no new vehicles allocated to it and the vehicles made there are scheduled to be shifted elsewhere or end production during the next few years.
GM Canada President Stephen Carlisle has said no decision on new vehicles will be made until 2016.
About two-thirds of unionized workers at the Oshawa plants are eligible to retire under the provisions of the Unifor contract with GM, Unifor president Jerry Dias said.
"This will save General Motors billions," Mr. Dias said.
If those workers retire, they can be replaced by newly hired employees who start at $20.50 (Canadian) an hour and whose wages won't rise to the full seniority level of $34 an hour until they have been there 10 years.
They also participate in a hybrid pension plan that combines defined contributions by GM with defined benefits to employees instead of the more costly plan for employees with more seniority, which is 100-per-cent defined benefit.
At current levels the currency advantage Canadian plants have over U.S. plants also makes newly hired Canadian workers less costly than so-called tier two workers at U.S. factories, Mr. Stanford said.
The all-in labour costs for lower-tier workers at U.S. Detroit Three factories are about $42 (U.S.) an hour, CAR estimates.
Costs for newly hired workers at Canadian plants are about $30 (Canadian), Mr. Stanford said.
Mr. Dias said he expects the cost gap to grow in Canada's favour during talks between the Detroit Three and the United Auto Workers this year as the UAW looks to eliminate the lower tier of pay and regain increases in hourly wage rates, which have been frozen.
The report on GM Oshawa, prepared by the Centre for Spatial Economics, said closing the two plants would result in the immediate elimination of 4,100 jobs, the loss of more than 30,000 jobs over the medium term and a revenue hit of about $1-billion to the Ontario and federal governments.
The report "underscores what we know and that is that our auto plant – just like any auto plant – is very important, with its supply chain, both for economic importance and to governments," GM Canada vice-president of corporate affairs David Paterson said.
GM Oshawa plant closings
would have ‘profound’
impact, union study says
Greg Keenan
The Globe and Mail
Mar. 30 2015
The closing of two General Motors Co. assembly plants in Oshawa, Ont., would wipe out about 30,000 jobs, slice more than $5-billion out of Ontario’s gross domestic product and cost the federal and Ontario governments $1-billion in lost revenue.
Those are among the conclusions of an economic impact study of the two plants, which was prepared by the Centre for Spatial Economics on behalf of Unifor, the union that represents hourly paid workers at the two factories.
“The closure of that facility would have a profound impact on the communities in the eastern half of the GTA, for [Ontario] as a whole and indeed for the Canadian economy,” says the study, which is scheduled to be released Monday.
GM’s Oshawa complex has been an economic engine of the Ontario and national economies for more than a century and the 3,600 production and skilled trades employees at the two plants are among the highest-paid workers in Canada’s manufacturing sector.
But whether they will continue to produce vehicles and generate an estimated $7.3-billion worth of shipments annually later this decade is in doubt, creating deep concern among workers and the union, as well as the federal and Ontario governments.
One of the plants is scheduled to close next year and the other plant has no new vehicles allocated to replace those that are being shifted elsewhere or are going out of production – including the Chevrolet Camaro, which will be produced in Lansing, Mich., later this year instead of Oshawa.
About 4,100 hourly and salaried employees at the plants and the General Motors of Canada Ltd. head office would lose their jobs, but an additional 25,000 to 29,000 jobs would disappear at suppliers and elsewhere in the broader economy within two years of the end of production, the study says.
Ontario’s gross domestic product would be cut by between $5.2-billion and $5.7-billion within two years and average annual wages in the province would decline by $350.
“Most people eventually find new work, but the recovery in employment is achieved, in large part, by a permanent decline in average wages,” the report says. “This decline in income is experienced even by workers who have no connection at all to the auto industry and further undermines consumer spending and aggregate economic conditions.”
The permanent shutdown of the plants would also affect the Canada Pension Plan, the study says. CPP contributions would decline by between $130-million and $140-million in the year of the closing, although a gradual recovery in employment would help reduce the revenue loss to between $110-million and $120-million.
GM Canada president Stephen Carlisle said in January, in what the company called a community update, that no decisions on new products will be made before late 2016 and the conclusion of negotiations on a new contract with Unifor.
“We are going to be careful and are not expecting to be deciding on any major new mandates or investments in Oshawa until well into 2016,” Mr. Carlisle said in the update.
Unifor and company officials have been meeting regularly. Federal and Ontario cabinet ministers met with GM chief executive officer Mary Barra in January.
Unifor president Jerry Dias met with Ms. Barra last month and has been talking up the benefits of the drop in the Canadian dollar and the demographic situation at the Oshawa plant, where about 60 per cent of the production workers have hit the 30-year mark, which makes them eligible for early retirement.
That means GM could hire new workers – to replace those retiring – at hourly wages that start at $20.50 and don’t rise to the full $34.50-an-hour rate for 10 years.
“GM will make money hand over fist in Oshawa,” he said.
The point of the study, Mr. Dias added, “is to show the incredible economic benefits that the GM Oshawa plant brings not just to the community of Oshawa, or the province, but to the country – the taxes that people pay, the jobs that are created, the spinoff jobs.”
UAW delegates demand higher pay
Rank and file make it clear: Wage hikes, Tier 2 rollback are worth a fight
David Barkholz
Automotive News
March 30, 2015
DETROIT -- To say the UAW rank and file's expectations for more pay are high would be an understatement.
Delegates at last week's UAW bargaining convention, the unofficial opening of negotiations with the Detroit 3, demanded that the car companies return to workers what they sacrificed before and during the recession.
"They know we gave up a lot in 2007, 2009 and 2011," said Junior Robinson, president of UAW Local 900, representing workers at Ford's Michigan Assembly Plant in suburban Detroit, which makes the Focus.
"We had to do what we had to do back then. Now it's time to get some or all of it back."
The upcoming negotiations could be the most contentious in years, said Dave Cole, chairman emeritus of the Center for Automotive Research in Ann Arbor, Mich. He cited the return of strong profits at the Detroit 3, workers' desire for a pay increase and their distaste for the entry-level Tier 2 pay scale.
Meantime, the Detroit 3 want to keep annual labor cost increases to about the rate of inflation as they try to close a labor cost gap they still have with the nonunion U.S. operations of the German, Asian and Korean automakers, Cole said before the bargaining convention.
Gary Walkowicz, a UAW delegate and bargaining committeeman at Ford's Dearborn Truck plant, said at the convention that the union should be prepared to strike if the carmakers refuse to return what workers have given up and more.
"It will take a fight to get it back," he said.
The current four-year UAW contracts with the Detroit 3 expire in September.
Delegate after delegate who rose at the convention made clear that three issues are worth fighting for:
• Rank and file want the lower-pay, Tier 2 pay scale for entry-level workers either substantially rolled back or eliminated outright. Tier 2 was a product of 2007 concessions. UAW President Dennis Williams promises a fight to "bridge the gap" between the $28 an hour in wages paid to Tier 1 workers and the $15 to $19 an hour paid to Tier 2.
• Veteran Tier 1 workers have not had a wage increase in 10 years. They demand one as a hedge against inflation or a decline in profit sharing should the current fortunes of the Detroit 3 turn for the worse.
• UAW members don't want to hear excuses from the Detroit 3 about why they can't afford higher pay for hourly workers. Profits, especially in North America, are skyrocketing.
If General Motors, for instance, can afford $5 billion to buy back common stock to placate Wall Street investors, it can afford a raise for the people who make its product, Walkowicz said. GM agreed to the buyback this month.
On the other side of the bargaining table, the Detroit 3 are expected to try to hold onto the benefits of low-cost Tier 2 wages and use profit-sharing checks to avoid higher fixed costs in a downturn, industry experts say.
Rolling back Tier 2 will be daunting even if UAW officials and auto executives agree that it conflicts with the union ideal of equal pay for equal work.
The system has become deeply entrenched in the four years since the Detroit 3 started hiring again after the recession. All of the nearly 33,000 auto workers hired since mid-2011 have been Tier 2.
That group now represents 29 percent of the Detroit 3's hourly U.S. work force of about 137,000. At the end of the last contract in 2011, there were only a handful of Tier 2 workers.
The carmakers argue that Tier 2 has been crucial to allowing the companies to create jobs in the United States.
Despite Tier 2, Ford and GM are still at about a $10-an-hour cost disadvantage with U.S. operations of the German, Asian and Korean automakers, said auto analyst Kristin Dziczek in an interview this month.
The two U.S. automakers pay about $59 an hour vs. the high $40s for the transplants and Fiat Chrysler, said Dziczek, who is director of the labor and industry group at the Center for Automotive Research. Costs for FCA US are low, too, because Tier 2 workers are about 42 percent of its work force.
Cole said the carmakers are particularly wary of increasing fixed costs in the form of wage increases, which compound and grow in good times and bad.
They prefer paying profit-sharing and contract-signing bonuses, which UAW Vice President Cindy Estrada acknowledged at the convention meant $40,000 in additional compensation for each GM hourly worker over the last four years.
For his part, Robinson at Ford's Michigan Assembly Plant in Wayne, Mich., says he's optimistic that a fair contract can be hammered out.
Robinson is a member of the UAW bargaining committee that will negotiate directly with Ford officials this year. That committee was announced at the convention, as were separate committees for GM and FCA bargaining.
Ultimately, the rank and file in the plants will have to ratify their respective contracts.
"I believe they're going to bridge the gap between the legacy employees and the entry-level," Robinson said of the negotiations. "I really hope they do."
Ford opens $1 billion parts
and assembly plant in India
Michael Martinez,
The Detroit News
March 29, 2015
Ford Motor Co. will mark the opening of a new parts and assembly plant in India that will allow the Dearborn automaker to double its capacity in that country.
The $1 billion plant in Sanand, Gujarat, will have the initial ability to produce up to 240,000 vehicles per year, as well as 270,000 engines. It will open with a single shift that will build a new Ford Figo Aspire compact car.
"With today's opening of our plant in Sanand, we have taken our growth commitment to a new high in India," Mark Fields, Ford president and CEO said in a statement.
Fields was slated to attend the event. Earlier this week, he was in China for the opening of a new assembly plant there.
The Sanand plant spreads over 460 acres and includes stamping, body, paint and assembly operations for vehicle manufacturing, as well as machining and assembly operations for engine manufacturing.
Adrian Price, Ford director, global manufacturing business office, said the plant doubles Ford's capacity in India to about 450,000 vehicles per year.
"India is a market we believe will continue to grow," Price said in an interview.
Ford sells a number of vehicles there, including the Ford EcoSport, Figo, Fiesta, Classic and Endeavour, along with the new Figo Aspire, which will be built at the new plant.
The new compact will go on sale later this year.
The car includes technology like a dock that allows the driver to store, mount and charge mobile phones, MP3 players and satellite navigation systems — and to integrate these devices into the car's entertainment system. For the first time in a compact car in India, the Figo Aspire also comes with side and curtain air bags, Ford said.
Customers have two engine choices: a 1.5-liter TDCi diesel engine and the 1.2-liter TiVCT petrol engine.
The plant openings this week underscore Ford's plan to add capacity and grow in countries around the globe, Price said. Even in areas like Russia, where economic and geopolitical issues have caused some automakers to scale back their presence, Price said Ford has recommitted to its efforts to remain in business there.
"We're in a growth mode," Price said. "There probably hasn't been a time in our history where we've expanded the way we are."
Ford CEO Mark Fields
earned $18.6 million in 2014
Michael Martinez,
The Detroit News
March 28, 2015
Ford Motor Co. President and CEO Mark Fields earned $18,596,497 in 2014, an increase from his total compensation of $10,170,578 in 2013 as Ford's chief operating officer.
Fields, who took over as CEO on July 1, earned a base salary of $1,662,500 last year. His total compensation includes a $3,185,000 bonus, long-term stock options and other performance-based equity awards.
"We remain absolutely committed to aligning executive compensation with the company's business performance and to tying a significant portion of executive compensation to long-term shareholder value," Ford said in a statement.
The Dearborn automaker last year earned a pre-tax profit of $6.3 billion. It's 2015 outlook is for a pre-tax profit ranging between $8.5-$9.5 billion.
Ford achieved 91 percent of its total 2014 targets, which include automotive revenue, automotive operating margin, operating-related cash flow, profit before tax and quality. It exceeded its targets in the areas of operating-related cash flow (120 percent), profit before tax (113 percent) and quality (132 percent), but fell short of its goals in the areas of automotive revenue (44 percent) and automotive operating margin (68 percent).
Last year, Ford spent $260,156 for Fields to have personal use of an aircraft. It spent $297,801 for executive chairman Bill Ford to have use of an aircraft, along with $766,445 for security for Ford.
Executive compensation includes:
■Bill Ford made $15,110,695 in 2014, an increase from the $11,955,829 he earned in 2013. That includes a base salary of $2 million, a bonus of $910,000 and various stock options.
■Bob Shanks, Ford's executive vice president and chief financial officer, made $6,320,646 last year, up from $4,089,621.
■Joe Hinrichs, Ford's president of the Americas, made $6,092,630, up from $4,409,949 the year before.
■Jim Farley, Ford's president of Europe, Middle East & Africa, earned $4,494,764, up from $4,261,225.
■ Former CEO Alan Mulally earned $22,042,128 last year, down from $23,204,534 he earned in 2013 as his last full year as CEO. In 2014, Mulally's compensation included a $1,000,000 base salary, a $3,185,000 bonus and various stock awards. Mulally also received a Taurus as part of his retirement package. Mulally lived in a company-owned house while serving as president and CEO.
Fiat Chrysler Automobiles NV CEO Sergio Marchionne earned 31.3 million euros ($38 million based on Dec. 31 exchange rate) in 2014, according to the company's annual filing with the U.S. Securities and Exchange Commission. The majority of Marchionne's compensation last year came from a 24.7 million euro ($30 million) cash reward from non-executive directors as recognition for being "instrumental in major strategic and financial accomplishments for the Group," according to the Thursday filing.
General Motors Co. has not released its executive compensation yet. CEO Mary Barra could have earned as much as $14.4 million but is expected to have earned less due to the company's recall crisis impacting incentives.
Ford will hold its annual shareholders meeting on May 14 in Wilmington, Del.
The battle for Canada: Ford and
Fiat Chrysler vie to be No. 1
The Globe and Mail
JEREMY CATO
Mar. 28 2015
In the most human of moments, Dianne Craig will admit to enduring many sleepless nights through the fall and winter of 2014.
The race to be No. 1 in Canada for automotive sales was that tight, and Craig certainly did not want to be the first Ford Canada CEO in five years to call global headquarters in Dearborn, Mich., and admit, "We're No. 2."
Craig and Reid Bigland, CEO of Fiat Chrysler Automobiles Canada (the former Chrysler Canada), are two intensely competitive people. Craig, a former ski racer, and Bigland, a hockey player, go toe-to-toe in a terrifically raucous business. Bigland would have loved to unseat Ford; Craig was determined to avoid an ignominious fate.
Right to the the end of the year, Ford and Chrysler engaged in an epic battle, using incentives, fleet sales, various advertising and marketing tools, and their dealer bodies down to the final bell. Ford would hold on to No. 1 by the slimmest of margins – 1,891 units, according to DesRosiers Automotive Consultants. "Yeah, less than 2,000 units," says Bigland with a smile and a shake of the head. "Talk about heartbreak hotel. That's the closest we've been for the full year to be the No. 1 seller in Canada."
And now, in the what-have-you-done-for-me-lately car business, the question is, who's going to win in 2015? Through March 1, FCA had recaptured the momentum and the lead with 36,765 units sold versus Ford's 29,603, a spread of 7,162.
Ford spent much of 2014 pursuing Chrysler before reclaiming the sales lead on Oct. 1. But the last quarter had looked tough, with the best-selling F-150 in the middle of a new-model changeover – thus, limiting inventories – and a new Mustang yet to arrive at dealerships in significant numbers.
"Five years of leadership, especially with the competitors we have …" Craig says, carefully picking her words. "Last year the Chrysler team gave us a big run for our money. We knew it was going to be tight, and we had low inventories. But we've always said leadership is an outcome, not a goal."
The two car companies sold close to 600,000 vehicles in Canada, but Chrysler had the better year in terms of gains – sales up 11.5 per cent year-over-year, with market share boosted 0.7 per cent to 15.6 per cent. Ford Canada lost nearly half a point of market share on sales that increased just 3 per cent in an overall market that rose 6.1 per cent over 2013.
Down the stretch in 2014, Ford rode its biggest sellers to victory – the Escape compact SUV, Focus compact car, Fusion mid-size car and F-Series pickup. All were loaded with rich sales incentives that helped push sales to amazing highs for December – Fusion up 72.9 per cent, Focus up 36.7, F-Series up 36.7 and Escape up 10.5. Overall, Ford's December sales jumped 40.1 per cent. If one single vehicle made the difference for Ford, it would be the Escape. Sales in 2014 were up 15.6 per cent to a record 52,198. That surge combined with Chrysler's sagging Dodge Journey most likely gave the crown to Ford.
"Ford clipped us, so congratulations to them," Bigland said. "But it was our strongest sales in the 90-year history of Chrysler and we were the fastest grower. Hey, year-over-year we gained almost 30,000 units."
Neither Craig nor Bigland admit to putting No. 1 right at the top of their annual must-have lists, but the sales race matters mightily, make no mistake. It's a point of pride to them, their corporate colleagues, dealers and even some car owners. That said, both insist they can't and won't, shall we say, throw everything over the side to lighten the ship in this race.
Says Craig: "I'm a pretty competitive person and our dealers and our employees really value the leadership crown, but we have to make sure that whatever we do is with the customer in mind first. If the outcome is leadership, then that's just the cherry on top of the ice cream.
"I will have to say we were really excited when the numbers finally came in, as close as it was." And then she laughs.
Rematch scenario
Like Ford, Chrysler's business is based on a few high-volume, core models – call them the four pillars. Ram sales for December were up a whopping 51.4 per cent. Dodge Caravan minivan sales were up 12 per cent and sales of the newly-launched Jeep Cherokee surged 28.5 per cent. Dodge Journey crossover sales were down on the year, but still chipped in another 24,715 units.
As 2015 proceeds, Ford should get a lift from volume sales of its all-new F-150 pickup and Mustang, along with a new Edge crossover, the renewed Expedition SUV, a freshened Explorer, a major update of the Focus and a line of new commercial vehicles. Ford also has high hopes for its Lincoln brand, including the recently-launched MKC crossover, the reengineered Navigator and the planned freshening this year of the MKZ and redesign of the MKX.
Still, Bigland isn't conceding a thing. Like a hockey player shaking hands after losing Game 7 of the Stanley Cup final, Bigland has already put 2014 behind him. That's history.
"We started 2015 No. 1 and it's just a matter of trying to sustain that," he says, breaking into a wide grin.
FCA expects the just-launched Jeep Renegade to give it a massive boost in an emerging segment of small crossovers that by the end of this year will include the Honda HR-V and Mazda CX-3. If successful, the Renegade could account for sales of more than 20,000 this year. FCA is also looking ahead to this year's launch of the Alfa Romeo brand in Canada, spearheaded by the 4C.
The Fiat 500X wagon will also arrive in 2015 and Fiat also has plans for a roadster that will use a Mazda platform. The Grand Cherokee is expected to get a freshening, also. However, the Ram, the minivans and the Journey are not slated for major makeovers this year. They represent huge volumes, so FCA is in tough in mounting a 12-month challenge to Ford.
It's early days, in 2015. The struggle for No. 1 has only just begun. Again.
THE FOUR PILLARS (Minimum sales: 18,000 units)
2014
2013
2014 vs. 2013
Ford of Canada
Ford F-Series
126,277
122,325
+3.2%
Ford Escape
52,198
45,141
+15.6%
Ford Focus
22,282
25,781
-13.1%
Ford Fusion
18,472
20,245
-8.3%
FCA Canada
Ram pickup
88,521
80,248
+10.3%
Dodge Caravan
51,759
46,732
+10.8%
Jeep Wrangler
23,057
18,578
+24%
Jeep Cherokee
22,529
2,906
+675%
Canada facing grim
outlook
for auto trade
GREG KEENAN
Globe and Mail
March 27, 2015
Canada's automotive trade deficit topped $10-billion last year and threatens to deepen as more assembly plant closings loom and free-trade agreements with the European Union and South Korea take effect.
A surplus of $15-billion with the United States was wiped out by a deficit of more than $25-billion with the rest of the world, which led to the eighth successive overall auto trade deficit that contrasts sharply with trade surpluses in the automotive sector every year between 1982 and 2006, says a new report from the Automotive Policy Research Centre.
The worsening trade numbers are another sign that Canada's position among the world's auto-making countries is deteriorating.
"Canada's automotive trade deficit is only likely to deepen unless Canada is able to recapture a larger proportion of North American vehicle production by attracting investment into new assembly capacity," the report said. "Recent developments do not augur well."
Those developments include billions of dollars of new investment flooding into Mexico in recent years as auto makers take advantage of that country's low wages, free-trade agreements with 45 countries and location in the middle of the Western Hemisphere with easy access to the United States and countries in South America where growth is expected to resume.
One key threat, the report noted, is the doubt about the future of two General Motors Co. assembly plants in Oshawa, Ont. One plant is scheduled to close next year, while production of Chevrolet Camaro vehicles made at the other Oshawa plant will be shifted to Lansing, Mich., later this year and no new vehicles have been allocated to replace the Camaro or other vehicles made at what is called the flex plant.
General Motors of Canada Ltd. president Stephen Carlisle acknowledged in January that there are no products currently in the pipeline for Oshawa, but there is a two-year window to reach agreements with governments and the company's union, Unifor, to make Oshawa more competitive so it can attract new business.
Those discussions are ongoing, Mr. Carlisle said earlier this month in an update of his January statement.
About 80 per cent of the vehicles assembled in Oshawa are sold in the United States.
"The threat of a further reduction in Canadian assembly capacity is very real given the continuing uncertainty regarding GM's footprint in Oshawa after 2016," said the report, which was prepared by Queen's University geography professor John Holmes.
"The closing of one or both of the GM Oshawa plants would significantly erode Canada's remaining vehicle trade balance with the U.S.," Prof. Holmes said.
Attracting more assembly capacity and retaining existing assembly plants are crucial on the vehicle side of the trade numbers, he said in an interview.
Parts makers need to try to export parts to areas other than the Great Lakes states, he added.
The report also noted that trade deals with South Korea and the European Union could deepen the deficit in vehicles and auto parts that Canada has with those two areas.
The 6.1-per-cent tariff on vehicles imported from South Korea is being eliminated over a three-year period. The first cut came on Jan. 1. So far, the evidence is mixed on whether the reduction is leading to higher imports of South Korean-made vehicles.
Sales of South Korean-made sport utilities and crossovers for Hyundai Auto Canada Corp. surged 50 per cent in February, but Kia Canada Inc. has posted a 16-per-cent decline since Jan. 1 in sales of cars imported from South Korea.
Bridging pay gaps centerpiece
of proposed UAW strategy
Michael Wayland, Melissa Burden
and Michael Martinez,
The Detroit News
March 26, 2015
Equal pay for equal work was the resounding message from United Auto Workers delegates on Tuesday during the first day of Special Bargaining Convention in Detroit.
Many union delegates voiced their support for bridging different pay levels for workers doing the same job. Some called for elimination of a two-tier wage structure at Detroit automakers that can pay veteran auto workers $10 or more per hour than entry-level workers receive.
The elimination of the tier structure is a step further than the union's proposed resolution for collective bargaining this year with the Detroit automakers and other organizations, which calls for "bridging the gaps" between its own workers and others.
"The only demand we should put on the table is no more tiers," said Scott Houldieson, a UAW vice president with Local 551 at Ford Motor Co.'s Chicago Assembly Plant.
Houldieson, wearing a red long-sleeved shirt that said "No More Tiers!," said the union needs to "aggressively attack the two-tier wage system" in this round of contract negotiations.
Delegates on Wednesday will have the opportunity to propose amendments to the resolution before a vote to adopt it as the foundation for the union's common collective bargaining strategy for the next four years.
Industry officials speculate it was easy to implement the two-tier structure, but it will be much more difficult to eliminate — particularly in one round of negotiations.
UAW Local 7 delegate Tielece Perry, a legacy worker at Fiat Chrysler Automotive's Jefferson North Assembly in Detroit, said it's unjust that second-tier employees at her facility can't even afford to buy the vehicles they build.
"Equal pay for equal work," she said. "That time is now."
The Detroit Three and the UAW agreed to the two-tier wage structure in 2007. Two-tier workers start at just less than $16 an hour and ultimately can earn more than $19 an hour. Those workers also have different and less rich benefits than legacy, or tier one workers.
In the proposed resolution, "bringing the gap" was prominently mentioned in three of the seven "key bargaining issues" that included bridging gaps for senior workers, many of whom haven't received a pay increase in a decade; newer workers; and temporary and contingent workers. UAW President Dennis Williams stressed "bridging the gap" refers to more than just the two-tier work system for auto workers.
"When we talk about bridging the gap, the way I view it is we are setting the stage to take on the CEOs and multimillionaires of this country," Williams said during the convention. "Bridge the gap between the workers and the CEOs, not just the workers on the floor."
Other key issues in the proposed resolution include restoring outsourced jobs; protecting health care and retirement security for active workers and retirees; and protecting bargaining rights.
'Everybody gets something'
UAW Local 31 delegate Herb Taylor, who also chairman of the UAW chaplaincy program, said it's "important everybody gets something" out of this year's talks: "The retirees, the two-tier, the one-tier and the trade workers," he said.
About 900 delegates representing the UAW's roughly 400,000 members, including 150,000 in Michigan, are attending the convention. They represent more than 1,500 employers in auto, aerospace, agricultural implement, public service, health care, higher education and other sectors.
Besides the Detroit automakers, high-profile UAW contract negotiations this year include John Deere and the state of Michigan.
At least one delegate brought up striking as a way to force the hand of automakers to eliminate the two-tier wage structure.
Williams has said striking is not something the union looks to do when entering negotiations with any company, but it has to be prepared for the worst.
Dues hike boosts strike fund
In June, UAW members approved the first dues increase since 1967 — a 25 percent hike — to replenish the strike fund that had fallen to about $600 million.
Union leaders said they needed a healthy strike fund so companies would take seriously the threat of a work stoppage.
UAW Secretary-Treasurer Gary Casteel reported the dues increase added $3 million to the strike fund in December and the UAW is on its way to adding $45 million to the fund.
The 2015 contract talks mark the first since 2007 in which workers at GM and Chrysler have the right to strike; the UAW gave up that right for the 2011 talks as a condition of the government bailouts of GM and Chrysler.
Power of bargaining
This year's convention theme is "The Power of Collective Bargaining Lifts Us All." Williams, numerous times during a speech, touted that the union's success "lifts all others in this economy."
"The stakes are high, the pressures are real and we know that as we succeed, so do our families succeed, American working men and work succeed," he said. "Therefore our communities succeed and our economy succeed."
Guest speakers Tuesday including NAACP President and CEO Cornell William Brooks and U.S. Secretary of Labor Thomas Perez touted the union as a leader for the rights of labor relations in the U.S.
Brooks praised the UAW for its work over the years, and said the union and the NAACP should "speak as two movements, one voice."
His speech, which touched on a lowered national unemployment rate and efforts to raise the minimum wage, stressed that wage inequality was stifling further growth.
"If we want to call this recovery complete, we need to make sure every American who works hard … can share in this prosperity," he said.
He also praised the power of collective bargaining and urged UAW workers to "make sure you have a voice."
Retiree Helmut Schurtz
Passes Away March 24, 2015
Retired July 1, 2000 32.7 Years Service
It is with great sadness that I inform you
of the passing of Retiree Helmut Schurtz.
Our heartfelt condolences go out to his wife, Helmut's son
Ron Schurtz who works in the plant and to the entire
Schurtz family.
Visitation
Thursday, March 26, 2015
5:00 pm to 7:00 pm
Dods & McNair Funeral Home & Chapel
21 First Street.
Orangeville, On Map
Funeral Service
Friday March 27, 2015
1:00 PM Christian Reformed Church
50 Blind Line,
Orangeville, On Map
Memorial donations to the Canadian Cancer
Society
would be appreciated by the family
Obituary for
Helmut Schurtz
Schurtz, Helmut Horst
Peacefully at Headwaters Health Care Centre on Tuesday, March 24, 2015 at the age of 79. Beloved husband of Rosemarie Schurtz. Dear father of Reinhold Schurtz and his wife April and Kim Schurtz and Dragana Dobric. Cherished grandfather of Laura (Joshua), Ellisa, Michael, Polina and Daniel. Remembered by his sister Iris Rehm and his brother Kurt Schurtz. Helmut will also be greatly missed by other relatives and many friends.
Visitation will be held at the Dods & McNair Funeral Home & Chapel, 21 First Street., Orangeville on Thursday, March 26, 2015 from 5:00 pm to 7:00 pm.
Funeral Service will be held at the Christian Reformed Church, 50 Blind Line, Orangeville, Ontario on Friday, March 27, 2015 at 1:00 pm .
Memorial donations to the Canadian Cancer Society would be appreciated by the family.
A tree will be planted in memory of Helmut in the Dods & McNair Memorial Forest at the Island Lake Conservation Area, Orangeville. A dedication service will be held on Sunday, September 13, 2015 at 2:30 p.m. Condolences may be offered to the family at www.dodsandmcnair.com
Ford to open $760M
Chinese assembly plant
Michael Martinez,
The Detroit News
March 25, 2015
Ford Motor Co. and its Chinese joint venture, Changan Ford, on Tuesday will mark the opening of a new assembly plant in Hangzhou, China, as the automaker continues to invest in that market.
The plant will build the new Ford Edge crossover for the Chinese market. The 2015 version of the crossover is the first to go global, and will be sold in China, Europe, Asia and the United States. The North American Edge is being made at Ford's Oakville Assembly Plant in Ontario.
The $760 million Chinese manufacturing facility will be able to produce 250,000 vehicles a year, and will eventually be able to accommodate six different models.
"This world-class facility will help us accelerate the delivery of high-quality, innovative products to our customers in China," Mark Fields, Ford president and CEO, said in a statement.
The automaker already has four assembly plants, one engine plant and one transmission plant in China.
The Hangzhou plant will bring Ford's annual Chinese capacity to 1.4 million vehicles — surpassing Hyundai Motor Co.'s 1.05 million units, according to data from the companies. That will place Ford behind Volkswagen AG, General Motors Co. and Nissan Motor Co. in sales among foreign carmakers in China.
The Dearborn automaker said its sales through February this year in China are up 14.6 percent to 191,983 vehicles. In recent years it has invested billions in manufacturing in China and has leapfrogged automakers like Toyota Motor Corp. in sales there. Last fall, Ford started selling its Lincoln luxury brand in China and says that three of its top 10 best selling Lincoln dealerships come from that country.
The Edge is one of 15 new vehicles Ford hopes to bring to China by 2015.
The 2015 version of the Edge includes a number of updates, including adaptive steering (which reduces how much the driver has to turn the steering wheel at slow speeds, making parking and other tight maneuvers easier), a 180-degree front camera with a washer, enhanced park-assist and side park sensors.
The vehicle has a third row of seats that was specifically designed for Chinese customers.
Ford aims to increase global sales by 45 to 55 percent by 2020.
UAW plots strategy for
contract talks in Detroit
Michael Wayland
The Detroit News
March 24, 2015
Pay increases, health care contributions and a controversial two-tier wage structure are expected to be discussed at the United Auto Workers' Special Convention starting Tuesday in Detroit, as the union prioritizes issues for contract negotiations with Detroit automakers.
The challenge for UAW President Dennis Williams and his leadership team will be to appease rank-and-file workers, many of whom haven't received a pay increase in 10 years. At the same time, he knows he must keep labor costs for domestic automakers competitive with their non-union, foreign counterparts.
That will be easier said than done. The Center for Automotive Research on Monday released estimates that 2014 average hourly worker labor costs for automakers in the U.S. ranged from $38-$65, with Detroit automakers taking two of the top three spots.
Mercedes-Benz had the highest labor costs, at $65 per hour, up $3 from 2011. That was followed by General Motors Co., up $2 to $58; and Ford Motor Co., down $1 to $57. FCA US, formerly Chrysler Group LLC, was sixth on the list at $48, down $4 from 2011.
The estimated wage costs include everything an automaker spends on temporary and direct employees — from pension and health care contributions, to hourly wages and paid time off.
The report concludes the majority of automakers cut labor costs during the three-year period. That was largely because strong auto sales caused them to hire more entry-level workers.
"They've been able to expand employment at lower wages in this upturn of the market," said Kristin Dzicek, Center for Automotive Research director of the Industry & Labor Group.
Detroit automakers established separate wages and benefits for new and legacy employees as part of their 2007 contract negotiations with the UAW in order to become more competitive with foreign counterparts. GM, Ford and FCA US are the only automakers whose U.S. workers are represented by the UAW.
The two-tier wage system has allowed Detroit's Big Three to invest billions into U.S. plants and hire thousands of new employees. But those entry-level workers make substantially less than Tier 1, or legacy, employees who earn about $27 an hour. Tier 2 workers can make a base wage up to $19.28 an hour; that's an increase from the $15.78 they earned in 2011.
Initially, there were caps on the number of lower-wage workers at all the Detroit automakers. But those were suspended at GM and Chrysler as they emerged from government-backed bankruptcies in 2009.
At the end of 2014, less than 20 percent of GM's hourly workforce was entry-level, and about 44 percent at FCA US. Ford, capped at 20 percent, recently maxed out and announced 300-500 workers would move up from the second-tier to top wage status after Ford exceeded its cap.
UAW members have said the two-tier system has caused divides on factory floors, as workers doing the same job are being paid differently.
Williams has said he does not consider the entry-level wages acceptable for the work. He says that the days of automakers arguing that union labor costs make them uncompetitive are over, as the pay gap between CEOs and the rank-and-file grows.
"If they want to go ahead and want to talk about wages, I am more than happy to sit down and talk about their salaries," he told reporters in December.
Analysts speculate it was easy to implement the two-tier structure, but it will be much more difficult to eliminate, as the workers themselves have different priorities.
The second-tier workers rely more on bonuses and profit-sharing checks more than the traditional hourly workers. They may not want to see bonuses lowered or eliminated in exchange for bridging hourly wages between the two pay levels of workers. For legacy workers who haven't had pay raises in several years, boosting pay may be more important than profit-sharing.
According to UAW automotive locals surveyed by The Detroit News, getting rid of the system is a top concern for the upcoming contract negotiations this summer. The current contracts expire in September.
"Clearly the biggest issue this time around will be the second-tier," said Arthur Schwartz, a professor of labor relations at Wayne State University and a former general director of labor relations for GM.
About 900 delegates from more than 800 local unions representing workers at more than 1,500 employers this week will debate a common collective bargaining strategy to meet goals of the UAW's roughly 400,000 members who work in auto, aerospace, agricultural implement, public service, health care, higher education and other sectors.
Williams and his leadership team will hear from members from all sectors and finalize issues that will be raised at bargaining tables. Hourly raises, pensions and health care contributions are among other hot-button issues expected to be discussed.
"The purpose of the convention is for the UAW leadership to hear what the members have to say," Schwartz said. "The leadership has ideas of their own, but this is a chance for the locals to express their opinions."
Besides the Detroit automakers, high-profile UAW contract negotiations this year include John Deere and the state of Michigan.
The auto industry traditionally plays a major role in shaping the discussions, but others, including delegates representing about 22,000 in Michigan's public sector, will voice their concerns as well.
In June, UAW members approved the first dues increase since 1967 — a 25 percent hike — to replenish the strike fund that had fallen to about $600 million. Union leaders said they needed a healthy strike fund so companies would take seriously the threat of a work stoppage.
Williams has said striking is not something the union looks to do when entering negotiations with any company, but it has to be prepared for the worst.
"Striking is a failure on both parties' part," he told reporters in December. "We don't plan on failing, but we're going to be prepared."
The 2015 contract talks mark the first since 2007 in which workers at GM and Chrysler have the right to strike; the UAW gave up that right for the 2011 talks as a condition of the government bailouts of GM and Chrysler.
Apple's drive for world auto
dominance spooks the industry
GREG KEENAN, BRIAN MILNER
AND OMAR EL AKKAD
The Globe and Mail
March 22, 2015
The Leander Kahney family in San Francisco is exclusively an Apple household. At last count, they have six iPhones, eight iPads, three iMacs, two MacBooks, more iPods than Mr. Kahney can count and assorted accessories, such as Apple TVs and the WiFi-based Time Capsules.
Now that its much-ballyhooed watch is just weeks away from hitting the market, the question is what's the next big thing for the world's leading technology marketer. And the answer could well be its boldest venture yet: an Apple car.
Loyalists like Mr. Kahney, 49, can hardly wait to get his hands on one, if his wife lets him. "I also might have to mortgage my house to do it."
The once-fleeting notion that Apple Inc. might disrupt the automotive sector the way it successfully assaulted the markets for music, cellphones and tablets has become more concrete in recent weeks. It has electrified the Apple community and Mr. Kahney, publisher of Cult of Mac, one of the biggest websites in the world devoted to everything Apple.
"I'm really excited about it, it's really intriguing," he says. "What kind of car are they going to build? Will it be an electric car, a self-driving car or a regular car with a really nice interface? Even just from a sheer design standpoint, it's fascinating."
Similar questions – and the ultimate issue of whether an Apple iCar, iRoadster or iRagtop will hit the road early in the 2020s – are also very much on the minds of senior executives of the world's auto makers.
Reports about Apple preparing to enter the auto market surfaced last month, leading to frenzied speculation about whether it plans to sell its own car, partner with auto makers or try to grab more of the electronic and software content in vehicles amid growing consumer demand for better connectivity and the approach of autonomous cars.
Apple is keeping mum, but enough information has leaked out about its extensive research – including the code name Project Titan – to indicate that the tech giant is determined to win a bigger piece of a global market that generates $1.6-trillion (U.S.) in revenue a year from new car sales alone.
Nothing has the potential to transform the auto industry quite like the entry of the world's most valuable company into the market.
Apple's cash pile of $179-billion is 20 times the annual capital spending of Ford Motor Co. Its profit is nearly four times higher than that of Toyota Motor Corp., even with the depreciated yen. And its global clout and market value in excess of $740-billion would qualify it for membership in the Group of 20 if it were to become a nation.
Whatever form its vehicle plan eventually takes, it represents an existential threat to the auto club – some of whose members barely survived a brush with death a few short years ago.
The industry is already dealing with tectonic shifts.
The internal combustion engine, a technology that put the world on wheels more than a century ago, is being challenged as never before. Auto makers are spending tens of billions of dollars on battery propulsion and fuel cell systems to meet regulations that will come into force over the next decade and require lower emissions.
Drivers are demanding in-vehicle entertainment, electronic and communication systems that connect seamlessly with those in their homes and offices, as well as such navigational devices as active cruise control, lane departure warning systems and apps that find restaurants and gas stations.
As an example of how swiftly the industry is moving, electric vehicle maker Tesla Motors Inc. said this week that a software upgrade will permit owners of its model S car to drive without touching their steering wheels as early as this summer.
Looming on the road ahead is the autonomous vehicle, which will require game-changing leaps in technology.
But all of that pales in comparison to the disruption that would be caused by Apple, with its massive resources and a huge and loyal customer base exemplified by people like Mr. Kahney and his family. "The issue here is these guys are monsters," says veteran auto industry executive Tom LaSorda, former chief executive officer of Chrysler LLC. "They're big, they're effective, they have cash. I bet you this is being discussed in every boardroom. And if it's not, they need to give the board a shakedown."
To understand how an invasion by Apple upends an existing market and forces companies to swallow tough medicine in a hurry, there's no need to look any further afield than Research in Motion Ltd., now called BlackBerry Inc., after the smartphone that once dominated the market but is now struggling to stay relevant.
Jim Balsillie was co-chief executive officer of RIM when Apple and Google targeted the company's lucrative hold on the smartphone market.
He recalls how RIM went from being the disruptor in the cellphone arena, effectively blowing up such competitors as Nokia and Motorola and building a $20-billion business, to a disruptee.
"There was not an appetite for strategic chemotherapy at RIM, because organizations hate it," Mr. Balsillie says. "In tech, you have a window in time [to adapt to the new marketplace reality]. If you wait too long, then it becomes palliative."
The auto industry now faces a similar assault and the Fords, Toyotas, Volkswagens and General Motors of the world have to ask themselves if they're prepared to undergo their own strategic chemotherapy, he says.
For the moment, in public, they are adopting the sober stance that they are paying attention to the Apple threat, while many former auto executives and industry pundits drone on about how Apple can't possibly succeed in this business because car manufacturing is a hugely capital-intensive, low-margin enterprise that is dramatically different from the industries it has already disrupted.
"We take anybody with that kind of capability and cash and technological prowess [entering] our industry seriously," says Joe Hinrichs, Ford's president of the Americas. "But of course, our focus has been on how do we make sure that we are part of the disruption, that we are part of the solutions of the future."
The cloud
Apple's big advantage over traditional car makers is simple, yet hard to overcome, and it lies in the cloud.
The cloud consists of remote servers that store vast amounts of data and run applications, giving everyone on the planet with a connected device access to unlimited computing power essentially for free. It is also revolutionizing the way companies do business by instantly providing them with vast amounts of customer data. And it means Apple would not need to acquire car manufacturing capacity or build assembly and distribution networks in order to create chaos in the club.
It's an advantage few traditional manufacturers, including auto makers, fully grasp, let alone have the ability to exploit.
Cloud computing has such transformative power "it makes the Gutenberg press look like a non-event [in terms of technological change]," says Francis McInerney, managing director of North River Ventures in New York and an adviser to Japanese electronics makers and other companies faced with a rapidly changing competitive landscape.
In Apple's case, its huge server capacity enables all of its products, processes, applications and communication tools to link together, producing a single flow of information that the company can tap into quickly.
Everything it produces, from iPhones and iPads to Macs and the new Apple Watch, is just another means of connecting seamlessly to its cloud. Vehicles would be treated the same way, essentially turning them into tablets or Macs on wheels.
"Apple thinks from the cloud out," says Mr. McInerney, who would definitely line up for an Apple vehicle. At least then, he says, he would be assured of a better communications interface than the clunky one in his new upscale German model.
"If you're an Apple or a Google, it allows you to use the same power to manage your supply chain that you use to manage your customers," he says.
"That's a revolution in thinking that allows you to identify all the cash-wait states [where money sits idle] and to collect a stunning amount of customer information in real time. Put the two together and you're turning that information into cash at an accelerated rate. Car companies don't think like that."
What Apple's astute boss Tim Cook, a logistics expert, realizes is that it takes a certain kind of business model to enable the company "to roll up all the industries that it's rolling up, as it hooverizes one after the other," Mr. McInerney says.
Simply put, Apple's formula for continued rapid and profitable growth amounts to "cloud plus logistics," he says.
Suppliers
Many of Apple's electronics suppliers also work with auto makers and they are salivating at the thought of doing more business with the computer giant, which is renowned for determining all of its parts needs and paying for them in full a year or more in advance.
This much is certain: Apple will not make or sell vehicles the traditional way and it has no interest in pursuing a low-margin business of any sort.
"Apple typically starts with the supply chain and works backwards," Mr. McInerney says. "The product itself is less important."
But it would be logical to start with electric cars, because they involve fewer moving parts, which will make them cheaper to produce reliably once Apple can get the high cost of batteries down. Part of its engineers' secret research is believed to be focused on car batteries.
Mr. LaSorda notes that the prevailing method of developing vehicles in the auto industry is to start with a great exterior design and work inward. The centre stack that holds the electronic interface is then drawn up to fit into that space.
Apple, he says, is likely to start from the centre stack and work out, because that's really where the driver interacts with the car. The key electronic and entertainment systems that need driver input will be voice-activated.
"They can just create a voice over to the car that says 'put No. 3 speed on my air conditioner, get me to 70 degrees. I want to go to this store, where is it?' The navigation system takes over; I don't plug anything in."
Apple is already active in the auto information and entertainment space with its CarPlay system, which uses Siri for voice-activated commands, but requires an iPhone to be plugged in.
The prize for developing its own car, or a complete electronic system that controls an autonomous car, would be a bigger slice of an industry that in new car sales alone is four times the size of the annual smartphone market of $400-billion and dwarfs the $266-billion personal computer market, according to figures compiled by analysts from Morgan Stanley & Co. LLC.
Dominance
In its remarkable growth trajectory, Apple gobbled its way through markets valued in the tens of billions of dollars, like music players and laptops, then moved into hundred-billion-dollar-plus businesses like smartphones.
Ventures like the high-tech watches and streaming TV may prove to be nice niches, but are too small to have much impact on the top or bottom lines.
At its current size, Apple can only expand to any significant degree by going after far bigger game. Mobile payment services hold promise, although competition will be fierce.
"They've got to be in the trillion-dollar markets. And there are only two that are worth looking at: health care and autos," Mr. McInerney says. Apple is hard at work on both.
On the automotive front, the changes in electronics and technology now sweeping the industry represent an immense opportunity for Apple and Google Inc., in part because autonomous vehicles will provide more time for people sitting in vehicles and thus an even stronger demand to be connected. Google has a self-driving car in development.
"We estimate that the value of the automobile will evolve from being a 90-per-cent hardware device today to being a 60-per-cent software device once cars are fully autonomous," Morgan Stanley analysts wrote in a recent report. "This is critical to Apple's involvement in the car. Apple has both hardware and software design expertise and the rebalance of the hardware versus software equation in the car can create a void that only Silicon Valley (and a select few existing auto makers and suppliers) can fill."
To ward off the attack of the tech monsters, Mr. Balsillie suggests a defence neither the auto industry nor competition watchdogs seem likely to embrace: Team up and deploy their combined market clout to head them off by coming up with their own value-added model.
"If I were the automotive guys, I would get together … without violating collusion [rules] and grab my competitor's smartest strategic guy and tell him we have to co-operate before they divide and conquer us."
Like the record companies and cellphone makers before them, auto makers are focused on besting their main rivals. "They don't realize there's a bigger competitor around the corner that can wreck everybody's business model by introducing their own," Mr. Balsillie says.
The music industry only needed three majors to team up to offer an effective downloading service like Apple's. But two of them couldn't even reach a deal. So Apple, which produces no music and employs no musicians, swooped in.
"They were stuck in their existing competitive world, and tech preys on that," Mr. Balsillie says. "They count on the entrenched guys being so stuck in their models that they don't rethink [them], and they know they're not really capable of topping them on the innovation front."
The closest thing to a confirmation that Apple is working on a car comes not from the company itself, but from a lawsuit.
In February, Apple was sued by a company called A123, which specializes in lithium-ion batteries for passenger vehicles and similar uses.
The lawsuit, which claims Apple poached several of A123's employees, claims the iPhone maker "is currently developing a large-scale battery division to compete in the very same field as A123."
One of the most significant impacts of an Apple foray into the world of cars will likely be be a jolt to the battery industry.
For years, a host of researchers, startups and established companies have been working on developing batteries that are both cheap enough and efficient enough to make electric cars the norm, rather than an anomaly.
But none have the size nor the financial means of a corporate behemoth like Apple.
"Tesla validated the commerciality of the electric car and goaded major car makers the world over to get serious about them," says Steve LeVine, a journalist and adjunct professor at Georgetown University whose latest book, Powerhouse, charts the latest efforts to build a better battery. "Apple's entry is Tesla on steroids."
As such, car companies that previously ignored or underestimated the electric car market – and the broader notion that cars will one day become moving smartphones, rather than basic transportation products – have a very limited amount of time to reassess.
In his meetings with dozens of car company executives, Thilo Koslowski, vice-president and analyst at the research firm Gartner's automotive unit, says he has seen that the industry's old guard is well aware of the transformation.
"The car industry has three to five years left to determine where they want to be in this new age of mobility," he says. "This is a huge disruption."
Owner is ultimately responsible
for fixing recalled car
Phil Berg,
Car Culture
March 20, 2015
There's a saying that the worst-running car in a repair shop's parking lot belongs to the mechanic.
It's the only car that he's not being paid to fix, so the priority is low on his repair list. However, all the mechanics I know eventually fix their cars, and the problems they tolerate don't present a danger — meaning the brakes, steering and safety equipment like air bags and belts all work.
But a lot of the rest of us are less diligent.
Record-setting recalls of cars from automakers last year totaled 63.9 million vehicles, about a fifth of all the cars and trucks on the road in the U.S. That number's so mind-boggling (that number of cars would stretch eight times around the world), it would mean that to fix all of last year's auto issues, all of the country's 17,000 dealers would have to repair 15 cars every day for an entire year.
And Neil Steincamp, managing director of Farmington Hills financial advice firm Stout Risius Ross, says he expects the number of recalls to increase. "I believe we will see an increase in recall volumes," he told an industry audience in February.
Last year's big recalls included more than 19 million cars by Honda for faulty air bags. There were 12 million cars recalled by GM for faulty ignition switches that would disable the air bags. The National Highway Traffic Safety Administration fined carmakers a record $126 million in civil penalties, says Steincamp. That's more than all the fines they've levied since NHTSA started to enforce recalls in 1966.
This flurry of action is a combination of the pressure automakers are under in a fiercely competitive industry and the new enforcement direction from NHTSA.
David Friedman, acting NHTSA administrator for almost all of 2014, explained during the GM ignition switch recall that his mission was to send notice to the automakers: "There were some clear lessons learned that I wanted to make sure every automaker knew regarding the poor way GM handled this." And his successor last December, Mark Rosekind, is going to be even tougher: "In a safety culture, if people aren't worried, they aren't going to act in a proactive safety way. NHTSA needs to be the enforcer."
But there's a weak link in the recall system: It all relies on vehicle owners to actually take their cars to the dealer and get them fixed.
Like the hard-working mechanic, car owners don't get paid to get their cars fixed.
Steincamp says about a third of all cars recalled are never brought in to be fixed by their owners. That means 21 million broken cars recalled in 2014 will never get fixed. The number of cars recalled in the U.S. but never fixed, and still on the road, is estimated to be 46 million today. That's about one in every six vehicles on the road with something broken.
It's serious: One of the five deaths resulting from faulty air bags in Hondas happened in a car that had been recalled but never fixed.
Of course, a lot of recalls are not for safety reasons. But, still, lots of folks are driving around in broken cars. Steincamp says that the fix completion rates for recalls are slowly increasing, due to carmakers using strategies such as texting, contacting car owners through social media, multiple emails, and improving websites that vehicle owners visit — both at the automakers and at NHTSA.
Owners report that they don't take their cars in to be fixed because it's inconvenient.
Often, car owners don't understand that it's important to do. Some don't think their car is involved. And consumers sometimes won't take their cars to the dealer because they don't believe the car will be fixed correctly.
In addition, the older the car, the less likely it will be brought in for a fix. In fact, Steincamp says that after a car is 10 years old, it may never show up for a fix. Finally, it's sometimes hard to track down the owner. Rules for contacting car owners vary by state, and there is no national database, and changing these rules impacts privacy.
So it's up to us car owners — let's get our cars fixed. At the very least, it preserves the car's value.
2015 Ford Mustang EcoBoost half
the cylinders, 90 per cent as fun
G.R. Whale
Globe and Mail
March 19, 2015
Five years ago a Mustang GT's 4.6-litre V-8 offered 315 hp and each one carted around 5.2 kg of weight. The new Mustang's turbocharged engine is literally half the size but brings 310 hp and the same power-to-weight ratio. Changes elsewhere aren't as dramatic but it's still an impressive advance. (Overall score: 7.2)
Walkaround
Wider, lower and sleeker, Mustang is now more elegant sports car than blunt object. Bodywork wraps tighter around wheels pushed further outboard, the snout's a rounded anvil, the roof tapers inward aft, all the pinches and tucks befitting a tailored suit better than one-size-fits-all.
Classic long nose, short deck proportions carry traditional Mustang styling cues—-triple-segment LED running lights mimicking original headlight nacelles, triple rear lamps with sequential signals, galloping ponies everywhere—without coming off too retro. The performance pack even deletes the rear spoiler. Yeah!
Alas, the rear panel's significant slope makes it difficult to reach the chrome badge and close the trunk without scratching paint or gloss-black trim. (Score: 8.2)
Interior
Initially you'll find this a mild improvement: Better materials, new centre panel, extra gadgets and room, a telescoping steering column finally. I wonder if the original designers knew how well their dual-eyebrow dash lends itself to right and left-hand drive cars…or how long it would last.
Stay longer and you'll find the seats' support and retention very good, the cabin quieter, outward visibility no worse off. The gauge pack top-centre has me wondering which Ford I last drove with a realistic oil pressure gauge.
Rear seats are surprisingly comfortable for those who fit, and drop to expand the 380-litre trunk. The 12-speaker Shaker sound system is aptly named but doesn't consume much trunk volume as prior.
More features mean more controls on dash and wheel. The left thumb is kept busy with in-dash menus, the right with various drive mode switches hard to read in daylight. Ambient and instrument lighting are individually adjustable for color and dim, and the manual gearbox brightens the gauges at redline. (Score: 6.8)
Tech
"Track apps" let you gather auto-tester data, none of which you'd watch while generating it. The SYNC MyFordTouch system is familiar, my big complaint the smallish "buttons" pickier than my smartphone.
A rear camera, active noise cancellation, MyKey and seven airbags are standard; adaptive cruise, blind-spot/rear cross-traffic and forward-collision warning optional. With sensitivity "high," impending forward collision alerts were frequent, at "low" I was still looking for an off switch.
Some manual Mustangs offer a line-lock and launch control for racing and burnouts, though I didn't see what the owner's manual says about that and warranty. (Score: 6.3)
Driving
320 lb-ft of torque launches the car well, reaching 100 km/h only a second or so behind the V-8. It's all mid-range punch from 2,000 rpm to about 5,300—revving further only adds noise, and nothing pleasant like the V-8.
Either gearbox works well and gives similar performance. The manual shift is precise and mechanical, clutch takeup and effort fine even for traffic. Paddle the automatic a gear higher and you'll be smoother with more progressive boost buildup; paddle down for instant throttle steering. A V-8 deserves the manual, the EcoBoost might be the better alternative if you demand an automatic.
Only the 2.3's automatic is less-efficient than the manual in city consumption, rating 11.0/7.4 (0.8-2.9 l/100 less than V-6, 1.8-4.9 less than V-8). I did 11 in town and upper 6s on the highway, respectively 5 and 2.5 better than a taller-geared V-8 in identical conditions.
The nose-lighter 2.3 dives into corners eagerly, stays fairly flat and stable, and rotates gently and predictably. Accurate steering has better heft in sport mode; reserve "comfort" for an injured arm. The rigid new structure yields good body control without slop and a surprisingly comfortable tourer worthy of a GT badge. I noted only rear tire noise on certain highway surfaces.
With the performance pack—a wholesale chassis upgrade including stickier tires and GT brakes, it's faster and even more fun to drive because of added grip and even more tossable nature. Road quality will determine if the firmer ride is worth it. (Score: 8.3)
Value
EcoBoost is a worthwhile $3,000 more than V-6, $9,000 less than V-8. A Premium 2.3 with Performance Pack is $500 less than the plainest GT, and I expect better-sounding aftermarket exhausts any day. A rear-drive Camaro 2LT or all-wheel drive WRX Sport-tech is a bit more, rear-drive BRZ and front-drive GTI a bit less. (Score: 6.4)
Conclusion
The 2.3 Mustang is stylish, capable, comfortable, efficient and really fun to drive. True, a V-8 is quicker and sounds better, but if you change direction or brake more than you go full-tilt to 120 km/h, or have a pony-car budget for a muscle-car purchase, the 2.3 is the way to go.
Ford to debut new
cloud-based infrastructure
Michael Martinez,
The Detroit News
March 18, 2015
The Dearborn automaker said Tuesday it's partnering with Microsoft Corp. to create a cloud-based infrastructure from which customers can wirelessly download updates for its new Sync 3 infotainment system, remotely lock or unlock their vehicles and check battery-charge levels of their electric plug-ins. Ford previously ditched Microsoft for Blackberry's QNX software for the creation of the new Sync system.
The automaker's cloud-connected services will use Microsoft's Azure global cloud-based network to beam information into the vehicle.
The system's biggest benefit will be for Sync updates. Instead of owners taking cars into the dealership every time the software needs to be updated, it will instead download the information straight from the cloud, saving Ford and its customers time and money.
"It's better for the customers, better for the dealer and better for Ford," said Don Butler, Ford's executive director of connected vehicle and services.
The cloud services won't cost anything and will be offered when Sync 3 is launched later this summer, Butler said. Ford has not said on which vehicle the new Sync will debut.
The move comes as the industry increasingly turns to cloud-based systems.
FCA US, formerly Chrysler Group, has had the capability of performing minor over-the-air updates, through its Uconnect infotainment system, since September 2012. The company as recently as December updated four 2015 models to include vehicle diagnostics capabilities that are monitored and sent to drivers.
GM does not remotely update its infotainment system at this time.
Tesla Motors Inc. utilizes over-the-air updates the most, analysts say. When the National Highway Traffic Safety Administration issued a recall in January 2014 for nearly 30,000 Model S electric cars due to a possible overheating issue during charging, the electric car company conducted an over-the-air software update that didn't require owners to take cars to dealers.
Butler said all the data transmitted over Ford's cloud infrastructure will be secure. Sync software updates will be stored in Azure's public cloud since it doesn't contain sensitive information. Other private data will be stored in Ford's privately controlled cloud.
John Fikany, a Microsoft executive, said the move will help Ford develop more wireless services in the future: "The platform will provide rapid development of apps and services. This is just the beginning of what's possible."
Ford starts production
of two engines in Ohio
Melissa Burden,
The Detroit News
March 17, 2015
Ford Motor Co. said it has begun production at its Cleveland Engine Plant of two engines for the first time in North America, including a new 2-liter twin-scroll EcoBoost engine.
The plant is now producing the twin-scroll 2-liter and 2.3-liter EcoBoost engines. Ford in 2013 added $200 million in investment and 450 new jobs at the Cleveland plant to help meet demand for EcoBoost engines and in a move to assemble the engines regionally.
Ford previously produced the twin-scroll 2-liter and 2.3-liter EcoBoost engine for North America at its plant in Valencia, Spain. That plant will continue to produce 2-liter EcoBoost engines for Ford vehicles built in Europe and will continue to machine and ship components for Ohio built engines.
The twin-scroll 2-liter EcoBoost engine is available on the redesigned 2015 Ford Edge, which Ford is launching in the first quarter. The 2.3-liter EcoBoost engine is available on the 2015 Ford Mustang, Ford Explorer and Lincoln MKC vehicles.
Cleveland Engine employs about 1,300 workers who also build the 3.5-liter EcoBoost and 3.7-liter V-6 engines.
"With more than 4 million EcoBoost-powered vehicles on the road today, Cleveland Engine has been at the forefront of our plan to provide our customers with fuel-efficient, affordable engines," Bruce Hettle, Ford vice president of North American manufacturing, said in a statement.
Ford said the plant in Brook Park has produced more than 1 million EcoBoost engines since 2009 when the automaker introduced the fuel-saving engines. The EcoBoost engines combine turbocharging, direct injection and variable valve timing to help with fuel economy.
Production of the 2-liter engine at the Cleveland plant previously had been slated to start by the end of 2014.
U.S. upgrades Ford
Fiesta
door latch probe
David Shepardson,
The Detroit News
March 16, 2105
Washington — The National Highway Traffic Safety Administration said Tuesday it is upgrading an investigation into hundred of complaints of doors failing to latch or flying open into nearly 486,000 2011-2013 Ford Fiesta cars — as well as the 2013 Fusion and Lincoln MKZ.
NHTSA launched a preliminary investigation last year into 2011-13 Fiestas. NHTSA said it has received 207 reports related to the alleged problem, with 65 claiming doors opened inadvertently while the vehicle was in motion.
Two injuries were reported, both caused by a rebounding door striking a person after they attempted to close it.
Ford also told NHTSA that the 2013 Ford Fusion and Lincoln MKZ use the same door latch as the Fiestas NHTAS has received 11 reports on these vehicles, with four allegations of inadvertent opening. NHTSA added those models to its investigation.
An engineering analysis is necessary before NHTSA can formally ask an automaker to recall vehicles it believes pose an unreasonable risk to vehicle safety.
Ford spokeswoman Kelli Felker said the automaker is cooperating.
The automaker said it has 451 reports related to the problem. One involved an incident in which a door opened while driving at low speed and struck another vehicle. Ford said it has 1,079 warranty claims related to door latch failures.
Ford told NHTSA "it does not believe that a latched door experiencing this condition will inadvertently unlatch and that there are many overt warnings associated with a door that does not latch."
NHTSA noted that the rate of occurrence for this failure is comparable to other door latch failure investigations and questions the effectiveness of warning signals, given the number of complaints alleging that doors opened while cars were moving.
F-150 resale values
rise over '14 model
Michael Martinez,
The Detroit News
March 15, 2015
Ford Motor Co.'s new aluminum-bodied F-150 has a better resale value compared to the 2014 model thanks to reduced weight and better fuel efficiency, according to data from ALG, a division of TrueCar.
The automotive data company found that the 2015 pickup will retain 58 percent of its value after three years, up from 52 percent for last year's truck. The F-150 has the second-best residual value among pickups, behind only the Toyota Tundra, which retains 63 percent of its original value.
Eric Lyman, ALG's vice president, partner and development and editorial, said the jump is due to the dramatic redesign.
"The fact that it's all new and has a higher residual is not unique to the marketplace," Lyman said. "We see there's always typically a big bump in what consumers are willing to pay with a new model year and all-new designed vehicle."
A unique feature that did help the F-150's value, Lyman said, is the fuel efficiency improvements thanks to about 700 pounds of weight savings from its aluminum body.
The most fuel efficient 2015 F-150 can get up to 26 miles per gallon on the highway — tops among all gas-powered full-size pickups and 29 percent better than last year's truck.
Ford has said sales of the truck, which launched late last year, are going well. On a conference call with analysts and reporters Thursday morning, Ford said three shifts are at full-scale production in Dearborn, and the first production F-150 will roll off the line at its Kansas City Assembly Plant on Friday. The automaker will be at full production at both of its F-150 plants in the second quarter of 2015.
Ford said it added 2,700 new employees between facilities in Dearborn and Kansas City to produce the new truck.
Best resale values among 2015 pickups
■Toyota Tundra 4WD: 63%
■Ford F-150 4WD: 58%
■Chevrolet Silverado 1500 4WD: 51%
■GMC Sierra 1500 4WD: 51%
■RAM 1500 4WD: 46%
■Nissan Titan 4WD
Ford's Europe sales rise
11.7% in February
Michael Martinez,
The Detroit News
March 14, 2015
Ford Motor Co. said Friday that strong demand for new vehicles led to a 11.7 percent increase in its European sales last month.
The Dearborn automaker sold 78,100 vehicles in its 20 European markets in February and has sold 166,600 vehicles there during the first two months of the year. Its market share also rose 0.3 percentage points to 7.3 percent last month.
For the first two months of the year, Ford sales are up 6.8 percent and its market share is up to 7.5 percent.
"We are seeing very healthy customer response to our newest vehicles — from the Mondeo, Focus and EcoSport to our all-new line of Transit commercial vehicles," Peter Fleet, vice president, sales, Ford of Europe, said in a statement. "The market is strengthening gradually and we expect to continue to build momentum this year with exciting new vehicles like the Focus ST, Mustang, S-MAX and the launch of our new upscale Vignale line."
Sales of the all new Mondeo were up 33 percent year-over-year, Ford said. Sales of the new Focus were up 30 percent compared to the same month last year, and February sales of the Kuga SUV were up 40 percent — it's best February since its 2008 launch.
Commercial vehicle sales — including Transit, Transit Custom, Transit Connect and Transit Courier — were up 40 percent in February and 36 percent year-to-date.
Fiat Chrysler CEO says
tie-up with GM, Ford 'feasible'
Tommaso Ebhardt,
Bloomberg News
March 13, 2015
Fiat Chrysler Automobiles NV is open to a combination with General Motors Co. or Ford Motor Co., and said a deal with one of its larger U.S. counterparts would be "technically feasible."
"We don't have any restrictions," Chief Executive Officer Sergio Marchionne said Thursday in an interview in Geneva. The condition for any deal is "saving the highest amount of capital" on developing new vehicles.
"There's bantering that goes on all the time" he said, when asked about talks with GM and Ford. Still, there is "nothing substantive."
Marchionne, the architect behind the merger that created Fiat Chrysler, has been a vocal proponent of consolidation in the auto industry. High costs for developing cleaner cars and adding self-driving features put pressure on traditional automakers, which also face the threat of new competition from the likes of Apple Inc. and Google Inc.
Marchionne sounded less enthusiastic about the potential of tying up with PSA Peugeot Citroen, doubting that the French manufacturer would solve London-based Fiat Chrysler's problems. He also said he never had talks with Volkswagen AG executives about a combination.
Representatives of Ford and GM said they are focused on their own businesses.
"We have no other plan or interest other than continuing to accelerate our own One Ford plan," said Susan Krusel, a spokeswoman for the Dearborn, Michigan-based automaker.
Said GM's Tony Cervone: "We have our strategy and we are working on it. This is not worthy of a comment."
Mighty Ford F 750 TONKA Dump Truck Is Ready For Work Or Play
The Ford F 750 TONKA, the ultimate TONKA truck,
is built on all-new 2016 Ford F 650/F 750, the
anchor of Ford's commercial truck lineup.
By Wheels.ca
March 11, 2015
The wraps come off the mighty Ford F 750 TONKA truck – the nearly 10-foot-tall ultimate TONKA truck that is also Built Ford Tough – at the recent NTEA Work Truck show in Indianapolis.
Based on the all-new 2016 Ford F-650/F-750, the bold dump truck is painted signature TONKA yellow with a custom blackout nostril grille and fully functional dump body from Truck Tech Engineers.
The Ford F 750 TONKA is ready to move dirt at job sites, create new playgrounds and fuel the imaginations of kids of all ages.
The mighty Ford F-750 TONKA truck – which will be on display at major work truck, commercial and vocational trade shows through the end of the year – is a collaboration between Ford and Funrise Toy Corporation, TONKA manufacturer of TONKA branded products under license from Hasbro.
Offered in Regular Cab, SuperCab and Crew Cab styles and in straight-frame, dock-height and an all-new dedicated tractor model for heavy towing applications, the 2016 F-650/F-750 features a bold look inside and out.
The Ford F 750 TONKA's exterior styling commands attention on the road and at the job site with Built Ford Tough looks that also help deliver upgraded functionality. The custom grille framed by hallmark Ford nostrils helps improve airflow for optimal cooling performance.
The F 750 TONKA is powered by the Ford-built and proven 6.7-litre Power Stroke V8 diesel paired with a commercial-grade six-speed TorqShift HD automatic transmission. The available power takeoff provision that runs the dump body can power other accessories in the field, including a crane or other vocational equipment.
The 6.7-litre Power Stroke V8 turbo diesel engine features three engine power ratings, including best-in-class standard diesel horsepower and torque for medium-duty trucks, and no vocational limits on top ratings.
Former UAW vice
president Holiefield dies
Michael Martinez and
David Shepardson,
The Detroit News
March 10, 2015
General Holiefield, a former United Auto Workers national vice president for Chrysler Group LLC who helped bargain for more jobs and higher wages, died Monday evening, family spokeswoman Alysyn Curd confirmed. He was 61.
Holiefield had been in hospice care since Friday at Harper Hospital battling pancreatic cancer; relatives had been contacted earlier Monday to visit him after his condition worsened.
The Harrison Township resident was elected UAW vice president in June 2006 and was re-elected in 2010. He directed the Chrysler, heavy trucks and General Dynamics departments. He led Chrysler's contract negotiations in 2007 and 2011, helping craft deals that included wage raises, profit-sharing plans and increases in the number of jobs. He was instrumental in helping the automaker receive federal assistance that stopped it from going bankrupt in 2009.
"That automotive company will never be the same; he really cared about the workers," said his wife Monica Morgan-Holiefield late Monday. "He was always caring about people. He never thought about himself."
That spirit was evident in his final days, Morgan-Holiefield said, when he would ask his wife to buy sweets and baked goods for the hospital staff and other patients.
Before being named vice president, Holiefield was an administrative assistant, assistant director of the union's DaimlerChrysler department, appeals board coordinator and a servicing representative, where he worked closely with UAW members and local union leaders at Chrysler manufacturing and parts plants in Michigan and Indiana.
"He led the UAW Chrysler membership through a particularly tumultuous time in the company's history and negotiated a contract that returned the business to a strong competitive position in the United States," said Kristin Dziczkek, director of the industry and labor group at the Center for Automotive Research.
Holiefield became a UAW member in 1973, when he started at the Chrysler's Jefferson assembly plant in Detroit. In 1975, he transferred to the Chrysler axle plant in Detroit, where he became involved with UAW Local 961, working on various standing committees, including civil rights, community action program, union label and bylaws.
"The entire Fiat Chrysler family is deeply saddened by the passing of General Holiefield," said Fiat Chrysler CEO Sergio Marchionne. "He was a true partner, friend and mentor to many during his 40 years of service to Chrysler and the UAW. Under his leadership, General helped guide the company through one of the most difficult periods in its history.
"As a result, Fiat Chrysler was able to provide a secure future for those who chose to stay and for the nearly 15,000 new UAW-represented employees that have joined the company since June 2009. He was a champion of the Company's efforts to transform the culture within our manufacturing facilities, which has resulted in significant improvements for our employees and our products. When he retired in November 2013, he left Fiat Chrysler better positioned to compete in a global marketplace. He was one of our own and his mark will be forever present across the assembly lines in all of our U.S. facilities. We extend our sincerest sympathies to his family during this very difficult time."
In addition to his work, he was a member of the NCAAP, the UAW Legal Services Board and the Coalition of Black Trade Unionists. Morgan-Holiefield on Monday called her husband a gentle giant who loved dancing, playing the bass guitar and riding his motorcycle.
"He was my world," she said. "We laughed a lot and always did fun things."
Holiefield took a leave of absence from his UAW position in January 2014, one month after he accidentally shot Morgan-Holiefield in their home. She recovered. He pleaded no contest to a misdemeanor charge of reckless use of a firearm and said the incident occurred when he was cleaning several loaded guns. He retired from the UAW in June 2014.
In addition to his wife, he is survived by three children.
"He is at peace now," said Chalfonte Lark, one of Holiefield's children.
Lark flew last month to Detroit to be with his father, and shaved his head in solidarity when his father lost his hair to chemotherapy.
"I really appreciate everything he's done throughout my sister's and brother's lives," he said.
Funeral information was not immediately known.
2015 Ford F 150 Winter Drive
To prove its mettle, The 2015 Ford F 150 pickup was taken to a
quarry in Charlevoix, PQ, where it was put through its paces
over logs, snow and boulders.
Toronto Star
Jim Robinson
March 9, 2015
The Pros and Cons
What's Best: Thirty-four models, hundreds of configurations, thousands of variations to meet every want or need.
What's Worst: Sheer size. It may be 700 lb lighter, but it looks 700 lb bigger.
What's Interesting: Ford's decision to go against perception and opt for aluminum in the body and box construction, making it a first for pickups.
Ford puts its aluminum F-150 to the test
CHARLEVOIX, PQ: It has been a good year for the 2015 Ford F 150 pickup truck.
Named the North American Truck of the Year and the AJAC Canadian Utility of the Year, it has also been getting a massive amount of publicity for Ford's decision to switch to aluminum for body construction and truck beds.
Ford sold 126,000 F 150s in Canada in 2014, making it the best selling vehicle in the country, beating the best selling car in Canada, the Honda Civic, by two-to-one.
Read the Review for the Ford F 150
But proof is in the pudding which is why Ford brought a brace of new F 150s to the Charlevoix region of Quebec in the middle of February to prove the pickup can more than cut it in our Canadian winter.
By good luck, I drove with Larry Queener, product manager on the F-150, and he explained that the road from the inception of the new generation F 150 was more than 10 million miles of testing long even before it got to Charlevoix.
One of these tests was more than 1,000 extreme engine temperature loops that were the equivalent of driving non stop from Death Valley to the Arctic Circle 350 times.
During our drive he talked about F 150 and when he started work on it four years ago.
One of the early decisions was to go with aluminum, which resulted in a weight saving of 700 lb. That is equal to the weight of three, full-sized refrigerators or 20 concrete blocks leading to a 500 lb plus greater payload.
Queener pointed out the aluminum used on the F 150 body and bed is military-grade aluminum alloy like that used on armoured troop carriers and the Space Shuttle, not something like the flimsy aluminum home siding most of us think of.
This is attached to a frame that is 78 per cent high-strength steel, as opposed to 23 per cent in the previous F 150. This steel is stronger than that used on some of Ford's heavy-duty pickups.
He said part of the testing of the new truck saw it put into real-work duty at the Barrick gold mine, where the service life of a light pickup can be very short.
In the mines, huge pieces of drilling equipment are dumped in the boxes, where they rattle around and sometimes rip holes in the box sides.
With the aluminum, the F 150s took a beating but did not fail.
The other objective was to lower the number of trim levels from eight to five, while offering four engines, two of them with EcoBoost technology.
They are the normally aspirated 3.5-litre DOHC V6 (283 hp, 255 lb/ft of torque); 2.7-litre EcoBoost V6 (325 hp, 375 lb/ft); 5.0-litre DOHC V8 (385 hp, 387 lb/ft); and 3.5-litre EcoBoost V6 (365 hp, 420 lb/ft).
But with a choice of two- or four-wheel-drive, and multiple bed lengths and cab configurations, the number of ways to mix and match, not to mention trims, numbers into the thousands.
The purpose for journalists' visit to the Charlevoix region of Quebec was to try out the new F 150 in real winter conditions and in a number of scenarios, starting with a slalom on a airport runway only partially cleared of snow so we could get out of shape, but not worry about hitting anything.
With traction control off and hard on the gas, the 4X4 5.0-litre I drove slithered back and forth, but went where it was aimed, albeit with a lot of contra-steering.
Braking was the fun part, even in the snow, and I didn't kill a single cone.
Queener and I teamed up for the towing portion of the test, hauling first a 25-foot boat and trailer and then a generator lashed down in the bed with the 5.0-litre both times. With a payload rating of 1,496 kg (3,300 lb) and trailering of 4,989 kg (11,100 lb) there was no real sensation of pulling these numbers on the snow-covered back roads.
Ford offers three trailer tow packages as well as the F 150 coming standard with trailer sway control, hill start assist, transmission two/haul drive mode, productivity screen with new towing apps, as well as a new smart trailer tow connector.
There are also a number of optional trailer aids such as an integrated trailer brake controller and SelectShift six-speed automatic with Progressive Range Select.
One of these options is the manual and power telescoping trailer tow outside mirrors. Containing a regular and convex mirror, they extend to let you see what's behind when towing and then retract to cut drag and noise when not needed.
But the most challenging part had to be a stone quarry Ford found with tracks hewn out of the mostly granite rock walls.
Ford had our vehicles clambering over logs and down steep inclines. The best or worst (depending if you were a passenger or not) was ascending boulder-packed roads with nothing to stop your fall on either side.
Queener did the driving here because I was too chicken and I will never forget rumbling up to the top only to see the St. Lawrence River way, way down about 10 miles away.
The F-150 we were in had the new 360-degree camera with split screen that gives a full surround view up to seven feet around the truck.
With the nose pointing to the sky, just being able to see where the crest of the road was, made for much more confidence.
Also aiding all was the My View information screen on the main gauge cluster that can be configured in a number of ways including off- and on-road settings to let you know literally where you stand.
At the end of a long day, Queener talked about the F 150 and all the factors that went into making the 2015 model the kind of truck he envisaged four years ago.
He said his goal was to make the most capable, most fuel-efficient, most cost-effective and smartest light pickup on the market.
And from what the F 150 did and where it went in Quebec, I'd say it was mission accomplished.
Ford sales in China up
8.7 percent in February
March 8, 2015
Ford Motor Co. said Friday its sales in China in February rose 8.7 percent to 79,384 vehicles.
The company's passenger car joint venture, Changan Ford Automobile, sold 60,844 vehicles last month in China, up 14.2 percent from the same period a year ago. Sales of the Ford EcoSport jumped about 34 percent in February to 6,057, while sales of the Ford Mondeo rose about 2 percent to 7,944.
Jiangling Motors Corporation also sold 17,221 vehicles in February, up 2.8 percent from February 2014.
The Dearborn automaker said its sales through February this year in China are up 14.6 percent to 191,983 vehicles.
Ford to limit
GT production
to 250 a year
Melissa Burden,
The Detroit
March 6, 2015
Ford Motor Co. will limit production of the upcoming Ford GT supercar to 250 a year and will price the mid-engine car competitively with the Lamborghini Aventador.
The Dearborn automaker indicated this week at the Geneva International Motor Show that it will price the car competitively with the Aventador, which starts around $400,000. Ford representatives in Geneva told reporters the price would be close to the Aventador.
Ford debuted the new GT in January at the North American International Auto Show in Detroit to rave reviews. The car will achieve more than 600 horsepower from a 3.5-liter EcoBoost engine and will be built in 2016.
Ford built the original GT in the mid-2000s and produced just over 4,000. Those cars were priced at around $140,000 to $150,000, but have sold for much higher.
Don't bet the factory on Canada:
Why the falling loonie won't spur
a manufacturing revival
Ari Altstedter and Greg Quinn,
Bloomberg News
March 5, 2015
If you want to know why Canada's plunging currency won't benefit the manufacturing sector anytime soon, take a drive through Windsor, Ontario.
Factory ruins scar the city once known as the British Empire's auto capital, from the dormant smoke stacks of a disused aluminum foundry to the rusty, gaping hole in the abandoned chrome and bumper plant visible from the highway. Demolition crews render a former General Motors Co. transmission works spanning three city blocks into piles of twisted steel.
Windsor's decline from carmaking powerhouse is emblematic of Canada's manufacturing industry. Lost production capacity hasn't been replaced, even as demand for automobiles rises, posing a challenge for policy makers counting on an export comeback as the economy lacks other drivers.
Theory and history say the two-year, 20% depreciation of the Canadian dollar should kickstart a factory revival. Yet that relationship — weaker loonie, stronger manufacturing — may be as broken as a Windsor assembly line.
"This whole notion that a weaker currency is going to be good for exports is going to take a lot longer than people think," said David Woo, head of global rates and currencies research at Bank of America Merrill Lynch in New York.
Just ask Curtis Appleyard. The Windsor native lost his job at Ford Motor Co.'s engine-assembly line seven years ago. He headed to the Cayman Islands, where he tended bars and ran nightclubs for half a decade. He returned to Windsor in 2013 aiming to land another manufacturing job.
Appleyard's hopes soared when he heard almost 1,000 Ford jobs might be coming back to the city. When Ford opted to build its new engines in Mexico, Appleyard finally pulled the plug on manufacturing and decided to sell insurance instead.
'No Security'
"I know that manufacturing is no security now," said Appleyard, 39, in an interview at his girlfriend's Windsor bungalow. "I had to do something."
Like tens of thousands of other former factory workers, Appleyard ended up in the services industry, which, even more than energy production, has kept Canada's economy ticking while manufacturing crumbled.
Manufacturing employment fell to 1.71 million in 2010, the lowest since at least 1976. It remains at that level four years later, even with the weaker loonie.
Hollowing Out'
"There has been a hollowing out of the industrial base here in Canada, a lot of jobs lost," Aubrey Hearn, a portfolio manager at Sentry Investments Inc., said by telephone from Toronto. "Does that race back? I wouldn't bet on it."
Bank of Canada Governor Stephen Poloz told a business audience in New York in December that during the last period of low global demand and a rising local currency, between 8,000 and 10,000 Canadian exporting companies went out of business.
Explaining why exports didn't meet the bank's expectations during the recent recovery, Poloz said Canada has lost share in the U.S. market "not because we do a bad job or anything, but simply because companies that were there before are no longer present, and the model doesn't know that."
Poloz, who is counting on exports and business investment to return the economy to full capacity next year, stunned markets on Jan. 21 when he cut the central bank's benchmark interest rate for the first time in four years, calling it "insurance" against the oil-price shock.
Cut Again
The move weakened the loonie another 3%. Traders are assigning about a 30% chance Poloz will cut again at the bank's next meeting on Wednesday in Ottawa.
Bank of America's Woo says the boost to manufacturing from a cheaper currency will take five years, rather than the two years he often hears.
A Bank of Canada report last year pinned the country's manufacturing disappointment on its non-commodity exporters, from pulp and paper to computers and equipment. Of those laggards, some, like textiles, clothing, furniture and motor vehicle parts, have been so damaged by the high dollar and increased competition from places like Mexico and China, they'll likely never come back, the report said.
"When companies downsize, relocate or close their doors, the effects on the economy are permanent," said Poloz, who estimates lost production from underperforming, non-energy exporters cost the economy about $30 billion in 2013.
Gum Factory
Closures have continued this year, including a 53-year-old Wrigley gum factory, a Premium Brands Holding Corp. meat plant, both in Toronto, and a Colabor Group Inc. warehouse in Quebec.
Since 2009, the U.S. has won US$50 billion of investment from the auto industry, while Mexico has won US$20 billion, according to data from the Center for Automotive Research. Canada received only US$4 billion.
Last month Canada seemed to win some of that ground back. General Motors announced a $560 million investment in its Ingersoll, Ontario assembly plant to make the new Chevrolet Equinox. In Windsor, Fiat Chrysler Automobile NV's assembly plant is in the midst of a $2 billion retooling to make the company's new minivan.
And things aren't all bad for Windsor, which sits across the river from Detroit. The unemployment rate in Canada's southern-most city fell to 7.9% last year, the lowest since 2005.
There are other green shoots, too. In 2012, the last year data is available, manufacturing company numbers ticked up for the first time in six years, according to a February report from Royal Bank of Canada. The low currency combined with strong growth in the U.S., Canada's largest trading partner, is likely to sustain this trend, the report said.
Outsource Resistant
Bryan Webb helped found one of those new firms in the Southern Ontario town of Kitchener, about 290 kilometers (180 miles) east of Windsor. Webb says the high-tech manufacturing done at Clearpath Robotics Inc. is a kind that's highly resistant to outsourcing. He knows because he tried and failed for some parts.
When the firm attempted to produce its Husky unmanned ground vehicle — imagine a Tonka trunk the size of a large dog that can map collapsed mines and collect soil samples — in China, the yellow paint kept coming back with bubbles, speckles and dirt.
"We couldn't guarantee the quality of the parts," he said by phone. "The new stuff will always come out of Canada while our head office is here."
From the need to keep control of their intellectual property, to bringing products to market quickly, to an educated workforce, Webb says firms like his are the future of manufacturing in Canada.
'Canada Born'
"That kind of technology, a lot of it is born in Canada, and I think the manufacturing is not easily transportable to other areas," he said. "The work force here is tuned for that."
Clearpath now employs 75 people and is looking to double its staff in the next 24 months, he said. The lower loonie helps, but the firm was born when it was at parity, he said.
Still, a sustainable shift is a long way off.
Manufacturers that scaled back when Canada's dollar strengthened beyond parity with its U.S. counterpart aren't going to re-invest based on today's lower levels that may not persist, said Jim Stanford, an economist with the Unifor union that employs 21,000 Canadian automobile workers.
Bank of Canada researchers also reported in December that car-part manufacturers and lumber producers are choosing to expand factories abroad to boost sales, rather than increase export production at home.
'Shoot Higher'
"The lower dollar is clearly going to help but it's not going to undo all the damage," Stanford said from Toronto, adding policy makers made "a big mistake" in dismissing the damage of the dollar's move to record highs.
"One thing that will limit the benefit of a lower dollar is a fear among companies that the government will let it shoot higher" if commodity prices rebound, he said.
Dino Chiodo, head of the union representing Chrysler workers in Windsor, is hopeful that the lower loonie will help his industry, though he says it won't be enough. He recalls Windsor's boom years in the early 2000s when the currency was falling and car makers stepped up their Canadian operations to full capacity, running their lines seven days a week. Even then, the lower currency didn't prompt them to build new plants.
"I think the lower Canadian dollar maintains the current people here," he said in an interview in the union hall directly between Chrysler's factory and GM's ruined transmission plant. "The lower currency on its own does not fix our problem."
Farewell message on Frosted
Flakes also a fitting epitaph
for branch plants
Steve Mertl
Daily Brew
March 4, 2015
It's not unusual to find a surprise inside a box of cereal. Often it's good, like a coupon or a little toy. Sometimes it's something nasty, which warrants a stern letter to the manufacturer of said cereal.
And sometimes it's poignant, like the surprise high school teacher Stephane Gaudette got when he opened a box of Kellogg's Frosted Flakes on Monday morning. The wax paper package inside contained this message:
"This is the very last bag of Canadian cereal for the Canadian market from Kellogg's London Ontario plant. Fri. Dec. 5, 2014."
The bag was signed by three workers who'd been employed at the nine-decade-old plant between 24 and 29 years.
According to the London Free Press, Kellogg's London plant shut down for good on Dec. 21, putting 500 people out of work. It made 27 cereals, including Corn Flakes, Frosted Flakes, Special K and Rice Krispies. Production was moved to the U.S., though Kellogg's still operates another plant in Belleville, Ont.
Gaudette, who teaches historyin the northern Ontario town of Timmins, immediately put the bag aside and found a different cereal for his family to have.
"It's very personal and that's why I didn't want to open up the bag," he told Yahoo Canada News in an interview Monday.
"It was on my mind all the way to work. I couldn't just leave it there and let it sit in the cupboard and not do anything about it. So I took a few pictures before I left [and sent them to the Free Press]."
The story triggered a wave of interest from additional media and readers. There were hundreds of comments on the Toronto Sun's version of the Free Press story, a lot of them aimed at the provincial government.
Gaudette is rejecting suggestions he cash in on his chance discovery by selling the historic cereal package on eBay. He plans to keep it for his family.
"I find it personally a little bit crass to make money off of a certain article like that where 500 jobs were cut," Gaudette said, though he hasn't ruled out donating it to a museum.
Timmins is a resource town and his students come from families who've seen their share of mine and mill closures, he said.
"First thing that crossed my mind when I read the message was I'd really like to meet these people and shake their hands," said Gaudette. "I don't know if I can say I'm sorry . . . I found it kind of bittersweet."
Plant closures rattle Canadian psyche
Plant closures, especially those owned by foreign-based companies, trigger a lot of public emotions, playing to our deep-seated image of Canada as a branch-plant economy.
Whether it's the shuttering of an auto plant, closure of a chocolate factory or the loss of a historic ketchup maker, such closures reinforce the view that Canada can't sustain a healthy manufacturing sector and is destined to make its living pulling things from the ground, whether minerals, oil or trees.
But business historian Joe Martin considers that mindset outdated. While the job losses from a shutdown can be tragic for those directly affected, the loss of another branch plant is not a reason for hand-wringing.
"I don't think so," said Martin, director of the Canadian Business and Financial History Program at the University of Toronto's Rotman School of Management. "I think we should say what can we do differently now?"
Roots of the 'branch-plant economy'
The Canadian and global business landscape is much different from the world that gave birth to the branch-plant economy and its attendant psychology, Martin said in an interview. It grew out of Canada's failed attempts to negotiate free trade with the United States in the 1870s.
Sir John A. MacDonald created a tariff regime under his National Policy in an effort to get the Americans back to the bargaining table, said Martin.
"The tactic was totally unsuccessful," he said. "The Americans continued to have higher and higher tariffs."
Despite attempts to de-escalate, most notably Sir Wilfrid Laurier's failure to win support in Parliament for a limited free-trade deal in 1911, the barriers largely remained until the Second World War.
"The branch-plant thing is a legacy of the protective tariff," said Martin. "The only reason those plants were there was to get around Canadian tariff barriers.
"The plants didn't make sense in the first place and they certainly don't in this day and age when manufacturing has become so global."
In a world of globalized and increasingly free trade, localized production often doesn't make economic sense.
"I'm an Adam Smith economist," said Martin. "What's your comparative advantage and that's where you should go. What are you good at?"
Canadian manufacturing actually doing well?
The irony, according to Martin, is that Canada's manufacturing sector is doing better in most ways than media reports lead people to think. Executives he's been speaking with all express optimism.
The country's financial system is solid, especially after regulatory improvements developed in the 1980s. And contrary to popular belief, there's been no shortage of entrepreneurs who've grown successful businesses to international prominence, he said.
Critics will point to notable failures, such as the collapse of Nortel and the retreat of tech darling Research In Motion, companies that grew very big, then lumbered into trouble.
"The missing ingredient is sophisticated management of large enterprises," said Martin. "We haven't had that."
The reason partly goes back to those historic tariff barriers, he pointed out. Companies safe behind protective walls were being run by employees of large multinationals with a different head-office culture.
"All that is changing now and you are getting successful examples," said Martin.
He pointed to auto-parts giant Magna International, founded 55 years ago by Austrian immigrant Frank Stronach, with 20,000 employees in Canada and 125,000 worldwide. Stronach was a singular figure but he left a strong team of very sophisticated mangers in place when he retired, Martin said.
Another is Alimentation Couch-Tard, a Quebec-based convenience store empire that employs 60,000 thanks to a confident international expansion strategy led by until last fall by founder and CEO Alain Bouchard. It's now the second-biggest specialty retailer in the U.S. and the biggest in northern Europe, said Martin.
We're also inclined to ignore success stories like Onex Corp., the private equity company founded by Gerry Schwartz, which manages dozens of businesses worth more than $20 billion, he said.
Adapt or die
People often garble Charles Darwin's central thesis on evolution, reducing it to "survival of the fittest," when his research actually demonstrated that it's actually about the survival of the most adaptable.
"That's what you've got to be, especially in this economy," Martin said. "Are you prepared to accept the challenge and do something about it?"
Ford unveils
electric bike prototypes
Michael Wayland,
The Detroit News
March 3, 2015
The company said there are "no plans to go to market" with the bikes, which are equipped with a 200-watt motor with nine-amp-hour battery that provides electric pedal assist for speeds of up to 16 miles per hour.
Both bikes can work with a prototype app called MoDe:Link that provides advanced navigation and other features typically found in a new car or truck.
After users input a destination, the app lists possible journeys and then provides step-by-step or turn-by-turn navigation. This might include driving to a train station, taking an e-bike onto the train, then riding the bike from the train stop to the final destination.
The e-bikes charge while stowed inside the vehicle, and Ford's SYNC voice-activated connectivity system shows the MoDe:Link app on the vehicle's display.
The prototypes, like newer cars, also feature a rear-facing ultrasonic sensor. It enables a rider alert system that both warns the cyclist when a vehicle is overtaking, by vibrating the handlebars. It alerts motorists of the presence of the e-bike by illuminating handlebar lights.
The e-bike experiment marks the latest mobility project Ford has announced worldwide as part of its "Smart Mobility" plan to help change the way the world moves through innovation in connectivity, mobility, autonomous vehicles, customer experience and big data.
"The Ford Smart Mobility plan supports our commitment to innovation and is aimed specifically at developing smarter transportation systems that take the worry and anxiety out of journey planning and improve the quality of life in busy cities," Ford Europe Chief Operating Officer Barb Samardzich said in a statement.
Ford seeks to clear backup cameras
Michael Martinez,
The Detroit News
March 2, 2015
Backup cameras are becoming commonplace on today's new cars and trucks — the government's made them mandatory by 2018 — but good luck using them during the cold Midwestern winter.
Snow, ice and salt residue can easily cover the camera's lens. And while it's more of a minor annoyance than a major headache, drivers are nonetheless forced to manually clean the lens with a towel, jacket sleeve or finger every time they want to use the driver-assist feature. Warmer climates pose the same challenge, with dirt and mud instead of snow and ice.
"The whole point of a backup camera is to make your life easier," said Karl Brauer, senior analyst at Kelley Blue Book. "But when you most need that camera, it's useless, and you have to stop everything and get out in the cold. It's annoying to have tech that's only seasonally effective."
Ford Motor Co. may have a solution: The Dearborn automaker is introducing tiny washer jets for front- and rear-view cameras that employ the same washer fluid used to clean your windshield. Activate the windshield cleaning function, and a stream of high-pressure fluid will clear the gunk off your camera lens, too.
The optional feature is available on the new F-150's technology package for the Lariat, King Ranch and Platinum trim levels, and is coming to the all-new Edge this spring and the 2016 Explorer this summer.
"The cameras are great, but the problem is when they're dirty, they're not as helpful; this really does solve it," said Brad Doman, one of the lead engineers who developed the washer. "We think it's going to be beneficial to everybody."
The system uses a single stream of fluid that oscillates faster than the eye can see to remove salt, mud or snow. Doman said one major challenge was effectively hiding the nozzle on front cameras — typically placed near the vehicle's brand badge — so it doesn't interfere with its aesthetics. One remedy, he said, was updating the washer with a telescoping nozzle that emerges from behind a covering when the windshield washer button is pressed.
Ford developed the technology with Maryland-based Bowles Fluidics Corp. and introduced it on the 2012 F-150 SVT Raptor. The automaker likely will add it to most future new vehicle launches, Doman said.
Nissan Motor Co. introduced a backup camera washer on its 2013 Altima. Tesla offers a carbon-fiber mini-spoiler that keeps the camera on its Model S clear from rain.
Neither General Motors Co. nor Fiat Chrysler Automobiles currently has similar technology — and the automakers don't discuss future products — but it's something customers would appreciate.
Gary Michalski, a 25-year-old from Toledo, said he often has to use his finger to clean the backup camera on his 2013 GMC Terrain.
"The salt gets pretty bad, and it becomes useless," he said. Michalski said the issue isn't a big deal, but if the washer option was offered, he'd likely take it.
Analysts say it's only a matter of time until camera washers are commonplace.
"I think this will be something that comes pretty fast," Brauer said.
Brauer likened the development of camera washers to the rise of headlamp cleaners, and Edmunds.com senior editor Bill Visnic said the technology is similar to experiments with water-shedding windshield coatings.
"I've been wondering where they've been until now," Visnic said. "Now that we have some experience with cameras, the engineers can backtrack and figure out what refinements we need."
The ineffectiveness of dirty cameras can serve as a cautionary tale for future vehicle technology, analysts say. Most new vehicle systems — everything from adaptive cruise control to park-assist — use sensors that could malfunction in extreme cold, or when covered by layers of snow and ice.
"It's equivalent to mechanical human eyes," Brauer said. "If engineers can't come up with solutions to inclement weather that blinds these eyes, it certainly won't be something you can depend on to drive the car autonomously."
Congratulations to
our newest Retiree
Gary Beckwith
Start date: April 12, 1985 (St. Thomas)
Start date: January 6, 2014 (Bramalea)
Retired: March 1, 2015 with 30 years of service
Casino Rama Workers
Vote To Join Unifor
February 28, 3015
Workers at Casino Rama, one of Ontario's largest casino resorts, have voted overwhelmingly to become members of Unifor. They now join thousands of gaming and hospitality employees across Canada who are already represented by the union. "We are thrilled with the results," said Anna Joudrey, who has worked at Casino Rama for ten years and been an active participant in the campaign to bring the union to the casino.
Many workers have noted that while they value their jobs and the role the casino plays in their community, they've felt that workplace standards have gone downhill in recent years and are uncertain about the future of their jobs at the casino.
"When I heard about this campaign I decided to go to a drop-in to get more information and I was struck by the sense that this was all about workers coming together to have a collective voice at work. It was incredibly positive and for once I felt that we might have a shot at improving our workplace," said Joudrey.
The vote took place on Thursday at Casino Rama with oversight from the Ontario Labour Relations Board (OLRB) and the count took place this afternoon in Toronto at the OLRB office. The new bargaining unit of roughly 1,700 workers includes dealers, cashiers, slot workers, food and beverage staff, environmental services, finance, gift shop attendants, hotel, valet, entertainment and other staff.
"Strong and healthy communities are built on good jobs. We are committed to ensuring that Casino Rama continues to provide good jobs for families in the area, and to help workers have a say in what the future looks like for jobs at Casino Rama," said Unifor National President Jerry Dias.
Work will now begin to negotiate a first contract at the casino resort northeast of Orillia. The gaming industry in Ontario is in a significant time of transformation, as the Ontario Lottery and Gaming Corporation (OLG) undergoes its modernization plan.
"Unifor has the broad membership and experience needed to represent the workers' needs, and those of their community," said Dias. "Unifor is the largest union in the gaming sector, and we look forward to working with Casino Rama workers and management to ensure a better future at Casino Rama."
The workers join more than 15,000 hospitality workers, including more than 7,000 working at casinos, already represented by Unifor across Canada. Unifor also represents workers at Caesars Windsor, Great Blue Heron Gaming, Manitoba Lotteries Corp and other gaming sites, as well as several hotels across Canada.
Retiree Kevin Thompson's
Father Passes Away
Our Deepest Condolences go out to Retiree Kevin Thompson on the passing of his father Alex Thompson.
Mr. Alex Thompson born, Feb 5, 1923 passed peacefully in his sleep in Toronto on Feb 23, 2015. He resided in a seniors home in North York, Father to retiree Kevin (Chevy Kevy) & wife Susan Thompson.
There are no funeral details available at this time.
Again from all the 584 retirees our sincerest sympathies to the entire Thompson Family.
GM idling 2 car plants
as demand declines
Michael Wayland,
The Detroit News
Feb 27, 2015
General Motors Co. will cut production at two of its car plants in an effort to reduce dealer inventories.
The Detroit-based automaker this week scheduled production shutdowns for March 9-13 at the Orion Assembly plant in Metro Detroit as well as April 13-17 for its flex line at Oshawa Assembly in Ontario, according to people familiar with the situations.
Workers at Orion Assembly build the small Buick Verano sedan and subcompact Chevrolet Sonic. Both had double-digit sales declines last month compared to January 2014, including the Sonic dropping 46.5 percent.
The downtime comes a month after GM scheduled shutdowns for the weeks of Feb. 16 and April 6. In November, GM also said it would lay off 160 employees at Orion Assembly through the end of 2015. The plant has about 1,750 hourly workers.
"The drop in small and midsize car demand isn't surprising given the market's shift toward trucks and SUVs over the past 12 months," said Kelley Blue Book senior analyst Karl Brauer. "Many of the vehicles GM is cutting production on are older models due for replacement soon, further reducing consumer interest."
Ron Svajlenko, president of Unifor Local 222, which represents Oshawa Assembly, said GM has alerted the union that more shutdown weeks could be coming.
Oshawa's flex line builds the Chevrolet Camaro and Camaro Convertible, Buick Regal, Cadillac XTS and Chevrolet Impala. About 2,700 employees work on three shifts for the flex line.
Brauer said GM adjusting production to meet demand isn't necessarily a bad thing, calling it a "proactive effort to reduce inventory versus cutting pricing on overstocked models."
"It's the smart move because it preserves residual values and brand equity," he said.
Ford begins Edge production,
hires 400 New Workers
Michael Martinez,
The Detroit News
Feb 26, 2015
Ford Motor Co. on Thursday will announce the hiring of 400 workers at its Oakville Assembly Plant near Ontario, Canada, as it begins production of the 2015 Edge crossover.
The Dearborn automaker will offer the mid-size crossover for the first time in Europe, and it also will be sold in North and South America, Asia, Africa and the Middle East. The 400 new hires will join more than 1,000 workers whose hiring was announced last year. Ford previously announced a $563 million investment in the plant that included the installation of more than 250 advanced robotics systems.
The 2015 version of the Edge includes a number of updates, including adaptive steering (which reduces how much the driver has to turn the steering wheel at slow speeds, making parking and other tight maneuvers easier), a 180-degree front camera with a washer, enhanced park-assist and side park sensors. It will come in three trim levels: the base SE, SEL and new Titanium series.
It will be the first to come standard with Ford's new twin-scroll turbo 2-liter Ecoboost. The Edge will also feature a Sport version that comes with a 2.7-liter V6 Ecoboost engine.
Oakville Assembly was retooled and expanded to include robots that can do everything from install hoods and panels to create glass seals on the vehicle to reduce wind noise.
The plant installed a simulation classroom to prepare the new hires and existing employees on how to manage the systems.
"The new global Edge is an excellent and timely indication that Canada's auto industry is poised to excel in coming years," Jerry Dias, national president of Unifor, said in a statement. "This new vehicle is great news for the company and its workers, and good news for all Canadians who benefit from a strong auto industry and the revenue it generates."
High level of auto recalls
likely to continue
Michael Martinez,
The Detroit News
Feb 25, 2015
Southfield — Automotive recalls should continue at a high rate in 2015, a year after manufacturers called back a record 63.9 million cars and trucks, a new study says.
The second annual automotive industry warranty and recall study — released Tuesday by advisory firm Stout, Risius and Ross — said we're unlikely to see major recalls like last year's Takata air bags or General Motors Co. ignition switch issues. But aggressive oversight by the National Highway Traffic Safety Administration should lead to a high number of callbacks.
"We will continue to see an elevated level of recall volume," said Neil Steinkamp, managing director of SRR. "The regulators have said we will ... and they're addressing safety issues very proactively."
The study also says automakers will do a better job at completing recalls on affected vehicles and will be more transparent in identifying suppliers involved.
Last year, every automaker recalled more than double the number of cars and trucks they sold, the study found. GM recalled 9.1 times more vehicles than it sold, while Honda recalled 5.9 times more and Fiat Chrysler Automobiles NV recalled 4.3 times more cars and trucks than it sold.
GM's ignition switch represented 20 percent of all recalls, while Takata's air bag inflators represented 30 percent of all 2014 recalls. NHTSA collected $126 million in civil penalities, exceeding the total amount collected in the agency's entire history.
Earlier this week, Mercedes-Benz issued a recall for more than 147,000 sedans and station wagons to fix a problem with an engine compartment seal that could spark a fire. On Tuesday, GM recalled about 67,000 Cadillac ATS compact sports sedans to fix a problem with the power sunroof controls.
The study found that not only are recalls increasing, but completion of the issues related to recalls is getting better as well. Last year, automakers were able to fix about 80 percent of the recalled vehicles, and a majority of those vehicles were repaired in the first six months of the recall. Still, an estimated 46 million vehicles with unfixed recalls remain on the road.
"Completion rates are a big deal," Steinkamp said. "There's an upward pressure from the regulator to make sure that's happening."
The study found, unsurprisingly, that the older the vehicle is, the lower the completion rate.
Michelle Krebs, senior analyst with AutoTrader.com, said most customers aren't too interested about bringing their vehicles in to be fixed. "We definitely saw consumer fatigue regarding recalls," she said.
Still, Krebs said customers don't think recalls hurt their perception of vehicle quality overall, and they're not inclined to change brands. "People generally think today's cars are as good or better than five years ago," she said.
CN Rail-Unifor reach
deal to avert lockout
The Canadian Press
Feb 24, 2015
OTTAWA -- Unifor said it has reached a late night deal with Canadian National Railway to avoid a lockout of 4,800 workers.
The union says ratification meetings will be held across the country over the next three weeks.
Details of the agreement will only be disclosed following ratification.
Canadian Labour Minister Kellie Leitch released a statement late Monday night saying she is pleased the railway and Unifor were able to renew their collective agreements.
The deal came after eleventh-hour contract talks over the past two days, avoiding a planned lockout.
Kentucky governor: On union
matters, we're no Tennessee
Erik Schelzig,
Associated Press
Feb 23, 2015
Nashville, Tenn. — In an unexpected shot across the bow of his GOP neighbors to the south, Kentucky Gov. Steve Beshear has a simple message on labor and economic development for automakers looking to build new plants: We're not Tennessee.
The Democrat is touting Kentucky's neutrality on labor matters as "a positive sales point," particularly in contrast to the turmoil in Tennessee, where Republicans have pulled out all the stops in what may yet be a losing effort to keep the United Auto Workers from gaining collective bargaining rights at Volkswagen's plant in Chattanooga. Similar unionization efforts are underway at a Mercedes plant near Tuscaloosa, Alabama.
Beshear's public comments are unusually bold in the secretive, cutthroat world of recruiting big-name employers, such as the foreign automakers lured to the South with fat tax incentives and Republican pitches about anti-unionism as a competitive advantage.
Beshear first made the comments to Automotive News Europe during a recent recruiting trip to Germany, Volkswagen's home turf, and to Sweden, the base for Chinese-owned Volvo Cars, which is rumored to be considering a new plant in the U.S.
"I'm not trying to tell Tennessee or any other state how to handle their economic development efforts," Beshear told The Associated Press after his return last week. "I can just say that in Kentucky we would welcome either type of situation, either companies with unions or without them."
The state already has both: Ford and General Motors plants represented by the UAW, and nonunion plants like Toyota.
Tennessee's Republican Gov. Bill Haslam declined an interview about Beshear's comments. But he said Thursday through a spokeswoman that Tennessee "is a welcoming state to auto manufacturers and suppliers and has a track record of more than 30 years of strong relationships with these companies that speaks for itself."
Volkswagen's labor-friendly corporate culture came into the political cross hairs in Tennessee last year when the automaker agreed to a union vote at its plant, with Republican politicians raising vocal opposition to the UAW gaining its first foothold at a foreign-owned plant in the South.
The run-up to the vote at the plant a year ago included Republican U.S. Sen. Bob Corker of Tennessee declaring that the company would become a "laughingstock" if it welcomed the UAW. Corker also made a huge gambit on the eve of the vote when he guaranteed Volkswagen would announce the expansion of the plant within two weeks if the union was rejected. VW denied that the issues were linked, and it was several months before a deal was struck to build a new SUV in Chattanooga.
It was later revealed that the Haslam administration's $300 million incentive package offered to Volkswagen had contained the caveat that the money was subject to labor talks "being concluded to the satisfaction" of the state. Haslam at the time declined to specify which scenarios would have satisfied the state.
The UAW narrowly lost that unionization vote, but Volkswagen has continued to work closely with the UAW — which has since qualified for the top tier of a new labor policy at the plant that stops short of collective bargaining rights. That policy has renewed grumbling among Republicans in Tennessee, who control the Legislature and therefore approve or reject incentives to expand the plant.
Volkswagen management has been under heavy pressure from powerful worker representatives who control half of the automaker's board in Germany because the U.S. plant is the company's only one worldwide without labor representation.
Kentucky can benefit by not trying to place itself in the middle of those discussions, Beshear said.
"It's a positive sales point for Kentucky, particularly when you look at many European companies," he said. "Their model in Europe on labor-management relationships is different than here in the United States, and many of those large companies have management structures that include both union and nonunion management personnel."
How Wal-Mart's CEO came to support a $1-billion pay hike
Renee Dudley
Bloomberg News
Feb 22, 2015
Wal-Mart Stores Inc. chief executive officer Doug McMillon helped set the stage for this week's $1-billion (U.S.) pay increase almost a year ago in Orlando, Fla., when he rallied managers to reverse a slide in customer service.
It was only a few weeks after McMillon took the CEO job, and he made it clear that improving service would be a key piece of his agenda – even if it meant higher labour costs. At the company's annual 'Year Beginning Meeting,' held last March, he and other executives laid out a plan to add employees hours in a bid to boost "in-store execution." Store shelves needed to be better stocked with merchandise and resolving that matter was presented as a $3-billion opportunity.
McMillon made surprise visits to Wal-Mart stores and didn't like what he saw: long checkout lines, empty shelves and problems with produce. Over the past 11 months, Wal-Mart has increasingly linked worker pay with the notion of improving the store experience for customers. By October, McMillon made the strongest indication that wage hikes were coming. He vowed to stop paying any of his workers minimum wage.
"Retail has been a people business and retail will be a people business," he said at the time. "How a customer gets treated matters."
The push culminated in an Wal-Mart's announcement Thursday that it was raising wages for 500,000 of its workers, with the goal of retaining better employees and making them more productive in their jobs. The move will increase hourly pay to at least $9 by April and $10 by next February.
Foran's Role
Wal-Mart, based in Bentonville, Ark., is taking the step as part of a broader campaign to better train, schedule and compensate workers. It's been a collaborative effort by McMillon and Wal-Mart's U.S. CEO Greg Foran, a New Zealander who took his current position after running the retailer's Asian operations.
Foran warned in November that striving for higher customer service would ultimately come at a cost.
"We'll continue to see pressures to the bottom-line as we balance wage leverage with higher customer service standards," he said. "We have opportunities to improve the business, but we also know that these things will take time to ensure that they are executed properly."
At the same time, Wal-Mart faced mounting criticism for not paying workers enough and was grappling with brief strikes at its stores. A few years ago, a walkout at Wal-Mart was uncommon. But by the holiday season of 2014, activists had begun holding such events regularly – including one during Black Friday.
Health Benefits
Wal-Mart also drew flak in October for cutting medical benefits to about 30,000 workers, a response to mounting heath-care costs and the growth of alternatives available under Obamacare. The retailer no longer provides health coverage to employees who work less than 30 hours a week.
Labour activists also seized on the appointment of Yahoo! Inc. CEO Marissa Mayer to Wal-Mart's board in 2012. She was seen as a potential pressure point for the labour issue, and groups urged her to promote higher wages at Wal-Mart.
After Thursday's announcement, Mayer said she was proud of Wal-Mart's management and that the board had been "very supportive" of the idea.
"I'm particularly proud of Doug, obviously now about a year into his tenure there," she said at a Yahoo conference in San Francisco. "It was a very bold move."
White House
President Barack Obama's administration also had "a number of conversations" with Wal-Mart executives on the topic, according to a White House official. Valerie Jarrett, senior adviser to the president, encouraged Wal-Mart executives to act in a meeting in Arkansas several months ago, said the official, who asked not to be named because the talks were private.
McMillon, who became CEO in February, 2014, after a three-decade career at the company, took an egalitarian tone in announcing the pay raises to employees on Thursday morning. McMillon began his own Wal-Mart career as a summer worker in 1984 at a distribution center.
"We're all associates," the 48-year-old said in an memo that was posted online. "Today's cashiers will be tomorrow's store or club managers. Today's managers are tomorrow's vice presidents. Tomorrow's CEO will almost definitely come from inside our company."
Department managers are also getting a bump, with starting wages for some of the positions going to $13 an hour this summer and $15 next year.
While the pay raises were seen as a victory by labour groups, investors were less enthusiastic. The extra labour costs, coupled with currency headwinds, will weigh on Wal-Mart's profit this year. The announcement sent the shares down 3.2 per cent to $83.52, the biggest one-day decline in four months.
Ultimately, the higher compensation will yield benefits for McMillon and Wal-Mart, said Brian Yarbrough, an analyst at Edward Jones in St. Louis.
"There will be less turnover, better morale, lower future training costs," he said. "It's the right thing to do to reinvest in labor to drive better customer service. But that takes time."
Dear seniors:
Please
don't retire
yet. Signed, The
Canadian economy
The Globe and Mail
Editorial
Feb 21, 2015
Once upon a time, growing old often meant growing poor. As recently as 1976, 37 per cent of Canada's seniors lived in poverty.
But that year, the first group of retirees to receive full Canada Pension Plan benefits hit age 65. Other programs such as Old Age Security and the Guaranteed Income Supplement for low-income seniors started to have an impact. Workplace pensions were strong. And by the 1980s, investments through vehicles such as mutual funds were becoming popular.
As a result, since the 1970s the poverty rate for seniors has been slashed dramatically. By 2010, Statscan says a mere 5 per cent of seniors were living in poverty, once the impact of government benefits was taken into account. Canada's seniors are far less likely to be poor than those in most other developed countries, and less likely to be low-income than other Canadians.
Economist Lars Osberg has called this "the major success story of Canadian social policy in the 20th century." He's right.
Canada's challenge for the 21st century? Ensuring the next generation of retirees enjoy at least as good a standard of living as current golden agers – while also offering them more opportunities to keep working past retirement age, and keep giving back to a society that needs them.
A little more than a half-century ago, there were eight working-age Canadians for every senior citizen. By 2013, the so-called dependency ratio had fallen to 4.5:1. By the 2050s, this ratio is expected to be only a bit higher than 2:1. The question is whether this older Canada will be a less productive and dynamic country, or a richer country where people not only live longer, but lead fuller lives – lives that include something other than automatically ceasing work at age 65.
This week, Sun Life released its annual "Unretirement" report. It calls unretirement "the growing trend away from early retirement – by choice or economic necessity – and toward continued work past the traditional retirement age of 65." The report's findings suggest that more Canadians than ever expect to forgo or postpone a traditional retirement. That's partly a sign of trouble, and partly an opportunity.
If people are working past the traditional retirement age out of necessity, that's a problem. But if they're working by choice, that's a huge positive – for seniors, and for a Canadian economy that needs them.
Sun Life finds that 32 per cent of working Canadians expect to be employed full-time at age 66, slightly more than the 27 per cent who expect to be fully retired. As recently as 2008, however, fully half of Canadians expected to retire at 66, while a mere 16 per cent were planning on continuing to work full-time.
In part, this is a story about a generational shift. Canadians are living longer and healthier. And lots of people, especially in white-collar jobs, are as productive as ever in their 60s. They like their work, and their employers rely on them.
But the shift in attitudes the survey documents – in just seven years, the percentage of workers expecting to continue working full-time after retirement age has doubled, while the number planning on retiring at 65 has been halved – is also about hard economic realities.
Stock and bond markets have had a remarkable run since 2009, but before that came a recession that decimated portfolios, and made many Canadians extremely risk-averse.
More importantly, today's workers have less extensive corporate pensions than their predecessors. Companies spent the past three decades scaling back formerly generous defined-benefit pension plans, which guaranteed workers a certain level of income come retirement. Outside the public sector, many workers don't have any workplace pensions at all, and those who do have defined-contribution plans, which are savings vehicles and not true pensions. They offer no guarantees.
That partly explains why, when the survey asked, "Do you think there is a serious risk you could outlive your retirement savings?," workers gave a very different answer from retirees. Only 14 per cent of the already retired said yes, compared with more than one-third of working-age Canadians who answered in the affirmative.
Some of that may have to do with a fear of the unknown on the part of future retirees. But the disparity also likely reflects a fear of the known. Today's average retiree enjoys greater retirement security than their kids will. Worrying about that isn't paranoia. It's a case of younger people firmly grasping reality.
The challenge for Canada is threefold.
The basic retirement safety net has to be kept strong, so that Canada's level of senior poverty remains among the lowest in the world. Few seniors live in poverty, and few Canadians need worry that this fate awaits them.
But the more common concern – that middle-class workers may find themselves forced to struggle with a lower standard of living as retirees – is very real. That's why, as workplace pensions have understandably been scaled back, an expansion of the Canada Pension Plan makes ever more sense. CPP has been one of the keys to reducing senior poverty and increasing income security for middle-class seniors.
Finally, corporations, the tax system and government policy have to become more flexible, removing barriers and disincentives for those who want to keep working after age 65. Between 2001 and 2012, the percentage of seniors in the labour force rose from 6 per cent to nearly 13 per cent. Given the pull of an economy that can't afford to lose skilled workers and the push of seniors enjoying greater health and longer life expectancy, Canada needs that figure to continue going up – but only if it's rising for the right reasons.
Ford F-150 arms winter
warriors with plow option
Henry Payne,
The Detroit News
Feb 20, 2015
Ford's light-duty 2015 F-150 comes with a "plow-prep" option that makes snow-plowing available to a wide swath of pickup customers. Winter warriors with long driveways can rejoice.
Plows have long been compatible with heavy-duty pickups. But due to chassis and electrical limitations, finding a plow-capable light-duty could be like finding a warm day in February. The new F-150, however, was engineered from the ground up to accept a plow.
"By using more high-strength steel in its frame and advanced materials in the body, we've made the new (F-150) up to 700 pounds lighter," says Eric Peterson, Ford F-150 marketing manager. "This leads to more capability and better handling, which is exactly what you'd want for plowing."
Ford also upgraded its electrical system with an eye toward retrofitting plows. Modern electrical power steering is better for fuel economy than hydraulic systems — but it taxes a vehicle's electrical system. The last generation F-150's alternator couldn't handle the loads of both the power steering and the plow controls. The new truck changes that: With a simple push of a dash button, power to accessories like heated seats, heated steering wheel and fog lights are turned off to allow more juice for the steering and plow.
As a result of these engineering changes, Ford's plow-prep option costs only $50. No chassis upgrades or suspension tweaks are necessary.
The plow itself is additional. Ford demonstrated the feature this week with a Boss plow estimated to cost between $4,600-$4,800. (Ford recommends taking their trucks to an approved vehicle modifier to install plow hardware that includes an electrical harness and controller.) Boss, which manufactures in Michigan's Upper Peninsula, is one of a handful of suppliers who will benefit from the expanding light-duty market for their products.
Ford's plow-prep option will be offered on F-150's with 5-liter V-8 engines with any cab configuration — Regular, SuperCab and SuperCrew. Ford Consumer Manager Brandt Coultas says that engine amounts to 30 percent of the big truck's volume.
Prior to the 2015 F-150, Ford's only light-duty plow-prep offering was on now-discontinued 6.2-liter pickups with non-electrical hydraulic power-steering.
Heavy-duty Chevy Silverados offer plow prep — but it's only offered on light-duty trucks with regular cabs and substantial chassis and electrical upgrades. Toyota's Tundra does not offer plow capability, while Ram offers its "Snow Chief" option only on heavy-duties.
"We're looking at it," says Ram spokesman Nick Cappa. "But the larger percentage of the market for plowing is in heavy-duty trucks due to better ground clearance and powertrain demands."
Ford confirms most of its demand, too, is in heavy-duties, but expects plow prep to be a hit with rural customers and with metro dwellers with long driveways.
Ford only pairs plow prep with its V-8 because of the respiratory requirements of its turbocharged, V-6 Ecoboost powerplants. Ford found the plow restricted airflow to the F-150's big grille, thus compromising airflow to the turbo's air-hungry intercooler.
In a demonstration Tuesday at Dearborn's Adoba Hotel parking lot — buried under 2 feet of snow — the F-150's plowing capability proved impressive.
The 430-pound Boss connected in four easy steps: 1) Attach the electrical harness. 2) Secure port and starboard clip fittings. 3) Align the assembly with a toggle switch. 4) Lock in the blade height.
Operation doesn't require a Ph.D. in mechanical engineering, either. Boss provides a joystick controller that connects to an outlet below the dash. Put the 4x4 truck in Drive and the plow will raise, lower and swivel at will..
Plowing at speeds up to 15 mpg, the Adobe lot cleared quickly. The powerful F150 used most of the steel blade despite the deep powder. The plow comes with a dolly package so it can be moved for storage.
America's truck wars rage constantly, so expect others to jump into the light-duty plow market if the F-150's new option proves popular.
Unifor suspends contract talks with
Air Canada over shift trading issues
The Canadian Press
Feb 19, 2015 06:30
The union representing about 4,100 Air Canada employees says it has suspended contract talks with the airline over shift trading issues.
Unifor says negotiators suspended talks on a new contract for customer sales and service agents after Air Canada released planned changes to shift trading rules.
The union says the airline cited concerns about reporting of hours worked, and health and safety issues, as reasons for the changed rules.
Unifor calls the new restrictions "unnecessary."
A spokesman for Air Canada said in an email that "the shift change process is being modified to ensure compliance with federal regulations."
Unifor said in a release Wednesday that the negotiations had been progressing, but halted them when the negotiating committee saw "the extent of the company's intentions."
"These are important issues that due to the timeline take precedence over bargaining," Unifor spokesman Darryl Bink said in an email Wednesday night. "We need to work through them before proceeding further with negotiations."
Anti-UAW group can represent
VW workers in Tenn.
Michael Wayland,
The Detroit News
Feb 18, 2015
Volkswagen AG confirmed this week that an anti-United Auto Workers organization called the American Council of Employees has enough support to represent workers at its assembly plant in Chattanooga, Tennessee.
The automaker said an external auditor verified that ACE met requirements to represent both hourly and salary employees under its Community Organization Engagement Policy that states a group must achieve support from at least 15 percent of the workers it looks to represent.
The labor group, which calls itself a "truly local organization" that has "no outside influence or political agenda," is an alternative to the UAW, which was designated access to hourly employees last year after failing to garner enough votes to be the sole representative for plant workers.
Mike Cantrell, president of UAW Local 42, created last year to support VW-Chattanooga employees, called ACE a "self-described anti-union group."
In a November message posted on its website, interim ACE President Sean H. Moss doesn't call the group anti-union but says its vision is to "step off the path of repeated failure and forge a new way."
"While we seek to work toward the same goals claimed by the failed union model ... ACE seeks this representation free from the outside influence of union bosses, bureaucrats, special interests and the political agendas that tie them all together," reads the message.
On a frequently-asked questions portion of its website that isn't accessible from its home page, a mission is to "keep the UAW out of our plant."
An ACE representative could not immediately be reached for comment.
Neither the UAW nor ACE have collective bargaining rights for workers at the plant but they have the right to raise questions, ideas, or concerns directly to Volkswagen management at any time on behalf of its members.
However there are differing levels of rights under the labor representation policy depending on the percentage of employees they represent.
ACE, with at least 15 percent support, has the lowest access. It can reserve and utilize on-site locations for meetings on non-work time with staff or employees; post announcements and information in company-designated areas; and meet monthly with Volkswagen Human Resources to present topics that are of general interest to its membership.
The UAW, with at least 45 percent support, has the highest level of access. Besides the rights ACE has, officials may meet quarterly with a member of the Volkswagen Chattanooga Executive Committee; meet bi-weekly with Volkswagen Human Resources and monthly with the Volkswagen Chattanooga Executive Committee; and other in-plant perks.
VW says the labor representation policy was established to allow eligible organizations the "opportunity to engage in constructive dialogue with Volkswagen and its employees."
In a note to employees that was obtained by The Detroit News, VW said it "will reach out to the ACE in the near future to start the discussion regarding the opportunities available to them under the policy." A similar note was sent to employees following the UAW verification in December.
Cantrell said the UAW "will continue working toward the process of collective bargaining with the company."
"We are focused on representing our members and solidifying our partnership with the Volkswagen Global Group Works Council, which has said clearly that it wants the Chattanooga plant to be a 'UAW-represented facility,' " he said in a statement.
In December, when the UAW was granted access but not collective bargaining rights, it was nearly unprecedented in U.S. labor history. While it may make it easier to win eventual recognition, it's not clear what it means in the long term.
Kristin Dziczek, director of the Industry & Labor Group at the Center for Automotive Research, said the "legitimacy of either ACE or Local 42 will be shown by how much of their financial support comes from people that are members of the organization."
Currently, both are operating without dues from workers. The UAW does not collect dues until a contract is signed. ACE has vowed to have dues up to 50 percent less than the UAW, while not accepting funding "from any organization or individual" that would attempt to influence the organization.
Barra, other GM execs
awarded $9.6M in shares
Michael Wayland,
The Detroit News
Feb 17, 2015
General Motors Co. CEO Mary Barra is one of a dozen executives recently granted company stock worth $9.6 million, according to documents filed with the U.S. Securities and Exchange Commission.
A Feb. 11 SEC filing states Barra will receive 79,639 restricted shares of GM stock as part of a long-term incentive compensation program for top executives.
At Friday's closing price of $37.62, the shares were valued at nearly $3 million. The number of shares, part of her yearly compensation, is up from 69,214 shares for 2014.
Overall, more than 254,000 shares were granted to 12 executives. The shares will vest annually in three equal installments beginning on Feb. 11, 2016, meaning they can't immediately be sold.
Of the executives, Barra, by far, received the most shares. Following her were President Dan Ammann at 29,865 shares; Executive Vice President and Head of Global Product Development and Purchasing Mark Reuss at 25,385 shares; and CFO Chuck Stevens at 19,081 shares.
Others granted restricted shares included Alan Batey, GM North America president; Stefan Jacoby, executive vice president and head of international operations; Karl-Thomas Neumann, GM Europe president; Jaime Ardila, GM South America president; Matthew Tsien, GM China president; Mike Millikin, executive vice president and general counsel; James DeLuca, executive vice president of global manufacturing; and Thomas Timko, chief accounting officer.
The restricted shares are part of GM's 2014 Long-Term Incentive Plan for executives, approved last year. More details regarding executive compensation will be released as part of the company's annual proxy statement this spring.
Barra's 2014 salary was split into three categories: a base of $1.6 million; short-term incentive compensation of $2.8 million; and long-term incentive plan of $10 million. She could have earned about $14.4 million last year.
Short-term incentives for executives are weighted on the company's adjusted earnings before interest and taxes, adjusted free cash flow, global market share, quality and individual performance. Long-term incentive pay is based on return on invested capital and global market share over a three-year period.
GM earned $2.8 billion in 2014, including $1.1 billion in a stronger-than-predicted fourth quarter.
Subaru Legacy best car of the
year, Ford pickup best UV
The Subaru Legacy has been selected as the best Canadian car
of the year and Ford F-150 the top utility vehicle by the
Automobile Journalists Association of Canada
Feb 16 2015
Henry Stancu
Toronto Star
The Subaru Legacy has been named the 2015 Canadian Car of the Year by the Automobile Journalists Association of Canada.
And the Ford F-150 pickup is the best Utility Vehicle of the year.
The Subaru Legacy 2.5i beat out the Hyundai Genesis, the Cadillac ATS Coupe, the Mercedes C300 4Matic, the Volvo V60 and the Volkswagen Golf in its category.
"This is incredible," said Ted Lalka, vice-president of product planning and marketing for Subaru of Canada, after the announcements were made during the media day launch of the Canadian International Auto Show in Toronto Thursday.
"Subaru has a reputation for making great SUVs like the Forester, the Outback and the Crosstrek, and people who aren't even into motorsports know the WRX and the STI, so this award will get people to consider the Legacy.
"When you buy a Subaru Legacy you're getting a family sedan that can handle road and weather conditions in any situation and a car that retains its value," Lalka added.
With its all-new aluminum body the F-150 pickup was picked over the Chevrolet Colorado, the GMC Canyon and the Dodge Ram 1500.
"This AJAC award validates everything we've done in taking a smart risk by going with the all-aluminum alloy body," said Mike Sinuita, Ford of Canada's product marketing manager of the truck division.
"The F-150 is in a class of its own right now. It weighs less and tows more, and with better fuel efficiency. It's been the market leader in Canada for 49 years and it looks like it'll be that way for 50 as we've had a solid January with the F-150."
The Car of the Year short list normally comes down to three finalists each, but a tie in the balloting pitted four in the car group this year: Hyundai Genesis, Mercedes-Benz C300 4Matic, Subaru Legacy, and Volkswagen Golf.
Both the Legacy and F-150 were picked as the best of the pack of seven vehicles selected from 15 category winners chosen in December out of a stable of 150 cars, SUVs and pickups.
The contenders in that entire fleet were driven by 79 voting journalists who tested the vehicles back-to-back in each category, on the same day, and on the same route, during a rigorous three-day TestFest evaluation process held in Niagara Falls last October.
AJAC's annual testing procedures use a point system to evaluate new or redesigned vehicles rating them across a range of attributes such as design, quality, safety features, economy, overall value and performance, which includes acceleration, braking and handling.
As Canadian Car of the Year co-chair Gary Grant put it after the initial category finalists were picked, "TestFest is the most intensive new vehicle evaluation process on the planet."
The exhaustive analysis generated 1,640 test drives producing about 106,405 data points and 500 category ballots.
All of the test data was compiled and tabulated by the accounting firm KPMG.
How will the car
survive the future?
Neil Winton,
The Detroit News
Feb 15, 2015
There has never been a shortage of forward thinkers predicting how the auto industry will be turned upside down 10 years from now. Auto manufacturers would be getting nervous about their collective futures if some of the current destructive theories turn out to be true. But if history is anything to go by, they can probably keep calm and carry on.
Back in the 1930s, experts told us that in 10 years time, we would be flying around in our cars. The electric car's dominance has been 10 years away for some time now, although that technology does seem to be mounting a credible attack. Now we are told that it will be normal, in 10 years time, to summon an autonomous car using our smart phones. This will arrive, almost instantaneously, in the form of a computer-controlled, electric-powered pod with no human driver.
We will need to call up a car — a sedan, SUV, pickup truck or sports car, depending on our mood and the time of year —because in 10 years we won't own them anymore, the theory goes. And on the way to this brave new world, our automotive habits are in for a shakeup. We will all come to recognize that owning a car is a ridiculous expense because for perhaps 90 percent of the time, it is sitting unused and depreciating. So we will organize local group car ownership, or enrol in car clubs, or rent out our wheels to cover expenses.
These new visions of mobility are also the result of changing economic circumstances. Because of chronic youth unemployment, many young people have given up on the idea of owning cars. Many others find the economic squeeze has made it difficult for them to own cars. This has been misinterpreted by many as reflecting a falling out of love with the idea of the car, its gift of independence and its power to reflect achievement and taste. When and if the economic good times return, this passion will certainly be renewed. But there's no denying that these are more than just new, fashionable ideas about to fizzle out. The question is: Which ones have serious chance of success.
Global venture
Uber is busily engaged on a global venture to recruit citizens to provide taxi-like services in their own cars, at the behest of smart phones. Its partner Google is also preparing to become a thorn in the side of auto manufacturers with its autonomous car, although it's not clear yet what form this will take. Imagine what a bargain deal Uber could offer you if it eliminated the expense of drivers by replacing them with computers with some help from Google? And new ideas about car use abound. FlightCar offers vacationers the chance for free airport parking while they are away if they offer their car up for rental. If your car is rented out, you might return home with extra cash in your pocket, not a bill.
Thilo Koslowski, vice president and automotive practice leader at Gartner, a technology research and advisory firm, believes that Americans can't wait to embrace new ways of getting around.
"Gartner research has shown that in the U.S., 23 percent of vehicle owners would consider giving up their vehicle ownership if they had access to an on-demand transportation service using autonomous vehicles. That's almost a quarter of the population," Santa Clara, California-based Koslowski said.
Uber is setting the pace.
White gloves
"We have to get the technology right first of course. Uber is taking off in places like New York, Boston, San Francisco. Already there's a lot of customers. It's not just a taxi service. It is trying to create a premium experience for people with clean cars and maybe even a driver greeting you with white gloves on," Koslowski said.
Morgan Stanley auto analyst Adam Jonas jumped to attention when it was announced that Carnegie Mellon University Robotics Institute in Pittsburgh was cooperating with Uber to produce a fleet of autonomous taxis. Jonas said the idea that ride sharing companies might seek to manufacture vehicles themselves had been on his long-distance radar, but this development was about five years earlier than he'd expected.
"We now see the formation of new industry players challenging the concept of robotics, artificial intelligence and machine learning in vehicular mobility. The journey to the end of human driving may take a generation to play out and will no doubt meet any number of impediments, but we believe the process has already begun," Jonas said in a report.
"Computers just drive better than people and a ubiquity of connected cars can drastically change consumer usage patterns, ultimately obviating the need for the vast majority of individual vehicle ownership," Jonas said.
Will the big, established auto manufacturers be blind-sided by these revolutionary developments?
Gartner's Koslowski doesn't think so, although he worries that the current high level of car sales in the U.S. might lead to some complacency.
Eat their lunch
"The (the manufacturers) should not get too comfortable with vehicle sales at this high level. This change might happen overnight. The territory is shifting. The disruptors are trying to eat their lunch. But I'm confident they will change their ways to cope with this. A couple of years ago, I wasn't so sure; now, I'm sure they can. They need to offer all kinds of new value proposition alternatives to classic vehicle ownership though. Consumers will be able to choose from multiple options, buying is not the only choice," Koslowski said.
Not everyone believes a big shakeup is imminent.
"I'm skeptical about this sort of analysis. People's idea of the future car has never come off. If so, we'd be flying in them by now. You can't really extrapolate today into the future because so many other things come from left field; things nobody thought of," said Garel Rhys, emeritus professor of Motor Industry Economics and director for Automotive Industry Research at the Cardiff Business School.
Rhys didn't think there would be much enthusiasm from the public for renting out their cars.
"That runs counter to the normal trend of consumer preference — security of use, possession, the pleasure in owning something. Would people leave their car at the airport and be happy to have it rented out? They'd worry about what things would be damaged, what state (of cleanliness) would it be in, how many extra miles were driven? It's true that some people rent out their houses when they go on holiday, but not many. Like everything, at the margins these things will happen, but not the great majority. They would want to keep control of their assets," Rhys said.
"I'm not saying it's impossible, but I don't think it's the way to go. I'm frankly very skeptical about it."
10-year wait
Professor David Bailey from the Aston Business School in Britain's Midlands expects autonomous vehicles to revolutionize transport, but not for perhaps 10 years.
"Autonomous cars will raise questions about whether we need to own cars in cities. Meanwhile, more car sharing and firms like Uber will move into the market. None of this will be much of a threat for maybe five years down the line, but then it will become a bigger issue with new entrants to challenge traditional manufacturers. It might be Tesla or Google, we don't know how destructive they will be but there will be destructors," Bailey said.
He also thinks the traditional manufacturers will ride out the storm.
"Will Google make its own cars, or get existing manufacturers to make them, or license technology to manufacturers. There's lots of potentially different scenarios In the short term, there's no great threat, but in the long run the incumbents must get to grips with this," Bailey said.
Thrive
Gartner's Koslowski is confident the auto industry will not only survive all this turmoil, but thrive.
"In the next five to 10 years, we will see more changes in the auto industry and mobility than in the previous 100 years. But autonomous vehicle will mean more cars on the road and great benefits because new groups of consumers will become involved, like the elderly and disabled who are currently excluded. This will mean more cars initially and they will be used more," Koslowski said.
"I strongly believe that the importance of the automobile will grow going forward, it won't be diminished but become much stronger."
Made in Mexico: An emerging
auto giant powers past Canada
GREG KEENAN
PUEBLA, MEXICO
The Globe and Mail
Feb 14, 2015
When Salvatore Lauria started work at Autotek in Puebla, Mexico, there were only a few cars in the company parking lot. Now, 15 years later, the parking lot is full and the vehicles have spilled over on to the neighbouring soccer field.
There are more cars today because Autotek has expanded eight times since it began stamping out bumpers and radiator supports in 1991.
"We often talk about all the expansions we have done in our facility, but we often forget we have had to make four expansions in our parking lot," says Mr. Lauria, general manager of the plant, which was the first factory Magna International Inc. built in Mexico.
Autotek is a prime example of how Magna is taking advantage of a remarkable growth spurt in the auto industry in Mexico. From that single plant, the Canadian auto parts giant has grown to the point where it now operates 29 plants that employ 24,050 people, more than in any other country where Magna makes parts.
Magna is riding a tectonic shift that is transforming the global auto industry as Asian and European car companies pump billions of dollars of investment into a country perfectly positioned to supply eager North American car buyers and the future growth market of South America.
The shock waves from that shift are battering Canada, which for decades stood as a strong No. 2 behind the United States when it came to North American vehicle production, but has tumbled to No. 3 behind Mexico. One-fifth of the jobs in vehicle assembly and auto parts have vanished in Canada since 2001.
As the auto industry's centre of gravity in North America moves inexorably southward, the threat to the remaining jobs in Canada is growing, creating worries for workers and posing a problem for policy makers faced with the potential loss of thousands more jobs.
The erosion of one of the pillars of Canada's manufacturing sector and the corresponding rise of the industry in Mexico is underlined in a series of statistics, including vehicle production, investment in new assembly plants and the trade balance that now stands at $10-billion in Mexico's favour.
One trend, however, stands out.
Canada's share of vehicle production in North America fell last year to its lowest level since 1987 – 14 per cent. The figure for Mexico was 20 per cent, compared with 3 per cent in 1987.
A free-trade advantage
The automatic assumption is that auto investment is flooding into Mexico because of rock-bottom wages – and they are low. Assembly plant workers earn the equivalent of about $2.90 (U.S.) an hour, estimates Alex Covarrubias, a professor at Sonora College in Hermosillo, Mexico. That's about 10 per cent of what workers with full seniority are paid hourly at Canadian and U.S. assembly plants.
Mexico's location next door to the U.S. market and close to South America is also a major lure for Asian and European auto makers that want to keep their capital investment as low as possible by supplying both markets from a single location.
What's more, Mexico has free-trade agreements with many of these countries – 45 in total – that allow auto makers to ship duty-free.
"You can export duty-free from Mexico to big automotive markets in the world – except China of course – North America, South America, European Union, Japan," notes Thomas Karig, vice-president of corporate relations for Volkswagen de Mexico. "There's no other country in the world that has these kinds of advantages."
By contrast, Canada, as a competitor with Mexico for investments by global auto makers, does not have similar links. It is a member of the North American free-trade agreement, and has recently signed free-trade deals with Europe and South Korea.
But the assembly industry in Canada is designed to feed the massive U.S. market, not markets around the world.
Mr. Karig works out of the sprawling Volkswagen AG assembly complex in Puebla, a city of about 1.5 million people southeast of Mexico City along the highway between the capital and the Gulf of Mexico port of Veracruz. Autotek is about a half-hour drive away from the Volkswagen plant, which was the first customer for the Magna plant in 1991.
Volkswagen's Puebla plant is its largest assembly plant outside of Germany, home of the legendary Beetle, and likely its only factory where assembly lines are decorated with several shrines to Our Lady of Guadalupe. Three assembly lines pumped out 475,121 Beetle, Golf and Jetta models last year.
About 80 per cent of the vehicles are exported. Beetles travel from Puebla to 100 countries, and all three vehicle models travel north by rail and ship to U.S. and Canadian markets, and by ship to Asia, Europe and South America from ports on both Atlantic and Pacific coasts that are ice-free year-round.
"Trains, roads, ports; everything is very well set up for the market," says Airton Cousseau, managing director of Nissan Mexicana. Nissan Motor Co. Ltd. operates plants in Cuernavaca, south of Mexico City, and in Aguascalientes, north of the capital, where it has two assembly plants already operating and a third under construction.
Volkswagen opened the Puebla plant southeast of Mexico City in 1964, so it's hardly a new kid on the block. The auto maker has spent $4-billion (U.S.) in the past 10 years retooling and expanding that factory as well as building and adding to a new engine plant in the central city of Silao.
The Germany-based company is also part of the massive $8-billion wave of investment announced since 2011. That spending backs the construction of seven new assembly plants that is expected to lead to production of five million vehicles annually by the end of the decade, up from the record 3.2 million that rolled off assembly lines last year.
As all that money floods into Mexico, one assembly plant closed in Canada and another is scheduled to shut down in 2016.
The new investments, including those by Volkswagen's Audi AG luxury unit, BMW AG and a Nissan-Daimler AG joint venture to assemble Mercedes-Benz vehicles, will boost Mexico as a maker of luxury vehicles, not just the subcompact and compact cars that for decades dominated the country's auto output.
The $1.3-billion Audi plant is rising in San Jose Chiapa, a town of about 4,000 people and a one-hour drive from Puebla.
Audi is an example of how economy of scale is another factor working in Mexico's favour, notably the formidable auto parts supply base that has sprung up because of earlier waves of investment.
"They decide to build a plant not too far from Volkswagen to take advantage of the synergies we can create, the support we can provide them for a startup," Mr. Karig says. "They come to Mexico because there are a lot of suppliers that already supply Volkswagen that can easily also supply them in the future."
Assembly plant investments since 2011
A Mexican welcome mat
That list of suppliers includes Autotek, from which trucks carrying door beams, instrument panel beams and other stamped parts depart every two hours for the short journey up the highway to Volkswagen.
In one section of the Autotek factory, robots still wrapped in plastic covering sit awaiting installation on a new assembly line that will make cross members for an Audi luxury crossover.
From that original contract with Volkswagen, Autotek has broadened its customer base so that it now supplies a long list of major auto makers that make vehicles in Mexico.
Ben Marshall, assistant general manager of Autotek, points to the free-trade agreements as a key element that has propelled the division's growth.
"Not to mention your biggest market is next door – being the U.S. – but you have more opportunities globally out of Mexico," Mr. Marshall says. "We ship to Russia, we ship to Brazil, U.S., Thailand, India, Venezuela."
Autotek now employs 1,150 people. Another 350 employees will be added this year in Puebla and a satellite plant that supplies Ford Motor Co.
Several Japan-based suppliers have located in the central state of Aguascalientes because of Nissan's construction of two assembly plants in the city of the same name, says Rodolfo Esau Garza de Vega, the state government's Secretary of Economic Development.
Auto industry jobs have helped strengthen the middle class so that 75 per cent of families in the state own their homes and university enrolment is among the highest in the region, Mr. Garza de Vega says.
"A manufacturing-based economy is certainly stronger than one based on tourism or commerce," he adds.
For Magna, which is now the fourth-largest private sector employer in Mexico, the equation is simple.
"Our investment is predominantly tied to where the auto makers go," says Scott Paradise, Magna's vice-president of marketing and business development for the Americas.
"If you can attract the auto makers, you're going to attract us and every other supplier."
Mr. Paradise has found the Mexican government eager to attract new investment and eliminate hurdles and red tape quickly.
"When you go and say, 'Hey, I want to put a plant in a particular area in Mexico,' they're way more welcoming than either Canada or the U.S.," he says. "That doesn't mean there's no interest in the states or in Canada, it's that [Mexico] wants the jobs."
Mr. Cousseau of Nissan has had a similar experience in Mexico with governments seeking to eliminate barriers.
The approvals for Nissan's second plant in Aguascalientes were made so quickly that it went up in 19 months, a record for Nissan's global operations.
Typically, approval and construction of assembly plants in Ontario and in U.S. states takes 30 months to three years.
Nissan produced 806,000 vehicles in Mexico last year and is planning to crank out 1.1 million annually in Aguascalientes by 2020 from three factories.
Financial incentives
The willingness to encourage investment applies to more than just the auto industry.
The process of gaining approvals to build a pipeline in Mexico compared with the Canadian regulatory system is like "night and day," says TransCanada Corp. chief executive officer Russ Girling.
Mexico also offers substantial financial incentives to both auto makers and parts suppliers.
When Chrysler Group LLC proposed a $550-million retooling of its plant in Toluca in 2010, Mexico provided $400-million in financial incentives.
In Canada, the federal and Ontario governments typically contribute about 20 per cent of project costs, with Ottawa offering repayable loans and Ontario giving grants.
Mexico's offer of hundreds of millions of dollars worth of incentives helped convince Ford earlier this year to invest in that country instead of Windsor, Ont., for a new generation of small engines.
Joe Hinrichs, Ford's president of the Americas, won't reveal the specific reasons for that decision.
He notes, however, that a decade ago Mexico was offering higher financial incentives than it is today to make up for disadvantages in other areas.
Now, other advantages such as the trade agreements and the ability to ship vehicles year-round from ports have become more important.
Mexico's location in the middle of the hemisphere is an advantage that cannot be matched.
"In some cases you have to respond to your competition," Mr. Hinrichs says. "If you have disadvantages, then there has to be some compensation [in other areas] to help offset that."
Federal Industry Minister James Moore points to Canada's low-tax environment, skilled work force and government programs such as the federal Automotive Innovation Fund and Ontario's grant programs as reasons for auto makers to invest here.
But the money that Mexico offered to Ford to land the engine plant "was something we can't compete with and wouldn't compete with, but over all we're continuing to go in the right direction," he says.
That's true to a degree, as recent investment announcements in existing Canadian plants attest. Honda Motor Co. Ltd., for example, will spend $857-million in Alliston, Ont., to build a redesigned Civic model with the Ontario government kicking in $87-million.
General Motors Co. said this week that it will spend $560-million along with suppliers to assemble the next generation Chevrolet Equinox at its plant in Ingersoll, Ont.
But when it comes to new assembly plants, which lead to thousands of supplier jobs as well, the score is 7-0 in Mexico's favour since 2011. Those assembly plants have also led to investments by auto makers in engine and transmission factories.
A Canadian industry group is urging the federal and Ontario governments to create an Automotive Investment Board, modelled in part on the Mexican government's ProMexico investment arm, but Mr. Moore has expressed skepticism that the establishment of such an agency would change the equation.
Auto makers are well aware of what programs are available from various governments, he says.
"Never once did they say the reason we didn't invest in Canada is because we didn't have a single point-of-entry person who could explain to us all the dynamics," he says.
Work force quality
Industry executives in Mexico laud the quality of the workers.
The combination of that quality, the wages and productivity put Mexico in the forefront of places to build vehicles, says Nissan's Mr. Cousseau.
"If you mix all three of these items today, Mexico is more competitive than China," he says.
The fact that three luxury auto makers have chosen to locate in Mexico underscores how far the work force has come.
"Years ago, when the industry first started to grow in Mexico, there was a belief that the cost of labour was less but the quality wasn't good," observes Mr. Marshall of Autotek.
"I don't believe that is true. The quality of the labour down here is phenomenal."
The wages for assembly-line workers at Volkswagen's Puebla plant are the equivalent of $3.77 an hour, data compiled by Prof. Covarrubias show. That's higher than the average across all assembly plants in Mexico and trails only Nissan's Cuernavaca plant.
It's also higher than many service sector jobs, as Felipe Coyotecatl Toxqui found when he left his job at a government training centre in Puebla to work for Volkswagen 18 years ago.
The 49-year-old is now a production co-ordinator in the body shop where Beetles are put together.
"I have the opportunity to give my children a better education," he says. He was able to send all three of his children to private school and his oldest son is now a doctor in Mexico City.
But that experience is far from universal, Prof. Covarrubias says, particularly for those workers at plants that are not as old as Volkswagen's Puebla facility.
Assembly line worker wages have fallen across the industry since 2007, he notes, even though productivity has improved.
A job with full seniority in the auto sector paying wages of more than $30 an hour with a defined benefit pension plan and other benefits has been a ticket to the middle class in Canada and the United States.
Despite all the growth, the rising tide of auto investment in Mexico is not lifting all boats.
"To get a job in the auto sector [in Mexico] is just half a ticket," he says. "The other point is that in order for you [to advance] into the middle class, you are going to take longer."
The lag between surging production and the benefits of that growth flowing to workers is evident in sales statistics.
Measured by vehicles per driving-age population, the Mexican market is still underdeveloped.
There are just 20 vehicles on the road in Mexico for every 100 drivers, compared with 80 in Canada.
It's another sign that Mexico has much more room to grow.
Ford GT supercar to be
built
at Toronto-area facility
TOM MALONEY
The Globe and Mail
Feb. 13 2015
The all-new 2017 Ford GT, the company's new supercar, will be built in Markham, Ont., in partnership with Multimatic, a privately-held Toronto-based company.
Joe Henrich, president of the Americas for Ford Motor Co., and former president of Ford Canada, made the announcement Thursday at the Canadian International Auto Show. There had been speculation Ford would build the car with an outside supplier.
The two-door supercar, developed secretly before being revealed at the Detroit auto show in January, will feature lightweight carbon-fibre design, rear-wheel drive, a two-seat cockpit, upward swinging doors, and "a mid-mounted, next-generation twin-turbo EcoBoost V-6 producing more than 600 horsepower," Henrich, in animated voice, told a gathering of media on press day at the Toronto show.
A privately held company headquartered in Toronto, Multimatic designs and develops lightweight composite automotive system at manufacturing and engineering facilities in North America, Europe and Asia. The company engineered and built the Aston Martin CC100, contributed to GM's Camaro Z/28, and has worked with Ford for about 30 years.
The challenge will be to go from Thursday's announcement to production in late 2016. Multimatic executives deferred comment on the subject to Ford.
"It's not a conventional program," said Craig Metros, exterior designer director of the Americas for Ford. "It's a streamlined process but with Multimatic building the car, there are some advantages."
In Detroit, Ford's performance vehicle engineer Jamal Hameedi pledged the vehicle would have the best power-to-weight ratio of any car on the market.
"A lot of the surface development was dictated by the wind tunnel but, at the end of the day, we wanted an absolutely beautiful sports car," Metros said. "In my mind it's a balance of technology and innovation but also design and style. We wanted it to have the aesthetical spirit of the original car, which I think we've accomplished."
The 2017 GT has been in development for about a year – hyper-speed for any auto maker.
Unifor chief takes
case for
GM Oshawa
investment to Mary Barra
GREG KEENAN
The Globe and Mail
Feb 12, 2015
Jerry Dias, president of Unifor, took his evidence in favour of new investment at General Motors Co. operations in Oshawa, Ont., to the top of the house at the auto maker Tuesday in a meeting with GM chief executive officer Mary Barra.
"I'm much more confident today that they have a clear understanding of what's in Oshawa," Mr. Dias said after an hour-long meeting with Ms. Barra in Detroit.
The meeting was the latest step in separate but similar lobbying efforts by the union and the federal and Ontario goverments to persuade GM to invest in the assembly plants and save jobs.
Federal Industry Minister James Moore and Ontario Economic Development Minister Brad Duguid met with Ms. Barra and General Motors of Canada Ltd. CEO Stephen Carlisle last month during the North American International Auto Show in Detroit.
Unifor officials met with other senior GM officials before Tuesday's meeting with Ms. Barra, and GM president Dan Amman toured the Oshawa complex in recent weeks.
Unifor, the union that represents about 3,600 workers at two assembly plants in Oshawa, is pressing the company to allocate new products to the plant to replace vehicles that are being shifted elsewhere or going out of production.
Mr. Dias said he presented data showing that the number of retirements in Oshawa this year would enable the company to hire a large number of workers at low wage rates and less expensive benefits than existing workers.
GM will be able to save $350-million over six years by hiring new workers to replace those who are retiring, he said.
"That six years is a product cycle," he said.
Mr. Carlisle acknowledged in a statement last week that no new products have been allocated to the two Oshawa assembly plants.
One plant, known as the consolidated plant, is scheduled to close next year, although its shutdown has been postponed twice. It produces the Equinox crossover and an older version of the Impala. The other plant, called the flex plant, assembles the Chevrolet Camaro, a redesigned version of the Impala, the Buick Regal and the Cadillac XTS.
No final decision on replacing those vehicles will be made until late 2016, when the costs have been studied for two years and there is a new contract in place with Unifor, Mr. Carlisle said in the statement.
The union's first priority, Mr. Dias said, is to replace the jobs being lost when Camaro production is shifted to Lansing, Mich., later this year. That affects between 850 and 1,000 people or a complete shift of production.
"We need to find a solution. Whether we ramp up volume of the Impala or the Equinox there has to be a solution to keep people at work," he said.
Mr. Dias said the union has been focusing on the message that the low value of the Canadian dollar and the quality and productivity of the work force in Oshawa make it a good place for GM to invest.
"Frankly, we're sick and tired of hearing about how we're uncompetitive and all that other nonsense," he said.
Ms. Barra said early in January that the auto maker does not make decisions on where to assemble vehicles based on short-term swings in currency values.
Ford to unveil Police Interceptor
at Chicago Auto Show
Michael Martinez,
The Detroit News
February 11, 2015
Ford Motor Co. on Thursday will unveil the 2016 Police Interceptor utility, developed with the help of law enforcement from around the country, at the Chicago Auto Show.
The new all-wheel drive Police Interceptor comes with a 3.7-liter V6 engine that produces 304 horsepower and 350 pound-feet of torque, as well as other features that range from new lights to surveillance sensors.
Since its introduction in 2012, the utility has captured 55 percent of the U.S. law enforcement vehicle market.
"Our Police Interceptor Utility is the best-selling police vehicle in America because we have a unique relationship with our customers," said Jonathan Honeycutt, Ford North American marketing manager for police vehicles, in a statement. "By listening to the Ford Police Advisory Board, we have engineered a vehicle that officers love."
Ford developed the utility with input from its Ford Police Advisory Board: a rotating board of 25 law enforcement officials from around the country.
The new vehicle includes a new front and rear design, new headlamps, a new instrument panel and an enhanced electrical system. Surveillance technology will alert drivers when someone approaches the rear of the vehicle, and if someone is detected, the driver's window automatically raises and all doors lock.
Ford also included a button that unlocks the rear liftgate so officers can access the vehicle's cargo area while keeping occupants in the second row secure.
Other features include:
■Ballistic shields in the driver and passenger doors to protect against gunfire.
■SYNC voice control technology
■Available blind spot information system that uses two sensors to detect vehicles in the surrounding lanes.
■Available cross-traffic alert that senses oncoming traffic when the vehicle is backing out of a parking spot.
■Available reverse sensing system, which emits a tone to alert the driver when certain objects are behind the vehicle.
Arie Groeneveld, chief engineer of the new Police Interceptor, said in a statement that the vehicle "is built to provide any law enforcement agency a vehicle ready to meet extremely demanding needs."
The vehicle is built at Ford's Chicago Assembly Plant and is sold in more than 80 markets. Once work is completed at the Chicago Assembly Plant, the vehicles are transported less than a mile away to Troy Design and Manufacturing to be up-fitted with law enforcement equipment.
Mexico races ahead in auto
industry as Canada stalls
GREG KEENAN
The Globe and Mail
Feb 10, 2015
Auto investment soared in Mexico last year and light vehicle production topped three million for the first time, underscoring Canada's decline to junior-partner status in NAFTA when it comes to the auto industry.
Sobering data on investment, trade and vehicle production add to concerns among Canadian executives, government officials and union leaders that the long-term future of the industry in Canada is in jeopardy as Mexico grows into a global powerhouse.
Global auto makers announced investments of $7-billion (U.S.) in Mexico last year, including $3.6-billion for three new assembly plants, compared with just $750-million in Canada, according to numbers compiled by the Center for Automotive Research (CAR), an industry think tank in Ann Arbor, Mich. Those investments will further boost production in Mexico, which grew to 19 per cent of North American vehicle output last year as new Honda Motor Co. Ltd. and Mazda Motor Corp. factories opened.
Industry publication Ward's AutoWorld said Canadian production rose a fraction. But Canada's share of North American output fell to 14 per cent, its lowest level since 1987.
Meanwhile, Canada's trade deficit in vehicles and parts with all countries rose to $19-billion (Canadian). Canada's trade deficit with Mexico surged to a record high of $10.3-billion. Canada's ranking in automotive manufacturing among the three North American Free Trade Agreement countries has been declining since the 2008-2009 recession while Mexico's star has been ascending.
"There hasn't been a new assembly plant that has opened in Canada or the United States since 2009 and we've had seven in a row in Mexico," said Sean McAlinden, CAR's executive vice-president of research and chief economist.
But auto makers invested $10.5-billion (U.S.) in their existing U.S. operations last year and have added thousands of new jobs at assembly plants.
Mexico offers wages that are about 10 per cent of the approximately $30 an hour paid to workers with full seniority at U.S. and Canadian assembly plants. But it also benefits from its location next to the U.S. market and close to emerging markets in South America as well as ports that are open all year, permitting finished vehicles to be shipped around the world.
Observers "forget the advantages that Mexico has developed in terms of location and market access," said Paul Boothe, a professor at the Ivey School of Business at the University of Western Ontario in London, Ont. "They can serve the southern U.S. market just as easily as we can service the northern U.S. market."
Mexican governments also offer financial incentives that eclipse those offered by the Canadian and Ontario governments.
FCA Automobiles received $400-million – or more than 70 per cent – for a $550-million retooling of a plant in Toluca, Mexico. The federal and Ontario governments typically offer 20 per cent of a company's investment.
"They take an entirely different approach to public policy than we do," federal Industry Minister James Moore said in Detroit last month. "It's hundreds of millions of dollars in straight corporate welfare and labour policies that would be wholly unacceptable within Canada."
The growth of the industry coupled with stagnation in Canada has prompted an industry-union group called the Canadian Automotive Partnership Council to urge Mr. Moore and Ontario Economic Development Minister Brad Duguid to establish an automotive investment agency in Canada that would be similar to the Mexican government's ProMexico organization.
A Canada-Ontario Automotive Investment and Attraction Board would provide one-stop shopping for auto makers and co-ordinate incentives offered by the governments and outline requirements and permits needed to build factories.
UAW to fund $355M office
retiree health care fund
David Shepardson,
The Detroit News
Feb 9, 2015
Washington — The United Auto Workers union has agreed to a $355 million settlement to fund an independent health care trust to pay for retiree health care for unionized staff members and relatives — and the UAW agreed to strict financial conditions until it completes the payments.
The proposed settlement was filed in U.S. District Court in Detroit on Jan. 30 and seeks to resolve a 2014 lawsuit brought on behalf of the Office and Professional Employees International Union Local 494 and other unions including International Union, Security, Police and Fire Professionals of America Amalgamated Local 119, Staff Lawyers Union and the Newspaper Guild/Communications Workers of America Local 34022. It also covers some UAW office retirees who weren't part of a union.
Under the deal signed by the sides in December, the UAW will pay $346 million for health care and $8.5 million to adminster a new Voluntary Employee Beneficiary Association, the same style health care trust used by Detroit's Big Three automakers to fund health care for UAW hourly worker retirees. Similar suits were brought by the UAW against Detroit's Big Three automakers to approve VEBAs for UAW employees.
The settlement also includes the proceeds of an earlier UAW internal retiree benefit trust, which are about $158 million. The plans cover about 2,500 active and retired employees and relatives.
The UAW will contribute $85 million to the fund upfront and pay off the balance over 15 years and will pay 5.5 percent interest on the balance. The UAW agreed that 30 percent of the net proceeds "from the sale of any real estate formerly owned by closed UAW locals" will be used to fund the health care payments.
The unions as collateral will get the first mortgage on the UAW's Black Lake property as well as a security interest in 30 percent of the UAW affiliate credit card royalty stream. In 2013, the union wrote the value of its Black Lake Golf Course and conference center in northern Michigan to $5.7 million, down from $7.6 million.
The UAW cannot incur new debt until the balance is paid, except for short term lines of credit incurred for the purpose of strike support and total debt incurred can't exceed $10 million.
The UAW noted the unions "have joined with the UAW in requesting court approval of the settlement, which was ratified earlier in 2014 by UAW active employees represented by the unions. The proposed settlement is similar to the retiree health care settlements the UAW reached previously with GM, Ford, and Chrysler with respect to UAW-represented employees and retirees from those companies. The settlement would create and fund an independent VEBA trust to provide retiree health care benefits to current and future retirees from UAW staff," the union said in a statement.
David M. Cook, a lawyer for the unions who sued, noted that under the deal the UAW's size has fallen dramatically — from 1.53 million to 391,000 at the end of 2013. Under the settlement "the assets of the new VEBA – the initial funding, along with future funding as received — will be beyond the reach of the UAW and its creditors."
Beginning in the fall of 2013, the unions representing office workers and the UAW discussed "UAW's ongoing financial difficulties and other challenges, and the critical importance to the UAW of restructuring its retiree health care obligation," the proposed settlement says. "The importance of permanently restructuring post-retirement medical coverage for UAW retirees is underscored by the fact that the UAW modified retiree health care coverage for current retirees in 20I3, and asserts the right to make those and similar modifications in the future."
U.S. District Judge Denise Page Hood must still approve the plan.
Retirees Benefit Report
February 2015
Travel insurance requirements for Canadians travelling to Cuba have been updated. Green Shield has informed me that the Cuban government will accept a valid Provincial Health Insurance Plan card as proof of sufficient travel insurance coverage from Canadian travellers entering Cuba. As always it is strongly recommended that you carry your Green Shield card with you when travelling.
Pension T4A’s will be mailed out soon. If you have had a change of address within the past year and have not notified Ford, please contact the Benefit Office as soon as possible so there will be no delay in receiving your T4A.
David Shepardson and
Melissa Burden,
The Detroit News
Feb 7, 2015
The head of the Canadian Unifor union Thursday said it was the wrong time for Ontario to sell its General Motors Co. shares, given concern about the future of GM's Oshawa plant. The union wants the federal Canadian government to retain its GM shares.
"If Canada wants to have a robust auto manufacturing industry, our governments must play a role," Jerry Dias, president of Unifor (the union created by the Canadian Auto Workers' merger with the Communications, Energy and Paperworkers Union) said in a statement. "We strongly urge the federal government to hold onto its shares."
The Ontario government Wednesday said it sold its final 36.7 million shares of GM it received as part of Canada's $10 billion government bailout of the Detroit automaker. The Ontario Finance Ministry said it sold the shares over the last two weeks for $1.1 billion, more than its plan to recover $900 million. Last year, the federal and Canadian governments owned 7 percent of GM's common stock.
In a January regulatory filing, the Canada GEN Investment Corporation said it owned about 73.39 million shares of GM or 4.6 percent of GM's stock. A note in the filing said that an arrangement between the Canadian government and Ontario, in which Canada had committed to provide Ontario with one-third of proceeds from the sale of any stock held by Canada GEN and a third of dividends received by Canada GEN, has been terminated.
The United States in 2008 and 2009 gave GM a $49.5 billion bailout, while Canada's federal and Ontario governments contributed about $10 billion, including $4.8 billion from Ontario for GM and Chrysler.
"Like any shareholder, it is their decision on when to sell their shares in our company," GM said in a statement. "We appreciate the Ontario government's support of the auto industry and General Motors."
The sale comes as GM's Oshawa Assembly plant in Ontario is at high risk for closure, analysts believe.
The automaker said it will wait until next year before deciding any new vehicle commitments or investments there. The plant is slated to lose a high-volume vehicle, the Chevrolet Camaro, this year.
GM Canada President Stephen Carlisle said the company remains committed to Canada. But he said GM but must complete 2016 union contract negotiations with Unifor before making a final decision about what might be built at Oshawa.
The Oshawa plant, about 41/2 hours from Detroit, employs more than 3,000 hourly workers.
In exchange for the bailout money, GM promised to launch five new vehicles in Canada, including a Canadian-made hybrid, and to keep at least 16 percent of North American production there through 2016.
A GM spokeswoman said all those mandates will be met or exceeded.
Want fewer regrets? Enjoy
your life. Right. Now.
HARVEY SCHACHTER
Special to The Globe and Mail
Feb 6, 2015
Steve Gilliland is sitting in an airport in Salt Lake City, enjoying the day. There was a time when the North Carolina-based motivational speaker and author of several books including Enjoy The Ride might have been worrying about where his next billings would come from, working the phones to boost business. Or he would have been fearing any possible delays that could complicate his schedule.
But over time, he has trained himself to enjoy life as it comes, rather than worry about what's ahead or behind. "As I told the audience in Vancouver yesterday, you have to live more for today and less for tomorrow or yesterday," he said in an interview.
And by today, he means now – this exact moment. Don't live your life for 30 minutes from now, as many of us tend to do, planning, rehearsing, plotting, and just generally anticipating.
After one of his talks, in Cincinnati, a 97-year-old man came to shake his hand and say he wished he had learned that advice as a youngster. His wife had died, his kids were grown up, and he had squandered his time with them because he was always living for what was ahead not what was happening at the moment. "At the age of 97, I've officially lived my life 30 minutes ahead – 30 minutes ahead of whatever I was doing at the moment," he sadly admitted.
Mr. Gilliland gives another example from his own life: The many Friday nights he watched his kids playing sports and wishing the games were over. Those were actually golden moments, and can never be retrieved. He failed to live fully in the present.
Being in the moment also means being with the people around you, not the devices you have brought along. Recently in a restaurant, Mr. Gilliland saw an all-too-familiar sight: A family of six, two parents and their children, all hunched over their devices rather than talking to each other. He timed them: It was nine minutes before any live connection transpired. "We don't enjoy the ride as we're too busy with yesterday or tomorrow or the distractions of today," he said.
That means knowing what's important to you – and what can get your goat. He suggests writing a list of the most important things in your life. Then write in sequence the numbers one to 168, to signify the hours available in a week, and estimate how you spend that time. Compare that time allocation with your priorities, and inevitably you will see yourself sucked into endeavours you should eliminate or reduce.
Such scrutiny usually reveals the family getting short-changed. And he suggests it's worse than the list indicates, since often families are watching TV or studying their e-mail and Facebook accounts at mealtimes instead of interacting with each other. "You have to match your actions to your beliefs. A lot of people have a belief system but don't act accordingly," he said.
To enjoy the ride, you have to stop giving people permission to ruin your day. That's why he turns off his phone on airplanes – not just airplane mode, but totally off – and when home with family. And he has learned to assign the appropriate value to situations, to control his reactions. If a flight is delayed, for instance, most people get upset. He takes it in stride. It's part of travelling, and needs to be accepted as normal. Don't overreact. If you let yourself become emotional, you'll probably make bad choices.
"It's important to control your emotions and how you react to situations and people. Often when we don't like people, it's because they are a mirror – they have a little bit of us in them that we don't like. Don't let people get your goat," he said.
People can't get your goat if you hide it – from them and from yourself. Take an all-too-familiar situation: You wander into a supermarket, eager to get in and out, but only two of the 12 cash registers have a clerk receiving customers. You can become irritated – you can let the store, or the situation, get your goat. Or he says you can accept that, in a period of downsizing by business and given the time you came into the store, such meagre service was to be expected. "Don't expect you can get in and out fast. Enjoy the ride," he said.
Rather than starting the day in a frenzy – feeling rushed and irritated when things don't come together neatly – build a positive framework, taking time to reflect on what's good in your life. Try to understand your goat. Make a list of what and who gets your goat, and then ask "how" and "why?" What is it about you that adds to the negativity of the situation? After determining your contributions, figure out what you need to do in order to change the way you think. Remember, he says, that for every 60 seconds you are unhappy, you lose one minute of happiness.
So herd (or fence off) those goats. Live in the moment, not 30 minutes from now, let alone further in the future or ruminating about yesterday. Enjoy the ride that is your life.
Harvey Schachter is a Battersea, Ont.-based writer specializing in management issues. He writes Monday Morning Manager and management book reviews for the print edition of Report on Business andan online work-life column, Balance.
Ford's new Focus RS
to be sold in U.S.
Michael Martinez,
The Detroit News
Feb 5, 2015
Ford last introduced a Focus RS five years ago for the 2009 model, and before that in 2002 — but those cars were sold only in Europe. The latest car will be the 30th vehicle to wear Ford's RS badge.
The car will feature 19-inch rims, Recaro sports seats and will seat five people. The all-wheel-drive system allows for up to 70 percent of the torque to the rear axle, and all of the torque can be sent to each rear wheel.
"The RS for us captures the promise of our brand," said Jim Farley, Ford's head of Europe. "At our best, we bring technology to millions; we make great cars that are affordable."
The Focus RS is the latest car under the newly created Ford Performance umbrella. Last month, Ford showed off a GT super car, Mustang Shelby GT350R, and a F-150 Raptor at the North American International Auto Show. The Dearborn automaker said it will unveil 12 performance vehicles by 2020.
"Small cars are a very important part of our portfolio," said Joe Hinrichs, Ford's president of the Americas. "The RS brings the racing element to the Focus nameplate as well as adding more product to our portfolio of performance vehicles."
Ford to add 1,550 new
jobs for F-150 production
Michael Martinez,
The Detroit News
Feb 4, 2015
Ford Motor Co. said Wednesday it will add 1,550 jobs — 650 of those in Michigan — through March.
As a result, 300-500 hourly workers at three plants outside Michigan will receive raises, the automaker said. That's because Ford already has exceeded the number of second-tier hourly workers it's allowed under its contract with the United Auto Workers.
Ford's announcement came days after the UAW confirmed 55 hourly Ford workers will receive pay raises this week. Those 55 are counted in the figures Ford announced Wednesday.
Of the 1,550 new jobs, 500 will be added at Dearborn Stamping and Dearborn Diversified; 150 jobs will go to Sterling Axle; and 900 will go to Ford's Kansas City Assembly Plant. All will support production of the 2015 F-150.
All of the new hires have already been identified, Ford said. They will fill various positions in the plants and will start work by the end of March.
Dearborn Truck Plant recently added a third shift to make the aluminum-bodied F-150, and Ford's Kansas City Assembly Plant recently installed the new equipment needed to build it.
"The fact that we're focusing on is that we're hiring more people, and the reason we're hiring more people is to support sales of the truck," said Bill Dirksen, Ford's vice president of labor affairs. "That's a good thing for our business."
Jimmy Settles, UAW vice president and director, National Ford Department, said in a statement, "This is very exciting news and these additional jobs will have an impact in communities all across our nation. This also represents a major milestone for employees hired under the entry-level agreement, as many will now begin to convert to 'new traditional' wage status, as negotiated in the 2011 collective bargaining agreement."
The 300-500 workers who will move up to top wage status will go from earning about $19 an hour to $28 an hour.
Those getting the raises will be the most senior second-tier workers at Ford's Kansas City, Chicago and Louisville manufacturing facilities.
It marks the first time that any of the union's members have moved up to a higher pay scale since it agreed to two-tier wages in 2007; General Motors Co. and FCA US LLC don't have cap limits.
"They will experience some progression that's long been talked about but hasn't happened until now," Dirksen said.
Under the contract with the UAW, Ford is allowed to hire 20 percent of its workforce at a second-tier wage, excluding some workers at certain plants whose jobs were created by moving work in-house. It recently surpassed that cap after adding more than 5,000 hourly jobs across its U.S. manufacturing facilities last year.
Ford has hired more than 15,000 hourly UAW members since 2011, exceeding its goal of creating 12,000 hourly jobs in the United States by 2015.
Ford said Tuesday that last month was the best-selling January for its F-Series trucks since 2004. Ford said the new aluminum-bodied pickup represented 18 percent of F-150 sales.
GM Oshawa plant
at risk for closing
Melissa Burden,
The Detroit News
Feb 3, 2015
General Motors Co.'s Oshawa Assembly plant in Ontario is at high risk for closure, analysts believe, after the automaker said it will wait until next year before deciding any new vehicle commitments or investments there. The plant is slated to lose a high-volume vehicle — the Chevy Camaro — this year.
GM Canada President Stephen Carlisle said the company remains committed to Canada. But he said GM but must complete 2016 union contract negotiations with Unifor (the union created by the Canadian Auto Workers' merger with the Communications, Energy and Paperworkers Union) before making a final decision about what might be built at Oshawa.
It's one of GM's two assembly plants in the province, along with CAMI Assembly in Ingersoll. The Oshawa plant, about 41/2 hours from Detroit, employs more than 3,000 hourly workers.
"We are going to be careful and are not expecting to be deciding on any major new mandates or investments in Oshawa until well into 2016," Carlisle, who has overseen Canadian operations since November, said in a statement.
There are several reasons GM might look at scaling back Canadian operations: It has available capacity in many North American plants, and has planned to shutter one line at Oshawa for more than a decade. It's cheaper to build cars in Mexico; GM plans to invest $5 billion there over six years.
And while the Canadian currency exchange rate is favorable to GM now, former CEO Dan Akerson in 2012 said Canada was the most expensive place in the world to build a vehicle.
Officials from the union, as well as from Ontario and Canada, are ramping up meetings with GM leadership. They are lobbying to keep the plant operating and are pushing for a quicker decision on whether the plant will land more vehicles.
GM received about $10 billion from the Canadian and Ontario governments to help bail out the company in 2009. In exchange, GM promised to launch five new vehicles in Canada, including a new Canadian-made hybrid, and to keep at least 16 percent of North American production there through 2016. A GM spokeswoman said all those mandates will be met or exceeded. Ontario and the federal Canadian governments still own 7 percent of GM's common stock.
"Bottom line: It's time they made a longer-term commitment here," said Unifor President Jerry Dias. GM's contract with Unifor expires in September 2016; it will negotiate with the United Auto Workers in the U.S. this year.
The Detroit carmaker has said one of two lines at Oshawa — the one-shift consolidated line that builds the Chevrolet Impala Limited fleet vehicle and Chevrolet Equinox — likely would end in 2016. The plant also has a three-shift "flex" line that produces the Chevrolet Camaro, Impala, Cadillac XTS and Buick Regal. Camaro production is scheduled to shift to GM's Lansing Grand River Plant this year.
Canadian and Ontario government officials met with executives from GM, Ford Motor Co. and Fiat Chrysler Automobiles during the Detroit auto show. Union and government officials say the mood and sentiment about Ford and FCA in Canada are good; Ford and FCA recently made major investments in Ontario. Their concern centers around GM Oshawa.
Brad Duguid, Ontario minister of economic development, employment and infrastructure, said, "We made it very clear that we would like to see an indication on the future of Oshawa sooner, in particular because the timing is very challenging for our supply chain to be able to adjust to potentially future orders or changes, but also to know that there are going to be future opportunities at Oshawa."
Focus on union talks
Some analysts and production forecasting firms don't foresee any vehicles being built at Oshawa after 2017, and others believe there will be some production through 2019. Unifor's Dias said the Regal and XTS at Oshawa are expected to be built there through 2017.
Jeff Schuster, senior vice president of forecasting at LMC Automotive, said, "There is a fairly strong chance that the plant could close."
He said GM appears undecided on Oshawa. LMC tentatively forecasts a new Cadillac SUV could be built there in late 2017 — if GM decides to stay.
"It's really going to come down to negotiations with the union if GM will put additional investment or product into the plant," he said, adding he expects the government will have to step in with incentives.
Dias said with the Canadian dollar below 80 cents U.S., it makes sense for GM to maintain three shifts at Oshawa, lauded by the company and outsiders for its high quality. He said it's now cheaper for GM to build a vehicle there than in the U.S.
Industry analysts agree that for now, it is cheaper. But the labor cost is a relatively small part of the cost equation of building a vehicle. And they note that currency fluctuates over the long term.
"Unifor has about a $5-$6 an hour U.S. dollar hourly labor cost advantage right now, largely due to currency exchange rates," said Kristin Dziczek, director of the industry and labor group at the Center for Automotive Research.
Dias hopes GM will increase production levels of the Impala after Camaro production moves. Loss of the Camaro could mean 1,000 lost jobs at Oshawa, Dias said.
The age of the labor force could be an incentive to GM, Dias says. More than half of Oshawa's hourly workforce will be eligible to retire by the end of 2015, and some elect to retire every month, said Unifor Local 222 shop chairman Greg Moffatt. At GM's St. Catharines powertrain facility, 95 percent are eligible for retirement, Dias said.
A new wage structure, he said, means that GM workers in Canada start at a lower wage — about $20 an hour — with wages increasing to $34 an hour with 10 years of seniority. That could add a significant savings to GM, along with Canada's national health care, he said.
Dias met with Carlisle last week and will meet with GM CEO Mary Barra this month in Detroit.
'Highest-risk facility'
AutoForecast Solutions LLC President and CEO Joe McCabe said every vehicle GM builds in Canada could be built elsewhere in North America — and other plants have available capacity. He said GM sells only about 7 percent of the vehicles it builds in Canada in that country. Canada is GM's fifth-largest sales market.
"Oshawa is the highest-risk facility in the Canadian footprint," said McCabe.
He believes the XTS and Regal will leave the plant by sometime in 2017, and the Impala Limited remaining at Oshawa will be "on life support" through 2019. After 2019, he is not forecasting any vehicles for the plant.
Ontario has been friendly in recent years to automakers that invest there. It recently awarded a grant worth up to $85.7 million over five years to Honda for its $857 million in investment at its Alliston plant that retains about 4,000 jobs. Duguid said Ontario is open to discussions with GM on partnerships.
"Until they've stabilized their labor agreement, (it's) unlikely they would want to come to the table for those negotiations," Duguid said.
Mining company places
first F-150 fleet order
Michael Martinez,
The Detroit News
Feb 2, 2015
Mike Sena thought something was odd when his magnetized GPS wouldn't stick to the bed of a new work truck he was driving in November 2011.
Earlier that year, Ford Motor Co. had delivered two early prototypes of what would become the 2015 aluminum-body F-150 to Sena and other workers at mining company Barrick Gold USA. There was nothing outwardly that looked any different than a regular model-year 2011 F-150: The bed and tailgate were made of aluminum, but they were stamped to look like that of the 2011 truck. And everything but the bed and tailgate were pretty much the standard pickup available in any showroom.
Only when Sena's survey team drove it 90 miles from town to an isolated mining site in the Nevada desert did he become a little suspicious that something was different. "The GPS wouldn't stick to the side," Sena said. "But we didn't put a whole lot of effort into trying to figure it out."
Sena's team at Barrick was among the first to test an F-150 with an aluminum body, nearly three years before the redesigned pickup was unveiled at the 2014 North American International Auto Show. And now, Barrick is the first company to place a fleet order — 35 SuperCab 4x4 models with 3.5-liter V6 and 5.0-liter V8 engines — for the new truck.
"This is terrific proof that even our toughest, most demanding customers recognize the benefits of high-strength, military-grade, aluminum alloy to help them get the job done," Fritz Ahadi, Ford commercial and government fleet sales general manager, said in a statement.
Ford also gave prototype trucks to an energy company in North Carolina and a construction company in Pennsylvania.
"Ford told us to treat it like any of our other trucks, maybe a little worse," Sena said. "They told us to put it to work."
That work included driving it over potholes, up steep hills and across other rough desert terrain.
It hauled everything from compressors and hitches to drill bits and wooden stakes.
In total, Barrick put more than 100,000 miles on one truck, and about 83,000 on the other.
"They were probably one of the most abusive," said Ford engineer Denis Kansier.
"This was the first time in my engineering career I've seen how rough a truck is used."
Sena said his team typically uses larger SuperDuty trucks, but was impressed with the F-150.
"It was everybody's favorite truck," he said. "It was a lot easier to manage in tight spaces, and the commute was a lot smoother on the roads."
So far, the launch of Ford's new truck is going well. Ford recently added a third shift to its Dearborn Truck Plant to make the pickups, and CEO Mark Fields said January sales results for F-Series trucks could be the best since 2004. Results will be released this week.
Barrick's initial order is for 35 trucks, but the company plans to order hundreds more in the future.
"I think it's a good thing," Sena said. "I've worked now going on 15 years and Fords have been the standard. They've come a long way from where they used to be as far as amenities and performance."
Ford posts 2014 pre-tax
profit of $6.3 billion
Michael Martinez,
The Detroit
Feb 1, 2015
Dearnborn — Ford Motor Co. hopes new offerings like the F-150 and Explorer will drive it to greater profits this year after a 2014 financial pit stop of lower sales volumes and overseas economic woes.
The Dearborn automaker earned $3.2 billion in 2014, down from $7.2 billion the year before, and pre-tax profits fell $2.3 billion to $6.3 billion.
Ford's fourth-quarter financial results were particularly weak: Its fourth-quarter net income plummeted 98 percent and pre-tax profit fell 14 percent from last year, but it still beat analysts' estimates.
Executives had cautioned all year that numbers would fall as Ford incurred higher introduction costs and stopped production of its best-selling vehicle — the F-150 — for a month as it switched over to a new model. The company expects some troubles — namely, currency issues in South America and economic turmoil in Russia — will continue to tug at its bottom line. Ford hopes last year's record 24 product introductions will pay dividends this year as production of most of those vehicles reaches full-strength.
"2015 is going to be a breakthrough year for Ford," President and CEO Mark Fields told reporters and analysts on a conference call Thursday.
Ford predicts better outlooks this year for nearly every region it operates in, although it worsened its forecast for Europe, saying it expects to lose more than the $250 million it earlier predicted there. Ford predicts a pre-tax profit of $8.5 billion-$9.5 billion in 2015.
"Ford has been able to contain costs in North America, product momentum accelerates globally, the European restructuring is on track and China continues to grow," Sterne Agee analyst Michael Ward said in an investor note. "We expect Ford to generate surplus cash in 2015, and in 2016 and we expect cash allocation to increasingly favor shareholders."
Ford's fourth-quarter results were driven by a $1.5 billion pre-tax profit in North America, down $252 million compared to a year ago. Ford made $6.9 billion in North America in all of 2014, down from $8.8 billion because of lower sales volume and recall costs. Ford lost 1.1 percentage points of market share in North America to end the fourth quarter at 14.3 percent, largely because of the production cuts for the changeover to its new 2015 pickup.
Ford lost about $581 million in manufacturing and engineering costs last year, mostly due to launch costs, Bob Shanks, Ford's chief financial officer, said. The F-150 was the most notable example with 13 weeks of downtime between two plants, but Ford also incurred added costs from launches of the Transit, Expedition, Mustang and other new vehicles.
Sales of the new aluminum-bodied F-150 are picking up. Ford has already sold about 5,000, and Fields said January sales results for F-Series trucks could be the best since 2004. A third shift has been added to Ford's Dearborn Truck Plant, and new equipment has been installed at its Kansas City plant, Fields said. Ford hopes to be at full production by the middle of the year.
"Ford likely is happy to close the books on 2014 and look ahead to 2015," Michelle Krebs, senior analyst with AutoTrader.com said. "Ford's U.S. sales show the continuing shift towards pickup trucks, when Ford is transitioning its F-150 to the new aluminum-bodied version, and sport utilities, like the Explorer and Escape, at the expense of cars like the Focus and Fusion."
Ford also made money last year in Asia Pacific, posting a record pre-tax profit of $589 million, thanks in part to strong sales in China.
It was a different story in Europe and South America, where the automaker lost more than a billion dollars in each region.
In South America, Ford lost $187 million in the fourth quarter, and finished the year with a $1.16 billion loss there. Venezuela remains a trouble spot, as Ford took a one-time hit of $800 million because of currency issues.
"We don't see anything changing going forward," Shanks. "As you look ahead, it seems like conditions are worsening. It's extremely difficult for us to get the cash to run the business."
Fields said the company was committed to continuing to sell vehicles there. "We know the business environment remains volatile ... but in the longer term, it's an attractive and important place to do business," Fields said.
The automaker lost $1.06 billion in Europe in 2014, including $443 million in the fourth quarter. Ford now says its European profit for 2015 will be better than this year but worse than a $250 million loss it previously forecast. The decline in guidance comes as problems in Russia continue and Fields said that country would "be a drag on our earnings" for the foreseeable future.
Ford lost $20 million in the Middle East and Africa last year, including $82 million in the fourth quarter, a $22 million improvement from a year ago.
Retiree Bill Ingles Passes
away January 31, 2015
Bill Ingles
1934- 2015
Retired October 1, 1995
27.8 Years of Service
It is with deepest regrets that we inform you of the passing of Retiree
Bill Ingles who passed away Saturday January 31, 2015.
Our Deepest Condolences go out to his wifeand family on
behalf of all the retirees. Bill will be sadly missed by all.
Visitation
Mackinnon Funeral Home 55 Mill Street East, Acton
Tuesday February 3, 2015,
2:00 to 4:00 pm and 7:00 to 9:00 pm Map
Funeral
Knox Presbyterian Church
116 Main Street South
Georgetown Wednesday February 4, 2015
11:00 am Map
INGLES: William "Bill" Charles
May 22, 1934 – January 31, 2015
After a valiant and extended battle with cancer, Bill peacefully passed on January 31, 2015 at the Georgetown Hospital in his 81st year. Loving husband of Ann for 55 years and dear father of Ron (Charmaine) and Scott (Jayne). Proud "Grandpa" of Jeff (Mallory), Ben (Michelle), Caitlin (Justin), Chad (Laura) and Travis. Great grandfather of Nathan and Owen. Bill will be fondly remembered by his extended family and large network of friends. The family would like to extend a "thank you" to all the staff at the Georgetown Hospital for their care and compassion.
The family will receive friends at MacKinnon Family Funeral Home, 55 Mill Street East, Acton on Tuesday, February 3rd from 2-4 p.m. and 7-9 p.m. Friends are invited to meet the family at Knox Presbyterian Church, 116 Main Street South, Georgetown on Wednesday Febuary 4th at 11 a.m. Cremation will follow. Remembrances to C.A.S of H.H. would be appreciated.
Ford US workers to get
$6,900 profit-sharing checks
Michael Martinez,
The Detroit News
January 31, 2015
"It's always a good bonus to have," he said. "It's something to show we're appreciated. It's less than last year, but it's still a good thing."
The 37-year-old Canton resident said he's come to expect the check each year since the industry has bounced back from the recession. Ford didn't offer profit sharing from 2005 to 2008.
Elhady said he'll roll most of it into his 401(k). "Not everybody does that, but it's the smartest thing to do," he said.
And what about the rest of the money? "I have a wife and three kids; they have plans for it," he joked.
FCA US LLC reports earnings Feb. 3. Last year, Chrysler workers received up to $2,500 in profit sharing (with another $1,000 if plant targets were met). Checks are expected to be about even with last year, or possibly a bit larger.
General Motors Co. reports earnings Feb. 4. Employees last year received up to $7,500 in profit sharing. Checks are expected to be at least $1,000 lighter this year.
Ford reported Thursday it made $6.9 billion in North America last year, down from $8.8 billion last year thanks to lower volume associated with a record number of product launches.
The smaller check doesn't upset Bradley Wampler, who works at Ford's Michigan Assembly Plant and is a union rep for UAW Local 900.
"I don't see how you could be disappointed," he said. "It's a bonus; it opens up opportunities."
Wampler, a 42-year-old Belleville resident, said he'll be practical: Some will be saved, some will be used to pay bills, and some will be spent on continuing his education. "I was in college years ago and have always wanted to finish up," he said.
Tony Gazzarato, a 39-year-old orientation coordinator and safety trainer at Dearborn Truck, said he plans to spend his check on his two-story colonial in Livonia. He plans to do remodeling, including new windows.
"No matter what the number is, I'm excited," he said. "I never take anything for granted.
Ford said next year's checks should be bigger.
"We're saying North America will have improved profits in 2015. That would mean improved profit sharing," Ford Chief Financial Officer Bob Shanks said in an interview.
UAW: Ford will move some
2nd-tier workers to top wages
Michael Martinez,
The Detroit News
Jan 31, 2015
Ford Motor Co. will give more than 50 hourly workers $9-an-hour raises after Dearborn automaker exceeded its cap on the number of entry-level workers it's allowed under its current union contract, the United Auto Workers announced Friday.
Under the contract with the UAW, Ford is allowed to hire 20 percent of its workforce at a second-tier wage, excluding some workers at certain plants whose jobs were created by moving work in-house. It recently surpassed that cap, the UAW said.
"At this time, 55 UAW-Ford workers will receive the wage increases, which put them in the category of non entry-level employment," Jimmy Settles, vice president of the UAW's Ford department, said in a statement. "By agreeing to the entry-level wages, the UAW was instrumental in creating a pay scale that helped keep Ford Motor Co. and other auto manufacturers competitive. The higher wages announced today help workers, families and the communities where they live and work."
According to the most recent figures on the Ford-UAW website, the automaker had 14,239 full-time entry-level hourly employees as of Jan. 18, and was allowed 14,308 — a difference of just 69 workers. The UAW says that since then, the cap has been exceeded.
Since the cap has been exceeded, the most senior entry-level workers will go from making about $19 an hour to $28 an hour. It marks the first time that any of the union's members have moved up to a higher pay scale since it agreed to two-tier wages in 2007.
"Our workers have sacrificed and this is just a milestone within our contract to begin to close the gap in rewarding all of our members," UAW President Dennis Williams said in a statement. "They sacrificed and saved not just an industry, but the American economy."
Ford did not immediately respond to news of the UAW announcement.
Ford is the only one of Detroit's Big Three automakers with a cap on its second-tier workers.
Since 2011, it has added more than 14,000 jobs, including more than 4,000 in southeastern Michigan at locations including Michigan Assembly, Flat Rock Assembly and Dearborn Truck. That number exceeded its 2011 pledge to add 11,000 workers.
Ford this week said it would give its hourly workers profit-sharing checks of about $6,900 in March. Last year workers received a record $8,800.
Ford's 'breakthrough'
runs risks in UAW year
Daniel Howes,
The Detroit News
January 30, 2014
Mark Fields says "2015 is going to be a breakthrough year for Ford" Motor Co.
Uh oh. That's when the profitable Dearborn automaker and its new CEO are set to bargain a new national contract with the United Auto Workers, the first since 2007 not heavily influenced by the global financial meltdown, the heavy hand of the federal government or both.
This won't be easy and probably not cheap, not that Fields did more than make a positive passing reference to the union as he detailed Ford's year-end financials Thursday. Still, the wrangling looms amid what's shaping up to be the longest run of growth and prosperity the U.S. industry has seen since the 1960s.
The talks beginning later this summer will be tough precisely because Ford's $6.3 billion in pre-tax operating profit last year (almost all of it earned in a U.S. market that shapes union demands) is expected to swell to at least $8.5 billion this year, the company says.
That's a ripe invitation to share the riches, if ever there was one, with some UAW members who have not seen a base wage increase in nearly a decade. But the expected prosperity hides a small problem: Ford heads into the critical negotiations with one of the widest labor cost gaps of any manufacturer operating in the United States.
In 2007, a landmark year in Detroit's effort to unwind the punishing legacies of pensions, retiree health care and a Jobs Bank that paid people not to work, Ford's all-in labor cost (wages, benefits and associated costs for active employees) totaled $74 an hour, according to industry figures shared between the automakers.
Total labor costs for foreign automakers operating in the United States, by contrast, equaled $47 an hour, a yawning gap that company bargainers then used to justify creation of a health care trust for retirees and establishment of a lower entry-level wage, or "second tier," for new hires into UAW plants.
In 2011, two years after General Motors Co. and the former Chrysler Group LLC emerged from federally imposed bankruptcy — and Ford captured most of the labor savings its rivals gained in restructuring — the Dearborn automaker trimmed its all-in labor costs to $58 an hour, compared to $50 an hour for foreign rivals
The tightened $8-an-hour gap lasted just two years as foreign-owned rivals deployed increasing numbers of temporary workers with minimal, if any, fringe benefits to reduce all-in costs to $47 an hour. Yet Ford's costs rose to $59 an hour, the highest in Detroit and rivaled only by Mercedes-Benz nationwide.
"Chrysler is at $47" an hour, says Kristin Dziczek, director of industry and labor at the Ann Arbor-based Center for Automotive Research. "They're at the industry average. Mercedes is north of $70. GM is, I believe, below Ford."
Industry navel-gazing like that may seem irrelevant to folks seeing U.S. profits totaling in the tens of billions over the life of the soon-to-expire contract. But any sentient person who experienced the downward arc of the Detroit's slide toward near cataclysm knows that cost parity on labor, material and production, to name three, are critical components of competitiveness.
Both sides will face a choice in the coming negotiations, still a quadrennial rite in this town despite dramatically smaller union workforces at all three automakers. The industry has spent the better part of the past eight years closing the cost gap, a winnowing that fully utilized U.S. plants, retained dues-paying jobs and created more.
For the trend to continue (to the extent it can should growth, as expected, level off), bargainers on both sides of the table will need to craft agreements that bend the cost curve closer to average of foreign-owned rivals — or risk seeing jobs and investment once again hop borders.
GM, for one, already has signaled an alternative, however politically unpalatable it may be. Last month, Detroit's No. 1 automaker said it would invest $3.6 billion to double production capacity in its Mexico operations, creating 5,600 jobs there.
A warning shot? That, and recognition that the macro-economic conditions that fueled production expansion in the U.S. and job creation for hourly workers can become more problematic the longer the expansion runs and the higher expectations rise.
"We should never forget what happened in '08 and '09," UAW President Dennis Williams told a year-end media roundtable last month. "We have to keep in mind that we want to keep the companies competitive. It's time for our membership to have a reward. Whether we can achieve that is another matter."
A replay of 2007 may be in order. Roughly a year after Alan Mulally became Ford's CEO, he met quietly at the Dearborn Inn with then-UAW President Ron Gettelfinger and his would-be successor, Bob King. Mulally's message was simple:
If the UAW would agree to help the Blue Oval close the cost gap with a competitive contracts, Ford would reinvest in its U.S. plants and retain union jobs at home. The union did, and it's likely to be asked for the same thing once again — only this time by companies sitting on piles of profits.
Hourly workers at Ford, GM
may see profit-sharing dip
Melissa Burden and Michael Wayland,
The Detroit News January 29, 2015
General Motors Co. and Ford Motor Co. hourly workers likely will receive profit-sharing checks this year that are lower than the record amounts paid last year because of high recall costs and vehicle introductions.
But UAW-represented workers at FCA US LLC, formerly Chrysler Group LLC, could see checks of a similar amount or receive small increases over last year, possibly the highest payment for those workers under the UAW's four-year contract that expires in September.
Payments for GM and Ford employees likely will remain more than double that of FCA US workers because of its lower margins. The three companies in total employ more than 135,000 hourly workers in the U.S. More than 40 percent work in Michigan. Almost all are eligible for profit sharing.
Last year, Ford hourly workers received up to $8,800, GM employees received up to $7,500 and FCA workers received up to $2,500 (with another $1,000 if plant targets were met). Check amounts likely will be down for GM and Ford by more than $1,000,
Profit sharing, typically paid at the end of February or early March, is based on each of the automakers' North American pre-tax profits.
Ford will release its full-year profits Thursday. GM's earnings come Feb. 4. Results for Fiat Chrysler Automobiles NV, parent company of FCA US, are released Wednesday, but the profit-sharing amount isn't expected to be known until the domestic unit releases earnings Feb. 3.
The UAW and Detroit automakers would not directly comment when asked by The Detroit News whether an agreement had been reached on recall costs so as not to impact profit-sharing.
"Our members bargained in good faith with the auto companies, helped produce these record profits and it is not only fair, but right that our members should be rewarded for their loyalty, sacrifices and hard work," read an emailed statement to The News from UAW President Dennis Williams on Tuesday.
In December, Williams said the union was "in continued discussions about the profit sharing versus the recall." He did not provide details about the discussions. It's likely the union is arguing that the cost of the recalls — many of which are for older models — shouldn't take a bite out of members' profit-sharing checks.
"Everybody got hit by recalls. Some more than others," said Kristin Dziczek, Center for Automotive Research director of the Industry & Labor Group. "We also lost some production with retooling plants, and that also costs money to invest in the plants here."
In a statement Tuesday, GM said until its year-end financial results are released, it "will not speculate" on a possible profit-sharing payout.
Through the third quarter, GM North America earnings before interest and taxes totaled $4.39 billion, down from nearly $5.6 billion in the same period in 2013. Analysts expect GM's recall costs — which tallied $2.7 billion through the third quarter — will drive down North American profits and ultimately, how much ends up in autoworkers' pockets.
Some analysts predict GM's North American pretax earnings could reach about $6.3 billion for 2014, with a stronger fourth-quarter performance than in 2013. That would give workers checks of around $6,300, or about $1,200 less than last year.
In 2013, GM North America's pretax earnings reached a record $7.5 billion.
UAW Local 2209 President Brian Hartman said hourly workers he represents at GM's Fort Wayne Assembly Plant are awaiting word on bonus checks. GM has about 50,000 hourly workers in the United States, including about 19,000 in Michigan.
"They're sitting waiting and watching just like everybody else is," Hartman said.
Ford's pre-tax North American profit through the third quarter also was down compared to the same months in 2013. The automaker's North America region had posted a profit of $5.35 billion through the first nine months in 2014, down about $1.7 billion from the same period in 2013.
Ford's fourth-quarter profits are expected to decline compared to a year ago because of recall costs and lower production volumes. Production was curtailed for the highly profitable F-150, so plants could be retooled for the 2015 pickup.
Ford has 50,000 U.S. hourly workers, including 22,500 in Michigan; FCA US has 35,700 U.S. hourly workers, with about 16,000 in Michigan.
FCA US saw overall operating profits rise about 20 percent through the first three quarters of 2014 to $2.5 billion. If it meets its predicted yearly guidance of $3.7 billion-$4 billion in pre-tax profits, eligible hourly union members could receive up to $3,000, or up to $3,250, respectively.
At FCA US, workers get $1 for every $1 million in profits, based on 85 percent of worldwide operating profit of FCA US. That percentage represents North American operations for FCA US.
At GM and Ford, payments are based on North America pre-tax profits. Eligible employees get an average of $1 for every $1 million.
U.S. drops bid to end
Japanese import rules
David Shepardson,
The Detroit News
Jan 27, 2014
Washington — The Obama administration declined to comment on a report Monday that U.S. trade negotiators will end their bid to convince Japan to lift tough requirements on car imports after Japan agreed to expand a tariff-free quota for imported U.S. rice.
Nikkei Asian Review reported the U.S. Trade Representative Michael Froman's office will end efforts to convince Japan to drop standards on car imports in exchange for Japan's agreement to import an additional 10,000 tons of U.S. rice. The report said talks will begin in Washington on Wednesday aimed at working out the details — and a deal means it is more likely a final deal on a 12-nation Trans-Pacific Partnership could be reached by spring.
Trevor Kinkaid, a spokesman for Froman, said the office had no comment on the report. Froman is set to testify Tuesday in front of the Senate Finance Committee. It comes as the Obama administration is pushing Congress to quickly approve "fast track" trade legislation that would guarantee any trade deal gets a yes or no vote without amendments from Congress.
In April 2013, Japan announced it would more than double the number of motor vehicles eligible for import under its fast-track rules. Detroit's Big Three automakers are now be allowed to export up to 5,000 vehicles annually of each vehicle type under the program, compared with the prior ceiling of 2,000 vehicles per vehicle type.
The U.S., Japan, Mexico, Canada and eight other nations have been negotiating the Trans-Pacific Partnership that would create a free trade zone comprising 40 percent of the world's economy for more than four years. Australia, Brunei, Chile, New Zealand, Malaysia, Peru, Singapore and Vietnam are part of the talks.
Automakers have been pushing for at least three years to convince the Obama administration to include provisions in the agreement barring the countries from currency manipulation, but Treasury Secretary Jacob Lew and Froman have repeatedly shown no interest in doing so, arguing such issues are better addressed by global forums like the World Trade Organization.
Automakers worry that foreign governments — like Japan — will be able to weaken their currency to undercut U.S. vehicle production.
The administration may be dropping efforts on the auto provision because automakers have taken a hard line in only seeking currency changes.
"We can compete against anyone anywhere — but we can't compete against the Bank of Japan," said Ziad S. Ojakli, Ford Motor Co.'s group vice president, government and community relations.
Asked if Ford would accept any other provisions in lieu of currency in a 12-nation free trade deal, Ojakli said no. "We need to have strong enforceable disciplines in any thing that moves — whether it is trade promotion authority or TPP. ... All we're looking for is the internationally accepted principles (on currency)."
Ojakli said the agreement must put "teeth" in those rules that are part of other international agreements. "Let's enforce the rules that we've all agreed to worldwide. How crazy is that?" Ojakli said.
A group of Democratic lawmakers from Michigan are among those strongly opposed to a deal without currency changes.
Rep. Dan Kildee, D-Flint, is a strong opponent of a free trade deal without currency. He notes that Flint once had 79,000 manufacturing jobs, and now has less than 10,000.
"(Automakers) are going to have a difficult time signing off on an agreement that does not include a currency provision," Kildee said in a Detroit News interview. "They're in the same position that a lot of us are in: trying to make a bad deal as good as we can knowing that in the end absent a big turnaround — which would be to begin to negotiate on currency — it's not going to be something we can support."
Rep. Brenda Lawrence, D-Southfield, said Michigan had been devastated by prior trade agreements that had sent thousands of jobs abroad. "When you are in an environment like Michigan and watch factories, watch people lose their homes, this is real and this is about jobs." Lawrence said.
Rep. Debbie Dingell, D-Dearborn, said a bad deal "could do real damage to the middle class." Fast-track trade legislation "does not allow Congress to address countries that manipulate their currency to gain an unfair advantage, which is the mother of all trade barriers," she said. "This is unfair, and it puts U.S. jobs at risk."
The proposed trade pact is facing strong opposition from U.S. automakers and the United Auto Workers, which are worried a deal will be reached that doesn't do enough to open the Japanese auto sector to American products. Japan has historically imported very few foreign automobiles, but the number has been rising significantly in recent years — especially among European vehicles.
The auto sector accounts for more than 70 percent of the U.S. trade deficit with Japan.
American automakers fear if Japan intervenes to weaken its currency, its automakers eventually will be able to dramatically undercut them, especially when U.S. tariffs are phased out — 25 percent on light trucks and 2.5 percent on cars. Automakers want the tariffs kept in place for at least 25 years or more. And China could seek to enter the free trade agreement under the same rules down the road.
Couple fined for parking
Ford F-150 in their own driveway
By Autoblog
Jan 26, 2015
A homeowners' association in New York is suing two of its residents for parking their pickup truck in their own driveway. David and Arna Orlando of Manlius, NY, are facing a lawsuit from the Kimry Moor Homeowners Association for parking their black 2014 Ford F-150 pickup in their own driveway.
The Orlandos own their home, but common areas such as their driveway are managed by their HOA, which limits what vehicles can park in the open. They only allow "private, passenger-type, pleasure automobiles" to park outside of a garage.
David Orlando says his pickup is a personal passenger vehicle and that the rule is silly. He also feels he is being unfairly targeted. A Syracuse.com reporter drove around the Orlandos' neighborhood and saw another fullsize pickup parked in another driveway, along with a large van and SUV.
The Orlandos said in court documents that the pickup is registered as a private vehicle and neither of them have commercial drivers' licenses. The lawsuit was filed in August 2013 and is still in the discovery phase. Depositions are up next.
New York seems to have gone power-mad when it comes to regulating common driveway activities. In a Garden City, NY, neighbourhood last year police were called when two men began washing a new Volkswagen "in public view", which was against a local ordinance.
Ford: Record dealer
profits could continue
Michael Martinez,
The Detroit News
January 25, 2015
San Francisco — Ford Motor Co. expects a record number of vehicles launched last year will lead to continued strong dealer profitability in 2015.
While the Dearborn automaker doesn't disclose dealer profitability numbers, John Felice, Ford's vice president for U.S. marketing, sales and service, said Saturday Ford expects a fourth-straight year of record dealer profits, and expects similar results this year as volume of new vehicles such as the F-150 and Mustang ramp up.
"We're having really solid results and growth is a major theme for 2015, it could be even better for our dealers," Felice said.
Ford executives on Saturday met with dealers as part of the National Automobile Dealers Association convention in San Francisco.
The automaker is coming off a year in which it launched a record 24 new vehicles globally, including 16 in North America.
"A lot of those products were not physically launched in the market until the end of the year," said Stephen Odell, Ford's executive vice president of global marketing, sales and service. "Now the volume starts to come through as we're ramping up."
Those new vehicles include the 2015 F-150 pickup truck. Felice said Saturday Ford has sold about 5,000 since launching late last year. It has about 11,000 in stock and the trucks are selling in five days after reaching dealer showrooms.
Ford expects to reach full F-150 production by the middle of this year.
"It's off to a fantastic start," Felice said.
Vernon Krause, a Ford dealer in Georgia, said his showroom has already sold about 15 of the new F-150s and can barely keep them in stock.
"I think everybody believes 15's going to be a very good year," he said.
Felice said Ford is happy with the size of its dealer network, which includes 3,200 Ford and Lincoln dealerships in the U.S.
"We've partnered with our dealers over the last 10 years to right-size our network," he said. "It's in essence done; the network is stable."
Dan Parks, a dealer at Huntsville Ford in North Carolina, said Ford stressed growth in the hour-long dealer meeting.
"The message was we're going to have the product to do it," he said. "Now it's time to build (the new vehicles) and let's go."
Ford to take one-time $800
million charge in Venezuela
Michael Martinez,
The Detroit News
Jan 24, 2015
Ford Motor Co. said Friday it will take a one-time pretax charge of $800 million in its fourth-quarter financial results after Venezuelan regulations have stopped it from being able to exchange U.S. dollars for bolivars.
The Dearborn automaker said in an SEC filing it expects the charge will reduce its fourth-quarter net income by $700 million, but it won't impact its 2014 pretax profit, which it estimates will reach $6 billion. Financial results will be released Thursday.
"These exchange regulations, combined with other recent Venezuelan regulations, have constrained parts availability and are now significantly limiting our Venezuelan operations' ability to maintain normal production," Ford said in the filing.
Ford said its cash balance in Venezuela — $500 million — will no longer be included in its automotive gross cash.
"Ford has operated in Venezuela for the last 53 years and our operations in Venezuela will continue for the foreseeable future," the automaker said in the filing. "We continue to work proactively with the Venezuelan official agencies to ensure they understand our Venezuelan operations' business needs and potential production opportunities."
Late last year the automaker warned investors that trouble in South America, among other factors, would cause profits to fall in 2014. As a result, Ford cut its profit estimate from between $7 billion-$8 billion to $6 billion.
Citi Research, in an investment note Friday, called the move a "modest positive" for Ford.
"The switch to the cost method of accounting is essentially an accounting 'divorce' that deconsolidates Venezuela results and therefore eliminates the currency volatility that plagued Ford's 2014 results," Citi's Itay Michaeli wrote in the report.
Ford stock Friday closed at $14.91.
Ford GT Tops at Car Show
Lauren Abdel-Razzaq,
The Detroit News
Jan 22, 2015
Ford Motor Co. came away the big winner for The Detroit News Readers' Choice Awards, scoring accolades for its trucks and the GT supercar.
"This is the 12th year of The Detroit News Readers' Choice Award, the only award decided by the people who will actually be buying and driving the vehicles on display," auto critic Henry Payne told the crowd at the Detroit Economic Club luncheon Tuesday at Cobo Center. "Our Detroit News readers certainly felt the love when we asked 100 of them to tour the show last week and select their favorites."
More than 1,000 people applied to be judges, with 100 making the final cut. The chosen ones spent two hours touring the North American International Auto Show last Wednesday, the first day of the industry preview. They marked their top choices in 10 categories ranging from practical, innovation and earth-friendliness to just plain sex appeal.
Top overall honors went to the Ford GT, but the Dearborn automaker also stole the "Most Innovative" category with the aluminum body F-150 pickup and the "Most Awesome Off-Road" vehicle for the F-150 AVT Raptor pickup, which premiered at the auto show. The GT, which Ford said it plans to begin manufacturing next year, also won for "Best Curves."
Fiat Chrysler Automobiles won for "Best Family Hauler" with its Town & Country minivan and for "Best Value" with the Dodge Dart.
General Motors Corp.'s Chevrolet brand took home two awards: "Most Earth-Friendly" for the Volt and "Sexiest Vehicle" for the Corvette Z06.
Rounding out the rest of the winners were the Mercedes F 015, an autonomous driving concept that took "Best Future Fantasy" and the Bentley Mulsanne, which was voted "Most Luxurious."
The awards were presented Tuesday during the Detroit Economic Club's annual luncheon with the Big Four: Detroit Mayor Mike Duggan, Wayne County Executive Warren C. Evans, Macomb County Executive Mark Hackel and Oakland County Executive L. Brooks Patterson.
Readers' Choice Awards
Detroit News readers picked these as their favorite cars and trucks at the Detroit auto show:
Best of Show: Ford GT
Best Future Fantasy: Mercedes F 015
Best Family Hauler: Chrysler Town & Country
Best Curves: Ford GT
Most Innovative: Ford F-150
Sexiest Vehicle: Chevrolet Corvette Z06
Best Value: Dodge Dart
Most Earth-Friendly: Chevrolet Volt
Most Luxurious: Bentley Mulsanne
Most Awesome Off-Road : Ford F-150 SVT Raptor
Forget fairness, here's why
taxing the rich benefits us all
The Globe and Mail
Jan. 21 2015
It's time to soak the rich, many people say. What isn't always so clear is why.
In outlining a proposal this past weekend to raise taxes on wealthy Americans, President Barack Obama positioned it in populist rhetoric as a way to aid a sagging middle-class.
Oxfam, for its part, argued that bringing the ultra-rich to heel is a simple matter of fairness. In a report published Monday, the poverty-fighting charity predicted the top 1 per cent of the global population will soon own more than half of the world's wealth.
Both Mr. Obama and Oxfam make good points and their desire to tap the world's wealthiest citizens may signal that a more equitable system lies just ahead. Far more likely, though, is that it will merely result in endless debates about what does and doesn't constitute justice.
As you might expect, the rich aren't lining up to be taxed and many argue they deserve their good fortune.
They have a reasonable point. A significant portion of the 1 per cent are entrepreneurs and CEOs who didn't inherit great wealth, but amassed it by playing within the rules, and delivering products and services that consumers want. You don't have to be ultra-rich to believe such behaviour should be encouraged, not penalized. "Raising taxes on people that are successful is not going to make people that are struggling more successful," Florida Senator Marco Rubio said.
Rather than get caught up in these endless arguments about rights and wrongs, it's time to look at the matter more clinically. The best reason to tax the rich is that it offers a way to spark economic growth.
In its simplest form, the logic goes like this: Middle-class and working-class households tend to consume nearly all of what they earn. The ultra-rich don't, because even conspicuous consumers eventually run out of things to buy.
As a result, the increasing wealth of the world's richest families has a strong tendency to push down the level of demand for goods and services in the global economy. At the same time, it pushes up the level of savings, resulting in a glut of loanable funds. This results in a sluggish economy where interest rates remain stubbornly low – much as we see today.
But if government taxes some of the richest people's money, and hands it to less affluent households, consumption is likely to increase, spurring economic expansion. This would seem to be a better deal for everyone – even the ultra rich, who are likely to benefit disproportionately from the improved growth.
Variants of this notion have been explored by economists such as Atif Mian of Princeton University and Amir Sufi of the University of Chicago. They warn of the dangerous outlook for a world "where a higher share of income goes to the wealthiest households who spend very little of it."
In similar fashion, Larry Summers, the former U.S. Treasury secretary, has cautioned that increasing income inequality may play a role in encouraging "secular stagnation" – the tendency of the economy to remain stuck in a weak state for a long time. He notes, too, that policies that encourage economic growth, like free trade, are only going to be politically feasible if voters perceive the benefits to be distributed across a wide range of people, not just a few.
Their viewpoints should help frame the debate on taxing the rich. It's not a matter of populism or morality, but a matter of enlightened self interest for all of us. Even the 1 per cent.
Georgia incentives to Mercedes: $24,540 per job
J. Scott Trubey,
The Atlanta Journal
January 20, 2015
Atlanta — The state of Georgia last week further outlined its incentives offerings to Mercedes-Benz USA and the total number of jobs and investment expected as part of the company's headquarters relocation.
In a letter dated Dec. 12, the state's top economic development official offered a package to "Project Eagle" of grants, tax credits and "cost avoidances" of more than $23.3 million.
The state incentive package would be valued at about $24,540 per job for 950 total employees, according to an analysis by The Atlanta Journal-Constitution. Local incentives could cause the total and per job figure to rise substantially, but the local offer was not disclosed in the letter and the value was listed as to-be-determined.
The state offer was made by Economic Development Commissioner Chris Carr to an executive with real estate services firm JLL, which represents Mercedes.
In a news release, the state described the project as involving at least 800 jobs and an investment of about $74 million.
Mercedes-Benz USA President and CEO Stephen Cannon has previously told the AJC the project will likely involve more than 800 jobs and one day could total nearly 1,000. He has said Georgia's low-cost environment, workforce quality and proximity to its Alabama factory and other assets were more important in its decision than incentives.
An application for bond financing — which would likely come with property tax breaks — filed last week with the Development Authority of Fulton County, described a headquarters project with 800 jobs and a higher investment figure of $93 million.
The state's "offer of support" said the project would create 800 new jobs, but also used an assumption of up to 950 jobs to calculate potential incentives.
The offer included a $6 million state grant, and jobs tax credits for 950 jobs. The letter said 800 of those would qualify for a higher threshold of incentives for "quality jobs." This tax credit is for jobs that are highly paid. The offer also included 50 in-state tuition waivers.
The average pay for the headquarters employees is expected to be more than $78,000, the letter said.
"Mercedes-Benz will find in Georgia a state that will help its bottom line, and a people who will welcome its team and their families with open arms," Gov. Nathan Deal said in a news release.
U.S. investigating 200,000
Ford heavy trucks
David Shepardson,
The Detroit News
January 19, 2015
Washington — The National Highway Traffic Safety Administration said Saturday it is investigating whether Ford Motor Co.'s recall of 3,000 heavy-duty "Ambulance Package" trucks should be expanded to 200,000 vehicles and whether the fix is working properly.
NHTSA said it is investigating Ford's October 2013 recall of some 2011-2012 Ford F-350, F-450 and F-550 "Ambulance Package" vehicles equipped with 6.7L diesel "Power Stroke" engines. The recall 2,954 vehicles was to address a loss of sensing function of the exhaust gas temperature sensor located behind the diesel particulate filter in the exhaust system.
The investigation is reviewing whether Ford's 2013 recall should be expanded to about 200,000 2011-2012 Ford F-250/350/450/550 trucks with 6.7L diesel engines — and whether Ford's 2013 fix is working. The malfunction can cause vehicles to fail to restart, leaving vehicles stranded on the road.
Ford told NHTSA in 2013 that it had received at least 13 reports of shutdowns from ambulance operators. An ambulance failing to restart with a patient on board could be a serious safety issue.
Ford spokeswoman Kelli Felker said Saturday the company would cooperate in the investigation,
When the sensor malfunctions, the powertrain control module interprets a malfunction as an exhaust system overheat condition and commands a warning message with five audible chimes while the vehicle experiences a controlled power reduction mode -- for up to 45 seconds -- leading to an uncommanded engine shutdown when the vehicle speed falls below 4 mph, NHTSA said. Once the engine is shut down, there is no immediate restart capability, the agency said.
The recalled vehicles are equipped with four identical EGT sensors, any of which may experience a loss of sensing function resulting in the engine shutdown condition, Ford's recall remedy calls for replacing just the one sensor located behind the filter.
NHTSA said it has reviewed 30 complaints on 2011-2012 Ford F-250, F-350, F-450 and F-550 "Super Duty" vehicles with 6.7L diesel "Power Stroke" engines related to the loss of sensing function of the sensor and subsequent engine shutdown with no immediate restart capability. Complaints cover vehicles both outside and within the scope of the subject recall.
Some complaints allege multiple EGT sensor malfunctions, with some sensors having been replaced more than once. Some complaints say the recall fix is not long lasting or that other sensor locations subsequently malfunctioned, resulting in the shutdown. Some complainants report vehicles becoming disabled in the roadway as a result of the problem.
A complaint filed in February 2014 said the owner of a 2012 F-250 was driving and the warning light came on to slow down and pull over. "I had no chance to do this as the computer put the vehicle in 'limp mode.' An 18 wheeler narrowly missed hitting my truck as we moved to the shoulder and the engine died. The truck would not start for about 45 minutes," said the owner. "The real issue is Ford has designed a computer system that stops the vehicle no matter where you are to save the engine and/or the emissions system. In doing so, the lives of the driver and passengers are put at risk."
Another owner complained in October to NHTSA that because of the flood of problems, the sensors are on national back order. One ambulance owner complained in March 2014 that a new ambulance had to be sent when one failed to restart —"and delayed care to the patient."
Another 2012 F-250 owner said in a September complaint to NHTSA that he often travels to national parks with his family where there is no shoulder, no cellular service and no nearby dealerships. After he sent an email to Ford raising concerns, he said he was told "that they do not keep records on these type of problems after the 50,000 (mile) warranty has expired," he wrote.
In an April 2014 complaint, the owner of a 2011 F-350 diesel truck said the sensor failed when he was driving in California in the desert at 70 miles per hour. "The truck shut down for no reason that I could see. I had a horse trailer with five horses on board and the temperature outside was 109 degrees," he wrote. It was under warranty and "Ford took four hours to come and rescue us." The owner said the problem put his family, children and horses' lives at risk.
Ford said in a report to NHTSA that as of June 30, that 2,317 of the vehicles recalled in 2013 had been repaired.
Claim the pension credit and
avoid retirement brawls
TIM CESTNICK
Special to The Globe and Mail
January 18, 2015
Have you been thinking about how you'll spend your days in retirement? There's lots to do in those golden years. Just be careful where you hang out. I recall the story a few years back of a 62-year-old man who was kicked out of the Spring Haven Retirement Community (in Winter Haven, Fla.) because he punched an 86-year-old resident and bit another in a fight at the community salad bar.
It turns out the offender had the tendency to forage through the lettuce, looking for his favourite type, which frustrated the other tenants. The man didn't take kindly to their comments, and he gave them what-for. The 80-year-old mother of the offender, who also lived at the home and was slightly injured trying to help her son in the incident, conceded that "it did look as though he was playing with the food."
I think it's safer just avoiding bars of all types in retirement – salad or not. You'd be better served spending time reading quietly at home, learning about how to beat the taxman. And you might as well start with the pension credit. So, let's talk about it today.
THE CREDIT
While the pension income amount isn't going to make you wealthy, these are dollars that are better in your pocket than the taxman's. You can claim a federal non-refundable tax credit on up to $2,000 of eligible pension income. The actual tax savings federally amount to 15 per cent on up to $2,000 of this pension income, or $300. Provincial tax savings are on top, which can bring the total savings between about $350 and $700 depending on your province of residence.
There's good news if you're married and receive eligible pension income. You're able to transfer up to 50 per cent of your pension income to your spouse's tax return to be taxed in his or her hands. This pension income splitting is so valuable because it can provide both you and your spouse with access to the pension income tax credit where you might not have both been eligible otherwise.
THE STORY
A recent Tax Court of Canada decision, Taylor v. The Queen (2014 TCC 102), highlights the importance of understanding what type of income qualifies for this credit. In this case, Mrs. Taylor was denied the pension credit for her registered retirement savings plan (RRSP) withdrawals. Mrs. Taylor's husband passed away in 2008 at which time she began making regular withdrawals from her RRSP. Her RRSP gave her complete discretion with respect to the timing of her withdrawals. She argued that she qualified for the pension credit once she turned age 65.
Her appeal was dismissed. The court was sympathetic but explained that the payments had to be annuity payments, which are ordinarily defined to be payments that are made on a periodic basis. Since Mrs. Taylor had discretion as to the timing of her RRSP withdrawals, these were not considered to be annuity payments. Since the purpose of the pension credit is to provide tax relief to pensioners, she argued for a generous interpretation of an "annuity." She lost the case.
THE RULES
This raises the question: What type of income will qualify for the pension credit? Your age will help to determine this. If you're 65 or over, there's a longer list of qualifying income types than for those under 65.
Specifically, if you're 65 or over you can claim the credit if you received any of the following types of income: Life annuity payments from a superannuation or pension plan – including income from life income funds (LIFs), and locked-in retirement income funds (LRIFs), registered retirement income fund (RRIF) payments, annuity payments from an insured RRSP or from a deferred profit sharing plan (DPSP), payments from a pooled registered pension plan (PRPP), regular annuities and income averaging annuity contracts, annuity payments from the Saskatchewan Pension Plan (SPP), and certain foreign pension payments.
If you're under 65, you can claim the credit if you have one of the following types of income: Annuity payments from a superannuation or pension plan, payments from a RRIF or annuity payments from an RRSP or DPSP which have been received as a result of the death of a spouse or common-law partner, and annuity payments from the SPP.
Income that won't qualify includes: Old Age Security benefits, Canada and Quebec Pension Plan benefits, death benefits, retirement compensation arrangement payments, benefits from salary deferral arrangements, and non-annuity RRSP withdrawals.
Here's an idea for you: Consider using some of your RRSP assets to create a RRIF to draw out $2,000 annually to take advantage of the pension credit.
Tim Cestnick is president of WaterStreet Family Offices, and author of several tax and personal finance books.
When a stagnant health
system meets an aging
population, disaster awaits
The Globe and Mail
Globe Editorial
January 17, 2015
Since we are all going to get old and die one day, we have a stake in how well Canada's health-care system looks after senior citizens. The problem is, not many of us are confident that it's going well. The Canadian Medical Association (CMA) released a poll in August in which Canadians expressed a sincere set of worries about their medical prospects in old age. Four out of five said they aren't confident they'll be able to access the health services they will need. Three-quarters are worried they won't have the money to pay for services that aren't covered by medicare after they retire. And 61 per cent doubt the country's hospitals and long-term care facilities will be able to meet the demands of Canada's relentlessly aging population.
But it's not just citizens that are worried. The CMA's 83,000 members are fretting, too. They are living with the consequences of a fractured and poorly integrated health-care system that operates too often in crisis mode. Canada's "silver tsunami" – the massive wave of people who will turn 65 in the next 15 years – hasn't made landfall yet but is already causing grief. Hospitals in Ontario exist in "code gridlock" for weeks on end, according to CMA president Chris Simpson. The new normal for doctors, nurses and hospital administrators is the daily struggle to find places for elderly patients who should be in a long-term facility instead of on a gurney in a hallway.
Which is why it is easy to endorse the CMA's call for a national seniors strategy. Dr. Simpson and the CMA have been making the rounds since last fall, telling anyone who will listen that Canada can't afford to simply hope for the best any more. By 2030, one-quarter of all of us will be over 65 – close to eight million people. And yet, at a time when our health-care system needs to be girding itself for a new reality, it is in fact falling behind other developed countries in terms of quality, effectiveness and efficiency. As Dr. Simpson said in a speech in November, if Canada's medical workers are able to do a good job, it is "despite the system rather than because of it."
Most Canadians would probably be a little shocked to hear that their country is no longer the international darling of universal health care. But it's true. Out of 11 countries, ours is ranked 10th by the Commonwealth Fund, a private American foundation that compares the United States's health system with those of other nations. The U.S. habitually takes the 11th spot, but we're right there behind them.
Compared with Australia, France, Germany, the Netherlands, New Zealand, Norway, Sweden, Switzerland, the U.K. and the U.S., Canada has the worst "timeliness of care" and the second-worst overall efficiency. According to the 2014 report, "sicker adults in Canada were the most likely to experience delays in being notified about abnormal results." Only 30 per cent of doctors in Canada get computerized alerts or prompts about a potential problem with a drug dose or interaction, compared with 88 per cent in Australia, 93 per cent in the Netherlands, 89 per cent in New Zealand and 85 per cent in the U.K.
We have the longest wait times in emergency rooms. One in two Canadians in 2014 couldn't see a doctor the same day they felt they needed medical treatment; two-thirds say they don't even bother trying on weekends or in the evening. Based on our rankings, we are also among the least advanced of the 11 nations when it comes to the electronic transfer of records between family doctors, specialists and medical clinics.
We could go on. And it could get uglier. Dr. Simpson points out that, thanks to the Affordable Health Care Act, a.k.a. Obamacare, the U.S. might conceivably bump Canada down into last spot within a year or two. The U.S. health-care system is getting better, and ours is stagnant, at best.
Our lack of co-ordinated preparation for the silver tsunami is a symptom of this stagnation. Ottawa, the provinces and the territories remain siloed within their jurisdictions. They lack the political will to join forces and face reality. And yet, that reality is being shoved in the health-care system's face every day. According to the CMA, 15 per cent of acute-care beds in Canada are filled with aging patients who should be released into the care of family or placed in a long-term-care facility. Instead, they are being warehoused, exposed to hospital superbugs and are at risk of falling down for lack of adequate supervision. About a third of them have dementia.
The related costs are staggering. Keeping a chronically ill patient in a hospital bed costs $1,000 a day, compared to $130 in a home, or $55 with home care. If nothing changes, seniors will account for almost 60 per cent of health-care costs in Canada in 2030, the CMA warns.
What needs to be done is not complicated. Instead of spending billions on makeshift solutions and bad outcomes, Canada's health-care stakeholders should be spending that money on new, properly staffed long-term facilities. But who will build them? The provinces? They can't afford it. Ottawa? Not its jurisdiction. It's code gridlock all over again.
The CMA is looking for a partner in its call for a national strategy for seniors. As a national body, its obvious choice is the federal government. The Green Party, the NDP and the Liberals have committed themselves, to varying degrees, to making the establishment of a national strategy part of their election platforms. The ruling Conservatives have yet to do so, according to Dr. Simpson.
All the parties should get on board with this, without qualification. When the election campaign starts in earnest, the politicians will gab on about lower taxes and safer streets. The CMA has done us all a favour by identifying an issue that is far more pressing but woefully underappreciated in Ottawa. The tsunami is coming. We can be ready, or we can get washed away.
Ford to increase production
at two German plants
Michael Martinez,
The Detroit News
January 16, 2015
Ford Motor Co. will increase production of some of its best-selling European vehicles at two German plants to meet growing demand, the automaker said Friday.
Starting next week, Ford's Saarlouis Body & Assembly Plant will increase production of its Focus, C-Max and Grand C-Max by 240 vehicles a day, and in February its Cologne plant will increase production of its Fiesta by 300 vehicles a day. In addition, six additional weekend shifts have been scheduled in January and February at the Cologne plant.
"We are ramping up production of some of our top-selling models to meet growing demand from Ford customers as well as the normal industry sales increase in the first half of the year," Jeff Wood, vice president of manufacturing for Ford of Europe, said in a statement.
The Fiesta is Ford's best-selling vehicle in Europe, and is on-track to become Europe's best-selling small car for 2014 for the third successive year, Ford said. The Focus and C-MAX are Ford's second and third best-selling vehicles in Europe.
Last week, Ford reported it sold 1.16 million vehicles in its 20 main European markets, a 7.3 percent increase over 2013. The Dearborn automaker outpaced the overall industry sales growth, which rose 5.5 percent. Its market share rose by 0.2 percentage points to 8.0 percent last year, its highest mark since 2011, and it retained its position as the No. 2 best-selling European brand.
Ford expects to lose $1.2 billion in Europe in 2014 and is in the midst of a turnaround plan that has involved shedding jobs, reducing volume, closing plants and introducing new products.
Ford is launching a new Focus and Mondeo, and this year will add a new Focus ST and a diesel version, new Mustang, S-Max, C-Max and Grand C-Max, and refreshed versions of EcoSport, Ranger, Transit Connect and Tourneo Connect.
The automaker forecasts a $250 million loss in Europe in 2015, after previously predicting to turn a profit there this year.
General Motors makes no
promises on Oshawa's future
GREG KEENAN
Globe and Mail
January 15, 2015
General Motors Co. said it remains committed to Canadian investments, but did not make specific promises about the future of its Oshawa operations or requests for government assistance for Oshawa, Ontario Economic Development Minister Brad Duguid said Wednesday after a meeting with GM chief executive officer Mary Barra.
Mr. Duguid and federal Industry Minister James Moore met with Ms. Barra and General Motors of Canada Ltd. president Steve Carlisle in Detroit amid fears that the auto maker plans to stop building vehicles in Oshawa later this decade.
"I am more optimistic having met with Mary Barra and Steve Carlisle today than I would have been prior to that meeting," Mr. Duguid said. "We're determined to land a future mandate for that plant."
The GM executives and the Canadian cabinet ministers discussed how they can work together on future opportunities at GM's operations in Oshawa, Ingersoll, Ont., and St. Catharines, Ont., Mr. Carlisle said in a statement.
"We underscored our ongoing commitment to Canada, which is one of our most important markets and high-quality manufacturing locations," he said.
Jake Enwright, a spokesman for Mr. Moore, said the meeting was positive and the federal government looks forward to working with GM.
Questions about the future of the Oshawa operations have arisen because GM has allocated no new vehicles to one of the assembly plants that will replace vehicles that are being discontinued or shifted elsewhere. The other Oshawa plant is scheduled to close in 2016, the same year a production commitment GM made in 2009 expires.
Mr. Duguid said Oshawa's future is his No. 1 concern in the auto sector.
The key issue for GM and other auto makers is the cost of producing vehicles in Canada as assembly grows dramatically in lower-cost countries.
The costs of electricity, regulation, labour and transportation of finished vehicles to markets are among the factors.
Contract negotiations between the United Auto Workers union and the auto maker about its U.S. plants will be held this year. Auto makers typically compare the labour costs of their U.S. plants with their Canadian operations when it comes to investment. The UAW-GM negotiations will be followed by talks between the company and the Unifor union in 2016.
Unifor president Jerry Dias said the drop in the value of the Canadian dollar improves the company's cost position in Canada.
Ms. Barra said last week, however, that currency fluctuations will have no impact on production decisions. She called the drop in the loonie a fluctuation.
Canadian Imperial Bank of Commerce economists Avery Shenfeld and Andrew Grantham noted that comment Wednesday in a report on the impact of the drop in the value of the dollar.
The currency needs to stay in the 80-cent (U.S.) to 85-cent range for several years before all the benefits of the lower currency show up in manufacturing, they said.
Mr. Shenfeld said he disagrees that the drop in the currency is a fluctuation if that word is taken to mean a short-term fall.
"While the weakness in oil won't be permanent, we were already destined to see a significant and lasting move to a weaker Canadian dollar from what prevailed in the 2010-to-2013 period," he said in an e-mail response to questions.
Mr. Dias, whose union represents about 3,600 workers at the two Oshawa assembly plants, said the union heard about the currency regularly from executives of the Detroit Three auto makers when the dollar was climbing to par and higher against its U.S. counterpart, so the companies need to recognize how the lower value of the currency will help them.
Ford to decrease global
platforms to 8
Michael Martinez
The Detroit News
January 14, 2015
Ford Motor Co. plans to decrease the number of platforms it builds cars and trucks on to eight in the coming years, and said it will launch 15 vehicles globally this year — including seven in North America.
Speaking at the Deutsche Bank Global Auto Industry Conference on Tuesday, Ford President and CEO Mark Fields said the Dearborn automaker exceeded its goal of a record 23 product launches in 2014 when the launch of its Escort was pushed to December at the end of the year.
"It was a very solid year for us," Fields said. "In 2015 we're going to stay consistent with our priorities. It's a very important year where we expect significant growth ... and it's based on great product."
Raj Nair, Ford's group vice president of global product development, said the automaker's platform consolidation plan is ahead of schedule. Nair said Ford originally forecast dropping to nine global platforms by 2016. In 2007, Ford was building vehicles on 27 platforms.
He said Tuesday that number will be smaller.
"We've made further progress and are committed to getting down to eight," he said. "That yields tremendous benefits" to improving the rate at which it introduces new vehicles, he said.
In 2007, Ford was able to build 3.9 vehicles per platform. Today, it can build 5.7 vehicles per platform, and has plans to reach 6.6 by 2019.
Of Ford's 15 global launches this year, seven will come in North America; four will come in South America; 10 will come in Europe and 18 will come in Asia Pacific. The total number equals more than 15 because some vehicles will be launched in multiple regions.
"We have a full product pipeline," Fields said. "As we look at this year, we're guiding higher in profitability."
That new product pipeline includes the 2015 Edge crossover, which will debut in North America, Europe and China.
In the coming years, Ford will debut new performance vehicles — three of which it showcased at this week's press days at the North American International Auto Show. It said recently it will unveil 12 new performance vehicles by 2020.
Those vehicles, like the GT supercar, Mustang Shelby GT350R or F-150 Raptor, come with light-weighting technology like carbon fiber wheels and aluminum bodies and panels, new EcoBoost engines and aerodynamic advancements like active grille shutters. Those features help all of Ford's auto show reveals shed weight compared to their predecessors.
"They provide us a platform to showcase new Ford technologies," Nair said.
Nair on Tuesday also detailed Ford's mobility plans, which Fields first introduced at the Consumer Electronics Show last month.
Ford is in the midst of conducting a series of 25 experiments around the world meant to test new ideas and address commuting issues in congested places like Los Angeles and India. The experiments include everything from a car-swapping program for its Dearborn employees to an app that finds available parking spaces for London commuters.
The 25 experiments address four global megatrends: explosive population growth, an expanding middle class, air quality and public health concerns, and changing customer attitudes and priorities.
Nair also discussed autonomous vehicles, reiterating Fields' CES statement that Ford expects a fully driverless car on the road by 2020.
Chrysler's Marchionne touts
$2-billion overhaul,
including Windsor plant
GREG KEENAN
The Globe and Mail
Monday, Jan. 13 2015
Fiat Chrysler Automobiles will spend more than $2-billion (U.S.) – including revamping its Windsor, Ont., assembly plant – to develop the next generation of its minivan, chief executive officer Sergio Marchionne says.
"It's a very large number," Mr. Marchionne told reporters Monday at the North American International Auto Show in Detroit.
The Windsor plant will also produce a new Chrysler crossover vehicle, he said, if the auto maker goes ahead with the vehicle.
"Once we determine whether we will build it or not, it's the natural place," he said.
The Windsor minivan plant is one of the key engines of the auto industry in Canada, running on three shifts for more than two decades churning out one of the most successful vehicles in Chrysler's history.
About 4,500 people assemble minivans at the plant now.
It is scheduled to shut down for three months beginning in February to retool for the next generation of the vehicle. When production resumes in the spring, the plant will continue to produce the current version of the vehicle, but Chrysler plans to have the new version on dealers' lots by the first quarter of 2016.
Fiat Chrysler now sells two versions of the minivan, the Chrysler Town & Country and the Dodge Grand Caravan. There will be just one version when the next generation arrives, likely to be the Town & Country, Mr. Marchionne said.
Ford F-150 wins truck of
year, VW Golf wins car
Michael Wayland
The Detroit
January 12, 2015
Detroit — The 2015 North American International Auto Show got off to a surprising start Monday morning in Detroit.
Ford Motor Co., which many expected to sweep the 2015 North American Car and Truck/Utility of the Year awards, won Truck of the Year for its all-new F-150. But the Volkswagen Golf/GTI beat out the Ford Mustang and Hyundai Genesis for Car of the Year.
"It's a competitive set when you look at the Golf, and the Genesis and the Mustang" said Ford President of the Americas Joe Hinrichs following the announcement at Cobo Center. "We knew it was going to be a very competitive competition. We recognize and salute the Golf for winning."
Volkswagen Group of America President and CEO Michael Horn said he was "pleasantly surprised" that the compact Golf, starting at $18,000, won the award.
Prior to the announcement, some jurors expected the Mustang to win because of the iconic pony car's reputation, all-new redesign for 2015 and its importance to the Dearborn automaker. Plus, the awards have traditionally favored Detroit automakers.
"I had predicted a Ford sweep," said AutoTrader.com senior analyst and juror Michelle Krebs. "I expected if there was a wild card in it, it would be on the truck side. But the Volkswagen Golf is a terrific car."
Before this year, domestic automakers had won the car award 12 times and foreign automakers have won nine times. Domestics had won the truck/utility award 14 times and foreign automakers have won seven times.
On the truck side, the F-150 beat out the Lincoln MKC, also a Ford product, and the Chevrolet Colorado, which some thought might give Ford a run for its money after winning Motor Trend's Truck of the Year award.
"For us, making trucks is what's in our DNA," Hinrichs said while accepting the truck award. The F-150 has won the award three previous times — 1996, 2004 and 2009.
After not having a finalist for the 2014 awards, Ford represented three of the six finalists announced
Both awards are intended to recognize a car and truck that set new benchmarks in the classes in which they compete. A jury of 57 journalists from the U.S. and Canada evaluate dozens of vehicles on factors including value for the dollar, innovation, handling, performance, safety and driver satisfaction.
To be eligible for the awards, a vehicle must have been "substantially changed from the previous model and must go on sale shortly after the announcement of the award."
Chevrolet swept the 2014 awards for General Motors Co. with the Corvette and Silverado.
Detroit automakers have swept both awards eight times — 1995, 1996, 2005, 2007, 2010, 2011, 2013 and 2014 — since the awards started more than 20 years ago.
Ford F-150 takes top
spot as the Globe's most
significant vehicle of 2014
JEREMY CATO
The Globe and Mail
Jan. 10 2015
As you read this, you surely are thinking, "Must we suffer yet another 'vehicle of the year?'"
The answer is yes. Why? This one matters.
Think of The Globe and Mail's vehicle of the year as the Canadian "news maker" of the year. Our panel of 15 experts and insiders have chosen Ford's 2015 F-150 full-size pickup as the one vehicle launched in 2014 that Canadians and the world will still be talking about as a game changer five years from now and beyond.
We asked our panel to rank in order three vehicles deemed the most "impactful" during 2014. We did not limit selections to a particular model year, only to the on-sale date – some time in 2014.
As far as possible winners were concerned, the options ran from BMW's i8 electric sports car to the 707-horsepower Dodge Challenger SRT Hellcat, Nissan's tiny Micra (the less-than-$10,000 base model) to Ford's global Mustang, the Tesla Model S, the F-150 and Kia's Soul EV.
Globe Drive contributors overwhelmingly picked the Ford pickup, with the Model S a distant second and the i8 a distant third. Noteworthy: The panel's industry experts were unanimous in naming the F-150 the most significant vehicle. Ford's move to aluminum – stripping out almost 220 kilograms – is an astonishing achievement, they all agreed.
"Non-technical people may not realize the magnitude of the challenges in doing this," said Peter Frise, an engineering professor at the University of Windsor and scientific director and chief executive of the industry think tank, AUTO21. "But making a vehicle like an F-150 out of aluminum rather than steel is a major step.
"It requires new design and analysis methods as well as entirely new manufacturing processes – not to mention a revolution in the supplier and logistics communities to secure huge new supplies of high-strength aluminum sheet."
"Making a vehicle like an F-150 out of aluminum rather than steel is a major step."
Peter Frise, engineering professor at the University of Windsor
Frise, Dennis DesRosiers, president of DesRosiers Automotive Consultants, and Josh Bailey, who heads research and editorial at Canadian Black Book, all noted that Ford chose to go all-in on aluminum with its most important high-volume model – the one model on which Ford's "corporate reputation hangs," said Frise, and which will have the most impact on the Canadian marketplace, added DesRosiers.
DesRosiers didn't even bother to name another vehicle. Nothing comes close to having the impact of the F-150, he said. The F-Series has been Canada's bestselling vehicle for more than 40 years, so this is a risky move, he said, with Bailey describing it as a "calculated risk."
"Ford is taking a huge step in introducing a record amount of aluminum into the vehicle to reduce weight and address government-mandated fuel economy regulations that come into effect in 2016," said DesRosiers. "No one else in the world has taken such a dramatic shift in technology to meet these new regulations … Ford deserves credit for taking these regulations so seriously."
Ford
Globe Drive's contributors as a group acknowledged the importance of the F-150, though I took the role of contrarian in my submission. "The early fuel economy numbers for the aluminum F-Series suggest Ford has made a massive blunder on risky and expensive technology whose long-term durability remains in question," I said.
"No one else in the world has taken such a dramatic shift in technology"
Dennis DesRosiers, president of DesRosiers Automotive Consultants
While Ford can rightly claim the F-150 is the most fuel-efficient pickup with a gasoline engine, the light-duty fuel economy leader is the 2015 Ram 1500 EcoDiesel. Real-world fuel economy numbers catalogued at fueleconomy.gov point to Ram EcoDiesel drivers who often report much better fuel economy than the window sticker.
"All the other car companies are watching and, for the first time in a long time, Ford has given long-time F-Series owners – loyal ones – a reason to consider something else from another car company," I said.
Columnist Peter Cheney was more impressed with the Model S. "This is the car that shows what the future of driving can be. The business model is also a game changer – vertically integrated manufacturer/distributor/fuel supplier," he said.
Tesla
The Model S did not top the rankings, but was frequently named among the top three. Jeff Pappone said the Model S is "another step toward the end of gasoline and diesel," and Joanne Elves said the car pulls "electric cars out of the shadows and into the spotlight … I'd say the ghost of Mr. Tesla is dancing on Mr. Edison's grave."
Globe Drive product manager Sean Stanleigh said that the technology in the Model S is such that other car makers "will wind up copying it, whether Tesla succeeds long term or not."
BMW's i8 also had its fans. Contributor Richard Russell cited the car's carbon-fibre body as the "next step beyond aluminum" while Dan Proudfoot described it as "breathtaking beyond its speed." Matt Bubbers said the i8 is "a landmark vehicle for the auto industry."
Among the other eligible vehicles, the Corvette, Mustang and Micra all received modest attention, as did the Alfa Romeo 4C. Bailey said the Micra is "proof that small, inexpensive cars do not need to feel flimsy," with contributor Mark Hacking adding that, at $10,000, this car is "the most relevant for this market – and, likely, for many markets around the world."
Globe Drive deputy editor Darren (Woody) McGee cited Ford's important move to a global Mustang platform, while Stanleigh described the Mustang as "a case study on how to relaunch a flagship brand."
Neil Vorano called the Corvette "one of the best sports cars on the road, without the 'American' caveat." And Doug Firby celebrated the 4C, a new model that "puts driving pleasure ahead of practicality, and you're glad it does."
GM plays down impact of loonie's fall on Canadian operations
Greg Keenan
The Globe and Mail
Jan. 09 2015
The drop in the value of the Canadian dollar against its U.S. counterpart won't be the saving grace for the manufacturing operations of General Motors of Canada Ltd.
"We don't make major footprint decisions based on those types of [currency] fluctuations," Mary Barra, chief executive officer of General Motors Co., said on a conference call Thursday.
Important GM vehicles are made in Canada, Ms. Barra said, but she said she had no new product allocation decisions to announce and would not commit the company to continue building vehicles in Canada after 2017.
"I see an opportunity to continue to build," she said.
Fears have risen among union leaders and workers, parts industry executives and industry analysts about the future of GM's operations in the Ontario cities of Oshawa, Ingersoll, and St. Catharines.
The auto makers builds Chevrolet Impala and Camaro, Buick Regal and Cadillac XTS cars in Oshawa as well as some Chevrolet Equinox crossovers. The majority of the company's Equinox models are assembled in Ingersoll along with the GMC Terrain crossover. Workers in St. Catharines assemble engines and transmissions.
About 3,600 members of Unifor assemble vehicles in Oshawa, while another 2,700 work at the auto maker's Cami Automotive Inc. plant in Ingersoll.
Among the vehicles assembled in Canada, the Camaro is scheduled to be shifted to a Michigan plant later this year, production of the XTS and Regal is scheduled to end later this decade and the Impala is also assembled at a plant in Michigan.
The Equinox is assembled at a plant in Spring Hill, Tenn.
Industry sources and analysts have said no vehicles have been allocated to Oshawa to replace the vehicles that are being shifted elsewhere and the next generation of the Impala is scheduled to be built only in Michigan.
One industry analyst told a conference of the Automotive Parts Manufacturers of Canada last year that current production decisions show that Oshawa will cease making any vehicles by 2019 and the Cami plant will be reduced to a single shift.
Ms. Barra said the company regularly examines its global manufacturing footprint to see what degree of localization is needed.
"The philosophy is to build where we sell," she said.
Ford increases dividend 20%
even after profit decline
Keith Naughton,
Bloomberg News
January 8, 2015
Ford Motor Co. raised its quarterly dividend 20 percent, the third boost in as many years, even as the automaker has said profit would decline for 2014.
The payout, which had been 12.5 cents a share, was boosted to 15 cents, matching a Bloomberg forecast. The Dearborn-based company restored the dividend in 2012 at 5 cents after a hiatus of more than five years. The last increase, by 25 percent, was a year ago. The dividend is payable March 2 to shareholders of record at the close of Jan. 30.
Chief Executive Officer Mark Fields told investors in September that 2014 pretax profit would fall to $6 billion, short of a goal of $7 billion to $8 billion, on higher recall costs, widening overseas losses and spending to introduce an aluminum-bodied F-150 pickup. The second-largest U.S. automaker has said it's still committed to regularly raising the dividend.
The increase is consistent with the company's strategy, Ford said Thursday in a statement.
"Our plan for dividends is to continue to grow regular dividends up to the point that we don't believe this is sustainable," Chief Financial Officer Bob Shanks told investors Sept. 29 in Dearborn. "We don't think we're at that point today where we've reached the level where they're not sustainable over a downturn."
The 15-cent dividend would pay $42.5 million annually to the founding family through its 70.9 million Class B shares, which give them control of the company. Family members including Executive Chairman Bill Ford, great-grandson of founder Henry Ford, are the exclusive owners of the Class B shares, which hold 40 percent voting power.
Obama heralds U.S.
auto turnaround
David Shepardson,
Detroit News
January 7, 2015
Washington — President Barack Obama says the U.S. auto industry has helped spur a resurgence in Americanmanufacturing -- and he says his decision to rescue American automakers helped the industry "get back in the game."
Obama will return to Michigan on Wednesday — just three weeks after the government exited the final part of the $85 billion auto bailout when it shed its final 11.4 percent stake in auto lender Ally Financial Inc. — to herald the auto industry turnaround.
He will take a victory lap to highlight what was one of his toughest decisions made in the early months of his presidency when he visits Ford Motor Co.'s Michigan Assembly plant in Wayne.
"The auto industry has led a resurgence of manufacturing in America. The quality of the cars has gotten so much better that we are competitive — not just in SUVs — but up and down the line. The branding of American cars is back to where it should be. Michigan's unemployment rate has fallen faster than the overall unemployment rate," Obama said in a 15-minute Detroit News telephone interview late Tuesday.
The auto industry -- including manufacturers, dealers and suppliers -- have added more than 400,000 jobs since the industry hit bottom in June 2009 and auto sales in 2014 hit 16.5 million -- their highest level since 2006.
In the interview, Obama disclosed details of his decision to rescue Chrysler LLC in March 2009 over the objections of some advisers. He said the decision that saved thousands of jobs was due in large part to the workers at the company.
Previously published reports have disclosed the administration was divided about whether to save Chrysler as part of a tie-up with Italian automaker Fiat SpA. But Obama has never discussed the debate in significant detail. Obama said despite concerns from advisers, he was convinced by Fiat's plan and American workers.
"The Fiat proposal was plausible enough and the game plan they had for rebuilding Chrysler was sound enough and the workers in those Chrysler plants were hungry enough and dedicated enough that it was worth taking a bet on them and I'm glad we did," Obama said.
Many economic advisers thought it would never work: hand control of Chrysler to Fiat CEO Sergio Marchionne -- two companies with significant differences in culture and products. President Obama "made all the right decisions, stood behind us and I think he deserves credit for it," former auto czar Steve Rattner said in a 2011 Detroit News interview.
Obama noted Chrysler was the "sickest" of the Detroit Three in early 2009 and said while his advisers had all recommended a restructuring of General Motors Corp. was viable, some suggested that by letting Chrysler die a remaining "Big Two" automakers — GM and Ford Motor Co. — would have been healthier.
"Part of it just had to do with the numbers and the weakness of the company at that time," Obama said referring to Chrysler. The administration gave Fiat control of Chrysler as part of the restructuring in 2009 and Fiat acquired the remainder of Chrysler last year.
Today, Chrysler is part of Fiat Chrysler Automobiles NV. It has added back thousands of jobs. In December, Chrysler said sales were up 20 percent and 2014 sales were up 16 percent -- among the strongest in the industry. Chrysler has had 57 consecutive months of year-over-year U.S. sales gains.
"The question was not, 'Do we intervene?' The question was, 'Do we intervene in a way that actually spurs the sort of restructuring that gives American automakers the chance to get back in the game,' " Obama said.
Obama said his administration was worried that if the auto industry collapsed "right at a time when we're teetering on the brink of a Depression — that we might not be able to control the fallout."
The auto bailout ultimately became a cornerstone of his re-election campaign and helped him defeat Republican Mitt Romney as he and Democrats pounded Romney for his opposition to bailouts for GM and Chrysler before requiring bankruptcy filings. Vice President Joe Biden said the campaign theme was: "Osama bin Laden is dead and General Motors is alive."
Obama has talked about the auto bailout in hundreds of speeches -- reminding Americans of the dire economic problems the country faced in 2009 -- and difficult decisions necessary to turn them around.
In a Detroit News interview in October, Romney declined to say if he thought controversy surrounding the auto bailout and comments he made about Chrysler's Jeep brand made the difference. "That's the nature of politics. Things will be distorted from reality and sometimes those things can be used against you and you have to live with that and recognize that's part of the political process and (if) you can't handle the heat, you can't be in the kitchen," Romney said.
Rep. Sander Levin, D-Royal Oak, said in a Detroit News interview Tuesday that the auto bailout would be one of the major parts of Obama's legacy. "The domestic industry has rebounded," Levin said. "It was a real struggle. It did not come easily and it did not come automatically. When good things happen people forget the origins."
Sen. Gary Peters, D-Bloomfield Township, who will join Obama on Air Force One for the trip to Michigan, said it "was absolutely critical" to Michigan that Obama. "It would have been catastrophic to the state of Michigan," Peters told The News. "The government needed to be the lender of last resort and it turned out to be a huge success."
Peters noted that Ford -- which didn't seek a government bailout -- could have been brought down by the collapse of GM and Chrysler. Ford won $5.9 billion from a Energy Department retooling program that helped it make more fuel efficient vehicles at the Michigan assembly plant and 12 other plants. Nissan Motor Co. and Tesla Motors Inc. also won loans from the program.
Obama noted that the government recovered all but $9.3 billion of the auto bailout, but said his administration had recovered $70 billion -- more than tthe $57 billion his administration invested. Obama's tally didn't include the initial $25 billion that the Bush administration gave automakers and their suppliers in the final weeks of the administration.
:"It's been a good deal for autoworkers. It's been a good deal for autoworkers. It's been a good deal for America and it saved about a million jobs," Obama said.
Asked if President George W. Bush's administration was to blame for the losses, Obama declined to "second guess" the actions of the Bush officials in the final weeks of its term. Obama's team put a plan together "that was not just writing a check but insisting on collaboration between management and workers and suppliers and dealers and shareholders, where everybody had to make some sacrifices. ...
"There was clear-eyed recognition that we couldn't sustain business as usual. That's what made this successful. If it had just about putting more money in without restructuring these companies, we would have seen perhaps some of the bleeding slowed but we wouldn't have cured the patient."
Obama also recounted that the auto bailout — which is now credited with saving 1 million jobs and helping to spur auto sales to their highest level since 2006 — wasn't seen as a slam dunk in 2009 and came at a "scary time."
"It's important to recall that the auto bailout was wildly unpopular — even in Michigan — and it was coming on the heels of already several infusions of cash into GM and Chrysler," Obama said. "If the auto industry collapsed, right at a time when we're teetering on the brink of a Depression ... we might not be able to control the fallout. The question was not, 'Do we intervene?' " The question was, 'How do we intervene in a way that actually spurs the sort of restructuring that gives American automakers the chance to get back in the game?' "
2014 car sales best in U.S. since '06
Michael Martinez,
The Detroit News
January 6, 2015
Buoyed by the recovering economy, lower gas prices and the blistering sales of trucks and SUVs, automakers sold more vehicles in 2014 than in any year since before the U.S. recession. Industry experts expect those gains to continue this year, although the sales pace likely will slow from 2014.
U.S. sales of cars and light trucks totaled 16.52 million — the first time they crossed the 16 million mark since 2006. That was nearly 1 million more sales than in 2013, according to figures released Monday.
"The U.S. auto industry surprised many with a better-than-expected 2014, and closed on a high note, which bodes well for 2015," Michelle Krebs, senior analyst for AutoTrader.com, said in a statement. "While new-car sales likely will rise again in 2015, it won't be at the pace we've seen in recent years. Competition will intensify and automakers' pledge to be disciplined in balancing supply and incentives with demand will be tested."
In addition to robust sales of trucks and SUVs — especially compact sport utility models — luxury cars did well among buyers. Non-luxury sedans, however, didn't sell as well.
Foreign makes Hyundai, Honda, Nissan, and BMW set U.S. sales records in 2014.
Among last year's highlights:
■Trucks, including SUVs, outsold cars. Together, sales in this category rose 10 percent, to 8,603,399.
Separated from pickups, SUV and crossover sales rose 11.8 percent to 5,381,431 last year, as automakers rushed to offer more models in the hot segment.
■The top three best-selling vehicles were all American trucks: Ford Motor Co's F-150, General Motors Co.'s Silverado and the Dodge Ram 1500.
■ GM sold more vehicles in 2014 than any other automaker.
■Ford was the best-selling brand for the fifth-straight year, and the Dearborn automaker's F-150 pickup was the best-selling truck for the 38th straight year.
■The Toyota Camry was the nation's best-selling car for the 13th consecutive year.
■ BMW was the best-selling upscale automaker, beating out Mercedes-Benz and Lexus in the growing luxury segment, where sales increased 15.1 percent. Ford's Lincoln continued its turnaround with a 15.6 percent sales increase, which came mostly from its new MKC crossover and refreshed Navigator.
■ Asian automakers outsold American and European brands by about 35,000 vehicles.
■FCA US LLC — the Fiat and Chrysler tieup — continued its impressive streak in 2014, finishing the year with 57-consecutive months of year-over-year sales gains.
For the year, FCA sales were up 16.1 percent, driven by strong performances for its Jeep and Chrysler brands. GM sales rose 5.3 percent as SUVS from its Buick and Chevy brands attracted buyers. And Ford sales were down 0.6 percent compared to 2013, due mostly to launch costs and extended plant downtime related to the introduction of its new aluminum-bodied F-150 pickup.
Chrysler gained the most market share in 2014 as Toyota and Nissan also saw upticks. Ford lost the most share as GM, Honda and Hyundai also lost.
December sales were strong, fanned by falling gas prices and holiday sales. Detroit's Big Three automakers all reported December sales gains Monday as overall industry sales increased 10.8 percent last month.
GM reported a 19.3 percent sales increase last month compared to the same time a year ago; December sales at Ford rose 1.3 percent, and FCA US LLC reported Monday its December sales in the United States were up 20.4 percent — its best December in a decade.
The less fuel-efficient, higher-profit vehicles were helped in 2014 by lower gas prices to end the year, but analysts say their popularity extends beyond numbers at the pump.
"What we're seeing now are trends that we've seen for the past couple years, long before the fall of gas prices," Krebs said Monday on a conference call with reporters. "What's new will sell, even on the car side."
And automakers introduced plenty of SUVs last year, and this year's North American International Auto Show, which opens to the world's automotive press Monday, should add even more.
GM introduced six new 2015 utilities: the GMC Yukon and Yukon XL; Chevrolet Tahoe and Suburban; and Cadillac Escalade and Escalade ESV. Ford Motor Co. also rolled out its updated 2015 Lincoln Navigator in 2014 and recently unveiled its 2016 Ford Explorer that's due on dealer lots in 2015. Last year also marked the first full year of sales for Fiat Chrysler Automobiles' 2014 Dodge Durango and Jeep Cherokee SUVs. The Cherokee helped lead Jeep to a 41.2 percent boost in sales compared to 2013.
Analysts are already looking ahead to 2015 and anticipate sales of around 17 million vehicles. Hot segments like compact crossovers, trucks and SUVs should continue to attract buyers, and low gas prices could continue to help sales through the first half of the year.
2014's top sellers
1. Ford F-150
2. Chevrolet Silverado
3. Dodge Ram 1500
4. Toyota Camry
5. Honda Accord
6. Toyota Corolla/Matrix
7. Nissan Altima
8. Honda CR-V
9. Honda Civic
10. Ford Fusion
Source: Autodata
Retiree Jack Blair
Passes Away Jan 2, 2015
It is with great sadness that we inform you of the passing of Retiree Jack Blair. Our Sincerest condolences go out to Chris Blair (Local 584 Member) and to the entire Blair family. Jack will be sadly missed.
BLAIR, Jack Robinson
June 21, 1925 - January 2, 2015
Retired July 1, 1990
23.3 Years Service
Peacefully passed away at the age of 89. Predeceased by his loving wife Norma. Loving father of Chris (Heather), Bill (Sherri Patch), Donna Fleck (Jim), Mary Papakonstantinou (Tom), Jim (Vlasta), and Rob. Cherished Grandfather of Jason, Andrea, Sarah, Adam, Bryan, and Alex. Jack will be missed by his surviving sibling Dorothy, and many nieces and nephews.
David Shepardson,
The Detroit News
January 5, 2014
President Barack Obama is expected to visit a Ford Motor Co. plant in Wayne on Wednesday, to herald the auto industry turnaround that's been one of brightest spots in the recovering U.S. economy.
The president's expected visit to Ford's Michigan Assembly plant, where the Dearborn automaker builds small, fuel-efficient cars, is the latest in a long list of auto plant tours and speeches by Obama dating back to his first campaign, when the industry was on the brink of collapse.
It's part of a multicity tour to highlight his administration's successes in preparation for his Jan. 20 State of the Union address.
The White House on Sunday wouldn't say the Ford plant was the president's specific destination, but two people with direct knowledge of the trip confirmed it. A Ford spokeswoman, Christin Baker, declined to comment.
Obama's Metro Detroit speech comes less than a month after the U.S. Treasury ended the historic six-year government intervention in the auto industry. The government closed the books on the $85 billionbailout in December.
The president plans to herald soaring auto sales and again point to his decision to rescue General Motors Co., Chrysler Group LLC and their finance arms.
While Ford benefited from government loan programs, it did not accept a bailout.
The Dearborn-based automaker invested $550 million in its Michigan Assembly plant, in part thanks to a low-cost $5.9 billion loan in September 2009 through the Energy Department's Advanced Technology Vehicles Manufacturing Loan Program. The loan enabled Ford to upgrade 13 factories in six states.
David Cole, chairman emeritus of the Center for Automotive Research, speculated that Ford was the safest bet as a venue this week to tout the auto industry turnaround, rather than GM, which has come under scrutiny for ignition problems.
Chrysler, now part of Fiat Chrysler Automobiles NV, is no longer a U.S.-headquartered company, but the president and administration officials have visited Chrysler facilities.
Obama added about $55 billion to the $25 billion auto rescue launched by President George W. Bush, and forced GM and Chrysler into bankruptcy; Chrysler was handed over to Fiat SpA as part of the deal. The rescue became one of the key achievements of his presidency and a focal point of his re-election bid.
The auto rescue was not without costs. The U.S. Treasury said it cost the federal government $9.26 billion. But the administration has insisted that the costs of letting automakers fail would have been far higher.
Michigan Assembly, the plant that once built the Ford Expedition and Lincoln Navigator SUV, now builds the Ford Focus, C-Max Hybrid and C-Max Energi plug-in.
After a stop at the plant, where he will get a tour and be introduced by a Ford worker, Obama is scheduled to fly to Phoenix for an event on housing. He'll then head to Tennessee for a program on helping Americans go to college and helping to create more manufacturing jobs.
The trip to the suburban Wayne County is the president's 14th trip to Michigan since taking office; the most recent was Nov. 1 at Wayne State University. The purpose of this week's visit, said White House Deputy Press Secretary Eric Schultz, is "to highlight the workers in the resurgent American automotive and manufacturing sector now that the auto rescue has been completed, and the decision to save the auto industry and the more than 1 million jobs that went with it."
Obama has touted the auto bailout in hundreds of speeches. Last year, the White House invited GM CEO Mary Barra to sit in first lady Michelle Obama's box during the State of the Union address. Days later, GM's ignition switch scandal erupted, and the company has come under tremendous fire.
Auto sales have been booming, and low gas prices are spurring sales of profitable SUVs, crossovers and pickups that are U.S. automakers' strong suit. Final sales figures for 2014 are announced Monday and are expected to have reached about 16.5 million — the best performance since 2006.
The number of auto jobs, those working directly for automakers and parts makers, is up 164,000 since Obama took office, to 875,800.
Pay for top CEOs rose twice
as fast as average Canadian
since recession: study
Andy Blatchford
The Canadian Press
Jan 3, 2015
OTTAWA – Canada's top-paid CEOs saw their compensation climb at double the rate of the average Canadian between the depths of the recession and 2013, a new study has found.
The country's 100 highest remunerated chief executive officers pulled down an average of $9.2 million in 2013, about 25 per cent more than the $7.35 million they amassed in 2008, said an analysis released Thursday by the left-leaning Canadian Centre for Policy Alternatives.
By comparison, the average Canadian income in 2013 was $47,358, about 12 per cent more than the 2008 level.
"It's a sort of a highly visible manifestation of growing income inequality in Canada," said the study's author, Hugh Mackenzie, who crunched the numbers on the CEOs of 240 publicly listed Canadian corporations on the Toronto Stock Exchange.
"I just don't think it's sustainable. I think that sooner or later public concern about income inequality is going to start to matter politically and something will have to happen."
The last time compensation for the top 100 corporate chiefs reached such a height was 2007 — the year before the recession — when it peaked at an average of $10 million, said the report titled "Glory Days: CEO Pay in Canada Soaring to Pre-Recession Highs."
The think-tank's annual review of CEO pay comes amid much political debate over Canada's income gap and the economic health of the middle class. Federal politicians have already started sharpening their pitches on these issues ahead of October's national election.
The CEO calculations include salaries as well as earnings from bonuses, share grants and stock options.
By that measure, Gerald Schwartz of the private equity company Onex Corp. (TSX:OCX) earned the most of any of the CEOs, pulling in $87.9 million for 2013. The sum included $61.4 million in options and a $25.2-million bonus.
Next up was Nadir Mohamed of Rogers Communication Inc. (TSX:RCI.B), who made $26.8 million, followed by Michael Wilson of the fertilizer producer Agrium Inc. (TSX:AGU) at $23.8 million. Both men retired from their respective companies in 2013 and received large one-time payments related to their departures.
Mackenzie acknowledged that particularly large sums, like the one awarded to Schwartz, push the average upwards, but he noted that even the compensation of the 100th-ranked CEO on the list was about 30 per cent higher in 2013 compared with 2008.
In 2013, Thomas Simons of Canadian Energy Services & Technology Corp. (TSX:CEU), who took home just over $4.1 million in compensation, earned the least on the Top 100 list.
Looking back even further, the study found the average 1998 compensation for the Top 100 CEO earners was 105 times more than the average Canadian's income. In 2013, it said the top CEOs raked in about 195 times more than the average Canadian's pay.
The report found the compensation divide even wider for women: the average CEO in the Top 100 made 237 times the income of the average woman in 2013.
"Given the fact that the stakes and the responsibilities of these corporate leaders really haven't changed that much, one has to look a little bit more closely at what it is that's driving the premium pay for these corporate decision-makers to be so much greater now than it was 15, 20, 25 years ago," Mackenzie said.
In addition, the risks of compensating CEOs with large amounts of stock options could lead corporate bosses to focus on short-term benefits rather than the long-term well-being of their company, he said.
His report recommends changes to the tax system to address what it calls the "problem of runaway CEO pay."
Mackenzie said the government could limit how much of a CEO's salary a company can deduct from its taxes.
The review also offers other suggestions including: the introduction of a more steeply graduated tax system and putting an end to the treatment of stock options as a capital gain, so they're no longer taxed at half the rate of ordinary income.
But even with so much attention paid to Canada's income gap, recently released data suggested the disparity shrunk somewhat between the country's biggest income earners and the other 99 per cent after the 2008-09 recession.
A November report by Statistics Canada found the highest-earning Canadians — the so-called top one per cent — saw their share of the country's overall income fall to 10.3 per cent in 2012. The drop followed a peak of 12.1 per cent six years earlier.
The agency said the six-year period marked the first "prolonged" stretch in 30 years when the income share of earners in the lower levels stabilized or grew.
To qualify for the one per cent club, the Statistics Canada study said an individual had to earn at least $215,700 in 2012 — a sum reached by 261,365 people who filed taxes that year.
Seniors increasingly struggling
with debt, bankruptcy
Lee-Anne Goodman,
The Canadian Press
Recent 2014 Article
The country's growing cohort of senior citizens is carrying more debt into retirement and increasingly declaring bankruptcy, says a report prepared for the federal government.
The need to support dependent adult children who are taking longer to find work is contributing to the trend, says the study conducted for the Financial Consumer Agency of Canada.
The report, prepared by market research firm The Strategic Council, also said declining numbers of seniors are in registered pension plans. There's also evidence of growing income inequality among those 65 and older.
"Demographic, economic and even behavioural trends suggest that the current landscape for Canadians as they head into their retirement years is challenging," the study found.
Seniors are also struggling with so-called financial literacy, experiencing difficulties staying on top of their financial affairs with advancing age, the report says. They are also far more vulnerable to financial scams.
The report recommended that financial literacy strategies should take into account ageism, the stigmatization of older people, health status and elder abuse.
Many seniors are unfamiliar with the online world, which contributes to their struggles to manage finances, the study also found.
"The issue of digital literacy was raised a number of times by several experts as being the single largest obstacle or barrier for many seniors in terms of improving their financial literacy and their financial management skills," it read.
Susan Eng, vice-president for advocacy at CARP, said the study reflects what her organization is tackling.
"Not only do seniors not have enough money saved for their own retirements, but as they try to invest for their retirement, they are often vulnerable to shark activity by financial advisers," she said.
"They are losing their life savings, and that concerns us the most."
The number of Canadians working past the age of 65 has almost doubled over the last seven years. There are now close to 600,000 seniors still in the workforce.
Eng says governments of all levels must do more to encourage registered pension plans, and to crack down on financial predators who target seniors.
Ford files trademark
for 'EcoBeast' moniker
AutoBlog Canada
Brandon Turkus
Jan 2, 2015
Ford has done some performance stuff with its EcoBoost line of vehicles, most notably with its Focus and Fiesta ST, the new, turbocharged Mustang and the lukewarm Taurus SHO and F-150 Tremor, but it's kind of avoided going wholly bonkers. That could be set to change quite soon, judging by a trademark filing with Uncle Sam.
Ford has registered the name EcoBeast with the United States Patent and Trademark Office, listing it as "automobiles and automobile engines," according to the team at Motorlix, which discovered the filing.
As always, it bears mentioning that companies are constantly filing trademarks, even if a good or service never emerges with said name. We agree with Motorlix, though – it seems highly unlikely Ford is going to just let this name languish. What vehicle or engine will wear this new badge is the real question. We're leaning towards something F-150 related, based on our last round of spy photos of the new SVT Raptor, although it's impossible to say for certain what the Blue Oval has planned.
Here's hoping we find out in just a few weeks when Ford brings basically all of its performance merchandise to the 2015 Detroit Auto Show. Until then, let us know what you think Ford is planning with the EcoBeast.
Ford recalling 25,000 vehicles
in two new campaigns
David Shepardson,
The Detroit News
January 1, 2015
Washington — Ford Motor Co. is recalling 25,700 SUVs and crossovers in two separate campaigns — including the latest call-back by the industry for ignition systems that could cause restraint systems such as air bags to fail.
Both campaigns involve some new 2015 Lincoln MKC compact crossovers.
Ford is calling back 13,500 2015 Lincoln MKC vehicles to move the push button keyless ignition switch location. The Dearborn automaker said "due to the switch's close proximity to other controls, occupants are inadvertently shutting off the engine while driving. If the push-to-start button is inadvertently actuated while driving, the restraint system may not perform as intended in a crash, increasing the risk of injuries."
Ford is not aware of any accidents or injuries in either new recall announced Wednesday.
The ignition recall covers 2015 Lincoln MKC vehicles built Aug. 20, 2013 to Sept. 9, 2014 at its Louisville Assembly Plant. The recall covers 11,144 vehicles in the United States and federalized territories, 2,033 in Canada and 397 in Mexico.
Dealers will replace the gearshift module with one that has the push-to-start button in a different location and reprogram the powertrain control module.
Ignition switches and systems have gotten a lot of attention this year.
General Motors Co. recalled 2.6 million older cars in February that are linked to 42 deaths because ignition keys could move out of position causing the vehicle to stall and the airbags not to deploy in a frontal crash. Other automakers have recalled vehicles for other ignition issues.
Separately, Ford is recalling 12,200 2014 Ford Escape and 2015 Lincoln MKC vehicles for a fuel pump issue. Ford said an issue with the nickel plating on the fuel pump may cause the pump to seize. If the fuel pump seizes, the SUV may not start or may stall while driving. An engine stall without warning while driving increases the risk of a crash.
Affected vehicles include 2014 Ford Escapes built April 15, 2014 to May 8, 2014 at Louisville Assembly Plant and certain 2015 Lincoln MKC vehicles built April 21, 2014 to May 15, 2014 at Louisville Assembly Plant.
The recall covers 9,038 vehicles in the United States, 3,074 in Canada and 93 in Mexico.
Dealers will replace the fuel delivery module at no cost to the customer.
For the year, Ford said it has issued 42 recalls covering 4.9 million vehicles. By contrast, Ford has 16 recalls covering 1.2 million vehicles last year.
So long, Detroit Three.
Hello, Detroit Two
JEREMY CATO
The Globe and Mail
Dec 29, 2014
In what is shaping up to be the automotive equivalent of the 2011 Melbourne Cup photo finish – Dunaden won not by a nose, but a nose hair over Red Cadeaux – Chrysler Canada is just 2,576 units behind Ford of Canada in sales through the first 11 months of 2014 (Ford, 269,198 and Chrysler, 266,622).
If Ford wins, the victory will go to a Dearborn/Detroit-based car company. If Chrysler wins, it will go to an auto maker whose Dutch parent is based in The Netherlands with headquarters in London, and whose North American affiliate no longer has the name of Chrysler founder Walter P. Chrysler as its corporate moniker – for the first and only time since Walter P. founded the company in 1925.
You see, Fiat Chrysler Automobiles has announced that the Chrysler Group is henceforth to be known as FCA US LLC. With the arrival of that alphabet soup of a name, the time seems ripe to strike the name Detroit Three from the automotive company roster. The world now has only two Detroit-based car companies, Ford and General Motors.
This surely is a milestone moment in the car business. Something big has happened and it should be noted. We all knew this was coming, however. Fiat tells us so.
Ed Garsten, FCA US's head of digital media, notes in a web posting that the all-letters name is "all part of the changes under way since our parent company, Fiat Chrysler Automobiles [NV] came into being in October" when FCA was listed on the New York Stock Exchange – along with its listing on the Italian Borsa, also under the symbol FCA. Indeed, Fiat Group Automobiles SpA has also changed its name to FCA Italy SpA.
For the record, Fiat is the older of the two car companies. Fiat was founded in Italy in 1899 by a group of entrepreneurs that included Giovanni Agnelli, whose family controls FCA with a 30 per cent stake through the holding firm Exor. Automotive News has reported that the Agnelli family might see its voting power rise to as much as 46 per cent as part of the Fiat-Chrysler merger.
Despite the change, Garsten says that, in fact, nothing much has changed.
"When you think about it," he notes on the web, "when someone changes their name from Smith to Jones for personal or professional reasons, they're still the same person. The change just makes sense for them. In that vein, our commitment to quality, style, performance and service hasn't changed, we just have a new name to reflect our role in our new company, and that makes sense."
So long, Detroit Three, hello Detroit Two. If Chrysler Canada wins the sales race with Ford of Canada, it will be the first time that a subsidiary of a European-based car company has taken the sales crown in Canada.
Auto industry acts globally
— except on recalls
Dee-Ann Durbin,
Associated Press
December 28, 2014
Detroit – — When it comes to making and selling cars, the auto industry thinks and acts globally: There is near-seamless coordination between parts suppliers, factories and dealerships.
But when an unsafe car needs to be recalled, that global coordination breaks down — in part because governments do not demand it. There are no international standards for determining what's unsafe and should be recalled, or how car owners should be notified. The consequences can sometimes be deadly.
Six years ago, Honda began recalling driver's side air bags in the U.S. The air bags, made by Japanese supplier Takata Corp. at a now-shuttered plant in Georgia, can inflate with too much force, spewing shrapnel into the vehicle. But it wasn't until November of this year — after the death of a driver in Malaysia — that Honda recalled driver's side air bags in small cars sold in Europe and Asia, even though the air bags were made at the same time in the same Georgia factory.
Governments are the safety watchdogs, but regulations vary widely and there's little cooperation between nations. Automakers, for the most part, get to decide when and where their cars will be fixed.
"We've witnessed recalls occurring in one part of the world while the same defects go unremedied in others, sometimes for years," said Sean Kane, a safety advocate and president of Safety Research and Strategies. "That should not happen."
Cars are global
Cars and car parts are now made to be sold and used almost anywhere in the world.
The compact Ford Focus is designed to be sold globally, with only minor tweaks to satisfy local tastes and regulations. It's made in nine different factories.
Almost all the major automakers use air bags from Takata, which has 56 plants in 20 countries. The Japanese company makes around 22 percent of the world's air bags, according to Valient Automotive Market Research.
Sharing common parts saves money, but some experts question whether the rush to go global compromised safety. Auto analyst and engineer Tadashi Tateuchi says he believes that's what happened with Takata and Honda, which is Takata's biggest customer.
Honda responds that the air bags sold in the U.S. were different, and more advanced, than those involved in the Malaysia crash. Even though they both ruptured, determining the underlying cause took time.
The safety gamut
Despite decades of talk, at the United Nations and elsewhere, little progress has been made getting governments to harmonize safety standards.
In Europe and Japan, cars are rigorously tested before they go on sale. In the U.S., automakers self-certify and cars are tested only after they go on sale. In Mexico and India, cars don't have to meet any government safety standards at all.
Likewise, countries differ on how to treat a problem. The U.S. requires automakers to report a safety defect within five days of its discovery, even if the cause hasn't been determined. Other countries, like Colombia, want automakers to have a fix in place before they report a recall.
John Krafcik, the president of auto buying site TrueCar.com and Hyundai's former U.S. chief, says there's also discrepancy in what's considered a safety defect.
The lack of a cohesive system contributes to huge disparities. In 2013, there were 714 vehicle recalls issued in the U.S., where 28 million cars, trucks and motorcycles were called back due to safety issues. That outpaced the rest of the world. In Europe, which has around the same number of cars on the road as the U.S., there were 110 recalls. In Japan there were 303. China had 130.
What automakers want
Some auto executives say global standards would allow them to work from one playbook when designing cars. But low or nonexistent standards also save them money. Nissan didn't even include air bags in the $5,000 Datsun Go it now sells in India and South Africa.
"We are starting with a world that is uneven in the distribution of safety," says Adrian Lund, the president of the Insurance Institute for Highway Safety, an insurance-funded group that crash tests U.S. cars.
Nissan says the Go meets local safety standards and has other features like better brakes to help drivers avoid accidents.
Automakers can also save money by limiting or delaying recalls.
Ten years ago, the U.S. government fined Toyota $16 million for delaying a recall of 4Runner SUVs with defective steering rods in the U.S. The defect was linked to three fatal crashes here.
This summer, two years after a recall in Europe, General Motors recalled the Aveo in the U.S. because corrosion was wearing down the brakes. Meanwhile, Ford recalled SUVs with 1.6-liter EcoBoost engines in the U.S. two years ago because of a fire risk. They have yet to be recalled in Europe and Brazil.
Signature Edition Ford Shelby
GT500 Super Snake to get
limited production run
By Chris Bruce
Dec 27, 2014
The upcoming Ford Shelby GT350 Mustang keeps grabbing a horde of headlines thanks in no small part to the pony car's 5.2-litre V8 with a flat-plane crankshaft, magnetic dampers and other go-fast goodies. However, as the new contender enters the ring, Shelby American is saying goodbye to the old GT500 and the company's even more powerful Super Snake version with its new Signature Edition model.
Limited to a total of 50 conversions on 2007-2014 coupe or convertible GT500s, the Shelby American Signature Edition packages some of buyers' most common choices into a single vehicle with a few extra touches, as well. The heart of it all is a 3.6-litre Kenne Bell supercharger to replace the V8's standard blower and take power up to a claimed 850 horsepower for the latest models. To keep things running at the proper temp, the mill gets an upgraded radiator, heat exchanger and aluminum cooling tanks, too. The rear brakes are also improved to slow this stallion down.
In addition to the boosted power, buyers get some extra style. These special Super Snakes are available in all of the colours available on them from Ford, plus a range of shades for the stripe, and the wide body package can also be added as an additional option. The limited version wears 20-inch forged wheels from Weld that are 9.5-inches wide at the front and 10.5-inches at the rear and feature Signature Edition centre caps. Inside, there's a commemorative badge with Shelby's signature on the airbag cover and Signature Edition floor mats. Finally, customers get a day training at the track to learn how to control this beast as part of the package.
Orders for the Signature Edition are being accepted through January 31, 2015, and the modded model is priced at US$44,995.00, which is in addition to the price of the stock GT500.
US Unions try to replenish ranks
with protected immigrants
Sara Burnett,
Associated Press
Dec 26, 2014
Chicago — Unions across the U.S. are reaching out to immigrants affected by President Barack Obama's recent executive action, hoping to expand their dwindling ranks by recruiting millions of workers who entered the U.S. illegally.
Labor leaders say the president's action, which curbs deportation and gives work permits to some 4 million immigrants, will give new protection to workers who have been reluctant to join for fear of retaliation.
"I think we'll see very positive changes" because of the action, said Tom Balanoff, president of Service Employees International Union Local 1. "One of them, I hope, is that more workers will come forward and want to organize."
SEIU, whose more than 2 million members include janitors and maintenance workers, recently announced a website where immigrants can learn about the action. The AFL-CIO says it's training organizers to recruit eligible workers. And the United Food and Commercial Workers and other unions are planning workshops and partnering with community groups and churches to reach out to immigrants.
The efforts come even as Republicans and other opponents of Obama's action work to undo it, saying it will hurt American workers, and as some labor experts say they're skeptical immigrants will feel safe enough to unionize in large numbers.
Labor unions have struggled over the past decade to maintain their membership and political muscle. The ranks fell by more than 1.2 million between 2003 and 2013, when there were about 14.5 million members nationwide, according to the Bureau of Labor Statistics. The percentage of workers that were union members fell from 12.9 percent to 11.3 percent during that same period.
Business-friendly Republican governors have approved measures in recent years aimed at weakening labor, even in places such as Michigan that were once considered union strongholds. In Obama's home state of Illinois, a GOP businessman unseated the Democratic governor last month in part by promising to constrain labor's influence in government.
Unions say they can help protect immigrants against abuses such as wage theft and discrimination. And even if the immigrants aren't citizens and cannot vote, they can help unions by paying dues and doing the heavy lifting needed around election time — knocking on doors, driving voters to the polls and making phone calls for pro-labor candidates.
Republicans say the executive actions — which would affect people who have children and have been in the U.S. more than five years — will make it tougher for Americans already struggling to find good-paying jobs. They've pushed legislation to void the new protections.
"The president's action is a threat to every working person in this country — their jobs, wages, dreams, hopes and futures," said GOP U.S. Sen. Jeff Sessions of Alabama.
Felipe Diosdado, who came to the U.S. illegally in 1997, says undocumented people he knows are working for cash at small businesses that aren't unionized because they're afraid to apply at larger job sites that are more likely to verify a worker's immigration status.
And while he acknowledged many immigrants are fearful because the protection is temporary and could be undone by a future president, he expects some will sign up.
"It's a risk, but you always have a risk," said the 36-year-old father of two, who joined a union while working at a construction site 14 years ago. "Being undocumented, you live with risk every day."
Shannon Gleeson, an associate professor at Cornell University's School of Industrial and Labor Relations, said she expects the response to be "very place-specific," with people coming forward in places that have traditionally been considered immigrant-friendly, like Los Angeles, while being reluctant in places like Houston, where it's a struggle to find a unionized hotel.
"If I'm there, am I going to stick my neck out?" Gleeson said. "I don't know, maybe not."
Ford's Transit Van
continues E-Series' success
Michael Martinez,
The Detroit News
December 25, 2014
Ford Motor Co.'s new Transit is wasting no time replacing the automaker's E-Series as the nation's best-selling full-size cargo van.
More than 4,800 Transits were purchased in November as the van outsold the venerable E-Series, the Chevrolet Express and all other competitors for the first time. Since its June launch, Ford has sold more than 10,000 Transits that have become everything from food trucks and mobile offices to medical service vehicles and party buses.
"We're really excited to see Transit take over in such a big way — and so quickly," said Yaro Hetman, Transit brand manager. "We had no plans at all to let down on our leadership in the van segment."
Ford's E-Series has been the best-selling commercial van in the U.S. for 34 straight years, but Ford is replacing it with a Transit — popular for years in Europe — that offers more engine, style and size choices.
"The vehicle is getting tremendous reviews," said Michelle Krebs, senior analyst with autotrader.com. "The commercial van market has held up very well in the past few years and sales are pretty strong. If you come in with a really good contender, you're going to do well."
A stable economy, an improved unemployment rate and low gas prices have helped drive sales of commercial vans, which are often purchased by companies in construction, medical and other business sectors. Through November, the full-size van segment is up 14 percent, according to industry data. That sales rise is second only to the small utility segment, which is up about 20 percent.
The van segment has recently grown more crowded with entries like Chrysler's ProMaster and the Mercedes-Benz Sprinter. Ford last year introduced an all-new smaller Transit Connect van.
The full-size Transit comes with a standard 3.7-liter V-6 that Ford says gets 19 percent better gas mileage than the E-Series and its standard 4.6-liter V-8. The Transit has multiple configurations, including three body lengths, two wheelbases, three roof heights and van, wagon, chassis cab and cutaway variations.
The Transit in some iterations can have up to 75 percent more cargo room than the largest E-Series.
"Customers are embracing the flexibility, cargo capacity and fuel economy," Hetman said. "They can tailor it to any configuration that works for them."
Hetman also said Ford's internal data shows Transit maintenance costs are substantially lower than its competitors.
Transit sales are about 70 percent commercial and 30 percent retail, Hetman said. In August, Missouri-based cable operator Charter Communications placed the first big fleet order, buying more than 800 low-roof, regular-wheelbase vans.
Krebs called the Transit's success another example of the One Ford plan — bringing a successful global vehicle to North America.
"It's a continuation of the success we're seeing around the world," Hetman said. "We're using over 50 years of experience (globally) to make the best van in the segment."
The Transit is made at Ford's Kansas City Assembly Plant, and the Dearborn automaker last month hired 1,200 workers to start a second shift to make the van. Ford previously added 2,800 workers to the 4.7 million-square-foot plant in 2013 and 2012 to support the Transit introduction and increased F-150 production, also made in Kansas City.
Ford didn't say how many Transits are produced per week, but said it will match production to meet customer demand.
"We're just looking at steadily increasing — 4,800 is just the beginning for sales," Hetman said.
Workers need a New Year's raise
The Globe and Mail
Dec. 24 2014
Wages in Canada and the other advanced economies are about as flat as leftover champagne in the glass on New Year's Day. This poses a major threat to a sustained economic recovery.
During the four years from 2009 through 2013, average hourly wages adjusted for inflation rose by a grand total of just 2.3 per cent, or by about one half of 1 per cent a year. Real wages rose by a total of only 0.9 per cent in Ontario and 1.1 per cent in Quebec over those four years, although by a healthier but still unimpressive 4.8 per cent in Alberta.
It seems that 2014 will turn out to be a year in which real wages fell. Between November, 2013, and November, 2014, the average hourly wage rose by a princely 36 cents, from $24.57 to $24.83 an hour. That is an increase of 1.5 per cent, well under the 2.0-per-cent inflation rate registered over the same period.
If one digs a bit deeper into the numbers, wages of permanent workers have risen a bit faster than those of temporary workers, and wages of women have risen a bit faster than those of men. But these differences do not hide the fact that real wages are pretty much flat across the board.
According to the most recent International Labour Organization (ILO) Global Wage Report, average real wages in the advanced economies have stagnated or fallen since the Great Recession, and indeed have fallen significantly in some countries. U.S. average real wages in 2013 were just above the pre-recession level, and real wages have collapsed in the most hard-hit European economies such as Greece and Spain.
The ILO notes that across the advanced economies, wages have lagged productivity (the value produced per hour of labour) since 2000, with the result that labour's share of national income, including in Canada, has declined while the share of corporate profits has risen.
They further show that the wage difference between developing and developed countries has narrowed, especially due to rising real wages in China. Measured in terms of purchasing power, developing country wages now average about one-third the level of the advanced economies.
While rising wages in developing countries are a healthy and positive development, wages in these countries likely also lag fast-rising productivity, resulting in a falling wage share and high corporate profits at the global level.
Here in Canada, stagnant wages pose a threat to sustained recovery for the simple reason that household spending cannot continue to grow faster than incomes from work. Rising debt to finance consumer spending will reach a limit.
Globally the problem is similar. Businesses are accumulating surplus savings because the world already has enough productive capacity to meet current levels of demand. Demand for most goods and services will not grow at a robust pace if wages continue to stagnate and lag behind productivity.
The ILO has published studies that suggest that an increase in real wages would give a significant needed boost to a slow-growing global economy. They also note that the problem of stagnant wages is compounded by the fact that wage increases are typically distributed very unequally. This contributes to rising debt for the middle class, and rising surplus savings for the most affluent.
While the concept of wage-led growth may be counterintuitive to many in business, it will be recalled that Henry Ford set the stage for the mass consumer economy almost one hundred years ago by giving a big boost to the wages of his own production workers so that they could afford to buy cars.
A shift to a wage-led growth strategy would, according to the ILO, include significant increases to minimum wages and more government support for unions and the process of collective bargaining.
These items are not exactly high on the policy agenda of most governments, not least that of the Harper government, but continued stagnation in 2014 may yet force some needed re-thinking.
Andrew Jackson is an adjunct research professor in the Institute of Political Economy at Carleton University and a senior policy adviser to the Broadbent Institute.
Top searched-for cars
on Google in 2014
December 23, 2014
Brandon Turkus
Autoblog Canada
With less than two weeks until 2014 takes its final bow, anyone and everyone is looking back on the past 50 or so weeks to see how they stacked up. For search giant Google, that means its time to check out its annual Trends report.
Besides the most popular search term (the late, great Robin Williams), the most searched for gadget (the iPhone 6) and most searched for disease symptoms (quite worryingly, Ebola took the crown here), we have the most searched for automaker.
With the long-awaited sixth-generation of one of North America's most iconic vehicles, the Mustang, and a ground-breaking update for the North American market's perennial best seller, the F-Series, it should come as no surprise at all that Ford was Google's most searched for automaker in 2014.
Jeep captured second place, while Dodge, took third. We suspect introducing a pair of cars with 707 horsepower had something to do with that bronze medal... Scroll down to see the rest of this year's most searched for automakers, and then see the Top 10 Most Searched For Cars in Canada and let us know if you're surprised by any of these.
Google Trends - Trending Cars, 2014, United States
Paul Kalt had reason to feel smug as he filled the tank of his 2014 Ford Edge SUV at a Mobil station in Los Angeles. Regular gas was going for $2.90 a gallon.
Kalt told me it cost about $60 for a fill-up during the summer. Now he can get away with paying closer to $40.
"I'm feeling great about it," Kalt, 45, said Wednesday. "It's great to have extra money, especially now. The holidays are the most expensive time of the year."
But is there a downside to low gas prices? Energy experts say yes.
"The American consumer is incredibly shortsighted," said Jonathan Rubin, an energy economist at the University of Maine. "It's very troubling."
He and other academics say that while low gas prices have short-term economic benefits, there can be serious long-term consequences.
"Low gas prices can undo progress we've made in green technology," said Chris Knittel, a professor of energy economics at the Massachusetts Institute of Technology. "People are less likely to adopt more fuel-efficient vehicles, and companies have less incentive to invest in new technologies."
That's not to say anyone's complaining about low gas prices. I know I'm not.
Miguel Rivas, 58, said he used to spend about $400 a month filling his pickup. Now he spends closer to half that amount.
"That's more money in my pocket," he said. "It makes things a lot easier."
It does. But I'm thinking that the question isn't whether it's sweet having some extra scratch at a particularly pricey time of year. The question is whether this is making a deeper problem even worse.
Look at it like this: Would crack addicts be able to kick the habit if the price of crack kept dropping?
In June 2010, President Barack Obama said the U.S. must end its dependence on fossil fuels such as oil and natural gas. "The time has come, once and for all, for this nation to fully embrace a clean energy future," he said.
That goal seemed more feasible as gas prices rose. Drivers abandoned gas guzzlers and snapped up more fuel-efficient, smaller cars.
By 2012, the Toyota Prius was the top-selling car in California. General Motors, Ford and Chrysler announced plans to work with colleges and universities to produce a new generation of engineers who could develop tomorrow's electric and hybrid vehicles.
What a difference a few billion barrels of cheap oil make.
Low gas prices in November "drove popular hybrids and (electric vehicles) into the proverbial ditch," reported Cars.com. Sales fell by double digits for the Prius, Ford C-Max, Chevy Volt and Honda Civic Hybrid.
At the same time, demand for pickups and SUVs rose nearly 10 percent. While such vehicles are now more fuel-efficient than in years past, they still drink more fuel than smaller vehicles.
The concern, experts say, is that it will take years to reverse the effect of Americans' renewed giddiness about big vehicles.
"It's a lost opportunity," said Rubin. "New vehicles last for 16 years, on average. So whatever momentum we saw toward smaller cars will slow."
Ashley Langer, an energy economist at the University of Arizona, said U.S. consumers routinely put blinders on when buying a new vehicle.
"They see the current price of gas as a forecast of what they can expect in the future," she said. "But of course we can expect gas prices to go up again."
There it is. Consumers may be enjoying a reprieve in being bullied at the gas pump. However, it's all but inevitable that prices will surge higher.
"They might not jump next week or the week after," said Richard Carson, a professor of energy economics at the University of California, San Diego. "But longer term, they will go up."
Oil is a finite resource, of course. Global supplies have to run out at some point. But Carson said a "Mad Max" scenario of worldwide fuel shortages and anarchy is a long way off.
A more likely outlook is that technology will improve for tapping oil reserves in hard-to-reach places, he said. The cost of extracting such oil will be higher, and that will be felt at the gas pump.
For the moment, though, oil prices are in the bargain basement.
Most drivers I met this week gushed about the falling oil prices and said they expected gas to get even cheaper.
D.J. Moore, 49, was one of the few who sounded a more cautious note.
"I'm sure they're not going to stay this way," he said as he filled his car at a Mobil station. "When have prices ever gone down and stayed down? Prices on everything always go up."
And that, in a nutshell, is why the SUV purchased today will come back to bite you tomorrow.
Unifor boss urges
government pressure
in GM talks
Windsor Star
Dec 19 2014
Grace Macaluso
After failing to get a clear answer from General Motors on whether it will maintain current production levels in Canada, Unifor president Jerry Dias urged Ottawa and Ontario to hang on to shares in the company until they secure an agreement to invest in its Canadian plants.
"When you have power and you don't use it, you're foolish," Dias said Wednesday. "Don't be in a rush until you've carved a deal with GM that solidifies their operations in Ontario."
On Tuesday, the union president held separate meetings with Ontario Finance Minister Charles Sousa and GM Canadian and U.S. human resources managers to deal with growing concerns about the long-term future of its Canadian operations.
"Yesterday was about a preliminary discussion about where they're going. There was no firm commitment made by any stretch of the imagination," said Dias.
Dias said he would seek a meeting early in the new year with GM CEO Mary Barra, who is based at corporate headquarters in Detroit.
"We need to talk sooner than later."
GM's manufacturing footprint has been an ongoing source of worry for the union. The $10.6-billion bailout agreement with Ottawa and Queen's Park compelled GM to maintain 16 per cent of its North American production in Canada through 2016. The automaker already has announced plans to shift production of the Camaro muscle car to Lansing, Mich., next year and will shut down its consolidated line in Oshawa in 2016.
The loss of Camaro alone could affect up to 1,000 jobs, said Dias. "They should be saying they are increasing the volume of the Chevy Impala to compensate for the loss of Camaro. There are things they can do to ensure there are no layoffs."
The union's fears have been compounded by a forecast by U.S.-based automotive industry analyst Joe McCabe, who predicts that Oshawa complex will close by 2019 and the CAMI operation in Ingersoll will be reduced to one shift.
A smaller manufacturing footprint could also have an impact on auto parts suppliers, including Tecumseh-based Lakeside Plastics, which builds interior trim components for such vehicles as the Chevy Camaro, Impala and Malibu.
"We're concerned," said Ken Siddall, senior director of human resources at Lakeside, which employs 320 people. "We are making headway. We are working with GM on securing work beyond 2017."
GM, he added, makes up 98 per cent of the company's business.
Faye Roberts, GM Canada spokeswoman, said the automaker is "committed to Canada for the long term. We're upbeat and we're rolling up our sleeves; we're very positive about what we can do about working with our partners."
As for McCabe's forecast, Roberts said she did not want to comment "on those doom and gloom scenarios that are out there. At this stage, we are really focused on working with our partners and other stakeholders."
Canada is GM's fifth largest market for sales and sixth largest manufacturing jurisdiction, she said.
Roberts' assurances offered little comfort to Dias, particularly in light of the automaker's recent announcement to invest US$3.6 billion in Mexico.
"GM has a policy of building where they sell," he said. "With the recent announcements, they will be building six vehicles for every one they sell in Mexico. On top of that, Mexico never gave GM one dime when it was in bankruptcy."
With a seven-per-cent stake in the carmaker, Ottawa and Queen's Park are one of the largest shareholders, said Dias.
The government can play "a more active role in ensuring the automaker stays put."
Neil Young hints at
2016 Lincoln Continental
Michael Martinez,
The Detroit News
Dec 18. 2014
Singer Neil Young may have unintentionally leaked Lincoln Motor Co.'s next new vehicle.
Speaking earlier this week with CNBC's Matt Kramer about his music company, Pono, Young said he's working with Harman International Industries to put the music player in the 2016 Lincoln Continental — a nameplate that Ford's luxury brand discontinued in 2002.
Lincoln has said it plans to unveil a new sedan in 2016 but has given no other details.
"We do not comment on speculation," a Lincoln spokesman said when asked about Pono and the return of the Continental. "We have announced we have an exclusive partnership with Revel. This is our strategic direction for our sound systems in our Lincoln lineup for the next 10 years."
Last month, Lincoln announced a decade-long partnership with Revel Audio Systems — Harman's premium loudspeaker brand — to put its sound system in all of its new cars, starting with the next generation MKX midsize utility.
A Pono spokesperson did not immediately return a request for comment.
Earlier this year, Lincoln president Kumar Galhotra said the luxury brand would unveil the MKX in 2015, a yet-to-be-named sedan in 2016 and two new offerings by the end of the decade.
"Like any good business, we're constantly looking at our cycle plans, evaluating all the segments," Galhotra told reporters at last month's Revel announcement. "We're constantly evaluating product opportunities."
UAW's Williams seeking
'balance' in auto talks
Daniel Howes,
Detroit News
December 17, 2014
United Auto Workers President Dennis Williams is right about this: Next year's national contract talks with the Detroit automakers will be all about balance.
Namely, how will automakers reaping billions in annual profits from the U.S. market credibly resist the certain push for general wage increases, the first in nearly a decade for so-called "legacy" union members?
And how will union bargainers square their financial demands with their professed commitment to keep their employers' all-in labor costs competitive with foreign rivals operating in the United States?
It'll be a difficult balance, with occasionally uncomfortable facts supporting both sides. But there is one undeniably common interest: demonstrating that the discipline tied to bankruptcy and federal bailouts is not giving way to the flabby, bad habits of the past in management and labor.
"We should never forget what happened in '08 and '09," Williams said Monday in a year-end media roundtable. "We have to keep in mind that we want to keep the companies competitive. But at the same time, we want our members to have a lifestyle to maintain a family life."
I can hear the cacophony already — from the haters saying the union already has forgotten how close the Detroit-based industry came to extinction, and from the union backers saying next year's negotiations should be all about clawing back what circumstance stole.
Defensible reality lies somewhere in the middle. The truth is that the existential crisis of the past is the past, even if its lessons aren't. Break-even points for each automaker are dramatically lower than in 2008. Demand is expanding, albeit more slowly than in the past few years.
And the automakers' desire to hold the line on fixed labor costs cannot be squared easily with tens of billions in combined profits over the life of the current contract. Acknowledging and managing those optics will prove a major challenge for company bargainers and the three CEOs, particularly newcomers Mary Barra at GM and Mark Fields at Ford.
So will efforts to maintain second-tier wages for new hires, a marker of the industry's slide toward financial collapse that the union and many members want to abolish because they find them so divisive, compromising and philosophically distasteful.
"We're true believers that within the industry people ought to be paid the same," Williams said, dismissing suggestions that demanding higher wages and promising to keep the automakers competitive with foreign rivals cannot be reconciled.
"I don't think it's sliding backwards when CEOs are getting paid like they are. Asking for balance is not sliding backwards. It's time for our membership to have a reward. Whether we can achieve that is another matter."
Next year's round of bargaining, essentially kicked off this week by Williams' public comments, is a critical and highly visible exercise for all sides. What each gets and how the results balance their competing financial interests will signal to investors, employees, even customers, just how different the New Detroit auto industry is from Old Detroit.
Yes, this is new territory — bargaining from a position of domestic profitability not seen in the working lives of anyone involved; bargaining with the first UAW president to have never headed one of the union's Big Three auto departments or worked in the industry itself.
It's bargaining with companies expected to balance the rhetoric of teamwork, competitiveness and cooperation with financial heft, investor demands and the fact-based optics of executive compensation. It's managing prosperity and competitiveness more than managing decline and diminishing expectations.
It's bargaining with a union tarnished by the collapse of '08 but making organizing in-roads at Volkswagen AG in Tennessee and Mercedes-Benz in Alabama. The UAW needs a responsible contract next year with Detroit's Big Three to strengthen its case for representation in the largely non-union South.
This is also familiar territory. The UAW's national contract talks with Detroit's automakers are equal parts politics, economics and theater. Now, more than six months out from the start of bargaining, is the time for the union's new president to deliver politically necessary messages in stark economic terms his members and the news media expect to hear.
Williams obliged Monday, voicing concerns about inequality and free-trade agreements, two-tier wages and the scourge of temporary hires, rebuilding the strike fund and solving disputes without a strike, protests and marches: "It's time for the American people to take back their country. We've been hijacked."
By whom or what he didn't exactly say.
The new boss at Solidarity House will get ample opportunity next year — in talks with Detroit's automakers, John Deere, Mitsubishi and state employees — to show what direction he and his team will take a union desperate to bolster dues-paying membership in its defining industry.
It's a big deal for Detroit, still.
Fran Parsons Passes Away
It is with great sadness that we report the passing of
Frannie Parsons Wife of 33 years to Retiree
Dorm Parsons on December 16, 2014.
Our heartfelt condolences go out to Dorm Parsons and family.
At Fran`s request there will be no Service or Memorial.
UAW in talks about recall
costs and profit-sharing
Detroit News
December 16, 2014
The United Auto Workers union is in talks with Detroit automakers about recall costs taking a bite out of members' profit-sharing checks, according to President Dennis Williams.
Union officials, he said, are "in continued discussions about the profit-sharing versus the recall," as automakers spend hundreds of millions, if not billions, of dollars this year to fix and repair cars and trucks.
Williams, speaking with news media Monday at the UAW's Solidarity House headquarters in Detroit, did not provide details about the discussions. It's likely the union is arguing that the cost of the recalls — many of which are older models — shouldn't detrimentally impact members' annual profit-sharing checks. Payments are based on each of the automakers' North American profits.
Automakers have recalled nearly 60 million cars and trucks this year, shattering the all-time record set in 2004 of 30.4 million.
Representatives for General Motors Co., Ford Motor Co. and Chrysler Group LLC could not immediately be reached for comment about the discussions or would not comment directly on the discussions.
"GM's relationship with the UAW is founded on creative problem-solving and a shared commitment to solutions that benefit our employees and the business," GM said in a statement. "We discuss a full range of business topics with our union partners on a regular basis. Right now, we are focused on achieving fourth-quarter results together, and it's too early to comment on 2014 performance."
GM has led the industry in recalls this year, following a highly-publicized recall of 2.59 million 2005-10 Chevrolet Cobalts, 2003-07 Saturn Ions and other cars with defective ignition switches that can inadvertently turn the engine off and disable power steering and air bags.
Brian Hartman, president of UAW Local 2209, last week told The Detroit News that the union is working to ensure profit-sharing checks are not reduced because of GM's recall costs.
Hartman said it shouldn't be the union workers' responsibility to pick up the tab for problems that stemmed pre-bankruptcy and before the UAW contract on profit-sharing was in place.
"The president and vice president are going to fight as much as they can to make sure it doesn't impact as much," he said.
Profit-sharing checks started after the last round of collective bargaining with the Detroit automakers in 2011. The union opted for the annual lump-sum payments and promise of jobs rather than wage hikes.
Williams said profit-sharing was a good idea as automakers dealt with the recession, but it's now time to balance it with general wage increases.
"I think profit-sharing was a good way to help our members out with the unknown," he said. "Normally, when you get a wage increase you know it's coming … profit-sharing was a way that we would give people an opportunity through the success of the company to have another means in wages."
Automakers have paid billions of dollars to hourly employees, as a result of profit-sharing. For 2013, Ford had the top payout of approximately $8,800 to 47,000 eligible U.S. hourly employees — totaling $413.6 million.
Ford unveils next-gen Sync 3 infotainment system
Michael Martinez,
The Detroit News
Dec 15, 2014
Dearborn — Ford Motor Co. unveiled its next-generation Sync infotainment system, dropping its former software developer along with the MyFord Touch name that has become associated with its oft-criticized early versions.
Called Sync 3, the new model features faster performance, more user-friendly voice recognition systems, about 40 apps and an updated graphic interface. Since it's an all-new system with new hardware and software, Sync 3 cannot be downloaded onto current Ford vehicles that use older Sync systems.
Ford is dropping the MyFord Touch name found on previous generations, and is now partnering with Panasonic and QNX for software. It had previously worked with Microsoft.
"It's an extremely important technology and it's very important to get it right," said Michelle Krebs, senior analyst for AutoTrader.com.
Gone is the four-corners layout for items like music, navigation, phone and climate; Sync now puts those items in a simpler, horizontal tab list at the bottom of the screen.
The new Sync features an improved 911-assist feature that can tell emergency personnel what type of accident a vehicle was involved in and whether or not the driver was wearing a seat belt. It also features a new interface that includes one-box search menus, automatic wireless software updates and an updated app network, called Sync AppLink.
The updated voice recognition system minimizes the number of steps needed to carry out a command. Voice searches can also accept partial names — you can search "Detroit Airport" instead of its official name, "Detroit Metropolitan Airport."
The new Sync will also have a steering wheel button that iPhone users can push to activate the Siri search function.
"It is clear that this time around, Ford has put in the time and listened to enough customers to properly design, test, debug, and finalize this infotainment platform before it hits the market," Mark Boyadjis, IHS Automotive senior analyst, automotive technology, said in a statement. "In our short initial experience with the system it appears much more responsive to inputs and in processing commands. It is clearly more intuitive to learn and use immediately."
The current version of Sync with MyFord Touch is in about 10 million vehicles, Ford said. The automaker first unveiled Sync in 2007, but it was plagued early on by quality issues.
"MyFord Touch was the modern day equivalent of the Edsel; it's become associated with failure and problems," Krebs said. "It's a good idea to get rid of the name."
Ford said it drew on 22,000 customer comments and suggestions to develop Sync 3.
"We've worked very hard over the last few years to take feedback from customers," Mark Fields, Ford's president and CEO, told reporters. "Our quality has improved significantly. We're using all those lessons to architect a system that brings it to the next level."\
Since its initial problems, Ford has made strides in third-party quality studies. According to the most recent J.D. Power & Associates' Initial Quality Study, Ford jumped above the industry average thanks to improvements in its technology.
The Dearborn automaker rose from a quality score of 131 last year to 116 this year.
"Ford deserves some credit," Krebs said in an interview. "They were the first out there and took the hard knocks for it. They paved the way for others."
Ford said Thursday it's creating a new "Ford Performance" division to unify its SVT, Team RS, Ford Racing, marketing, sales and service and racing engineering groups.
Ford said the team will be in charge of developing new vehicles, as well as new innovations and technologies in aerodynamics, light-weighting, electroincs, powertrain performance and fuel efficiency.
Ford currently has a Fiesta ST, Focus ST, Shelby GT350 Mustang and F-150 Raptor in its performance portfolio, and on Thursday it announced plans for a Focus RS, which will be released globally next year.
The new performance division will be led by Dave Pericak, the head engineer for the Mustang.
Lincoln to use Revel sound
system in new cars
Michael Martinez,
The Detroit News
December 14, 2014
The Lincoln Motor Co. announced Thursday a 10-year partnership with Revel Audio Systems to add its high-end sound in all of its new cars, starting with the next generation MKX midsize utility.
Revel is Connecticut-based Harman International's premium loudspeaker brand and is known for its surround sound home audio systems that range from $2,000-$20,000, but has never before been in an automobile.
"The Lincoln collaboration with Revel is the next step in our commitment to build vehicles that exceed luxury expectations," Matt VanDyke, global director, Lincoln, said in a statement. "Revel is synonymous with the finest home speaker systems, and it's that exceptional audio experience we want our Lincoln drivers to enjoy."
The Revel sound system will be available on all new cars starting with the new MKX, but Lincoln hasn't said if it will come standard or as an option. Until now, Lincoln has used a THX sound system on vehicles like MKC, MKZ and Navigator.
The Revel audio system will not be available on current Lincoln vehicles until they are refreshed or redesigned, Lincoln said.
Lincoln and Revel engineers worked together to create every part of the speaker, from the positioning of certain speaker components to the design of the speaker grille. Lincoln's Revel speakers position certain parts close together so that the noises reach the passengers' ears at the same time and magnitude, creating a surround sound experience.
There are three listening modes: "traditional stereo," "audience" and "on stage."
"The Revel system for Lincoln was created for the unique interior environment of each Lincoln model," Phil Eyler, senior vice president and general manager, Harman global car audio, said in a statement. "The system is tuned to create an immersive audio experience unlike any other on the road."
Eyler told reporters this week that the speaker company has been wanting to partner with an automaker for years.
"I think we found the perfect fit," he said.
UAW workers want
two-tier gone, seek raises
The Detroit News Melissa Burden and
Michael Wayland
December 13, 2014
Eliminating the two-tier wage system that automakers used to help boost profits following the recession tops the issues that hourly UAW members want addressed as the union and Detroit's Big Three carmakers head into next year's contract negotiations.
UAW hourly members have and are submitting bargaining resolutions to local unions. And getting rid of the system that pays new hires less in wages and benefits than veteran employees they work alongside is a top concern, according to UAW locals surveyed by The Detroit News.
"Since we've implemented the two-tier, it has absolutely caused a divide among our membership on both sides of the aisle," said Brian Hartman, president of UAW Local 2209 in Roanoke, Indiana. The local represents hourly workers at General Motors Co.'s Fort Wayne Assembly Plant, which builds versions of the Chevrolet Silverado and GMC Sierra trucks. Hartman estimates about 20 percent of the workforce there is entry-level.
The two-tier system and other resolutions are expected to be among the issues UAW President Dennis Williams is likely to address Monday in Detroit, as he sits down with the media for one of the first times since he was elected the union's head in June.
Williams, in a statement to The News, said collecting resolutions is important because the "members' voices drive" the union's decisions — and contract negotiations are no exception.
"Our conversations do not start and stop every four years, but they are ongoing and designed to give UAW members opportunities to have the kind of internal discussions that help us prepare for UAW events that include the upcoming bargaining convention but are not limited to that," he said.
The two-tier and lower-cost wage system, introduced in 2007, has allowed Chrysler Group LLC, Ford Motor Co. and GM to invest billions into U.S. plants and hire thousands of new employees. But those entry-level workers also make substantially less than Tier 1 employees who earn about $27 an hour. Next year, the newer workers will make at least $19.28 an hour, up from about $15.50 they earned in 2011.
About 17.5 percent of GM's hourly workforce is entry-level; approximately 23 percent at Ford; and about 44 percent at Chrysler.
Kristin Dziczek, director of the Industry & Labor Group at the Center for Automotive Research in Ann Arbor, said the upcoming talks will be interesting not only because of the two-tier system, but the workers themselves.
"The second-tier workers, this is the first time we'll see how they vote," she said. "I think that's a very interesting dynamic to all of this."
How the second-tier workers vote could make ratifying contracts more difficult. The second-tier workers rely on bonuses and profit-sharing checks more than the traditional hourly workers. They may not want to lower or see bonuses end in exchange for eliminating or bridging hourly wages between the two pay levels of workers.
The UAW opted for the promise of jobs and annual profit-sharing checks rather than wage hikes during the last round of collective bargaining agreements with the Detroit automakers in 2011.
Since then, automakers have paid billions of dollars to hourly employees — but in annual lump sum payments. For 2013, Ford had the top payout of approximately $8,800 to 47,000 eligible U.S. hourly employees — totaling $413.6 million. Workers may have to choose between a wage increase or the profit-sharing checks, which are dependent on the automaker's North American profits.
For veteran workers who haven't had a pay raise in several years, boosting pay may be more important than profit-sharing payments.
We haven't had a pay raise in almost 10 years," said Alec Arce, an electrician at Chrysler's Trenton Engine Plant. "With all the concessions we took, it hit us pretty hard."
Arce and his wife, Robin Arce, who is a machine operator at the plant, want to see a restoration of holiday pay and cost-of-living adjustment pay restored.
UAW Local 598 President Ray Gorney is hopeful the union will address "equal pay for equal work," that the union doesn't have today.
Gorney said the two-tier workers have helped the companies return to profitability.
"At that rate of pay you can't raise a family, buy a home, drive a decent car," Gorney said.
Hartman, workers and other officials said some union members also want to secure overtime after eight hours in a day, instead of after 40 hours in a week; ensure all hourly employees have a defined pension that pays out a predetermined monthly amount to retirees (entry-level workers don't have a defined pension); and see temporary workers hired after 90 days. The defined benefits could be a controversial point, as automakers in recent years have attempted to slash defined benefits, which are looked at as poison on a balance sheet.
The 2015 contract talks are the first since 2007 in which workers at GM and Chrysler have the right to strike; the UAW gave up that right for the 2011 talks as a condition of the government bailouts of GM and Chrysler. It's also the first contract that will be negotiated since Michigan enacted a Right to Work law that would allow hourly employees to opt out of union dues and membership — which may add pressure on the union to prove especially to some Tier 2 workers that it is giving them some bang for their buck.
Williams previously told The News that Right to Work isn't necessarily a focus for him. He said the union has been successful in retaining the vast majority of its members in other states with the laws: "I've always believed that if you do your job representing people, that people will be there to support you," he said.
GM spokesman Bill Grotz would not comment directly on issues union workers may be raising ahead of upcoming negotiations. The current contract expires in September.
"We're committed to working with our union partners to enable the company's long-term success for the business and our employees," Grotz said.
In a statement, Ford Motor Co. said it "has a longstanding history of working collaboratively with the UAW ... . In 2015, we look forward to continuing our strong UAW partnership as well as negotiating a fair and competitive labor agreement."
Chrysler CEO Sergio Marchionne has said the two-tier wage system is not a good long-term approach.
"I think that the Detroit Three companies are going to look for continued restraint in overall labor costs and things that are more flexible and contingent will be their demands," Dziczek said. "Things that will raise cost will be difficult with the companies."
GM to invest $5 billion
in Mexico over 6 years
Detroit News
December 12, 2014
General Motors Co. said Thursday it will invest $5 billion in Mexico over six years, dating from 2013 through 2018, and will add 5,600 new jobs in the region.
The Detroit based automaker said the investment includes $1.4 billion announced or implemented in the past two years and $3.6 billion will come over the next four years.
"These investments will fund plant improvements to modernize and expand our manufacturing facilities at our four major complexes in Mexico," GM spokesman Bill Grotz said.
GM, in a news release, said the investments will help "GM produce new vehicles for the local and foreign market, which will help establish GM as Mexico's No. 1 vehicle exporter."
The carmaker declined to provide an investment breakout by plant and did not share any specifics on investments or what vehicles they may be tied to. GM said 1,200 of the 5,600 hourly and salaried jobs already have been added, leaving about 4,400 new jobs expected to be added through 2018.
"General Motors is a company that has always been committed to the countries in which it operates and that in decisive and significant moments of change as the ones we are living today, maintains its vote of confidence in Mexico," Ernesto M. Hernandez, president of General Motors Mexico, said in a statement.
The four production complexes in Mexico include Toluca, Ramos Arizpe, Silao and San Luis Potosi. Those complexes include 14 manufacturing plants comprising assembly, engine, transmission, stamping and foundry work.
GM Mexico currently employs about 15,000 people. GM employees annually build an average of 890,000 engines in Mexico, nearly 1.2 million transmissions and 647,000 vehicles, of which about 80 percent are exported. It also has an engineering center in Toluca, where engineers work on vehicle interiors and electrical and thermal systems.
Many automakers are turning to Mexico to build new or expand plant operations. Mexico is the fourth largest exporter of vehicles globally and eighth largest producer, according to the Mexican Automotive Industry Association.
Michael Wayland,
The Detroit News
December 11, 2014
Ford Motor Co. appears to be the favorite for the 2015 North American Car and Truck/Utility of the Year awards.
After not having a finalist for the 2014 awards, the Dearborn automaker represents three of the six finalists announced Tuesday at an Automotive Press Association meeting in Detroit.
Ford's new Ford F-150 and Lincoln MKC is up against the Chevrolet Colorado for truck/utility of the year.
The Ford Mustang faces the Hyundai Genesis sedan and Volkswagen Golf/GTI for car of the year.
From the finalists, the winning vehicles will be named next month during the North American International Auto Show at Cobo Center in Detroit.
Semifinalists on the 2015 short list for cars were the Acura TLX, Audi A3, Chrysler 200, Ford Mustang, Honda Fit, Hyundai Genesis sedan, Hyundai Sonata, Mercedes-Benz C-Class, Toyota Camry and VW Golf/GTI
Trucks/utilities on the short list were the Audi Q3, Chevrolet Colorado, Chevrolet Tahoe, Ford F-150, GMC Canyon, Lexus NX, Lincoln MKC, Mercedes-Benz GLA Class, Nissan Murano, Porsche Macan, Subaru Outback and Toyota Highlander.
The awards are intended to recognize a car and truck that set new benchmarks in the classes in which they compete. A jury of more than 50 journalists from the U.S. and Canada evaluate dozens of vehicles on factors including value for the dollar, innovation, handling, performance, safety and driver satisfaction.
To be eligible for the awards, a vehicle must have been "substantially changed from the previous model and must go on sale shortly after the announcement of the award."
Chevrolet swept the 2014 awards with the Corvette and Silverado.
Detroit automakers have swept both awards eight times — 1995, 1996, 2005, 2007, 2010, 2011, 2013 and 2014 — since the awards started more than 20 years ago.
Domestic automakers have won the car award 12 times and foreign automakers have won nine times. Domestics have won the truck/utility award 14 times and foreign automakers have won seven times.
Ford trucks dominate list of most stolen vehicles in Canada
Jordan Chittley
The Globe and Mail
Dec. 9 2014
Ford pickup trucks make up seven of the top 10 spots for most frequently stolen vehicles in Canada in 2013, according to the Insurance Bureau of Canada.
Out of the 72,804 vehicles that were stolen in 2013, the vehicle topping the list isn't one we often see on the roads – the 2007 Ford F-350. The F-350 is a big, rugged pickup truck used for heavy duty jobs.
"The trend of stolen F-series trucks was also seen in Alberta where there was a 50 per cent increase," said IBC Vice President Rick Dubin in a statement. "What's more, for the first time in years, three stolen F-series trucks, intended for export, were seized at the ports of Montreal and Halifax."
Dubin believes the trucks likely received new vehicle identification numbers and were sold to customers, who would have no idea the vehicles were stolen.
IBC reports that luxury vehicles such as those made by Lexus, Audi, BMW and Mercedes were targeted by organized crime. They would have likely been shipped to Africa.
Across Canada auto theft was down eight per cent last year compared with 2012, but it spiked 11 per cent in Alberta.
Dubin adds that last year about 73,000 vehicles were stolen across Canada and recovery rates are very low, but preventing theft can be easy.
"Approximately 20 per cent of all stolen vehicles have keys in them," he said. "Don't leave your car running unattended while letting it warm up or when you go into the coffee shop."
In 2012, the 2000 and 1999 Honda Civic SiR two-door were took the top two spots on the list. Those same two cars ranked No. 2 and 3 in 2011.
Top 10 most frequently stolen vehicles in Canada:
1. Ford F-350 super-duty (SD) AWD pickup, 2007
2. Ford F-350 SD AWD pickup, 2006
3. Ford F-250 SD AWD pickup, 2007
4. Cadillac Escalade four-door, AWD SUV, 2003
5. FordF-350 SD AWD pickup, 2005
6. Honda Civic two-door coupe, 1999
7. Ford F-350 SD AWD pickup, 2004
8. Ford F-250 SD AWD pickup, 2006
9. Honda Civic SiR two-door, 2000
10. Ford F-350 SD AWD pickup, 2003
Top 10 most frequently stolen vehicles in Ontario:
1. Acura RSX Type S two-door, 2003
2. BMW X6 four-door AWD SUV, 2009
3. Acura RSX Type S two-door, 2002
4. Toyota Highlander four-door AWD SUV, 2013
5. Toyota 4Runner four-door AWD SUV, 2013
6. Plymouth Breeze four-door, 1997
7. Acura TL Type S four-door, 2008
8. Land Rover Range Rover Sport four-door AWD SUV, 2006
9. Toyota Highland four-door AWD SUV, 2012
10. Toyota Highlander four-door AWD SUV, 2010
Top 10 most frequently stolen vehicles in Alberta:
1. Ford F-250 SD AWD, 2007
2. Ford F-350 SD AWD, 2007
3. Ford F-350 SD AWD, 2006
4. Ford F-250 SU AWD, 2005
5. Ford F-250 SD, 2000
6. Ford F-250 SD AWD, 2006
7. Plymouth Neon two-door, 1998
8. Ford F-350 SD AWD, 2005
9. Dodge Stratus four-door, 1997
10. Ford F-250 SD AWD, 2004
Top 10 most frequently stolen vehicles in the Atlantic provinces:
Michael Wayland,
The Detroit News
December 8, 2014
Future generations of drivers may never know the feel of an engine rumbling through the key as they start their cars.
Automakers are turning away from traditional turn-key ignition switches and installing push-button starters. The new systems are considered safer and more convenient, but could mean the end for traditional keys.
"It is kind of weird that instead of getting a set of keys, it's a fob," said Michael Marchiori, 17, of Grosse Pointe Shores. "There's definitely a much better feeling when you get to feel the car turn on."
Push-button ignitions work via the fob, also known as a "smart key," which allows a driver to keep the device in a pocket, purse or other place when unlocking, locking and starting the vehicle. Antennas or sensors in the car recognize and can communicate with the fob using unique coding.
"The days of keys are numbered," said Dave Sullivan, manager of product analysis for auto researcher AutoPacific. "It's definitely a trend we're continuing to see."
Ward's Auto, an industry-watcher that recently started tracking installation rates of push-button ignitions, reports 25.4 percent, or 4.4 million, 2013 model-year cars and trucks sold had the feature. Installation rates are on track to substantially grow for the 2014 model year.
Push-button ignitions are standard or optional in 72 percent of 2014 cars and trucks in the U.S., according to research site Edmunds.com. That compares to a decade ago, when it was offered on just five cars.
"You can see where automakers are going with it," said Edmunds senior analyst Jessica Caldwell, adding new generations of car buyers "thrive on convenience."
Many automakers are beginning to offer push-button ignitions as a standard feature.
Chrysler Group's newest vehicles — the 2015 200, 2015 Charger and 2015 Challenger — come standard with push-button systems. Only about a dozen Chrysler models, primarily large trucks and SUVs, come with traditional metal keys.
Ford Motor Co. reports that all models except its Transit and Transit Connect vans/wagons and super-duty and commercial trucks are offered with push-button ignitions.
General Motors Co. CEO Mary Barra, in the wake of the ignition switch recall of 2.59 million vehicles that has been linked to at least 36 deaths, told Congress last spring that GM may discontinue using turn-key ignitions: "The push-button start is something we're evaluating putting across the portfolio," she told a House Energy and Commerce subcommittee.
GM spokeswoman Jennie Ecclestone said the Detroit automaker continues to evaluate which vehicles are best suited for keyless starting. She said GM offers keyless ignition on 20 of its 2015 models, including nine models standard.
Analysts, however, say that GM's ignition switch woes aren't the cause of the industry's change. Availability of the feature increased before the recalls, and it's more a convenience than a safety measure.
"Once the customers get used to it, it almost becomes a requirement on the car," said David Fischer Jr., general manager of dealer group Suburban Collection, adding the technology is a gateway for others like remote start and keyless entry.
Push buttons not flawless
However, push-button ignitions aren't fault-free. Drawbacks include steep replacement costs of fobs, the inconvenience of fobs dying with no way to start the car — and even potentially fatal consequences when drivers don't understand how to turn it off.
During Toyota Motor Corp.'s unintended acceleration problems in the late 2000s, there were reports of customers not knowing how to turn off Toyota and Lexus vehicles with push-button ignitions in the event of unintended acceleration.
Following an August 2009 crash that killed four, Toyota told drivers to "firmly and steadily push the button for at least three seconds to turn off the engine. Do NOT tap the engine start/stop button."
Separately, an incident involving a push-button start in a Lexus in 2009 killed 79-year-old Ernest Codelia Jr. and left his companion, Mary Rivera, brain-damaged.
Rivera parked her car in a ground-floor garage attached to the couple's New York residence and accidentally left the engine running. The next day, Rivera was found unconscious and Codelia dead. The cause of death was carbon monoxide poisoning.
Lawsuits against Toyota from that incident as well as from a separate case were settled out of court for undisclosed amounts earlier this year, according to lawyer Noah Kushlefsky, who filed the lawsuits.
"You no longer have the tactical clue of (keys to tell you), 'I forgot to put it in park' or the car is still running," he said. "It's a human factors issue."
Standardization proposed
The National Highway Traffic Safety Administration has received hundreds of complaints about push-button technology, from roll-aways to vehicles not starting correctly.
In 2011, the watchdog agency proposed standardizing keyless ignition controls, requiring audible warnings for drivers who fail to use the button properly. A final ruling is expected early next year.
Many automakers have addressed concerns themselves. Chrysler, for example, has "Safe Hold," which activates the electronic parking brake if the driver leaves the car running in gear and tries to exit. And engines turn off after the ignition button is pushed three times or held down.
Kelley Blue Book senior analyst Karl Brauer predicts future vehicles will use scanners that identify a driver's fingerprint to start a car.
Ford sells 1 million vehicles
in China for the 1st time
Michael Martinez,
The Detroit News
Dec 7, 2014
Ford Motor Co. surpassed 1 million vehicle sales in China for the first time this year with one month of sales still to go.
Through the first 11 months of 2014, Ford China sold 1,007,425 vehicles, up 20 percent from 840,975 sold during the same period last year. That beats the 935,813 wholesale vehicles Ford sold in all of 2013.
November sales reached 100,834 vehicles, up two percent from 99,157 sold in November 2013.
"Crossing the million vehicle mark is a significant milestone for Ford in China, and it demonstrates the appeal of our portfolio of high-quality, safe, fuel-efficient and smart vehicles," said John Lawler, chairman and CEO of Ford Motor China. "We look forward to continued growth as we expand production capacity and introduce great new Ford vehicles to serve our Chinese customers."
The Ford Mondeo midsize sedan — called the Fusion in the U.S. — helped pace sales. Year-to-date Mondeo sales have reached 111,576, up 83 percent from the same period last year, when it was launched. November Mondeo sales reached 11,094 vehicles, up 19 percent from 9,349 in November 2013.
Ford is introducing a number of new models in China, including the Escort compact car and the 2015 Mustang next year. Last month in Beijing, Ford held the global unveil for the new Ford Everest, a seven-seat SUV that will be launched in China in 2015.
Ford earlier this year launched its Lincoln luxury brand in China, and has opened six dealerships in various cities so far. It has plans for up to 25 dealerships by the end of next year, and Kumar Galhotra, Lincoln president, has said China will be one of its biggest markets.
Retiree Edward Cade
of Bobcaygeon
Passes Away
(1934 - 2014) Retired October 1, 1994
24.3 Years Service
It is with great sadness that we bring you news of Ed Cade's Passing on December 7, 2014.
Our deepest condolences go out to the Cade Family.
CADE, Edward
In his 81st year. On Sunday December 7, 2014 at Pinecrest Nursing Home, Bobcaygeon.
Ed was born in London, England and immigrated to Canada in 1965. Ed retired from the Ford Motor Company, Brampton, Ontario.
Ed was an amazing person who always had positive and encouraging words of wisdom. He knew what life was all about. His family meant everything to him. He will be deeply missed by his family.
He was very thankful to the caring and compassionate staff of Pinecrest Nursing Home in Bobcaygeon.
Ed was a loving husband to Gloria for 59 years. Ed is survived by wife Gloria (Bobcaygeon), daughter Deborah and her husband Bill (Orangeville), son Mark (Norland). Loving Grandad to Stephanie (Mike), Drew, Petra (Jason) Carly (Patrick).
Also survived by his brother Sidey (London, England). He is predeceased by his parents Ernest and Helen, sisters Hilda and Barbara, brother Allen.
A private family service will be held. Arrangements out of Bobcaygeon.
As expressions of sympathy memorial donations may be made to the Canadian Cancer Society.
Hotel workers protest Sheraton
Centre's 'green' program
Sheraton plan that lets guests forgo housekeeping means fewer jobs and harder work, say employees and advocates for hotel cleaning staff.
Dec 6, 2014
Sara Mojtehedzadeh
Toronto Star
A noisy group of about 200 protesters gathered outside downtown's Sheraton Centre on Thursday and called for an end to the company's Green Choice program, which they blame for heavier workloads and fewer hours for room attendants.
The protest was part of a global week of action by the international federation of unions representing hospitality workers. Demonstrations are expected in 30 countries, and aim to draw attention to hotel room attendants' deteriorating work conditions.
The hotel chain's "Make A Green Choice" program was launched in 2009 by Starwood Hotels and Resorts, which owns and operates the Sheraton brand. It allows guests to forego housekeeping in exchange for a $5 voucher or loyalty points in the interests of "conserving water, energy and other resources."
But the program has resulted in a significant reduction in hours for cleaning staff, according to David Sanders, who is organizing director of Unite Here. The union represents 600 mostly female workers at the Sheraton Centre Hotel and 8,000 hospitality workers across the GTA.
Sanders said workers also complained that their workload had become unsustainable, since "green" rooms go several days without cleaning.
"It seems like Starwood's vision for preserving the environment is built literally on the backs of women, both in terms of hurting their ability to provide for their families and hurting their bodies physically in the rooms," he told the Star.
According to figures from 2008, 15 percent of hospitality workers get injured on the job — outstripping industries such as mining and quarrying, and agriculture, hunting and forestry.
"Anything that intensifies the workload on room attendants exacerbates what is already an unacceptable situation," said Sanders.
"I am concerned about the livelihood of the mothers and sisters working at that property, the Sheraton," said Rafunzel Korngut, a room attendant at the Fairmont Royal York who attended the protest.
"They are using the idea of green choice. But the ethical blindness of this idea is the workers don't have rooms to clean — and that equals, they don't have a job. And then if people don't have a job, they don't have food to bring on the table," she said.
According to the Sheraton's website, participating in the Green Choice program for one night can result in a saving of 596 cups of water and enough natural gas to heat a 400-square-foot room for several hours.
Cynthia Bond, director of public relations at Starwood Canada, said in an emailed statement that more than 5 million guests participated in the program globally between 2009 and 2013.
"Starwood is the first major hospitality company to require sustainability compliance and reporting for its entire portfolio. The company's environmental policy establishes the foundation for its corporate responsibility efforts and the steps it is taking to protect the planet and its people," the statement said.
It did not address questions raised by the Star about the impact of the program on workers.
Fresh worries arise over future
of General Motors in Canada
GREG KEENAN - AUTO INDUSTRY REPORTER
The Globe and Mail
Dec. 04 2014
New doubts are being raised about the future of the General Motors of Canada Ltd. vehicle assembly operations later this decade.
The current General Motors Co. product plan points to the end of vehicle production in Oshawa, Ont., and a cut at a plant in Ingersoll, Ont. to a single shift, said Joe McCabe, president of auto industry consulting firm AutoForecast Solutions LLC.
"By 2019, we have Oshawa completely shut down," Mr. McCabe told the Automotive Parts Makers Association of Canada forecast conference Wednesday.
Each of the vehicle types made at the Canadian plants is scheduled to be made at another GM assembly plant in North America or has already been earmarked for transfer, he noted.
In addition, the vehicles assembled in Canada are not sold in this country in large quantities, unlike Honda Motor Co. Ltd. and Toyota Motor Corp., whose Canadian assembly plants build their bestselling vehicles in the Canadian market.
"Is there a compelling story for [GM] to continue to build here when the vehicles they sell here are not sold in massive quantities?" Mr. McCabe asked.
The fears about the future of GM's Canadian operations, which have also been expressed by Unifor president Jerry Dias and privately by senior executives of auto parts makers, have been growing as the expiry of a production commitment made in 2009 approaches.
In return for a $10.8-billion contribution by the federal and Ontario governments as part of a three-government bailout of the GM Co., the auto maker committed to maintain 16 per cent of its North American vehicle production in Canada through 2016.
The exodus of products begins next year when Chevrolet Camaro production stops in Oshawa and begins at GM's Lansing Grand River plant in Lansing, Mich.
In 2016, one of the two assembly plants in Oshawa is scheduled to close.
In Ingersoll where GM's Cami Automotive Inc. plant is running on three shifts, production of the Chevrolet Equinox and GMC Terrain crossovers is scheduled to begin in Mexico later in the decade, Mr. McCabe said.
He noted that when rumours arose in Toledo, Ohio, that Chrysler Group LLC might shift production of the Jeep Wrangler elsewhere, a local and statewide movement organized within 10 days to "save something that they didn't lose in the first place."
No such public movement has emerged in Oshawa or Ingersoll, he said.
A shutdown of Oshawa would eliminate about 3,600 unionized jobs at the two assembly plants. About 2,700 Unifor members work at Cami.
Tens of thousands more jobs at suppliers also depend on GM's Canadian production.
GM Canada spokeswoman Adria MacKenzie said the auto maker is investing $250-million in Cami to support future vehicle production.
The products assembled at the Flex Plant in Oshawa will continue to be built for the foreseeable future, she said, based on market demand.
Canada's share of North American vehicle production, which is already declining as auto makers invest tens of billions of dollars to build assembly plants in Mexico, is already set to decline.
Halting production in Oshawa and cutting output at Cami would slice Canada's share to 9.6 per cent by 2021 from 14.7 per cent last year, Mr. McCabe said.
Canada would slip to 15th spot among global auto producing countries, from 10th in 2013.
Ontario Finance Minister Charles Sousa, who also spoke at the conference, told reporters after his presentation that his plan to sell the province's common shares of GM is still in place.
"Where we can reinvest that money and make greater gains, I think it's important for us to make that decision," Mr. Sousa said. "I want us to invest – and the public requires us to invest – in infrastructure and things that enable future generations to be more competitive."
The Canadian Automotive Partnership Council, an industry advisory group, urged the federal and Ontario governments last week to create a joint automotive investment board that would seek new investments and find ways to retain existing assembly plants.
Daimler broke law amid Alabama union push, NLRB rules
Mark Clothier,
Bloomberg News
Dec 3, 2014
Daimler AG violated the law when it prevented workers from discussing a possible union and other employment issues on their own time inside the company's Alabama auto plant, the National Labor Relations Board ruled.
The decision affirmed an administrative judge's ruling that the Mercedes-Benz employee handbook illegally told workers they couldn't solicit fellow employees on company property between shifts. The NLRB, which mediates disputes between management and labor, ordered Mercedes to update the handbook with an insert that makes clear workers are free to "form, join or assist a union," according to the Nov. 26 decision.
Daimler said it has no position on whether the employees should form a union at the plant, which the company refers to as MBUSI. The NLRB decision "confirms the initial ruling that MBUSI did not threaten or harass team members and, more importantly, that MBUSI has been neutral on the union topic," the automaker said in an emailed statement yesterday.
"At no time" has the handbook prohibited employees at the plant from discussing unions or any other topic, Daimler said. "The old version of the handbook was unclear regarding rules for solicitation and this has been addressed in the 2014 handbook recently distributed to team members."
Daimler is one of several foreign automakers in the southern U.S. coping with the United Auto Workers' effort to broaden its membership beyond the Detroit-based General Motors Co., Ford Motor Co. and Chrysler Group LLC, now part of Fiat Chrysler Automobiles NV. Mercedes is third, behind BMW and Volkswagen AG's Audi, in global luxury auto sales.
Volkswagen workers at a Tennessee assembly plant rejected UAW representation in a February vote. The UAW also has tried to organize workers at Nissan Motor Co.'s plant in Canton, Mississippi. Foreign automakers, known as transplants, opened factories in the U.S. South to take advantage of tax breaks, nonunion labor and easy access to market. UAW membership has fallen 75 percent since 1979 and stands at under 400,000.
Ford Shelby GT350R, GT
successor, F-150 Raptor and more
rumoured for Detroit debut
Dec 2, 2014
Car & Driver
According to a pair of reports from Hearst's car mags, Car and Driver and Road & Track, Ford has a whole mess of good stuff on deck for the Detroit Auto Show in January. And it all sounds awesome.
First, expect to see a hotter version of the Shelby GT350 in Detroit, likely called GT350R. Think of this as the already-hot Shelby with even more track-focused bits baked in – brakes, tires, aero, etc. Everything about the GT350 sounds great, so expect this R variant to be something seriously fierce. As R&T suggests, if the GT350 is the company's new Boss 302, the R is the Laguna Seca.
But that's not even close to the biggest news. Road & Track believes a proper Ford GT replacement will debut in Detroit – a road-going version of the Le Mans GTE-class car the Blue Oval is working on for 2016. We've heard about this before, but having the street-legal car debut in Detroit would be absolutely huge news.
The performance story continues, though, with R&T suggesting that the next-gen Ford F-150 Raptor will bow in Detroit. Details are scarce about what, exactly, the aluminum-bodied desert stormer will hold, but we expect good things.
Finally, Ford's hot hatches might make some news in the Motor City, too. Car and Driver seems to think the all-wheel-drive Focus RS will bow in The D, and that an updated version of the Fiesta ST will also show its face. Road & Track, meanwhile, believes the Focus RS showing will be saved for a European auto show – think Geneva – and our gut feeling is to agree with the R&T theory.
All of these rumors point to Ford officially announcing its dedicated performance division – like Mercedes-AMG, BMW M, and so on. We've heard reports of a new, global performance brand from the company already, with the name 999 thrown out as a possibility. In any case, if these rumblings prove to be true, there's going to be a ton to drool over from Ford in January.
The mighty Mustang/F-150 tag team
In snow the weaponized Mustang was as out of its element as a horse on ice. Bring on the snow-taunting F-150 King Ranch.
Henry Payne
Detroit news
Dec 1, 2014
The 2015 Ford Mustang and Ford F-150 are two of my favorite new vehicles. They are as different as chocolate and steak. Sport and utility. Knife and fork.
It's nice having both tools in your drawer as I discovered last week.
The last time I drove the Mustang was in September over sunny Los Angeles' serpentine Route 2. It's a road that, if pulled into a straight line, would reach to Kalamazoo. I revved, tossed, and generally rung the neck of this newly-nimble stallion through turns that would have tamed the last generation, solid-rear axle pony. The Porsche 911 I chased is probably still trying to hammer out the pony teeth marks in his rear bumper.
So I was excited to see the wicked, low-slung 'Stang in my driveway Tuesday. Until the snow and ice came. This deep green, turbocharged terror was suddenly as out of its element as, well . . . a foal on ice.
Dressed in Pirelli P-Zero summer tires, the proud beast twitched and bucked over Metro Detroit's snowy roads. The turbo four's 320 pound-feet of torque made it nervous. I toggled the Drive Mode switch for help. Sport Plus? Nope. Track? Nope. Snow/Rain? Yes, please. Ford's superb electronics (in a $29k base muscle car) controlled traction, fuel flow, and safety. But horses gotta run.
Desperate to unleash my housebroken pet, I found an empty school parking lot off Telegraph Road. I bound out on the ice-phalt, the rear end slewing happily about. I flicked off the traction control switch. Spun like a top. Did donuts. Had a ball. Until I stopped to switch traction control back on.
The Mustang wouldn't move.
Sensing that I was on ice, the car's brain refused the rear wheels any gas. None. I tried easing the clutch. Nothing. I floored the gas penal. Nada. I switched traction control back off. The P-Zeros spun like pinwheels. I was dead in the (frozen) water.
Reverse rescued me. I backed out of the lot — the Mustang giving me enough juice to make it to the main road. Comical. Educational. And boy was I glad to see the F-150 in my driveway the next morning.
The F-150 isn't just good in the snow, it taunts it.
Driving early Wednesday morning, I was tempted to drive into the snowy ditch just to explore the off-road bandwidth of this tank. My sports facility parking lot was a sheet of ice. The Ford laughed at it. My only concern was to park the massive vehicle in a corner lest it collect smaller cars skittering across the ice.
But my F-150 was more than a truck. It was a top-of-the-line, $60,750 King Ranch with Supercrew cab. A luxury suite on wheels. You could traverse a castle moat in an F-150 — but why bother when its interior is as nice as the king's study? Its high-ceilinged, wood-accented, leather interior would shame most corner offices. What office has a full-ceiling sun roof?
And if our house loses power (again. Dang global freezing) Mrs. Payne would be happy to move in with me. Sure the F-150 has steeper steps than our front stoop, but the box step moves out to help my 5'5" wife. The Super Cab's rear bench seats even fold up flat against the back wall, opening the floor as a bed.
Ford's superb SYNC system scans your outside world. Where the roads are blocked. What time your favorite movie is playing. Where the lowest gas prices can be found.
Though with an impressive 20 mpg, the F-150's turbo V-6 need for gas isn't as urgent as previous generation V8s (while returning better towing and payload). While you eagerly await spring Mustang season, the F-150 will get you through all seasons.
But still I felt a void.
Between the Mustang four-banger and the F-150 V6, I missed Ford's family of baritone V8s. May I suggest the Mustang 5.0-liter? Sure the Ecoboost returns an impressive 26 mpg, but the eight-holer is no slouch at 19. And the V8's purr is the most addicting sound this side of Sade.
Stomp on the aluminum-crusted throttle and the eight cylinders thrumb like velvet drums. They propel the car forward with eerie urgency. Eerie because the hoss's comfortable cabin is sealed for quiet from the violence under its hood. So too the hushed F-150.
Which means you can fill your garage with state of the art weapons offering the speed of a cruise missile and the ruggedness of a tank. Yet you won't feel like you've been in battle after a day's driving.
2015 Ford Mustang 2.3L Coupe Premium
Vehicle type: Front-engined, rear-wheel-drive, two-door coupe
Price: $38,455 as tested
Power plant: 2.3-liter turbocharged "Ecoboost" inline-4 cylinder
Power: 310 horsepower, 320 pound-feet torque
Transmission: 6-speed manual
Performance: Zero-60: 5.2 sec. (Car & Driver); Top speed: 149 mph (governor limited)
Lows: Size makes urban parking a challenge; Aluminum skin will likely increase insurance/repair costs
Overall: ★★★★
Grading scale
Excellent ★★★★
Good ★★★
Fair ★★
Poor ★
Ram 1500 bests new F-150
in MT pickup shootout
Chris Bruce
Autoblog Canada
Nov 28, 2014
Ford's 2015 Ford F-150 is a technological tour-de-force, what with its aluminum-intensive construction and its powerful and efficient new 2.7-litre EcoBoost engine option. But now that it's hit the market, it's time to get down to brass tacks and find out how just the latest F-150 actually stands up to its rivals in the hyper-competitive fullsize segment.
Motor Trend is among the first to round up the Ford (in Lariat 2.7-litre 4X4 guise here) and put it up against the Ram 1500 Outdoorsman EcoDiesel 4x4 and 5.3-litre-equipped Silverado 1500 LTZ Z71 to find out how Dearborn's new-think truck measures up.
The test put the trio through over 1,000 miles (1,600 kilometres) of tough driving in California and Arizona in a variety of conditions from just cruising around unladen to hauling a trailer. MT found all three trucks to be competent, but the most praise got heaped on the Ram and the Ford, with the Chevrolet falling a step behind its competitors in many tests.
Among the Ford's most-liked features was its 2.7-litre, twin-turbo V6 that helped make the F-150 easily the quickest of the group, with some editors saying the engine felt about the same whether driving around with cargo in the bed or not. There was some minor turbo lag during acceleration while trailering, but that issue affected the Ram, too.
The Ram's powertrain was lauded, as well. The EcoDiesel was torquey around town, and the 1500's combination of an eight-speed automatic and air suspension was judged to be the best of the lot. It was the most difficult to get into the bed, though.
The Ram also won the fuel economy award by netting 20-miles-per-gallon (11.8L/100km) city and 28-mpg (8.4L/100km) highway in the test to beat its estimated ratings of 19/27 (14.4/8.7L/100km). The Ford's EcoBoost managed 17/22 (13.8/10.7L/100km), one mpg off each from the estimated numbers, and using a lot of throttle really depleted its efficiency. As MT notes, however, it would take time for the diesel's mileage savings to pay off at the pump for these two trucks.
In the end, the Ram just barely eked out the win, with the title partially earned because of "the Ford's unknown maintenance and aluminum repair costs," according to MT. Go check out the full comparison to read all of the details, then let us know what you think in Comments.
Mexico's car industry
booms,
but wages don't
Brendan Case and Nacha Cattan, Bloomberg News
November 26, 2014
Mexico's booming automobile industry is generating more export dollars than oil, building more cars than Brazil and giving a job to Esmeralda Velazquez. What it isn't doing is raising her living standards.
The 37-year-old machine operator at an auto suspension plant earns $295 per month — not enough to afford a telephone service or separate beds for her two daughters, let alone a computer or car. Pay raises have barely kept pace with inflation since she began working in the industry 15 years ago, she said.
"When I see a nice car pass by I think, 'I made that suspension but I'll never be able to own one,'" Velazquez said from her rented cinder block home in the city of Queretaro, about 130 miles northwest of Mexico City.
Productivity has risen twice as fast as wages since 2005 in Mexico, Bank of America Corp. calculates, helping the country attract investment and become the second-largest auto supplier to the U.S. and the world's biggest flat-screen TV exporter. The flip side is there's not much left over for workers, capping retail sales and keeping economic growth in the past 10 years at less than half the pace of regional peers such as Chile, Peru and Argentina.
While Mexican exports have risen an average 7.1 percent a year since 2001 on the competitiveness of local industry, domestic retail sales gained 2 percent through the end of last year. That compares with 5 percent in Chile, 5.1 percent in Brazil and 5.6 percent in Colombia.
"Purchasing power has deteriorated," said Rafael Camarena, an analyst at Grupo Financiero Santander Mexico SAB. "Low salaries, the result of slow growth, are becoming a limiting factor for the development of the domestic market and therefore for the economy."
Since 2003, Mexican workers' earnings in the auto industry have risen an average of 0.3 percent per year more than the inflation rate, according to data compiled by the Labor Ministry. It's a pattern repeated across the economy.
Labor unions, which are organized at each automaker rather than providing representation across the industry, have failed to boost wages significantly, according to Armando Soto, president of Kaso & Asociados, a Mexico City-based auto industry consulting company.
Cheap labor has helped attract $16.1 billion in investment announced by automakers since the beginning of 2010, according to the Center for Automotive Research in Ann Arbor.
Nissan Motor Co., Honda Motor Co. and Mazda Motor Corp. have opened factories in the last 13 months. Daimler AG, BMW AG and Kia Motors Corp. plan similar expansions. The new plants will push Mexico's auto output to 5 million vehicles by 2019 from 2.93 million last year, according to IHS Automotive.
"The cost of the work force in Mexico adjusted for productivity has become much more attractive," Luna, the chief Mexico economist at Citigroup's Banamex unit, said by e-mail. "This allows you to draw more investment."
While Mexico has surpassed Brazil in auto production this year, Mexican dealers sold 1.06 million light vehicles in 2013. Brazil's domestic sales were three times as high, while the population is less than twice as much as Mexico's.
Velazquez, who is divorced, lives below the poverty line as her monthly income is less than $190 per mouth to feed, according to standards set by the government. Her home with one room and one bathroom, separated by a shower curtain, lacks sufficient space for her children, according to those criteria.
Her daughters, ages 19 and 8, share a child-sized bed with a race-car frame. As she prepared to take her family to a friend's house for Sunday lunch, Velazquez lamented she'll have to start working at a grocery store on weekends to supplement her income.
"The hardest part is leaving my daughters alone for so long," she said.
Door-to-door water heater firm
hit with $7 million in penalties
National Home Services has agreed to pay $7 million in penalties, restitution and other costs related to complaints over its door-to-door water heater marketing practices in Ontario and Quebec.
The Canadian Press
Nov 25 2014
OTTAWA—The federal Competition Bureau says a subsidiary of Just Energy Group Inc. has agreed to pay $7 million in penalties, restitution and other costs related to complaints over its door-to-door water heater marketing practices in Ontario and Quebec.
The settlement with National Energy Corp, which operates as National Home Services and Services aux foyers, follows a finding by the bureau that sales staff were misleading customers about their identity and the purpose of their visits.
During the investigation, the bureau said it became aware of thousands of complaints received by other organizations, including the Ontario Ministry of Consumer Services, the Better Business Bureau and the Office de la protection du consommateur in Quebec.
Under the consent agreement signed by National and Just Energy Group Inc., National will pay $1.5 million in restitution to all current National customers obtained through door-to-door marketing since July 2008 in the form of a credit on their water heater rental bills.
It will also pay a $5-million administrative penalty and an additional $500,000 towards the bureau's investigative costs.
The agreement also prohibits National from misleading consumers into believing their existing water heater is unsafe or that it is eligible for a no-cost upgrade and requires the implementation of a corporate compliance program.
"The bureau is pleased that this agreement will protect consumers from being deceived by representatives of businesses who falsely identify themselves in order to make a profit," John Pecman, commissioner of competition, said in a statement accompanying the announcement.
"This type of behaviour will not be tolerated by the bureau and we will not hesitate to hold those responsible accountable for their actions."
Earlier this month, the bureau announced consent agreements with two other companies in the water heater business.
Under the agreement, one of the companies, Reliance Comfort Limited Partnership, agreed to a $5-million administrative penalty and contribute $500,000 to the bureau's investigation into what it called "anti-competitive water heater return policies and procedures aimed at preventing consumers from switching to competitors."
In addition to the monetary penalties, Reliance was also required to take "certain steps to make it easier for customers to terminate their rental agreements and return their water heaters," it said.
The settlement arose out of applications the bureau filed with the Competition Tribunal in 2012 challenging alleged anti-competitive practices against Reliance and privately held Direct Energy.
The bureau said it approached EnerCare Inc. after learning it planned to acquire Direct Energy's water heater business in Ontario.
EnerCare was not the subject of the bureau's application regarding Direct Energy's practices and had not engaged in any anti-competitive behaviour, it said. However, given its acquisition of Direct Energy's water heater rental business, the bureau obtained commitments from EnerCare that put an end to what it called "Direct Energy's anti-competitive behaviours."
Meanwhile, the bureau said it was continuing litigation before the tribunal against Direct Energy and is seeking, among other things, an administrative penalty of $15 million.
Ontario Health Care Demonstration - Queens Park Nov 21, 2014 - Photos by Doug Berry
It is with great sadness that we inform you of the passing of Eileen Marek on Wednesday November 19, 2014
Eileen is the spouse of our Retirees Vice-Chair Frank Marek. This year marked their 50th Wedding Anniversary.
Our deepest condolences go out to Frank as Eileen will be sadly missed by all her family including sons Paul and Kevin.
The Family will be having a private service but will be having a Memorial Celebration of Eileen's Life on Saturday November 29th at the Unifor Local 1285 hall, 23 Regan Road, Brampton 4:00pm to 10:00pm. All are welcome.
For more information regarding this function please click here.
MAREK, Eileen Marie Passed away unexpectedly in hospital Wednesday, November 19th, 2014 at the age of 71. Beloved wife of Frank Marek. Loving mother of Paul And Kevin (Dana). Devoted grandmother of Vann and Ty. Forever cherished sister to Dennis, Lorraine and Janet (Mark). Beloved daughter of Helen and the late Julian Skrzela. Treasured sister-in-law to the late Steven (Diane), and the late Vilma (Rick), John (Linda), David (Irene), Joseph (Elaine), and James (Joan). Remembered lovingly by over a dozen nieces and nephews. Eileen will be sadly missed by countless other family members and friends across Canada and the USA. A private cremation service will be attended by immediate family. Frank and the boys would like to invite all family, friends and neighbours, old and new to join them for a Memorial Celebration of Eileen's life at the UNIFOR (formerly CAW) Local 1285 Banquet Hall at 23 Regan Road, Brampton on Saturday November 29th from 4pm till 10pm. Food, music, drinks and memories will be shared to honour Eileen. A short memorial service will commence at 6pm followed by cheerful reminiscent interaction with family and friends. Frank, Paul and Kevin would like to deeply thank the many nurses of the University Hospital CCU Unit in London for their tireless and caring efforts. Please visit www.3ring.com/eileen for detailed donation and memorial service information.
Ford F-150 mpg tops among
full-size gas-powered pickups
Michael Martinez,
The Detroit News
November 24, 2014
Dearborn – — Ford Motor Co.'s 2015 aluminum-bodied F-150 won't surpass the Ram EcoDiesel as most fuel-efficient pickup, but its 26 mpg on the highway is tops among all gas-powered full-size pickups.
The Dearborn automaker on Friday released mileage numbers that are between 5 percent and 29 percent better than last year's model, depending on engine size.
Equipped with the new 2.7-liter EcoBoost engine, the highly anticipated pickup can get 19 mpg city, 26 mpg highway and 22 mpg combined. Ford expects this new engine option will account for about 28 percent of new F-150 sales once trucks hit dealer lots in the coming days. The most fuel-efficient 2014 F-150 was rated at 23 mpg on the highway.
Before Friday's numbers were released, the 2015 Ram 1500 was the leader among gas-engine trucks, getting up to 25 mpg on the highway. The 2015 Chevy Silverado can get up to 24 mpg highway.
Other trucks, like Ram's EcoDiesel and Chevy's mid-size Colorado, can get even better mileage numbers.
"We set out to create the future of tough with the new F-150," said Raj Nair, Ford vice president, global product development. "We are delivering with the toughest, smartest and most capable F-150 ever — and now the highest EPA-estimated fuel economy ratings of any full-size, gas-powered pickup in America."
Ford said fuel economy isn't the only thing that matters to its truck customers, and suggested its better capability — it can tow up to 1,100 pounds and haul up to 530 pounds more than the last model — and price point were just as, if not more important than, the mileage numbers. Before the mileage numbers were released, some analysts had predicted the lightened truck could reach 30 mpg.
"That line of thinking was more media-driven than truck customer-oriented," Doug Scott, Ford's truck group marketing manager, told reporters Friday. "Truck customers that really value the payload and towing benefits that are associated with lightweighting, as well as durability, understood when we said we'd take the weight out and reinvest it. They're not just singularly focused on fuel economy."
Ram's EcoDiesel, which gets up to 28 mpg on the highway, starts at $30,215. The Silverado with the best highway fuel economy starts at $34,425 after a $1,000 cash-back bonus. The most efficient F-150 starts at $25,915, which includes the $495 premium for the 2.7-liter EcoBoost engine.
Nair said Ford has the capability to offer a diesel option, but has no plans to do so. He said the automaker will offer a hybrid F-150 by the end of the decade.
"At this point, fuel economy numbers are as much of a marketing game than anything," Akshay Anand, analyst for Kelley Blue Book, said in a statement. "The 'best truck mpg' claim probably matters more than the cost-savings from a 1 or 2 mpg difference over competitors, especially if gas prices remain low for the foreseeable future. We know some of the import trucks will be released in the next year or two, and you can bet those will have solid mpg numbers, especially as diesel looks to gain more traction in the truck segment."
Before it goes on sale,
new F-150 named
Best Overall Buy
By Alisa Priddle
Detroit Free Press
Nov 19, 2014
The 2015 Ford F-150 is not even on sale yet but it has been named the Best Overall Buy by Kelley Blue Book which has announced the winners of the 2015 Best Buy Awards that honor the top new model-year vehicle choices available in the U.S.
"Our group of expert vehicle testers chose the Ford F-150 as the Overall Winner in our Best Buy Awards because of its breakthrough aluminum body structure, its smooth and fuel-efficient powertrains and its impressive collection of thoughtful features," said Jack R. Nerad, market analyst for Kelley Blue Book's KBB.com.
"Offered in a wide variety of body styles and with a wide variety of engines, it is a suitable vehicle for a broad cross-section of the public, and the final piece is the F-150 is available for about the same price as the previous generation truck, which was a bestseller," Nerad said.
Winners in all 12 vehicle categories will be honored at an event in Los Angeles Tuesday night.
The awards are designed to provide new-car buyers with a list of the best-value 2015 models after a year-long evaluation and data analysis that factors in pricing and transaction prices; ownership costs over five years including depreciation, insurance, maintenance, financing, fuel, fees and taxes, consumer reviews and ratings; and vehicle sales information.
The F-150 won in the truck category and then topped all 12 fields.
The judges were impressed with "its breakthrough aluminum body, a weight-saving strategy that enables its turbocharged Ecoboost engines – another breakthrough -- to be even more effective and impressive. The fact that all this advanced technology is offered on a price-competitive basis with others in the hotly contested pickup truck class sealed the F-150's win as this year's Overall Best Buy."
Winners include:
Overall Winner: 2015 Ford F-150
Small Car: 2015 Honda Civic
Mid-Size Car: 2015 Honda Accord
Full-Size Car: 2015 Chevrolet Impala
Luxury Car: 2015 Mercedes-Benz C-Class
Sports/Performance Car: 2015 Chevrolet Corvette
Electric/Hybrid: 2015 Chevrolet Volt
Small SUV/Crossover: 2015 Honda CR-V
Mid-Size SUV/Crossover: 2015 Toyota Highlander
Full-Size SUV/Crossover: 2015 Chevrolet Tahoe
Luxury SUV/Crossover: 2015 Acura MDX
Truck: 2015 Ford F-150
Minivan: 2015 Honda Odyssey
Ford unveils
powerful 2016
Shelby GT350
Mustang
Alisa Priddle,
Detroit Free Press
November 17, 2014
After weeks of teaser videos Ford today confirms plans for an all-new 2016 Shelby GT350 Mustang.
The news is under the hood: 500 horsepower from Ford's first production flat-plane crankshaft 5.2-liter V8 — an engine usually associated with a European sports cars or race cars.
No turbocharged EcoBoost engine here. Early in development it was decided a high-revving, naturally aspirated V8 engine would be better for the track, hence the development of Ford's most powerful naturally aspirated production engine to date with torque that peaks at 400 pound-feet.
"Make no mistake, this is an American interpretation of a flat-plane crankshaft V8, and the 5.2-liter produces a distinctive, throaty howl from its four exhaust tips," said Jamal Hameedi, chief engineer of Ford Global Performance Vehicles.
Ford has not announced when it will go on sale or pricing.
Mustang aficionados know that the original Shelby GT350 was introduced in 1965, giving the pony car street cred. This street-legal track car continues in the spirit of Carroll Shelby, a man whose name became synonymous with Mustang for his history of transforming an everyday car into a road racer. It helps fill the gap left by the popular Boss 302.
Shelby's death in 2012 meant he did not live long enough to see the launch of the sixth-generation 2015 Mustang that finally switches to an independent rear suspension. Or the latest GT350 that Ford's performance team engineered in his name.
The GT350 "takes true advantage of the new chassis dynamics of the Mustang platform," said Jamal Hameedi, chief engineer, Ford Global Performance Vehicles.
The car has a six-speed manual and a choice of five different driving modes.
"When we started working on this car, we wanted to build the best possible Mustang for the places we most love to drive – challenging back roads with a variety of corners and elevation changes – and the track on weekends," said Raj Nair, Ford's head of Global Product Development.
"Every change we made to this car was driven by the functional requirements of a powerful, responsive powerplant – nimble, precise handling and massive stopping power," said Nair who has a history of racing.
The 2015 Mustang is already 28% stiffer than the previous model and the GT350 is even stiffer and ride height was lowered about two inches.
The GT350 has some advanced materials and technologies including Ford's first use of MagneRide dampers, a system long used by General Motors for continuous adjustment of the suspension for optimal handling.
To harness all its power, the car has Brembo brakes and the car has stiff 19-inch aluminum-alloy wheels with Michelin Pilot Super Sport tires with customized sidewalls, tread face and compound for maximum grip on the road or at the track.
The car is also more aerodynamic
"Everything we changed on GT350 is purely functional-driven design, with the goal of improving the overall performance of the car," said Chris Svensson, Ford design director, The Americas. "We optimized the aero shape of the car, and then fine-tuned what was left to increase downforce and cooling airflow."
The bodywork from the windshield forward is unique, including a new aluminum hood that was lowered and sloped. The aluminum front fenders accommodate the wider front track and wider wheel arches.
The interior was designed around the driver with specially designed Recaro sport seats, a flat-bottom steering wheel and upgraded gauges to monitor performance. Ford even took out a lot of the chrome trim that might otherwise distract the driver.
"We took the best Ford Mustang yet and massaged every aspect of the car that affects the performance driving experience," said Hameedi. "We tested endlessly on the most challenging roads and tracks in the world, and we believe serious drivers will love the Shelby GT350 Mustang."
Ford expands Ranger
Takata air bag recall
David Shepardson,
The Detroit News
November 16, 2014
Washington — Ford Motor Co. is expanding its recall of 25,000 2004-2005 Ranger pickup trucks to both passenger and driver air bags after Takata Corp. said the vehicle has similar inflators to a Honda vehicle involved in an incident that killed a pregnant woman in July in Malaysia.
Ford has no reports of problems with Ranger trucks but is investigating a report of an air bag injury in a 2007 Mustang.
Ford initially said it would only replace the passenger air bags in the vehicles.
The July 27 death in a Honda City car was the fifth worldwide — and first outside the United States —that has been linked to defective Takata inflators causing air bags to send metal fragments into vehicle occupants — including the death of a woman in Florida last month. More than 16 million vehicles have been recalled worldwide, including 7.8 million in the United States since 2013 by 10 major automakers.
Takata told National Highway Traffic Safety Administration that it didn't use the exact same inflator involved in the Malaysia incident for use in U.S. vehicles, "however it had produced a similar, but slightly different" inflator for use in 2004 and early 2005 Ford Ranger trucks. The recall is limited to trucks sold or currently registered in Florida, Puerto Rico, Hawaii and the U.S. Virgin Islands — high humidity areas where automakers and NHTSA think the potential for problems is highest.
Ford said in June it would recall 58,000 vehicles for Takata air bags including 13,000 Ranger trucks. Ford spokeswoman Kelli Felker said last month the number has increased to 85,004 and was expanded to include the 2005-2008 Mustang and 2004-2005 Ranger. Felker said Friday Ford agreed to expand the ranger recall to both air bags because NHTSA asked for it.
NHTSA said it held talks with Ford about the issue in late September and October 2014. "In subsequent discussions with Ford and Takata, the parties agreed it would be advantageous to replace the" driver air bag "for the removed inflators to be returned to Takata for testing and evaluation."
"We are aggressively investigating Takata air bags from all affected vehicle manufacturers, and we're looking at all of the angles in our pursuit of safety," Deputy NHTSA Administrator David Friedman said Friday.
Ford and Takata say they know of no problems in Ranger trucks.
Senators and safety advocates have harshly criticized automakers decision to limit much of the Takata recalls to high humidity areas.
NHTSA is investigating whether the recalls should be expanded by at least 1.1 million — and has been pushing automakers to do more.
NHTSA said in documents posted that it first learned of the Malaysian death from Honda on Sept. 11 — though Honda didn't disclose it publicly until this week in Japan. Honda said it was expanding its recall of vehicles with inflator air bags by 170,000 — though none in the United States — in the aftermath of the Malaysian incident. Honda has recalled more than 5 million vehicles in the United States since 2013 with Takata air bags — and all five deaths linked to the issue were in Honda vehicles.
Takata said it is unaware of any inflator ruptures involving the Ranger with that inflator.Takata told the that the only vehicle to have a similar air bag inflator as the City was the 2004-2005 Ford Ranger.
The Senate Commerce Committee will hold a hearing Thursday on the issue, hearing testimony from NHTSA, Takata and Honda. The White House is preparing to nominate a permanent NHTSA administrator as early as next week after some senators had said a nomination could have come this week.
Takata said Thursday it has received a federal grand jury subpoena from the U.S. Attorney's Office in New York over defective air bags.
The company — which also faces an investigation by NHTSA — said Thursday in a financial disclosure document that it faces a probe into exploding air bags that cause metal fragments to hit drivers and passengers, and are linked to five deaths worldwide.
Sen. Bill Nelson, D-Florida, who will chair the hearing, said some automakers are dragging their feet in making fixes. He also criticized NHTSA, saying it "has not been right upfront, forward-leading and aggressive to protect the public."
Takata noted it faces class-action lawsuits and said it has received a grand jury subpoena from the U.S. Attorney's Office in Manhattan.
German labor chief: VW
must halt anti-union group
Erik Schelzig,
Associated Press
Nov 15, 2014
Nashville, Tennessee — The head of the German union representing automotive workers is speaking out against Volkswagen working with anti-labor groups at its plant in Tennessee.
In a statement issued Friday in Frankfurt, Germany, IG Metall President Detlef Wetzel called on Volkswagen to "show its true colors" in officially recognizing the United Auto Workers union as its bargaining partner at the Chattanooga factory once the union proves it has signed up a majority of workers there.
"It is our objective to guarantee also under the politically difficult circumstances in the United States that labor union rights are respected and codetermination in the plant is possible," Wetzel said.
Under German law, worker representatives hold half the seats on the board of Wolfsburg, Germany-based Volkswagen, which lends added weight to Wetzel's position. It also appears to reflect some concern that a new company policy released this week could serve to undermine efforts by its U.S. ally, the United Auto Workers, to organize its first foreign automaker in the South.
Volkswagen management has been under heavy pressure from union representatives on the board because the U.S. plant stands alone among the automaker's worldwide facilities without formal labor representation for workers. The company has voiced support for creating a German-style works council to represent both salaried and hourly workers, but says U.S. law requires it to work with an independent union to create one.
Volkswagen this week established guidelines for giving labor groups that sign up at least 15 percent of workers access to plant facilities and to regular meetings with management. While the policy would apply to the United Auto Workers, it could also benefit the American Council of Employees, an organization led by workers who spearheaded efforts to defeat the UAW in a union vote in February.
"IG Metall will not accept if Volkswagen treats the UAW just as one as those groups who have acted in the past resolutely against the union," he said. "There must not be any cooperation between Volkswagen and anti-union groups or yellow unions."
So-called yellow unions are organizations more focused on representing company interests than those of the workers. Sean Moss, the president of the American Council Employees in Chattanooga, has argued that the group opposes the UAW, but not unions as a whole. The group's goal is to "present employees with a clear choice and an alternative to the Detroit-led failed alternative," Moss said earlier this week.
The UAW decried the influence of Republican politicians and Washington-based anti-union groups in churning up the opposition in advance of the February election. The UAW ended up losing that vote 712-626, and soon filed a challenge with the National Labor Relations Board.
The UAW said earlier this week that it had signed a written agreement with VW management to abandon that complaint and to work toward landing the production of a new SUV at the plant in exchange for eventual recognition by the company as bargaining partner at the plant.
This week's labor policy was seen as a key step toward gaining that status, but a lack of detail in the guidelines has left many questions unanswered.
Harvard University labor law professor Benjamin Sachs said the policy commits plant managers to regular meetings with labor groups, but doesn't lay out any binding outcomes for those talks."On paper that's not much of a commitment, you could satisfy that by sitting down, listening to what organizations have to say and then leaving," he said. "That's very different than what the law gives unions, which is a right to bargain."
Ford's October Europe
sales rise 8.1%
Michael Martinez,
The Detroit News
November 14, 2014
Ford Motor Co.'s October Europe sales rose 8.1 percent to 98,100, thanks to the introduction of new cars and strong commercial sales, the Dearborn automaker said Thursday.
Through the first 10 months of the year, Ford has sold nearly a million vehicles in its 20 traditional European markets, a 7.8 percent increase from the same period last year. The automaker stands to lose more than a billion dollars in Europe this year, but is in the midst of a cost-cutting transformation plan that it hopes will lead it to a profit in the coming years.
Ford sold 76,900 passenger cars and 21,200 commercial vehicles in Europe last month. It was the best October for passenger car sales since 2011 and the best month for commercial sales since 2007.
"Our new cars — like the EcoSport SUV with its growing sales — and commercial vehicles are helping us gain ground," Roelant de Waard, vice president, marketing, sales and service, Ford of Europe, said in a statement. "Importantly, we are making gains with retail and fleet customers, which support a strong brand and healthy residuals, while minimizing rental and short-term registrations."
Ford's market share grew modestly last month, up 0.2 percentage points to 7.8 percent in October. Through the first 10 months of the year, Ford's market share is up 0.1 percent to 8.0 percent.
Ford next year will add a new Focus ST, S-MAX, C-MAX, Grand C-MAX, Mustang and Edge in its 20 European markets.
Ford stands to lose $1.2 billion in Europe this year and has forecast a $250 million loss in 2015, after previously predicting to turn a profit there next year.
Last week, Ford said it was swapping its current head of Europe, Stephen Odell, with marketing chief Jim Farley at the start of 2015.
Automakers pledge to
protect driver privacy
David Shepardson
The Detroit News
Nov 13, 2014
Washington – — The two major U.S. auto trade associations told the Federal Trade Commission they will pledge to protect driver privacy amid a rise in vehicle technology and increasingly connected vehicles.
In a letter to the Federal Trade Commission on Wednesday, the Alliance of Automobile Manufacturers, the trade group representing Detroit's Big Three automakers, Toyota Motor Corp., Volkswagen AG and others — and the Association of Global Automakers, representing Toyota, Honda Motor Co., Nissan Motor Co., Hyundai Motor Co. and others — said they were backing a set of principles guaranteeing the privacy of drivers.
Automakers said in the 19-page submission that they are committing to protect driver location and driver behavior data. It comes as concern grows that vehicle services collect significant data at times that could be tapped by marketers, government officials or others. The car companies are committing to be transparent with drivers about what data is collected and requiring that drivers opt in to programs that include data collection. They also pledged to minimize data, to hide the identity of drivers and to only collect data for "legitimate business purposes" and only with driver consent.
They pledge to follow the principles for all vehicles and programs no later than the 2017 model year. They also pledge to work with vendors to ensure they respect privacy.
"New automotive technologies and services are providing our customers with tremendous benefits," said Mitch Bainwol, president and CEO of the Alliance of Automobile Manufacturers. "For example, alerts about traffic conditions help reduce congestion, while concierge services are able to unlock car doors and route drivers around the path of a storm. Providing such features in a transparent way is important to both customers and automakers."
The principles build on the Fair Information Practice Principles, Federal Trade Commission guidance and the White House Consumer Privacy Bill of Rights. "
Some in Congress have raised concerns about the driver privacy issue. In January, a government report found that major automakers collected information about where drivers have been — obtained from onboard navigation systems — for varying lengths of time. Owners of those cars can't demand that the information be destroyed. And, says the U.S. senator requesting the investigation, that raises questions about driver privacy.
The Government Accountability Office found major automakers have differing policies about how much data they collect and how long they keep it. Some insurance companies offer lower rates if drivers allow them to monitor their behavior. But automakers note that can only occur with owner consent.
Automakers collect location data in order to provide drivers with real-time traffic information, to help find the nearest gas station or restaurant, and to provide emergency roadside assistance and stolen vehicle tracking. But, the report found, "If companies retained data, they did not allow consumers to request that their data be deleted, which is a recommended practice."
The GAO said privacy advocates worry location data could be used to market to individuals and to "track where consumers are, which can in turn be used to steal their identity, stalk them or monitor them without their knowledge. In addition, location data can be used to infer other sensitive information about individuals such as their religious affiliation or political activities."
In addition to navigation systems, there are other ways vehicles can collect information: Event data recorders, known as "black boxes," store data in the event of crashes. Transponders like EZ-PASS transmit location and are used in some instances by law enforcement and for research. Some owners also agree to monitoring of driving habits to qualify for lower insurance rates or to keep tabs on teen drivers
First aluminum-bodied
F-150 rolls off assembly line
Michael Martinez
The Detroit News
November 12, 2014
Dearborn — Shortly before 10:45 a.m. Tuesday, Dearborn Truck plant manager Brad Huff and UAW Vice President Jimmy Settles drove the first 2015 F-150 pickup — painted cherry red — off the assembly line and into history.
Ford Motor Co.'s newest truck, made with an aluminum body and bed that saves up to 700 pounds, marks a significant milestone for the Dearborn automaker and is a potential game-changer for the industry. The launch completes years of research and development after Ford overhauled nearly every aspect of the building process from exterior painting to interior design.
The lightweight material is expected to increase gas mileage 5 percent to 20 percent, but is more costly to make and repair — a big gamble for Ford's best-selling vehicle. The launch also marks a rebirth for the Dearborn Truck Plant, centerpiece of the venerable Rouge Center that was nearly shuttered before finding new life to build the truck. The plant underwent a multi-million dollar renovation this year.
"We're here today to make history," executive chairman Bill Ford said as hundreds of workers cheered. "The Rouge has always been at the heart of Ford to me and my family."
The Dearborn automaker said the new trucks will begin arriving in showrooms next month. Mileage numbers have not yet been released, but analysts expect significant improvements. The base price is about $26,600, up about $400 from the previous generation.
The lightweight body sits above a high-strength steel frame that allows the truck to tow 1,100 more pounds and haul up to 530 more pounds than previous models.
"This is as big as it gets at Ford Motor Co.," said President and CEO Mark Fields.
"It underscores the product excellence and innovation we are delivering in every part of our business as we accelerate our pace of progress toward profitable growth."
Ford's Dearborn plant shuttered for a month this year as old equipment was torn out and new machinery was installed. A similar changeover will take place early next year at the automaker's Kansas City Assembly Plant.
The two plants will have the capacity to make more than 700,000 trucks per year, Ford said.
As part of the launch, Ford added 850 new workers across four facilities at its Rouge Center.
In recent months, Ford executives have stressed that the introduction was on schedule, but some analysts remain skeptical. Morgan Stanley last month lowered its price targets on Ford from $16 to $14, citing potential issues with the F-150 launch.
"As we understand it, virtually everything that makes physical contact with the vehicle in the production process has been replaced, retrained or substantially augmented," analyst Adam Jonas said in a research note. "We may remind you that some of Ford's recent (and far less complex) launches have been plagued with initial quality issues and high recall activity."
UAW: Recognition close at
Tennessee VW plant
Erik Schelzig
Associated Press
Nov 11, 2014
Nashville, Tenn. – — An upcoming policy change by Volkswagen would clear the way for the United Auto Workers to become the first union to bargain on behalf of employees at a foreign automaker in the South, the UAW said Monday.
Volkswagen and the union reached an agreement last spring, according to a letter to members of Local 42 in Chattanooga obtained by The Associated Press. The UAW said that it would cooperate with efforts to win production of a new SUV in Chattanooga, and that it would drop its National Labor Relations Board challenge of a February union vote.
In return, Volkswagen committed to recognizing the UAW, which would give it the authority to bargain on behalf of both members and non-members, according to the letter signed by Mike Cantrell and Steve Cochran, the president and vice president of Local 42. Tennessee's right-to-work laws mean that no worker can be forced to join a union, though the UAW says more than half of eligible workers have signed up.
The UAW in February lost a contentious union election at the Volkswagen plant by a 712-626 vote amid warnings from Republican politicians — including U.S. Sen. Bob Corker and Gov. Bill Haslam — that $300 million in incentives for expansion could be imperiled if the union won. Workers who oppose the UAW have formed a chapter of what they call the American Council of Employees in hopes of preventing the union from being recognized by Volkswagen.
Corker drew the ire of the UAW for repeatedly suggesting before the February union vote that he had inside information that the rejection of the union would result in the company deciding to expand the plant within two weeks.
It was later revealed that the state's $300 million incentive package offered to Volkswagen had contained the caveat that the money was subject to labor talks "being concluded to the satisfaction" of the state. Haslam declined to specify which scenarios would have met the state's satisfaction.
Volkswagen ultimately announced in July that it will invest $600 million to expand the factory to build a new seven-seater SUV as it seeks to reverse flagging U.S. sales. The company did not immediately respond to requests for comment.
The automaker wants to create a German-style works council at the Chattanooga plant to represent both salaried and blue-collar workers. But the company's interpretation of U.S. law indicates that it must work with an independent union to operate a works council.
The UAW's case at the Tennessee plant has been boosted by support from labor representatives who control half the seats on the Wolfsburg, Germany-based automaker's supervisory board. The UAW, its German counterpart IG Metall and the Volkswagen Global Group Works Council in September signed a pact outlining their joint efforts to gain labor representation at the Chattanooga plant.
Organizing foreign-owned auto plants has been seen as key for the UAW to revive its fortunes. Union membership stood at about 391,000 at the start of this year — a far cry from its 1979 peak of 1.5 million.
And even though the Detroit Three have hired thousands in the past four years as auto sales have recovered, the new hires are paid only two-thirds of what veteran workers get, keeping dues revenue down. The union agreed to the lower wages and became more cooperative seven years ago to help the companies survive the recession.
Ford Motor Co.'s Lincoln luxury
brand opened its first
three dealerships in China.
Michael Martinez
The Detroit News
Nov 10, 2014
The stores are in Bejing, Shanghai and Hangzhou and will sell the new MKC utility and MKZ midsize sedan. The Lincoln MKX, Navigator and an all-new full-size luxury sedan will be sold in China by 2016.
"The launch of The Lincoln Way and our first Lincoln stores in China marks an important milestone for Lincoln's reinvention as a global luxury automotive brand," Kumar Galhotra, president of Lincoln, said in a statement. "The Lincoln Way demonstrates how a storied brand with a nearly 100-year history is innovating for our Chinese customers while staying true to our roots of personal service. Our Lincoln customers will not only get the very best when it comes to product, but also when it comes to the entire ownership experience."
Lincoln said it will open five more stores in China by the end of this year, and a total of 60 stores in 50 cities in China by 2016.
"Our extensive study of the new luxury customer in China revealed a unique opportunity for Lincoln in the luxury auto market," said Robert Parker, president of Lincoln China. "As a new brand entering the market in China, Lincoln has a great opportunity to differentiate itself by combining great products with a new way of purchasing and owning a luxury vehicle."
Last month, Lincoln sold nearly 9,000 vehicles in the U.S., and sales are up 14.5 percent through the first 10 months of the year.
Ford CEO Mark Fields and Lincoln executives said in a September meeting with investors that they plan to triple Lincoln's yearly sales to 300,000 by 2020, and plan to invest $2.5 billion in the brand over the course of that time.
Ford offers dealer bonuses
through end of year
Michael Martinez,
The Detroit News
November 9, 2014
Ford Motor Co. this month began offering its dealers bonuses if they sell certain vehicles to help meet year-end sales targets.
According to a memo sent to dealers and obtained by The Detroit News, the automaker is testing out a pilot "Volume Growth Bonus Program" that will offer dealers between $100-$600 per vehicle if they meet certain sales goals. It is available for the C-MAX, Fiesta, Focus, Fusion and Escape. The bonus program runs from Nov. 1 to Jan. 2.
Such dealer bonuses are commonplace in the automotive industry and are often used to help clear out high inventory or provide a boost to lagging sales, industry analysts say. Consumers shopping for the vehicles involved can expect big discounts as dealers try to move as many as possible to unlock the highest bonus.
"It's kind of standard fare, but customers aren't necessarily supposed to know about it," said Kelley Blue Book senior analyst Karl Brauer. "It gives the dealer full control over what they want to do, and they often communicate that through price reductions."
Ford's pilot program differs from traditional dealer bonus programs in that it offers dealers the ability to make up monthly sales shortfalls within the two-month period. So if a dealer doesn't reach a November sales target to earn a certain bonus, they can make it up in December and still receive the extra money.
"The volume-based growth program we've put in place for the next couple months is really our way at looking for collaborative ways to work with our dealers to enhance sales," Erich Merkle, Ford's sales analyst, said in an interview. "We have worked with our dealers, including our national Dealer Council on the plan, to ensure a collaborative approach that is beneficial for Ford, our dealers and our customers."
Most of the vehicles involved in the program aren't selling well.
C-MAX sales were down 22.5 percent last month compared to last year; Fiesta sales were down 16.3 percent; and Focus sales were down 9.1 percent, according to Autodata, but those declines aren't unique to Ford. Thanks to the lowest gas prices in years, most automakers are struggling to sell fuel-efficient small cars.
Sales of Ford's Fusion and Escape are up 5.1 percent and 12 percent, respectively, compared to last year.
Overall, Ford's sales were down 1.8 percent last month compared to a year ago. The automaker warned that it expected a lull in sales as it manages truck inventory to prepare for the launch of its aluminum-bodied F-150 pickup.
"I think this particular instance probably reflects some Ford volume frustrations that go beyond the standard end-of-year thing," Brauer said. "If sales are up, you wouldn't feel the need to utilize these techniques."
Despite the sales dip, only the Fiesta has a higher days supply than this time last year, according to Ward's Auto data.
Brauer said the bonus program should be a win for customers.
"If I were in the market for any of those models," Brauer said, "I'd see what the were prices and I'd try to low-ball that much further and let the dealer know I knew about it."
Honda to invest $800-million at
Ontario manufacturing plant
Greg Keenan and Adrian Morrow
The Globe and Mail
Nov. 07 2014
Honda Motor Co. Ltd. will announce Thursday that it plans to invest about $800-million at its manufacturing plants in Alliston, Ont., to improve their efficiency and position them for production of future models.
The investment, which will include financial help from the Ontario government, is scheduled to be made by Ontario Premier Kathleen Wynne and officials of Honda Canada Inc. and Honda of Canada Manufacturing on Thursday morning.
Honda Canada sent out a news release Wednesday afternoon saying it would make a "major announcement" at the plants, northwest of Toronto.
About 4,300 employees assemble Civic compact cars and CR-V compact crossover utilities as well as engines at factories that began production in 1986.
The investment is a shot in the arm for the province, which has been a bystander in recent years as new investment by auto makers flooded into Mexico and the southern United States.
The Honda announcement comes just weeks after the province appeared to lose out to Mexico on a Ford Motor Co. engine plant investment. There were negotiations between Ford and the Ontario and federal governments, but sources familiar with the talks said Ford had already decided to place the investment in Mexico and was effectively going through the motions.
As with other auto makers and manufacturers generally, Honda's competitive position in Canada suffered when the Canadian dollar rose to parity with the U.S. dollar and later to $1.10 (U.S.) before tumbling, especially in recent weeks as the drop in the price of oil has sent the currency to below the 90-cent level.
Ontario and Ottawa typically contribute 10 per cent each to automotive projects, although in this case, Ottawa is not participating.
Honda executives would not say what the company plans to announce and government officials also would not reveal the details of the announcement.
Canadian, U.S. auto makers
see 'stunning' October sales
Greg Keenan
The Globe and Mail
Nov. 6 2014
Auto sales steamed ahead in Canada and the United States last month amid signs that falling gas prices are fuelling shifts in the vehicles consumers are buying.
Auto makers delivered 154,949 new vehicles to customers in Canada last month – a 7 per cent increase that represented the best October on record and the sixth-straight record monthly tally.
Canadian sales are on pace to smash the record of 1.743 million set last year.
The seasonally adjusted annual rate topped two million in Canada for the second straight month, "in a word, stunning," industry analyst Dennis DesRosiers, president of DesRosiers Automotive Consultants Inc., said in a note to clients.
In the U.S. market, the seasonally adjusted annual sales rate hit 16.46 million, also up 7 per cent from a year earlier, according to data compiled by trade publication Automotive News.
But the impact of lower fuel prices was evident in some of the U.S. sales figures.
"The lower fuel price environment has had somewhat of a, shall we say, negative impact on small cars," Erich Merkle, U.S. sales analyst for Ford Motor Co. said on a conference call with analysts and reporters.
Sales of Ford's subcompact Fiesta car fell 10 per cent, while deliveries of the compact Focus dropped 7 per cent.
At the other end of the scale, sales of the hulking Lincoln Navigator and Ford Expedition sport utility vehicles rose 38 per cent and 19 per cent respectively.
Small cars represented 20 per cent of total U.S. sales in October, about a percentage point lower than October, 2013, Mr. Merkle noted.
Toyota Motor Sales USA said sales of its hybrid Prius models slid 14 per cent, compared with Toyota's overall U.S. increase of 7 per cent.
The price of gas has fallen to less than $3 (U.S.) a gallon in the United States. It hit $2.85 Monday at a BP station near the assembly plant in Dearborn, Mich., where Ford is cranking up a new, more fuel-efficient, aluminum-intensive version of its F-Series pickup truck.
Sales of some small cars rose.
"Lower gas prices are actually a tide that floats all ships," said Jessica Caldwell, a senior analyst with the car buying site Edmunds.com. Cheaper gas makes small cars more affordable for those who might otherwise be priced out of the market.
Gas prices hit an average of $1.19 (Canadian) a litre across Canada last week, dipping to a low of $1.01 in Edmonton.
The effect of gas prices was less obvious in this market, although light truck sales grabbed 58.1 per cent of Canadian sales last month, up from 55.6 per cent a year earlier. The light truck side of the ledger however, includes crossovers, which are the hottest segment in the country and are more fuel-efficient than their truck-based SUV ancestors.
General Motors of Canada Ltd. reported a surge in sales of the plug-in hybrid Chevrolet Volt along with a 23-per-cent jump in full-sized sport utilities, but a drop in sales of small and compact crossovers.
Toyota Canada Inc. said sales of its subcompact Yaris and two of the three hybrid models in its Prius lineup rose.
Ford Motor Co. of Canada Ltd. maintained first place in the race for annual sales leadership, but a 23 per cent gain by Chrysler Canada Inc. put the Windsor, Ont.-based auto maker in first place for the month.
The Canadian units of the Detroit Three auto makers finished within 158 units of each other. Chrysler sold 22,160, Ford 22,044 and GM 22,002.
Ford faces lawsuit
over sexual-harassment
charges at Chicago plant
By Meribah Knight
November 5, 2014
A lawyer who previously won a large settlement in a sexual harassment and discrimination lawsuit against Ford Motor Co. filed a lawsuit today on behalf of four plaintiffs and "hundreds" of others in similar situations, alleging sexual harassment, discrimination and retaliation occurring at Ford's Chicago assembly plant.
The lawsuit, filed in U.S. District Court in Chicago, alleges that there is a pattern of sexual harassment and discrimination at the Chicago plant that spans more than two decades. The plaintiffs' attorneys are seeking class-action status.
Christie Van, 41, Charmella LeViege, 58, Maria Price, 29, and Helen Allen, 50, the named plaintiffs in the lawsuit, allege that they were regularly subjected to lewd and demeaning remarks directed at their gender and race. They also allege inappropriate physical contact, including groping, fondling and requests for sexual favors. The harassment also took the form of sexually explicit and derogatory graffiti and pornographic images in public areas of the South Side plant, according to the lawsuit.
'MEAT MARKET'
During an hour-long press conference with the plaintiffs and their lead counsel, Keith Hunt of Chicago law firm Hunt & Associates P.C., the women got emotional as they each recounted the alleged harassment they encountered while working at the South Side plant and the "bull's eye" put on them if they reported it. "It's not like work, it's more like a meat market," Ms. LeViege said.
"It's been a total nightmare," said Ms. Van. "I was told to be quiet or I'd be on the outside looking in." Ms. Van claims she called the company's harassment hotline and was given no help. Last year, after reporting claims of harassment, she said she was attacked while leaving the plant. She claims while walking to her car she was pushed to the ground and stomped on and told she was a "black snitch bitch" and that she'd better not return to her job at Ford. The lawsuit stated Ms. Van's assailant threatened that he knew where she lived and would kill her if she came back.
Ms. Van, who has worked for the company since 2006, left the Chicago plant in February 2013, after a year working there. She now works at a different Ford facility in Chicago Heights.
Ms. Allen, a pipe fitter and plumber at the plant, said that when she reported the behavior to the union they told her it was simply "shop talk." Ms. Allen was hired by Ford in 2000 and said she has worked in three other Ford plants, all of which were outside Illinois. The Chicago assembly plant, she says, has a culture all its own. "I have to go back to work tomorrow," Ms. Allen said, shaking her head. "It's scary. I'm very scared."
Ms. Price, a single mother, said she was "groped, felt on and violated in every way," by managers, co-workers and supervisors while on the job. "It's come from every angle," she said.
'A CULTURE'
All but one of the four named plaintiffs still works at the assembly plant on Torrence Avenue. Mr. Hunt said he estimates there are close to 1,000 women working at the plant out of about 4,000 workers total. Incidents of harassment were also outlined in charges filed over the past year with the U.S. Equal Employment Opportunity Commission.
"There is a culture that is endemic at these plants that tolerates and in fact condones these instances of sexual harassment and that is what this lawsuit is attempting to address," Mr. Hunt said.
The lawsuit also alleges instances where managers and supervisors engaged in sexual relations at the company plant during working hours.
Mr. Hunt said in addition to seeking compensatory and punitive damages, among other things, the suit seeks to appoint a federal monitor to supervise the workplace conditions for a period of at least five years, "someone who can be on site, in the workplace and not beholden to anybody at Ford," Mr. Hunt added.
A Ford spokeswoman, Kristina Adamski, declined to discuss the specific allegations laid out in the lawsuit. "Ford is proud to be an equal-opportunity employer and takes reports of harassment or discrimination very seriously," Ms. Adamski said in an email. "Where allegations of misconduct are raised, it is our policy to investigate them thoroughly and take all appropriate steps in response. We cannot discuss the details regarding individual employees' complaints."
PAST SUITS
This isn't the first time Mr. Hunt has brought a sexual-harassment lawsuit against Ford. In 1995, he represented nine women at Ford's stamping plant in Chicago Heights who sued on similar grounds. That case eventually settled for more than $1 million. In 1997 he was part of two consolidated class action lawsuits involving claims of sexual harassment filed on behalf of more than 1,000 women who worked at Ford's Chicago assembly plant and its stamping plant in Chicago Heights. That case was settled in 2000 for $9 million.
Today's lawsuit against the Dearborn, Michigan-based automaker includes hundreds of detailed allegations on behalf of the four named plaintiffs. In a statement, Mr. Hunt, said more than 20 women have filed complaints of discrimination in federal courts, the EEOC and various internal divisions at Ford. Mr. Hunt said he expects to add additional plaintiffs to the suit as it progresses.
"We believe that many more women have been affected but are simply scared to come forward because they fear retaliation," Mr. Hunt said in a statement.
Representatives of the plant's union, United Auto Workers Local 551, were not immediately available for comment.
Ford recalling 200,000
vehicles in five campaigns
David Shepardson,
Detroit News
November 4, 2014
Washington — Ford Motor Co. said Tuesday it is issuing five new recall campaigns covering more than 200,000 vehicles in North America including one linked to a crash and some for airbag issues and fire risks.
The Dearborn automaker is recalling 38,645 2005-2011 Ford Crown Victoria, Mercury Grand Marquis and Lincoln Town Car vehicles in North America for potentially improper repair in a prior recall for an issue with the lower intermediate steering shaft. This improper repair could potentially result in a loss of steering.
Ford is aware of one accident and no injuries attributed to this condition.
Dealers will inspect and replace the upper intermediate steering shaft if necessary. They will also inspect the steering column lower bearing and install a bearing retainer kit if necessary.
There are no other reported crashes or injuries in the other four recalls. Most of the vehicles being recalled are in the United States.
Ford is also recalling 135,000 2014 Ford Flex and F-150 vehicles in North America for a passenger seat sensing issue that could result in non-deployment of the passenger airbag in certain frontal crashes, if an adult is in the passenger seat. This may increase the risk of injury in certain frontal crashes. Dealers will widen the gap between the manual seat frame and seat track assembly, then calibrate the seat occupant classification system.
Ford is also recalling 27,600 2014 Transit Connect vehicles in North America for fuel and vapor line routing issue. If the lines are routed incorrectly, they may rub together, possibly causing a leak in the fuel line over time, which could spark a fire. Dealers will inspect the lines, and reroute and replace the fuel line if necessary. This will be done at no cost to the customer.
Ford also recalling less than 100 2015 Ford Transit vehicles in North America for an issue with the bracket that holds the fuel filter to the frame. It may become detached over time, resulting in a knocking sound or an engine stall due to fuel starvation. An unexpected engine stall while driving, with the inability to restart the engine, may lead to an increased risk of a crash. Dealers will inspect the vehicles and reinforce the underbody structure, if necessary.
Ford is also recalling 950 2014 Ford F-150 vehicles in North America (actual 960) for a brake pedal position switch that may be incorrectly adjusted, possibly resulting in a delay or a non-illumination of the brake lights when the brake pedal is depressed. This is a noncompliance issue with FMVSS 108, which relates to lamps.
Drivers may need to use additional brake pressure to disengage the cruise control system, so Ford is advising customers not to use cruise control until the vehicle has been repaired. The cruise control system off switch on the steering wheel will continue to disengage the system. Dealers will remove and reinstall the brake pedal position switch.
Also Tuesday, Nissan Motor Co. announced two new small recalls in the United States covering about 6,000 vehicles.
The automaker is recalling 5,412 2014 Infiniti Q50 and Q70 hybrids because of a software error, the electric motor may stop working while the vehicle is being driven using the electric motor only. It is also recalling 817 of the same vehicles that may have been assembled with transmissions whose housings were damaged during their manufacturing. Dealers will inspect the transmission assembly and replace it if cracks are found.
Ford Injects $5 Billion
To Save Lincoln
November 3, 2014
By LC Media
Toronto Star
wheels.ca
Ford's new CEO, Mark Fields, has a dream: to see the Lincoln brand rise again and become a worthy rival to Cadillac, Mercedes-Benz and Lexus. To do so, he recently doubled the funds that will be allocated to Ford's luxury division, going from 2.5 to 5 billion dollars over a 5-year period.
According to some rumours, most of this investment will be used to create a new platform that will be used for the brand's next vehicles. It should be able to accommodate front or rear-wheel drive (or even AWD), and we expect that Ford will also use it to underpin some of its upcoming cars and crossovers.
In the short-term, we know that the next Lincoln MKX will hit dealerships in Spring, and will be followed by the new MKS one year after that. 2017 will mark the release of the Navigator, which should be based on the F-150's aluminium bones.
2015 Lincoln MKC a Must-C
Henry Payne
The Detroit News
November 2, 2014
I was born and raised in the South. We southerners like to say Midwesterners are the nicest Americans without a drawl. Take the Lincoln MKC.
This is one friendly vehicle. Walk toward it and the rear LED lights glow, the mirrors open like sunflowers to the sun, the doors unlock as your fingers slip inside the handle. Is it the key in my pocket or you just happy to see me?
What's next? A hug?
That warmth is an asset in a hot compact luxury segment headlined by the ruthlessly efficient Acura RDX and the Teutonic twins BMW X3 and Audi Q3. As early entrants in the segment, the RDX and X3 set the standard for reliability and power.
But the elegant Lincoln and Audi — both new this year — aim for something higher. In fact, they typify why compact SUV is the market to watch. Like the Ford Escape and Mazda CX-5 in the mainstream compact crossover segment, they promise sexy styling and nimble handling that make sedans chew their fingernails. Utes with hot bods? Muscle beach is getting crowded.
That a Lincoln would even turn heads is newsworthy.
Ford's luxury lineup has failed to impress in the sedan and large SUV segments. The MKC is a fresh look in a fresh segment. It succeeds where its siblings have failed. Unlike the MKZ sedan, the C looks athletic. Unlike the MKX midsize SUV, it's a pretty face.
The Escape had already established Ford's Global C platform as a fit chassis. The MKC makes it alluring. Its adaption of Lincoln's winged grille-design language soars. Maybe it's the Halloween holiday, but the MKC's face reminds me of Catwoman's mask. Sexy. Mysterious. A high, nicely-sculpted belt line keeps your stare. Curvy hips — imagine Anne Hathaway's Catwoman — swell over the rear wheels before tapering into the feline superhero's — ahem, Lincoln's — signature, LED-lit tail.
Beauty with sacrifices
Like the Audi A3, the MKC's narrower greenhouse suggests sedan-like elegance. This modification is most striking compared to the BMW X3's bigger, boxier greenhouse. Dare I suggest a BMW looks homely? Only compared to the sleek Lincoln and Audi.
I've been smitten with the Audi line's lines for years, but the Lincoln gives Q3 a run in the swimsuit competition. So pretty is the MKC that it has attracted that hunky, drawling, mumbling Matthew McConaughey as a spokesman for the brand.
Beauty comes with sacrifice, however, as the higher sill line in the MKC and Q3 reduces visibility. The X3 lets the sunlight in. Its C-pillar visibility is superb compared to the Lincoln's tapered, blind rear quarter window.
The Lincoln's beauty is more than skin deep. This lass brings lots of personality.
Come inside the Lincoln's lush, intuitive interior. Detroit's automakers know intuitively that Americans live in their cars. You've heard me applaud the Chrysler 200 as the most driver-friendly midsize sedan. The MKC is the class of small lux. Its interior engineers must eat breakfast, lunch and dinner with customers because they anticipate their needs like a mirror.
Tired of shifter stalks that grow like weeds in the middle of your console? The Lincoln simplifies automatic shifting to five buttons on the dash. This not only conforms to the push-button nature of the console — touchscreen, climate controls — but also frees up the center aisle for more storage space and climbing between seats (how many times have you been hemmed in by a parking garage wall on your left and had to climb over the gear shifter to get out of the passenger side?)
Worried about distracted driving? Like an oversized game console, the MKC locates all of the car's essential functions on four, tidy quadrants of the steering wheel.
Miss the visibility of boxier SUVs? The C offers driver assist features like blind spot assist, park assist, rear camera, even a front collision alert when you approach, say, Cyrus the bull in the middle of the road in that McConaughey ad (he's weirding me out).
This customer care follows you 'round back. Arms full of suitcases? Golf bags? McConaughey DVDs? You can open the rear lift gate with a swing of your foot under the bumper. Once open, a cavernous, vertical space awaits so that you can pile it all in — and still load four pals.
The Audi matches the Lincoln in interior comfort but falls short in usability. It must be a cultural thing. Germans, after all, spend less time in their cars and more time on the throttle. Trying to navigate an address on the Q3's rotary dial-controlled, non-touch screen will drive you to the looney bin. Fortunately, the Q3 will get you there in a hurry.
Comfort over athleticism
The AWD Audi dances like a sports car. Flogging the taut crossover over Hell, Michigan's heavenly roads, I had a ball. This is German personality. Is it what ute-users are looking for? Lincoln thinks not. It extends soft luxury interior to soft exterior ride. Indeed, sister Escape is more athletic than the MKC.
Which takes us to the bottom line.
So confident is Lincoln that you'll love the MKC, it has given it a BMW-esque sticker price. I'm not so confident. Brand in this greyhound-eat-greyhound segment must be earned.
My AWD, 2.3-liter, full-loaded, ruby red, ebony premium-leather MKC came in at a pricey $49,265. Sure, the 2.3-liter Ecoboost's 285 horses will blow you away. But it won't blow away a 2.0-liter Q3's 2.0-liter turbo. Though the Q3's mill possesses just 210 hp, Top Speed.com rates their 0-60 times equal. Yet the loaded Audi stickers for about $40,000.
Lincoln should also worry about the Ford Escape in its rear-view mirror. My Escape-smitten neighbor, the lovely Mrs. Walbridge, was captured by my MKC. She fell in love with its looks. With its center console. With Matthew McConaughey. Then she read the sticker.
Her loaded, comely (if not Hollywood handsome) Titanium Escape matches its lux mate nav-system-for-nav-system, liftgate-kick-for-liftgate-kick, but it set her back just 38 grand. Is the Lincoln lawyer really worth it?
More tempting is the base 2.0-liter, 240-horse MKC which only lightens the wallet to the tune of $44,931. That might be worth that lovely face. And that Midwest-friendly welcome. And the fact that Lincoln is producing world-class luxe again.
Henry Payne is auto critic for The Detroit News. Find him at hpayne@detroitnews.com or Twitter @HenryEPayne.
2015 Lincoln MKC
Vehicle type: Front-engine, front or all-wheel-drive, five-passenger compact SUV
Price: $34,890 base ($49,265 as tested)
Power plant: 2.0-liter inline-4 turbo; 2.3-liter inline-4 turbo
Power: 240 horsepower, 270 pound-feet of torque (2.0L); 285 horsepower, 305 pound-feet of torque (2.3L)
Delegates at last week's UAW bargaining convention, the unofficial opening of negotiations with the Detroit 3, demanded that the car companies return to workers what they sacrificed before and during the recession. 
For his part, Robinson at Ford's Michigan Assembly Plant in Wayne, Mich., says he's optimistic that a fair contract can be hammered out. 
Craig and Reid Bigland, CEO of Fiat Chrysler Automobiles Canada (the former Chrysler Canada), are two intensely competitive people. Craig, a former ski racer, and Bigland, a hockey player, go toe-to-toe in a terrifically raucous business. Bigland would have loved to unseat Ford; Craig was determined to avoid an ignominious fate.
The challenge for UAW President Dennis Williams and his leadership team will be to appease rank-and-file workers, many of whom haven't received a pay increase in 10 years. At the same time, he knows he must keep labor costs for domestic automakers competitive with their non-union, foreign counterparts.
The two-tier wage system has allowed Detroit's Big Three to invest billions into U.S. plants and hire thousands of new employees. But those entry-level workers make substantially less than Tier 1, or legacy, employees who earn about $27 an hour. Tier 2 workers can make a base wage up to $19.28 an hour; that's an increase from the $15.78 they earned in 2011.
Ford debuted the new GT in January at the North American International Auto Show in Detroit to rave reviews. The car will achieve more than 600 horsepower from a 3.5-liter EcoBoost engine and will be built in 2016.
"It was on my mind all the way to work. I couldn't just leave it there and let it sit in the cupboard and not do anything about it. So I took a few pictures before I left [and sent them to the Free Press]."
Buoyed by the recovering economy, lower gas prices and the blistering sales of trucks and SUVs, automakers sold more vehicles in 2014 than in any year since before the U.S. recession. Industry experts expect those gains to continue this year, although the sales pace likely will slow from 2014.
Singer Neil Young may have unintentionally leaked Lincoln Motor Co.'s next new vehicle.
Dearborn — Ford Motor Co. unveiled its next-generation Sync infotainment system, dropping its former software developer along with the MyFord Touch name that has become associated with its oft-criticized early versions.
The Lincoln Motor Co. announced Thursday a 10-year partnership with Revel Audio Systems to add its high-end sound in all of its new cars, starting with the next generation MKX midsize utility.
Ford's 
