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Stellantis files more Luke Ramseth Stellantis NV said Monday that it filed nine federal lawsuits against the United Auto Workers and two dozen union locals late last week as it tries to prevent the union from calling a mid-contract strike over its delays reopening an Illinois assembly plant. The company said the series of lawsuits — which the UAW labeled as "frivolous" — prompted a Saturday meeting with the UAW, where the union proposed reinstituting a concept known as the Jobs Bank. The automaker said it rejected this proposal, because it had been "a contributing factor to the automaker's bankruptcy in 2009," adding such a program would "jeopardize the company's future." The maker of Chrysler, Dodge, Jeep and Ram vehicles filed the first lawsuit Thursday in California, the same day that UAW Local 230 members at Stellantis' Los Angeles Parts Distribution Center became the first local to request strike authorization from the union's International Executive Board. The suit argued a mid-contract strike would be illegal under the terms of the parties' 2023 collective bargaining agreement, and that the court should intervene to prevent one. The company said it filed eight similar lawsuits across the country on Friday, including in Michigan, naming the union and 23 additional locals, as it seeks to prevent any further moves toward one or multiple plants going out on strike. The suits were filed even before many of the locals had held strike authorization votes. The union said Monday that a second UAW local, representing workers at Stellantis' Denver Parts Distribution Center, has also voted overwhelmingly to authorize a strike if needed. In a Monday statement, the company warned that it "will hold the UAW and its locals responsible for lost revenue, which could amount to tens of millions a day, and other damages resulting from lost production due to an unlawful strike." Jodi Tinson, a Stellantis spokesperson, said Monday that more lawsuits were expected to be filed this week. “Stellantis, formerly FCA, formerly Cerberus, formerly Daimler, formerly Chrysler, is following in a long line of failing corporate executives blaming autoworkers for their own mismanagement," UAW President Shawn Fain said in a Monday statement responding to the company. He criticized the automaker for spending money on stock buybacks rather than plant and worker investments in recent weeks. The dispute between Stellantis and the UAW began heating up in August. That's when the UAW warned that its Stellantis locals across the country were filing grievances with the company over its delays reopening the Belvidere Assembly Plant in Illinois — commitments outlined in the 2023 labor contract after thousands had been laid off from the plant in recent years. The union warned that the grievance process, if unresolved, could ultimately result in a national strike. In addition, UAW locals more recently filed grievances over concerns that Stellantis could be aiming to move production of the Dodge Durango from the Detroit Assembly Complex to a plant in Canada, which the union says would also violate the contract. Both the company and union have been communicating their arguments directly to their employees and membership, respectively, in recent days. A Stellantis executive sent an email to U.S. employees Friday stating the company isn't canceling its Belvidere plans, but needs to delay them due to current market challenges, including a slower transition to electric vehicles than anticipated. UAW leaders also sent a note to members Friday calling the company's efforts an "all-out misinformation campaign in an attempt to scare and confuse us," adding that officials have "complete confidence in our right to strike." There have also been robocalls and Facebook livestreams, as both sides seek to make their case. Stellantis said during the Saturday meeting, the UAW proposed reinstating the Jobs Bank for laid-off employees at Belvidere, as well as "approximately 900 employees who transferred from Belvidere and are working at other locations." But the company "rejected the UAW's latest proposal because it would revert to prebankruptcy terms and conditions that would jeopardize the company's future." Tinson said the proposal was "just not a good idea" as it would mean about 1,800 former Belvidere workers would be paid not to work. Such a proposal is "not sustainable for the company," she said. “Everyone knows the so-called ‘jobs bank’ didn’t cause the 2008 bankruptcies, and autoworkers aren't responsible for CEO Carlos Tavares' mismanagement today," Fain said in a statement. "We are asking that Stellantis keep their contractual commitments and do right by Belvidere autoworkers and autoworkers across the country. If they can’t do that, then the only answer is for autoworkers to join with dealers, suppliers, and shareholders in demanding that Carlos be (fired).” The Jobs Bank was first implemented in the mid-1980s by General Motors Co. and later adopted by Ford Motor Co. and Chrysler, Stellantis' predecessor. Its aim was to protect workers from plant shutdowns and layoffs, and allowed workers to collect most of their pay and benefits even without working, sometimes for years. Kevin Gotinsky, the UAW's Stellantis department director, said the proposal was reasonable. "The jobs bank program offered non-production work to members whose jobs had been outsourced," Gotinsky said in a statement. "If Stellantis lives up to its commitments and reopens Belvidere Assembly and builds the Belvidere parts Megahub, our members will be back to work soon and the cost to the company will be minimal. "These employees can and are willing to perform work today," he added. "That is all they want, to have a future and be able to provide for their families as agreed to in our contract.” |
Ford Claims Consumer Blind Story by Kathrine Frich Ford has made a bold statement regarding the challenges of electric vehicle (EV) adoption. Marin Gjaja, the director of operations for Ford's electric vehicle division, Model e, claims that the primary obstacle isn't the vehicles themselves but the misconceptions held by potential buyers. Gjaja asserts that consumers often misunderstand the benefits of EVs, leading to skepticism about their viability. Ford anticipates losses between $5 billion and $5.5 billion in 2024 for its electric division, underlining the urgency of addressing these perceptions. Many potential buyers remain tied to outdated beliefs about electric vehicles, fearing a loss of convenience compared to traditional cars. Common concerns include range anxiety, upfront costs, and the availability of charging stations, according to Motor. However, Gjaja emphasizes that these worries are often unfounded. For instance, EVs can be charged at home, which eliminates the need for frequent trips to gas stations and ensures drivers start their day with a full battery. Launches Digital Training Platform Models like the Ford F-150 Lightning offer unique features, such as the ability to serve as a portable generator, making them invaluable during emergencies or outdoor activities. To combat misconceptions, Ford has launched Ford University, a digital training platform that employs artificial intelligence to educate both employees and customers about the advantages of electric mobility. Gjaja explains that it's not enough to address the economic concerns of EV ownership; changing consumer behavior is crucial as buyers often weigh perceived losses, like range, more heavily than potential gains, such as maintenance savings. Despite these initiatives, the pace of electric vehicle adoption has been slower than expected. While sales of Ford's electric models have surged by 58% this year, the company has opted to delay new model launches and scale back investments in specialized EV dealerships to align with market realities.
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Ford to cover cost of home Breana Noble In an effort to boost sales, Ford Motor Co. will cover the cost of a home charging station and its installation starting Tuesday through the end of the year for customers who buy or lease a new electric vehicle. EV sales aren't growing as quickly as the industry had expected. Affordability, availability of charging infrastructure, battery health and convenience remain barriers to EV adoption. Covering the expense of getting a Level 2 charger for customers of Mustang Mach-E SUVs or F-150 Lightning trucks to refuel at home helps to address some of those obstacles, said Martin Delonis, senior manager of strategy for Model e, Ford's EV division. "An electric vehicle fills up when you're not paying attention — passive fueling overnight like charging a smartphone," he said during a virtual briefing on the program. "It's hard for anyone to understand a convenience that didn't exist before. Only half the people we talked to recognize that it was easier to fill up at home and wake up ready to go every day. There's an efficiency there that's not realized, and it takes time to understand it." Ford didn't provide an exact number for the total value of the "Ford Power Promise" fourth-quarter promotion. The charger included is the Ford Charge Station Pro, which retails for $1,310. Installation can cost several hundred dollars more. Customers who already have a charger or are unable to install a charger if, for example, they live in an apartment can receive a discount of up to $2,000 on a new EV over the course of the promotion. Ford Pro fleet customers who purchase the all-electric E-Transit commercial van or another EV will receive a commercial charging cash incentive, Ford CEO Jim Farley wrote in a LinkedIn post. "Filling up at home with electricity can be a significant cost save for many owners compared to filling up with gas. Problem is nearly half of them don’t know how home charging works," he wrote. "Our industry seems to want to answer these questions in a time-honored way — cash on the hood. Cheap lease deals on electric vehicles are popping up everywhere. Ford believes it will take more than jumbo rebates to truly break through with the estimated 19 million people in the U.S. interested in electric vehicles. It will take — you guessed it — convenience, peace of mind and expert service. It will take a modern-day version of the friendly filling station, only this time you 'fill ’er up' at home." Ford customers who already have purchased an EV before Tuesday are ineligible for the promotion, unless they buy another. Ford is working with its charging installation partner, Qmerit. The program covers standard installation, which supports up to an 60 amp circuit and 80 feet of wire run. The charger doesn't use a NEMA 14-50 outlet. If a customer's home requires a panel upgrade, the customer would be responsible for covering the difference for that. The Ford Charge Station Pro can add up to 30 miles of range per hour for the extended-range F-150 Lightning truck, according to Ford's website. Customers can schedule a charge in the FordPass app. The charger also offers bidirectional charging so that if a customer's electricity goes out at home, the EV's battery can send stored energy to power it. U.S. EV sales for Ford, which sells the second-most electric models in the country behind Tesla Inc., were up 58% year-over-year through August. Ford will report third-quarter sales on Wednesday. Chevrolet has offered promotions to cover home charging installation on the purchase or lease of a new 2022 or 2023 Bolt EV or Bolt EUV. The Ford Power Promise also seeks to educate customers on other benefits of buying a Ford EV, said Becca Anderson, senior director for Ford Model e customer success. The Blue Oval Charging Network has more than 75,000 EV chargers; the automaker is shipping adapters that customers can use to charge with Tesla's Supercharger network, and Ford offers an eight-year, 100,000-mile warranty on its EVs' batteries. Additionally, it has a 24/7 EV support line accessible by text or phone. "Shoppers worry about, range, charging, battery health," Delonis said. "These are concerns of owners. This tells us that there's a tremendous perception gap to bridge, and shoppers need help crossing it to make an electric vehicle a real option for fence-sitters. We need to close the gap between perception and reality." |
CPP Pensioners: You’re Story by Andrew Button Did you know that your Canada Pension Plan (CPP) benefits increase slightly every year? Or at least, most years. The CPP payout is indexed to inflation, meaning that the more the cost of living goes up, the more your CPP goes up. The increases are generally incremental, but in years of elevated inflation, they can be large enough to be noticeable. That’s significant because, ever since the beginning of 2022, inflation across Canada and the Western world has been elevated. In 2022, both Canada and the U.S. experienced inflation rates that approached double digits. Inflation has come down since then. However, the 2.5% year-over-year increase observed in the last month for which we have data, was still substantial. The recent, elevated levels of inflation have bearing on how much CPP you will get next year. In this article, I will explore how much your CPP is likely to increase next year due to this year’s increase in the CPI. How the cost-of-living adjustment is calculated The CPP cost-of-living adjustment is calculated based on the prior year’s inflation rate. “Inflation” here means the percentage increase in the Consumer Price Index (CPI) from November two years ago, to October last year. This fact creates some confusion because the “year” here is not a standard calendar year, nor is it the Federal Government’s fiscal year (April 1 to March 31). The reason Statistics Canada uses November 1 to October 31 for calculating the CPI increase is because data sometimes has to be revised. So, the agency needs to use an “early” period in order to publish the data in a timely fashion. Once the StatsCan report is live, the CPP Board can calculate the inflation adjustment. How much you’ll get in 2025 We still don’t have all the CPI data for the November 2023 to October 2024 period, so we can’t say with certainty how much CPP payments will go up in 2025. However, inflation over the last 10 months accounted for 83% of the total inflation for the period that will eventually be reported, and averaged about 3%. So, it’s likely that CPP payments will go up 3% next year, unless there is an unexpectedly large change in the CPP in September and October. |
The pros and cons of The popular advertised ‘pro’ is that you do not have to make any payments on the mortgage loan for as long as you own the home, but the compounding interest accumulates, which can rapidly increase the loan balance. Additionally, this could reduce home equity, potentially limiting inheritance or future financial flexibility. The money you receive is tax-free and doesn’t affect your ability to access the Guaranteed Income Supplement (GIS) and the funds can be used any way you wish. When the home is sold or you die, the loan is due with accrued interest, which never exceeds the value of your home. However, there are rules on who can access a reverse mortgage and how much money you can borrow: you must be aged 55 or older, and it must be registered on a principal residence. The funds available are restricted by the home’s value, location and type of structure. Funds are not available over 55% of the value of the home, depending on your age, with the average loan about 30-35% of the home’s value, condition of the real estate market and lender-specific criteria. All existing mortgages and home-equity loans must be discharged so that the reverse mortgage is the first payee. A major ‘con’ is that reverse mortgages are expensive with interest rates 3-4% above regular mortgages and 2-3% above home equity line-of-credit rates, although these rates may vary by province and lender. Other costs include up-front costs which may include property appraisal costs, legal advice and set-up costs for this loan. Although monthly payments seem convenient, you still pay compounding interest, added to the growing loan balance, or you might pay monthly so the total does not increase. Alternatives include a regular mortgage, a Home Equity Line of Credit (HELOC), and this would be ideal to set up before you retire, by setting up a ‘collateral charge’ essentially an overall credit basket containing both a mortgage and line of credit component. As the mortgage reduces, the line of credit grows. Many choices await seniors, and it is wise to calculate what is needed and the time frame for future needs. Financial advice from a mortgage agent, the importance of consulting both financial planners, estate advisors and mandatory Independent Legal advice, which are crucial steps before entering into a reverse mortgage, is always prudent. |
Workers at GM's CAMI Kalea Hall Autoworkers at General Motors Co.'s CAMI Assembly plant in Ontario on Sunday overwhelmingly approved a new two-year contract between the company and Unifor, the union representing them, that provides pay increases and eliminates what the union called "a historic pay lag" with other Canadian GM employees. Having a two-year deal will put CAMI workers, who approved the deal with 95.7% voting yes, on the same timeline as other Unifor-represented GM employees, who approved new contracts last year. The 2023 GM-Unifor deal, covering GM workers at Oshawa Assembly truck plant, St. Catharines Powertrain plant and Woodstock Parts Distribution Centre, came with wage increases, a reduced progression timeline to get to the top rate, and bonuses. “For the first time Unifor has successfully negotiated a two-year contract term that will align CAMI members with the union’s Detroit Three negotiations to combine the future bargaining power of more than 5,600 GM members," Unifor National President Lana Payne said in a statement. "Never again will CAMI members have to wait to play catch-up on wages and benefit improvements." The new CAMI contract provides three years of wage gains, patterned from the Detroit Three negotiations last year, into the two-year life of the agreement. It includes 15% wage increases for production workers and 20.25% for skilled trades workers. Workers will immediately receive a 10% pay increase with a 2% increase in September 2025 and an additional 3% increase in July 2026. Unifor Local 88 represents more than 1,300 members at CAMI Assembly and Battery Assembly, where they make the Chevrolet BrightDrop EV 600 and EV 400 delivery vans and Ultium battery modules. GM recently brought the BrightDrop electric delivery vans under the Chevrolet brand to expand their reach. “CAMI workers have been trailblazers in the EV transition and our bargaining committee was determined to bring home the wage increases, pension improvements and income replacement measures to protect them during this evolution and position them for the future,” Unifor CAMI Plant Chairperson Mike Van Boekel said in a statement. GM Canada President and Managing Director Kristian Aquilina said in a statement that the company is "pleased our team members at CAMI Assembly, the manufacturing home of the Chevrolet BrightDrop electric van, have ratified a new agreement that supports our employees and our business. I am excited by the opportunity ahead as BrightDrop joins the Chevrolet brand, further strengthening GM’s commitment to electric mobility. Our vehicle production and battery-module assembly operation at CAMI helps position GM as a leader in Canadian EV supply chain development, manufacturing and export. " Unifor’s next round of negotiations with the Detroit Three will take place in the fall of 2026. The CAMI deal's highlights include:
Local 88 Contract Brochure Sept 2024 - Download here |
GM, Unifor reach tentative Kalea Hall General Motors Co. and Unifor, the union representing autoworkers in Canada, reached a deal early Wednesday on a new agreement for the CAMI Assembly and battery assembly facilities. Specifics on the agreement, which was announced after 3 a.m., weren't disclosed. Details will first be released to union members of Local 88 at a Sunday, Sept. 22, ratification meeting. Before the previous contract expired at 10:59 p.m. Tuesday, GM and the union extended the bargaining deadline and continued negotiating through the night. GM and Unifor kicked off negotiations last week for a new agreement. Unifor Local 88 leaders, representing workers at the country's first large-scale EV assembly plant where Chevrolet BrightDrop electric vans are built, likely sought to follow the pattern set by the union during 2023 bargaining with GM, Ford Motor Co. and Stellantis NV. The 2023 GM-Unifor deal, covering GM workers at Oshawa Assembly truck plant, St. Catharines Powertrain plant and Woodstock Parts Distribution Centre, came with wage increases, a reduced progression timeline to get to the top rate, and bonuses. More than 1,100 union members work at CAMI Assembly building the newly rebranded Chevrolet BrightDrop EV 600 and EV 400. About 200 members work in battery assembly at the plant. “We had very clear goals heading into bargaining set by our members and I believe that we have reached a tentative agreement that reflects those goals," Unifor Local 88 Plant Chair Mike Van Boekel said in a statement. "I want to thank our members for their support and solidarity throughout bargaining and our entire negotiating team for working around the clock to secure a contract that we can be proud of." In a statement, GM Canada said: "This agreement, subject to member ratification, recognizes the many contributions of our represented team members with significant increases in wages, benefits and job security." |
GM, Unifor enter talks for new Kalea Hall General Motors Co. and Unifor, the union representing Canadian autoworkers, kicked off negotiations for a new agreement that will seek to ensure stability amid the ups and downs of the electric-vehicle transition for 1,300 workers who build electric delivery vans. Unifor Local 88 leaders, representing workers at the country's first large-scale EV assembly plant where Chevrolet BrightDrop electric vans are built, plan to follow the pattern set by the union during 2023 bargaining with GM, Ford Motor Co. and Stellantis NV. The 2023 GM-Unifor deal, covering GM workers at Oshawa Assembly truck plant, St. Catharines Powertrain plant and Woodstock Parts Distribution Centre, came with wage increases, a reduced progression timeline to get to the top rate, and bonuses. Unifor, after shutting down for months for battery module supply issues, will also push for job-security assurances as GM works to build demand for the now Chevrolet-branded electric vans. The CAMI agreement expires Sept. 17. CAMI previously produced the gas-powered Chevrolet Equinox before GM invested $1 billion there for electric van production. GM introduced BrightDrop in 2021 as a startup that would generate billions in revenue. The first BrightDrop vans came off the assembly line in December 2022 and since then the workforce has experienced fluctuating production schedules. In 2023, GM brought BrightDrop under GM Envolve, the company’s fleet business, which was formed in May that year. Production of the BrightDrop vans halted in October as GM dealt with a battery module supply issue. The plant restarted in the spring operating one shift, with two groups of employees working two weeks on and two weeks off. GM announced last week it's bringing BrightDrop under the Chevrolet brand. In addition to the vans, about 300 CAMI workers make battery modules for the BrightDrop vans and EVs built at other GM plants. In a statement, GM said it's "committed to working with our Unifor partners to reach a mutually beneficial agreement." “Our members at CAMI are on the frontline of the EV transition in Canada, and Unifor will fight to protect the good union jobs and secure the future every autoworker was promised,” Unifor National President Lana Payne said in a statement. “These negotiations will focus squarely on securing workers the economic stability our members deserve and that includes aligning CAMI workers with the rest of our GM membership to eliminate the historical lag in wage increases and other negotiated benefits.” Unifor Local 88 members at CAMI overwhelmingly support a mandate to strike if necessary, with 97% voting to support strike action if an agreement is not reached before the deadline set for 10:59 p.m. Sept. 17. Unifor CAMI Plant Chairperson Mike Van Boekel in a statement said the union's "focus remains on obtaining a contract that gives our members a good, predictable income, allows them to retire with dignity and offers opportunity to the next generation of autoworkers." The GM-Unifor three-year deal reached last year provided base hourly wage increases of nearly 20% for production employees and 25% for skilled trades workers over the lifetime of the agreement with increases of 10% in year one, 2% in year two and 3% in year three. By the end of the pact, a top-rate production assembler will be paid $44.52 Canadian per hour, in addition to a forecasted $1.61 cost of living allowance for a total $46.13 per hour wage. A journeyperson skilled trades worker will be paid $55.97 per hour, which will increase to $57.58 with COLA. GM also agreed to cut in half the time it takes to get to top wages to four years, and provide a $10,000 productivity and quality bonus for full-time employees (including current temporary full-time employees), as well as a $4,000 bonus for temporary part-time employees. |
More than gas: Find out Breana Noble Ford Motor Co. on Thursday said its U.S. sales in August rose 13% year-over-year, as freshened trucks and SUVs supported growth for the month. The Dearborn automaker sold 182,985 vehicles in August with the automaker saying it secured a 12.6% market share to be the best-selling brand for a second consecutive month. Sales are up 4.3% through the first eight months of 2024. August tends to be a big selling month as automakers offer incentives to get current-year models off dealer lots as the new model year launches. Cox Automotive Inc. was forecasting a seasonally adjusted annual sales pace of 15.4 million vehicles. At Ford, all vehicle categories by type and powertrain saw growth in August: Trucks were up 12%, SUVs grew by 14%, the Mustang coupe increased by 55%, hybrids were up 50%, electric vehicles rose by 29% and gas- and diesel-powered vehicles were up 9.9%. F-Series trucks, the country's best-selling nameplate whose refresh launched earlier this year, surpassed 70,000 monthly sales for the first time this year. That represented a 12% sales increase from the same month in 2023. Included in that is all-electric F-150 Lightning sales, which rose 161%. The F-150's hybrid model was up by 46%. For midsize trucks, Ranger sales rose 174% after the launch of a new model this year. Sales of Maverick, which is getting a refresh for 2025, rose 24%. Maverick's hybrid version grew by 67%. Ford brand SUVs were up 9.8% in August. Deliveries of the updated Explorer began last month, securing a 97% increasing in monthly sales. All-electric Mustang Mach-E sales rose 6.1%, notching its third best sales month since its launch in 2021. Escape sales rose 10%, and the Bronco Sport, which gets a refresh for 2025, was up 9.3%. Sales of the larger Bronco fell by 3% and the Expedition by 18%. Meanwhile, sales of the Ford Transit commercial van fell 8.5% in August. That included a 6.7% of the all-electric E-Transit. Ford recently said it will launch a new all-electric commercial van in 2026 in Ohio. Sales at the Lincoln luxury brand rose 49% in August. The new Nautilus saw a 57% increase, its best August sales performance in 17 years. Of that, 48% of the models sold were hybrid. The updated Aviator began hitting dealer lots in July, and sales were 45 times greater in August than a year ago. Corsair sales fell 17%. Navigator sales were down 2.2%, though the SUV is getting a refresh for 2025 to complete a fully freshened Lincoln lineup since the 2023 Corsair. General Motors Co. and Stellantis NV report U.S. sales on a quarterly basis. In August, U.S. sales of Honda Motor Co. Ltd. rose 25%, Kia Corp. increased by 4%, Subaru Corp. was up 12% and Mazda Motor Corp. grew by 37%. |
'Built wild': Bronco Sport Breana Noble Ford Motor Co. is leaning into what it sees as an underserved market with a refresh on the Bronco Sport for 2025 with expanded availability of the Sasquatch off-road package, updates to its technology and new features to tackle adventures. Since it launched for the 2021 model year, Bronco Sport has attracted buyers looking for an SUV capable of off-roading, but at a more accessible price point than its larger sibling. Ford has carved out a niche in the segment, and it's taking advantage of that advantage among a crowded marketplace of SUVs, the team behind the vehicle said. Orders for the new model year open Monday with deliveries beginning in November from its plant in Hermosillo, Mexico. Ford will share pricing at a later date. The 2024 model starts at $29,795. "When we relaunched Bronco Sport in 2020, we started to reach a part of the market that a lot of people didn't think existed," said Michael Weller, brand manager for the vehicle. "Our customers seek out challenges. They want to climb that mountain or go down that more challenging hiking trail, because accomplishing that and achieving that gives them this great sense of satisfaction. "... 'These people don't buy small SUVs' was the conventional thinking," he continued, "because nothing really existed that appealed to them. So we gave them Bronco Sport, and we're really reaching these buyers." Weller pointed out that Bronco Sports are from full-size pickup trucks, not SUVs. He said Bronco Sport owners go off-roading three and a half times more frequently and fishing two times more often than drivers of other small SUVs. Bronco Sport U.S. sales are down 3.8% through July. The volume still is more than the larger Bronco, whose plant was hit by last year's United Auto Workers strike. The baby Bronco also achieved the top spot for small SUVs among 18 models for initial quality by J.D. Power. "We wanted to make sure we would meet all of our durability and robustness ... requirements," said Eddie Khan, vehicle engineering manager, noting that developers visited more than 50 off-road venues to speak with customers about their experiences with the SUV. "We have tested more than 600,000 miles on durability testing on these vehicles during the process of development on various terrains and various locations." Bronco Sport gets new front and rear bumpers with steel bash plates equipped with "Bronco Bolts" detachable by an Allen wrench to accessorize with brush bars, driving lights or mounts for dune flag. There are two hooks in the front and cast D-rings in the rear. A front brush guard is standard, and the vehicle also has steel skid plates. There isn't an electrified option for the Bronco Sport. Weller said the automaker has seen customer interest and "anything's possible in the future," but an electrified Bronco Sport would have to meet the brand's performance requirements. "We've got to do it right," he said. Previously available on the 2-liter Bronco Sport Badlands model, the Sasquatch package is being expended to the 1.5-liter Bronco Sport Outer Banks trim. Sasquatch models will be available in the first quarter of 2025. The package offers a twin-clutch rear-drive unit and locking rear differential to better handle rugged terrain. Ford and Goodyear also developed larger 29-inch 235/65/R17 Territory All Terrain tires adapted from the Bronco with an open-tread design and reinforced sidewalls to provide better traction. The 2-liter engine has capacity for up to 2,700 pounds of towing. Bilstein rear shocks with position-sensitive damping and piggyback reservoirs replace Bronco Sport Badlands’ standard monotube off-road dampers to better absorb impact at higher speeds. New front and rear springs increase ride height four-tenths of an inch over the current Bronco Sport Badlands, while the Sasquatch model has up to up to 8.3 inches of front suspension travel and 8.7 inches of rear suspension travel, an increase of six-tenths of an inch. The Sasquatch package also augments Ford's Sand GOAT Mode, Goes Over Any Type of Terrain, with a new Rally Mode focused on holding gears longer at higher speeds in sand to boost power on-demand, sharpen the throttle response and increase feedback through the vehicle's steering. Every Bronco Sport will come standard with a new Off-Road GOAT Mode. "It's built wild in line with with the Bronco brand tenets," Weller said. Bronco Sport Trail One-Pedal Drive also joins Trail Control for rock crawling, allowing the driver to use only the accelerator pedal to control the speed of the vehicle. Easing off the accelerator engages the brakes and releasing it brings the vehicle to a halt. The lower-trim Bronco Sport Big Bend has an off-road option, as well, with the new Black Diamond Off-Road package. Like Sasquatch, it adds four recovery points, up to 2,200 pounds of towing capacity and additional steel underbody protection. Inside, Bronco Sport gets a 13.2-inch center display, up from 8 inches on the current model. Powered by the Sync 4 infotainment system, the vehicle's software is updateable over-the-air and supports wireless Apple CarPlay and Android Auto. A 12.3-inch driver digital instrument display includes Bronco Raptor-inspired animations that appear when the GOAT mode changes. Likes its larger sibling, the Bronco Sport is available with an "Bring Your Own Device tray" located atop the dash behind the center display that has two USB-C inputs. It's designed with a GoPro in mind, but also can hold a phone, wallet and keys. The front passenger also gets a new counsel-mounted grab handle. "Bronco is about modularity and ease of accessorization," Weller said, "and we lean into that heavily with the 2025 update." New exterior colors include Velocity Blue and Ruby Red Metallic. Outer Banks has a new Platinum Blue interior theme, and Badlands Sasquatch is noted with yellow stitching. Safety systems in Ford Co-Pilot360 Assist+ are standard. The 2.0 package optional on the Bronco Sport Outer Banks and standard on the Bronco Sport Badlands adds a 360-degree camera with Trail View to show tire overlays automatically in Off-Road and Rally modes as well as Split View that shows the front tires. It also includes Reverse Brake Assist and Speed Sign Recognition. Ford on the Sasquatch models also added four auxiliary switches under the hood in the dash to power on and off attached devices like camping lights, addressing what Khan said had become a "cumbersome" issue with the current model. On Outer Banks Sasquatch, Badlands and Badlands Sasquatch models, new integrated tie-downs can help secure rooftop loads like kayaks or paddleboards. Rated to up to 150 pounds, they stow in the fenders. "We as a team went out for camping, we had a kayak, and we really had a very difficult time to find a suitable tie-down point in the front of the vehicle," Khan said. "And that came about the idea of introducing something in the fender to tie it down." |
Ottawa is imposing tariffs by Uday Rana Ottawa is imposing higher tariffs on electric vehicles made in China, along with a higher tariff on Chinese steel and aluminum. Some experts are warning that in the short term, buying an EV could get costlier for some Canadians. Speaking at the Liberal cabinet retreat, Trudeau said, “Shortly, we will be introducing a 100 per cent tariff on Chinese-made electric vehicles and a 25 per cent tariff on Chinese steel and aluminum.” He said this was being done to spur EV manufacturing in Canada. The announcement brings Canada in line with recent U.S. trade policy changes. President Joe Biden announced in mid-May that he was hiking tariffs on Chinese EVs from 25 per cent to 100 per cent this year. Erik Johnson, senior economist at BMO Capital Markets, said Canada had little choice but to align with the U.S. seeing as nearly 80 per cent of the cars made in Canada are sold south of the border. “If you were to do anything that might jeopardize your very strong market access to the U.S. economy, that would potentially be devastating to an industry,” he said. In June, Finance Minister Chrystia Freeland told reporters that the federal government was concerned by “unfair” Chinese trade practices in the electric vehicle manufacturing sector. Freeland announced the start of a consultation process. Freeland in her June announcement had indicated what the restrictions might look like. “The potential policy actions we are consulting on include a surtax on imports of Chinese EVs under Section 53 of the Customs Tariff Act, changes to which cars are eligible for the existing federal incentives for Zero Emissions Vehicle Program, and potentially broader investment restrictions in Canada,” Freeland said at the time. Chinese-made EVs occupy a very small segment of the Canadian market, Johnson said, however Chinese automaker BYD has been looking to expand to the North American market by way of a manufacturing facility in Mexico. Well, Canada has attracted significant investments in the electric vehicle Two of the most popular EVs in Canada -Tesla Model Y and Tesla Model 3 - are both produced by the U.S. maker in its Chinese facility. “That really would be the core product segment that's going to feel the immediate impacts when these tariffs go into play,” he said. However, he said that could change if Tesla moves its facility out of China. Moshe Lander, an economist at Concordia University, said even if Tesla moves out of China, there’s no guarantee that the company is going to move to Canada and spur manufacturing here. “It's not like all of a sudden Tesla are going to say, well, I guess we better relocate to Canada now because there's 100 per cent tariffs on China. We're talking about a very large company that has its choice of anywhere to operate in the world,” he said. Lander said a surtax of 100 per cent gives Canadian manufacturers more leeway in raising prices. “Canadian manufacturers now have cover to increase their prices,” he said. “If you're going to have to pay a 100 per cent tariff on Chinese imported EVs, then why can't a domestic producer increase their price by 50 per cent, 75 per cent or 99 per and cent say it's still a better deal than if you're going to get [one] from China?” Johnson said the federal government would hope that the tariffs would give local manufacturers time to catch up to Chinese competitors and encourage foreign players to manufacture in Canada. BYD already has an electric bus manufacturing facility in Newmarket, Ont. However, he said Canada’s EVs sector was facing its own set of issues. In July, American auto giant Ford said it was going to continue to manufacture gas-powered trucks at its Oakville, Ont., facility, despite the provincial and federal governments pushing for more EV development and spending billions of dollars to attract electric automakers to Ontario as part of a bigger push to build those industries. Johnson said while EV sales might take a hit in the short term, consumers are like to shift to other alternative fuel vehicles like hybrids. “We're seeing hybrid sales certainly do very well this year in both Canada and the United States,” he said. Johnson said given the cost of living crisis, the Canadian consumer could also be turning away from larger vehicles, preferring compact and subcompact cars instead of SUVs. “One of the things that we're seeing consumers do in the current cost of living environment is they're trading down size,” he said. “I might be willing to compromise a little bit more on size if it means one saving on the price point, but also have a lower operating cost of that vehicle.” |
This Was Not A Great Week Story by Patrick George Let's game out what this week's news meant for the EV transition at Ford, GM, Volkswagen and Hyundai. Plus, Volvo has big plans for EX90. Sometimes, when I look back at the commitments many so-called "legacy" automakers made to go fully electric and software-powered one day, it feels like all of them thought: "How hard can it be, right?" As we saw this week, the answer is "very hard." And one day, we may all look back on 2024 as the most chaotic year of the transition to a cleaner and For this Friday edition of Critical Materials, our morning roundup of news about the EV transition and technology, I want to look back at some wins and losses from several of the big players and parse out what it means for what's next. Let's face it: this was not a great week for several big, legacy automakers trying to figure out what's next. We'll start with Ford, since that was the big one. A few years ago, Ford decided to separate out its sales and financial results into three divisions: EVs, traditional gas vehicles and its commercial operation. At least one goal was to "unlock Tesla-like value," to drive up the stock price by showing investors—who care about the future—that it was progressing like a big tech company. It hasn't worked. Instead, the continual losses of the electric Model e division kind of made Ford a punching bag. Every quarter and at least once a year, the headlines and investors gripe about the billions in losses and mounting costs around going electric, even if that is to be expected for ramping up an entirely new supply chain and manufacturing ecosystem. It turns out the investors care about their future, but also want their money right now. Those losses, and the newfound belief that battery costs won't ever make big electric SUVs and trucks truly viable, meant a strategy shift this week: Ford is canceling a three-row electric SUV, pushing back a new electric truck and focusing on hybrids instead. As my colleague Kevin Williams pointed out, this means that besides a new electric commercial van, Ford won't have any new EV models until 2027. That's three years away; three years ago, I'd wager most of the vehicles we write about on InsideEVs didn't exist yet. There are two ways to read Ford's news this week. The generous read is that Ford is doing what it can to keep investors happy, as any publicly traded company must; that the truly telling move is that Ford isn't slowing down on battery plant investments; and that it may well be right about hybrids being a better solution for bigger vehicles. But if you want to go glass-half-empty, then we could look at this week as the one where Ford began its transition to just being a gas-powered truck company someday—one that could never make EVs work in volume and will be a kind of John Deere-type company in the subsequent decades. Give Ford an excuse, in other words, and it will take the easy way out. Market realities are one thing, sure. But so far, Ford's path to EV profits seems dismal. It needs a reset, and pushing those products back to the latter half of this decade—where it may even have to compete with China's automakers in America—is a huge gamble. Then we have Volkswagen, the original "pivot to EVs" automaker. The long-awaited ID. Buzz is finally coming to America after a development cycle that makes a new Tesla look punctual, and the price and specs just do not feel competitive. And after "indefinitely postponing" the ID.7 sedan for America, Volkswagen has in the pipeline... what, exactly? More mainstream-looking EV models coming, we think, but again, not until the latter part of this decade. And then it may have tougher competition than ever. Ford, thankfully, is not VW, which only has around 4% market share in the U.S., still lacks a strong brand identity here and just doesn't have that compelling of a lineup beyond the ID.4 (which, admittedly, is better than ever) and the GTI and Golf R. We are getting to a point where it's worth asking if the U.S. market needs the VW brand at all; it had better have an answer to that before the day comes when it has to go up against BYD and the like on our shores. Next up is General Motors, which is actually in the midst of a pretty good year for EV releases and sales. But it still laid off 1,000 software and services employees this week in an effort to "streamline" operations and, based on all we've heard, reduce bloat and bureaucracy. Again, the generous read is that under its new software leadership, GM is taking steps to focus on power-hitter hires and be the best in the game; the less generous read is that it still hasn't figured out its software game. And 1,000 software engineers say they were "thrown onto the curb like useless trash." It's just very unfortunate. You can't expect car companies to make unprofitable products forever, and sure, they're all reckoning with rapidly changing buyer tastes—people want plug-in hybrids now, actually!—in a capital-investive environment that takes years of planning and development. Yet it does feel like many of them should've figured this out by now. And it's only fair to begin wondering if they ever can, or if the plan is to just pivot back to gas cars like they've always done. So what are the two exceptions I put in that headline? Well, Hyundai Motor Group (whose executives have claimed to us that their EVs are profitable) is now the no. 2 EV seller behind Tesla in the U.S. And BMW just outpaced Tesla's EV sales in Europe. True, both situations were "helped" by Tesla's lost sales momentum. Still, both are remarkable achievements. One Honda executive is probably right: you can't force people into EVs. But in the next few years, we'll find out who's actually serious about making the technology of the future work, and who just expected customers to show up like they always have. 60%: Volvo Needs A Win With The EX90 That was a long time to charge up to 30% (Critical Materials is an old Nissan Leaf today) so I'll be quicker on these next two items. You'll read a full review of the new, electric Volvo EX90 from Deputy Editor Mack Hogan next week, but make no mistake: this is a big deal for the Geely-owned Swedish brand. From Automotive News, which begins with Volvo's sliding electric sales: But Michael Cottone, Volvo Cars' U.S. boss, hopes to change that trajectory with a pair of next-generation crossovers that will bookend the brand's EV lineup and reach crucial new audiences. At the top end is the new three-row EX90 flagship expected to glide into stores in late 2024. It will be followed by Volvo's most compact and least expensive model — the EX30 crossover — in the second half of next year. "[The EX90] is the first car that we will have launched and developed outside of Europe in our company's almost 100-year history," Cottone said at an Aug. 21 media event in Southern California. "This car was designed for the U.S. market and then built in the U.S. market." [...] Volvo dealer Matthew Haiken said the EX90 will resonate because it is an evolution of a familiar design. The new model has the DNA of the XC90, which Haiken said has become a classic like the Range Rover or Porsche 911. "Most EVs look like computers on wheels," said Haiken, owner of Prestige Collection, which operates Volvo stores in East Hanover and Englewood, N.J. "The EX90 is the antithesis of the Tesla Model X." After months of delays due to software issues (here we go again) Volvo officials say they will be careful here to allocate EX90 volume to the right places that can meet demand: "California, the Northwest and the Mid-Atlantic region." Also, did you know the XC90 is still Volvo's bestselling model and accounts for almost one-third of its volume? I did not. That's also why Volvo is bringing back the XC90 as a heavily refreshed plug-in hybrid; I'm wondering if that was always in the cards, or if it's hedging its bets in case the EX90 doesn't take off. 90%: Do Not Think For A Second That BYD Isn't Serious About Mexico And here, finally, is why complacency is not an option. Mexico's federal government is under pressure from the U.S., its biggest trading partner and ours, not to give incentives to the Chinese automakers to set up factories there. But nothing is stopping the local governments in Mexico from doing that, and Reuters reports that's coming right along: Chinese electric vehicle maker BYD has narrowed its list of finalists for the location of a manufacturing plant in Mexico down to three states and is reviewing a range of proposed incentives from them, the firm's country head said on Wednesday. Jorge Vallejo, BYD's Mexico director general, told Reuters the company was reviewing the latest proposals by the candidate states, which have offered "many benefits" including fiscal, land, management and preferential pricing incentives. Mexico's northern Nuevo Leon state is an automotive hub, and the location of a proposed Tesla mega-factory. It will also be home to a new Volvo plant, the state's governor said this week. BYD executives swear that they aren't eyeing the U.S. market and a Mexican factory would be focused on that country's market and the rest of Latin America. If you truly believe that, email me, because I have a bridge to sell you. Tariffs will only keep these automakers out of the U.S. for so long; they had better come up with a way to compete, and 2027 may be too late. 100%: Who Wins The Future, And How? To his credit, I do think Ford CEO Jim Farley gets the threat to his company posed by China. "As CEO of a company that has had trouble competing with the Japanese and South Koreans," Farley said this earlier year, "we have to fix this problem. We have to address this." He's right, too—and I think he's probably right about huge expensive batteries not being the answer. So how does Ford, or any of these companies here, fix that problem? What aren't they doing now that they should be?
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Ford ditches new EV in Alice Wright For Dailymail.Com Ford has abruptly cancelled plans to produce a three-row electric SUV, and has delayed building a new EV plant in Tennessee. The pullback marks a major shift for the car company, amid slowing demand for electric cars. Axing the electric SUV and pulling back on its new plant plans could cost the carmaker around $1.9 billion. The video player is currently playing an ad. You can skip the ad in 5 sec with a mouse or keyboard The manufacturer will also drop its spending on EVs to 30 percent of its annual investment, down from 40 percent. Ford will now focus on developing hybrid and more affordable models, the company said on Wednesday. The now-delayed plant in Tennessee, which is still under construction, is meant to be producing a next-gen full-size electric pick-up. Ford already expects to lose $5.5 billion from its EV unit this year alone. 'This is a tremendous pivot for us, and we're not going to make a tremendous pivot without doing a lot of homework to convince ourselves this is the exact right plan,' CEO Jim Farley said of the shift. 'I'm very confident,' he added. Ford said shifting its EV strategy, including rethinking its battery-sourcing, is in part due to the need to compete with lower-cost Chinese options. 'An affordable electric vehicle starts with an affordable battery,' Farley said. 'If you are not competitive on battery cost, you are not competitive.' Despite the pullback Ford's EV business continues to grow, with its Ford F-150 Lightning the best-selling electric truck in the country. Yet Americans are increasingly put-off by the cost of EVs, concerned by their battery range and increasingly interested in hybrid models. By focusing more on hybrids, longer ranges more affordable vehicles Ford is aiming to assuage these concerns and meet customers where they are. 'We learned a lot as the No. 2 U.S. electric vehicle brand about what customers want and value, and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths,' Farley explained. It comes after electric car maker Tesla reported last month its profits dropped 45 percent in the second quarter of the year, as Americans' demand for electric vehicles slows. In the face of falling interest in EVs, Elon Musk's company had been forced to offer discounts and cut prices to lure in buyers - piling pressure on profit margins. The electric car manufacturer also had a significant number of unsold vehicles on its books at the end of the first quarter of the year. The company's global deliveries fell 6.5 percent in the first half of the year as American's demand for EVs has continued to soften. However, Tesla said it was on track to roll out a cheaper EV, said to cost around $25,000, by early 2025 - which analysts say will boost sales. |
Ford recalling about 85,000 Michelle Chapman Ford is recalling approximately 85,000 Explorer Police Interceptor Utility vehicles because the engines may fail prematurely and possibly result in a fire. The National Highway Traffic Safety Administration said Friday that the recall is for vehicles with model years 2020 to 2022 and have 3.3L hybrid or gas engines. The NHTSA said that if an engine failure occurs, significant quantities of engine oil or fuel vapor may be released into the under hood area and may migrate to and accumulate near ignition sources, resulting in a potential under-hood fire, localized melting of components, or smoke. The agency said that as of July 9, there are 13 reports of under hood fires in North America resulting from engine block breaches on Explorer PIU vehicles built with 3.3L engines made before June 2, 2022. There are no reports of fire resulting from engine block breaches on non-police vehicles. Ford isn't aware of any reports of accident or injury related to this condition, the report said. The automaker will be mailing a letter to vehicle owners advising them that the investigation is ongoing and that they will be contacted when further information is available. Ford will also advise customers in the letter to safely park and shut off the engine as soon as possible when they hear unexpected engine noises, or after experiencing an unexpected torque reduction, or see smoke from the engine compartment. A service remedy is currently being developed. Parts and software are expected to be available in the second quarter of next year. |
Ford, Mazda warn owners to Breana Noble Ford Motor Co. and Mazda Motor Corp. on Tuesday issued a do-not-drive advisory on certain vehicles that haven't been repaired under past Takata air bag inflator safety recalls. The age of the vehicles makes it increasingly possible a part inside the air bag will explode and release sharp metal fragments during a crash, according to Ford's advisory. Serious injury or death to occupants could result. The Dearborn automaker is requesting that owners immediately contact a Ford dealership to have mobile service come to the customer to make the fix or to tow the vehicle to the dealership for repair. A free interim loaner vehicle will be provided, if necessary. The do-not-drive advisory applies to all customers who have not completed recalls of driver and passenger Takata non-desiccated air bag inflators in 2004-2006 Ford Ranger trucks, 2005-2014 Ford Mustang vehicles and 2005-2006 Ford GT vehicles. It also included unrepaired passenger airbag inflators in the following: 2006-2012 Ford Fusion, Mercury Milan, Lincoln MKZ and Zephyr vehicles; 2007-2010 Ford Edge and Lincoln MKX vehicles; and 2007-2011 Ford Ranger trucks. Three previous recalls, the first of which was issued in 2015, cover approximately 765,600 air bag inflators in Ford and Lincoln vehicles globally. That includes 374,300 in the United States, 95% of which have been completed, according to the automaker. Ford says it will continue notifying owners monthly through various communication channels about the do-not-drive notice. This is the second do-not-drive advisory in connection to the Takata recalls from Ford and is meant to encourage owners to get their vehicles fixed. Ford drivers can determine if their vehicle is involved in the safety recall by visiting www.ford.com/support/recalls/ or nhtsa.gov/recalls. Mazda Motor Corp. also issued a warning for the 2004 to 2009 B-Series pickup, 2003 through 2013 Mazda 6, the 2006 and 2007 Speed6 and the 2004 through 2011 RX-8. Also included are the 2004 through 2006 MPV, the 2007 through 2012 CX-7 and the 2007 through 2015 CX-9. Ford, Mazda advise against Story by Reuters (Reuters) -Ford Motor and Mazda issued advisories to drivers of certain vehicles still affected by faulty Takata airbags and inflators that can cause potentially severe or fatal injuries. The National Highway Safety Administration has previously warned that air bag inflators could explode in impacted vehicles, sending potentially deadly sharp metal fragments flying and striking the driver or passengers. Ford has urged drivers with impacted vehicles to contact dealerships immediately for repairs. The recall includes specific models of vehicles such as Ranger trucks, Mustang and GT sports cars, Fusion sedans and some SUVs, including its popular Edge model, among others. The Detroit automaker said that roughly 765,600 airbag inflators in its vehicles, including about 374,300 in the U.S, continue to remain affected by the issue globally. Ford added that it continues contacting customers about these previously issued recalls, with more than 121 million outreach attempts in the United States. Mazda estimates that about 83,000 of its vehicles in the United States were affected, including models such as its CX-7 crossovers and RX8 sports cars. In July, BMW also recalled about 394,000 vehicles in the United States for the same issue. Since 2009, more than 30 deaths, including at least 26 in the United States, and hundreds of injuries have been attributed to Takata airbags installed in vehicles from various automakers. |
Ford sales flat with consumer Breana Noble Ford Motor Co.'s U.S. sales were 0.2% lower in July than the same month a year ago, as economic challenges affect consumer pocketbooks, despite freshened product. Across the industry, inventory levels are up, prompting additional incentives to move vehicles off lots, though interest rates continue to hurt affordability, and credit card debt is increasing among Americans. Cox Automotive Inc. was forecasting a 1.3% decrease in U.S. sales in the industry compared to July 2023 at an approximately 16 million seasonally adjusted annual rate. Ford sold 173,223 vehicles last month, and it claimed it was the top-selling brand in the country, estimating a 13.1% market share. New models of the refreshed F-150 pickup, new midsize Ranger truck, freshened Lincoln Nautilus, updated Ford Explorer and new Lincoln Aviator now are available. The company this week debuted a refreshed Ford Maverick small pickup for 2025, including a new Lobo street truck trim, set to launch before the end of the year. Gas- and diesel-powered vehicles that represent 86% of the Dearborn automaker's sales fell by 5% year-over-year. Hybrid sales rose 47%. Electric vehicle sales were up 31%. Truck sales rose 2.5% F-Series was up 0.7%, including a 61% increase in the hybrid model for which Ford has expanded production volumes. That also included F-150 Lightning sales rising 82%. Maverick sales in July increased by 70% over last year after its plant in Mexico added a third shift a year ago; that included a 65% increase of the hybrid version. Ranger sales rose 25%. Meanwhile, SUV sales dropped 6.8%. Explorer deliveries increased by 49%. Expedition was up 4.8%. Bronco sales fell 30%, while the smaller Bronco Sport was up 3.9%. Escape fell 16%, and Edge, whose production ended in the spring, was down 59%. Sales of all-electric Mustang Mach-E SUV were up 17%. Mustang coupe sales increased 160% from the same month last year. On the commercial van side, Transit sales fell 14%. That included a 4.7% gain for the electric E-Transit. Lincoln sales rose 14% year-over-year in July. Nautilus was up 27%, and Navigator rose 12%. Aviator was up 125%. Corsair fell by 4.3%. An outage at retail management software provider CDK Global Inc. following cyberattacks in June that affected thousands of dealerships across brands throughout North America affected a few of the earliest days of July, as well. General Motors Co. and Stellantis NV only report U.S. sales on a quarterly basis. Third-quarter deliveries will be shared in October. Among other automakers who report monthly, Honda Motor Co. Ltd.'s U.S. sales rose 8% year-over-year, Hyundai Motor Co.'s were up by 4%, Subaru Corp.'s increased 2.6% and Mazda Motor Corp.'s grew by 30%. Kia Corp.'s U.S. sales fell 10%. Despite some automakers posting increases, some economists are suggesting the Federal Reserve should cut interest rates. The Fed has said it's looking for the core personal consumption expenditures index to fall to 2% before it does that; it was at 2.6% in June. The average new auto loan interest rate in July was 9.72%, up more than 0.5 percentage points year-over-year. "Interest expense on credit cards appears to be crowding out spending on goods and services and is likely contributing to delinquencies and defaults on credit cards and auto loans," Jonathan Smoke, Cox's chief economist, wrote in a blog post earlier this week. The New York Fed reported U.S. credit card balances rose $129 billion in a year by the end of March — an amount that if not paid in full would require $20 billion a month just to cover interest costs. Auto delinquencies year-to-date are up to 0.26% in 2024 compared to 0.22% a year ago and are on track to be the worst since the Great Recession, according to Cox. "The consumer," Smoke wrote, "was in better shape a year ago, but with each passing month, capacity to spend has been reduced." |
UAW leader says Trump would Story by Tom Krisher DETROIT (AP) — Putting Vice President Kamala Harris at the top of the Democratic ticket increases the Democrats’ chance of winning Michigan and keeping the White House in November, the head of the United Auto Workers union says. In an interview Friday with The Associated Press, Shawn Fain said former President Donald Trump is beholden to billionaires, knows nothing about the auto industry and would send the labor movement into reverse if he's elected again. “Trump has never supported working class people. He has never supported unions," Fain said. "But he sure as hell was trying to pander for our votes now.” Fain has become a top nemesis of the Republican presidential nominee, who frequently rails against him at rallies and in speeches. Trump has called him an idiot, courting autoworkers' votes by saying Fain is putting their jobs at risk by embracing a move to electric vehicles. Although the UAW has members across the nation, many auto-making jobs are concentrated in the Great Lakers region and Michigan, a key swing state that could decide the presidential race in November. This week, the UAW endorsed Harris. Trump and Harris realize that increasing their share of union votes gives them a much better chance of taking Michigan, where the last two presidential elections have been close, said Marick Masters, a business professor emeritus at Wayne State University who follows labor issues. Trump won the state by just 11,000 votes in 2016 over Democrat Hillary Clinton, and then lost the state four years later by nearly 154,000 votes to President Joe Biden. Appealing to autoworkers helps to get votes from other union members, and union membership is high in the state at about 556,000, Masters said. That doesn't include thousands of family members and union retirees, he said. Any swing in those votes would be consequential in the race. During his acceptance speech at the Republican convention last month, Trump called on union workers to fire Fain, using false statements that Chinese auto companies are building factories in Mexico to ship vehicles to the U.S. without tariffs. Industry analysts say they aren't aware of any such plants under construction, at least not yet. “You probably have to get rid of this fool, this stupid idiot representing the United Auto Workers,” Trump said at a July 20 rally in Grand Rapids, Michigan. Trump claimed that he'll get 95% of the UAW vote because Fain is pushing electric vehicles. “They’re going to be made in China,” he said. He also pledged to bring the auto industry back from obliteration if he’s elected. But the industry is far from obliteration. Since Biden took office in January 2021, employment making cars and parts has grown 13.8% to just over 1 million people, according to the Labor Department. Detroit automakers General Motors, Ford and Stellantis have made billions in annual profits. Fain dismissed the insults as typical Trump behavior. “All the man does his name call, label people. He never has solutions,” Fain said. “That’s the problem in leadership. You need to find solutions.” The move from internal combustion vehicles to those powered by electricity is inevitable, Fain said, and union members need to be ready for it. During the transition, auto companies are still making gasoline vehicles and keeping factory workers employed, he said. Trump, he said, did nothing for autoworkers when General Motors closed its small-car assembly plant in Lordstown, Ohio, in 2019. Biden, who last month announced he would drop out of the race and support Harris, helped to get GM to build an electric vehicle battery plant in the Lordstown area, replacing some of the lost jobs, Fain said. On Friday, the chairman of the Democratic National Committee said Harris has secured enough votes from delegates to become her party's nominee. Fain said he's confident that Harris will remain an advocate for working people, citing her trip to walk picket lines with striking GM workers in 2019. “She was there with the president through a lot of things we've been through,” he said. “She's been there for labor.” Of candidates to become Harris' vice presidential choice, the union prefers Kentucky Gov. Andy Beshear, followed by Minnesota Gov. Tim Walz and Illinois Gov. J.B. Pritzker, Fain said. The union isn't backing Arizona Senator Mark Kelly because he has opposed a bill that would boost union organizing, and Pennsylvania Gov. Josh Shapiro favors school vouchers, which would take send tax dollars to private schools and hurt public schools, Fain said. But even if Harris doesn't pick one of the union's favorites, the 370,000-member UAW would still put its political might behind her, Fain said. “I think she’s a brilliant woman. A very strong person," Fain said. “She understands the issues. I think Trump's just all talk. That's all he's ever been. He's a showman." In a statement, Trump's campaign called Fain “a puppet for the Democrat party" who isn't serving union laborers who are supporting Trump. “Shawn Fain’s empty words don’t matter — President Trump will take action to fight for the American auto worker,” the statement said. |
UAW endorses Kamala The Canadian Press UAW President Shawn Fain said in a statement that the union's “job” in this year's election was to defeat Trump. The union has more than a million active and retired members with a strong base in what the Democrats call the “blue wall” states of Michigan, Pennsylvania and Wisconsin. “We can put a billionaire back in office who stands against everything our union stands for, or we can elect Kamala Harris who will stand shoulder to shoulder with us in our war on corporate greed,” Fain said. There was never any doubt that the UAW would endorse Harris after President Joe Biden dropped out of the presidential race. Biden won the UAW's backing in January, and accepted it with a speech at a union political convention in Washington. The AFL-CIO, the umbrella labor organization that includes the UAW, had already endorsed the vice president. Fain needed to wait for the union's executive board to give the nod to Harris, but has repeatedly attacked Trump ahead of the endorsement. “There is only one answer to the threat we face as a nation, and it's not another billionaire in office,” Fain wrote in a UAW post early Wednesday on the X social media site. Fain and the union also have called Trump a “scab," a derogatory term for workers who cross union picket lines and work during a strike. They also have said he did nothing for workers in Ohio when General Motors closed a factory in 2019. The UAW endorsed Biden’s reelection bid in January, just a few months after the Democratic president joined striking General Motors workers on the picket lines near Detroit. The union won big raises last fall after limited strikes at all three Detroit automakers. Shortly after the Biden endorsement, Fain was making multiple television appearances on Biden's behalf. But those waned as the UAW ramped up its campaign to organize nonunion auto factories and a spat with a court-appointed union monitor. The UAW says its union members and retirees typically lean toward Democrats, but a sizeable number support the GOP. That’s consistent with AP VoteCast, which found that 56% of union members and households backed Biden in 2020, while 42% backed Trump. Still, Trump has courted union members, saying when he accepted the Republican nomination that he would rescue the auto industry from what he called “complete obliteration.” He also called for members to fire Fain, using false claims that Fain allowed Chinese automakers to build auto factories across the border in Mexico to ship electric vehicles to the U.S. without tariffs. Industry analysts know of no such factories under construction. The auto industry is currently far from obliteration. Detroit auto companies are still making billions and auto manufacturing employment is up 13.8% since Biden took office. Trump said he would put tariffs on Chinese-made electric vehicles. Biden earlier this year slapped tariffs on Chinese imported goods, including EVs. The 1.3 million-member Teamsters union, whose president spoke at the Republican National Convention, has yet to make an endorsement in the race. |
Trump vows to end electric Ari Natter Former President Donald Trump used his nomination speech to take aim at President Joe Biden’s electric vehicle policies, vowing to action against them on his first day in office. “I will C on day one,” Trump said in his address at the Republican National Convention in Milwaukee. The move would result in “saving the U.S. auto industry from complete obliteration, which is happening right now, and saving U.S. customers thousands and thousands of dollars per car,” he said. While the Biden administration doesn’t have a mandate on electric vehicles, critics of new air-pollution limits issued by the Environmental Protection Agency in March have said they would force automakers to sell EVs. Trump has repeatedly vowed to repeal what he calls Biden’s “EV mandate,” referring to a new EPA regulation limiting tailpipe pollution that is so strict it would compel automakers to sell far more electric and hybrid models over time. Although automakers have a choice in how they comply with the pollution limits, they’re expected to meet them by selling more lower-emission hybrids and zero-emission EVs. Under one scenario modeled by the EPA, about 56% of sales of new cars and light trucks in 2032 would be electric and an additional 16% would be hybrids. Trump’s remarks on EVs came just moments before he criticized what he said was trillions of dollars of wasteful spending “having to do with the green new scam.” He said he would instead direct the money to projects like roads, bridges and dams, though it wasn’t immediately clear how he would make good on the pledge. Trump has made no secret his disdain for electric vehicles, claiming they don’t work and will benefit China and Mexico while hurting American autoworkers. Biden, in contrast, has made the shift to battery-powered cars one of his top climate and industrial policies and has set a goal of having 50% of all new vehicle sales be electric by 2030. |
Donald Trump uses convention Craig Mauger Milwaukee — Republican presidential nominee Donald Trump used the spotlight of his party's national convention on Thursday night to call for the firing of the leader of the United Auto Workers, escalating his ongoing feud with Shawn Fain, whose union labeled Trump a "scab." Trump made his comment after saying China was building auto plants across the southern border in Mexico and planning to sell Mexican-assembled vehicles into the United States. "The United Auto Workers ought to be ashamed for allowing this to happen," Trump then said. "And the leader of the United Auto Workers should be fired immediately. And every single auto worker, union and non-union, should be voting for Donald Trump." The "should be fired" comment wasn't in excerpts of Trump's prepared remarks provided by Trump's campaign to reporters ahead of the speech. The United Auto Workers, which is headquartered in Detroit, endorsed Democratic President Joe Biden's reelection in January. “This November, we can stand up and elect someone who wants to stand with us and support our cause. Or we can elect someone who will divide us and fight us every step of the way,” Fain said at the time. “That’s what this choice is about. The question is, who do we want in that office to give us the best shot of winning, of organizing, of negotiating strong contracts, of uniting the working class and winning our fair share once again, as our union has done so many times in our nation’s history. "We need to know who’s going to sit in the most powerful seat in the world and help us win as a united working class.” The UAW's social media account labeled Trump "a scab and a billionaire" in a post on X. In the labor movement, a scab is a derogatory term for a strikebreaker or someone who crosses a picket line during a strike. "We know which side we're on. Not his," the union said. In a statement on Friday, Fain said Trump doesn’t want to protect American autoworkers but wants to "pad the pockets of the ludicrously wealthy auto executives." The threat that auto workers face is corporate greed run wild, Fain said. "America’s autoworkers aren’t the problem," Fain added. "Our union isn’t the problem. The working class isn’t the problem. Corporate greed and the billionaires’ hero, mascot and lapdog Donald Trump, are the problem." Fain scored victories for his union last year in a round of high-stakes negotiations with Ford Motor Co., General Motors Co. and Stellantis NV. In April, the UAW won a union organizing election at Volkswagen AG's plant in Chattanooga, Tenn., a breakthrough for the union into a foreign-owned assembly plant in the South. A court-appointed monitor has been investigating allegations that Fain and his team demanded a subordinate take action to benefit his fiancée and her sister, according to a court filing. Fain has not addressed the allegations directly. Biden's administration has supported policies to promote electric vehicles and to boost the manufacturing of batteries and other parts needed for them in the U.S. In April last year, the administration released the "strongest ever" tailpipe emissions standards that were expected to push automakers to accelerate the proportion of electric vehicles. As he has repeatedly in the past, Trump vowed in Thursday's night speech to end electric vehicle mandates if he's elected in November. He contended the move would save "the U.S. auto industry from complete obliteration." Biden's supporters have contended that supporting the transition to electric vehicles is required to ensure the U.S. plays a dominant role in the future of the auto industry. Also, on Thursday, Trump said he would impose tariffs of 100% and 200% on cars being built by Chinese companies in Mexico. "They will be un-sellable in the United States," he told the crowd. So far, the number of jobs in vehicle and parts manufacturing in Michigan has held relatively steady during Biden's term in the White House, decreasing by less than 1% to about 165,000 jobs in May, according to data from the Bureau of Labor Statistics. During Trump's four-year term, the number of jobs in vehicle and parts manufacturing in Michigan fell by 5% to about 166,000, according to the bureau's tracking. |
Ford to add Super Duty truck Breana Noble A Ford Motor Co. plant in Canada will produce F-Series Super Duty trucks starting in 2026, and the Dearborn automaker will move the launch of an all-electric three-row SUV to another unspecified plant after delaying the program there. Ford is investing $3 billion to add initial annual capacity for 100,000 F-Series Super Duty trucks at Oakville Assembly Complex in Ontario outside Toronto in response to demand from its Ford Pro commercial business, retaining 1,800 jobs there. The plant will produce diesel and gas-powered trucks and will support next-generation multi-energy technology. Super Duty production at Kentucky Truck Assembly Plant and Ohio Assembly Plant are running at full capacity with 200,000 vehicles produced in the first half of the year, the company said. “Super Duty is a vital tool for businesses and people around the world and, even with our Kentucky Truck Plant and Ohio Assembly Plant running flat out, we can’t meet the demand. This move benefits our customers and supercharges our Ford Pro commercial business,” Ford CEO Jim Farley said in a statement. “At the same time, we look forward to introducing three-row electric utility vehicles, leveraging our experience in three-row utility vehicles and our learnings as America’s No. 2 electric vehicle brand to deliver fantastic, profitable vehicles.” Ford has been the only one of the Detroit Three to produce all of its full-size trucks in the United States. The United Auto Workers last fall opted to strike Kentucky Truck, its most profitable plant that produces Super Duties and full-size SUVs, as the first full-size truck plant to be hit with a walkout. Following that, Ford CEO Jim Farley earlier this year said Ford had to "think carefully about our (manufacturing) footprint." The investment includes $2.3 billion to install assembly and integrated stamping operations at Oakville. It will secure approximately 1,800 jobs at Oakville, 400 more than initially would have been needed to produce the three-row electric SUV. It'll also add about 150 jobs at Windsor Engine Complex to manufacture more V-8 engines. It'll add roughly 70 jobs and additional overtime at U.S. component plants. There will be $24 million going into Sharonville Transmission Plant in Ohio and additional overtime. Rawsonville Components Plant in Michigan will receive $1 million and roughly 20 new jobs. Sterling Axle Plant in Michigan will add about 50 new jobs. Employees represented by Canadian labor union Unifor at Oakville will return a year ahead of what was expected with the delay in the three-row SUV program. “This investment will benefit Ford, our employees in Canada and the U.S., and especially our customers who want and need Super Duty for their lives and livelihoods,” Kumar Galhotra, Ford’s chief operating officer, said in a statement. “It is fully consistent with our Ford+ plan for profitable growth, as we take steps to maximize our global manufacturing footprint, and our investments will have a fast payback.” Ford to start producing F-series Nick Westoll Ford Motor Company officials have announced that the Oakville assembly plant will start producing F-series Super Duty pickup trucks. In a statement shared Thursday morning, it was announced production was expected to begin in the summer of 2026. To help with production, there will be a $2.3-billion investment to install assembly and integrated stamping operations. Initial production will focus on conventional models, but plans are underway to build electric models later in the decade. Plants in Kentucky and Ohio will also see investments to help build the pickup trucks, which Ford executives said are among the company’s most profitable vehicles. The Ford statement said production of the pickup trucks would increase by up to 100,000 units. News of the investment came just a few months after the company executives announced electric vehicle production in Oakville would be delayed until 2027. Unifor, the union representing assembly plant workers in Oakville, said it would have meant a three-year layoff. Lana Payne, the president of Unifor, said the delayed production was “too long, too disruptive, and too harmful to accept” and the announcement helps address the union’s concerns. “Since the delay was announced in April 2024, Unifor has been engaged in negotiations with the company to push for additional support mechanisms for workers and an accelerated resumption of production at Oakville,” a Unifor statement issued Thursday morning said. Ford executives said in April the delay was needed for electric vehicle technology development. |
Ford considers $400M Breana Noble Ford Motor Co. is considering a $400 million investment for a component manufacturing facility in Kentucky to support production of electric vehicles. Ray Leathers, CEO of the Shelby County Industrial & Development Foundation, said Friday that the Dearborn automaker is in the final stages of making the commitment for a facility to support a unicast aluminum forming process in the county that's adjacent to Jackson County, home of Louisville where Ford has two plants producing trucks and SUVs. Although affordability challenges and range anxiety has made EV adoption a bumpier road than expected, Ford's contract with the United Auto Workers calls for a $1.2 billion investment for a new EV in Louisville Assembly. The sites under consideration also are roughly 70 miles northeast of Glendale, Kentucky, where Ford is building two battery plants with Korean partner SK On Ltd. The first is set to begin production next year. The second was supposed to open in 2026 but has been delayed as part of $12 billion in cuts and delays for EV investments due to the slower-than-expected uptake in sales. "It's not a done deal," Leathers said about the parts plant. "They still have a couple of hoops to get through, but we're just very proud that we've been working with Ford for about six to nine months on this project." The Kentucky Cabinet for Economic Development in May approved $11 million in tax incentives for the project that is expected to create 260 jobs in the county where more than 14,000 people leave daily to go to work, Leathers said. Average hourly wage target listed for the project is $36 per hour. "We thank the Kentucky Cabinet for Economic Development for its offer of support as we explore the potential for a specialized high-tech facility in Shelby County," Ford spokesperson Jessica Enoch said in a statement. Crystal Staley, director of communications for Kentucky Gov. Andy Beshear, declined in a statement to comment on specific prospects but said: "Ford has been an amazing Team Kentucky partner" and that "the Governor does want Kentuckians to know there is a lot to be excited about when it comes to the state’s future economic growth." The plant is expected to occupy around 500,000 square feet, Leathers said. A couple of new buildings in Shelbyville off Interstate 64 are options and more than 12 million square feet of industrial space is coming online soon in the county. "Shelby County enjoys a very strategic location in the U.S.," Leathers said. "We're right at the crossroads of America. I think Shelby County is a great strategic location for Ford." |
UAW President Shawn Fain BY TREY HAWKINS Just last month, GM Authority reported that UAW President Shawn Fain was under investigation by a Federal Monitor for allegations of retaliation against other union leaders. Now, Monitor Neil Barofsky has revealed new details regarding his investigation into Fain, which includes demanding benefits for his fiancée and her sister. According to a report from Automotive News, multiple parties are claiming that Shawn Fain retaliated against them, including Vice President Rich Boyer. In a statement, Boyer alleged that Fain retaliated “for my refusal to accede to demands by Brother Fain and his agents that I take actions involving the Stellantis assignment that would have benefited Brother Fain’s domestic partner and her sister.” In addition, Boyer claims that he was removed for his “refusal to demote one UAW member assigned to my staff, and to terminate the UAW employment of another such UAW member.” “It is not a personal decision,” Fain wrote in a prepared statement explaining his decisions. “Vice President Boyer and I are friends. In the old UAW, that would have meant he and I decide to not rock the boat, and if that means the members fall a little bit further behind, so be it. In the new UAW, it means we step in and take corrective action when needed.” It’s worth noting that Fain is engaged to Keesha McConaghie, a financial analyst at the UAW-Chrysler National Training Center. Interestingly, Federal Monitor Neil Barofsky also released more information regarding a separate investigate involving an unidentified regional director. More specifically, he received allegations that said regional director “embezzled funds by using their UAW corporate credit card for personal purchases and misappropriating union property.” As of the time of this writing, Barofsky is waiting on the UAW to provide more documents related to this issue. Notably, the union has produced more than 70,000 documents thus far. |
Foreign carmakers Luke Ramseth Foreign-owned manufacturers built more vehicles in the United States last year than their rivals in Detroit, a first for the market that underscores major shifts in domestic auto production. Non-U.S. automakers including Toyota Motor Corp. and Mercedes-Benz Group AG built more than 4.9 million cars in 2023, a jump of about 500,000 from the prior year, according to a report Tuesday from Autos Drive America and the American International Automobile Dealers Association. The Detroit Three — General Motors Co., Ford Motor Co. and the former Fiat Chrysler, Stellantis NV — assembled 4.6 million in the market, a modest decline of about 150,000 vehicles from 2022. Separately, U.S. electric-vehicle makers Tesla Inc., Rivian Automotive Inc. and Lucid Group Inc. produced 754,342 cars in the United States in the same period, according to the auto groups, which lobby for international car companies and their dealers. The production shift “makes clear that international automakers are driving economic growth throughout the country,” Jennifer Safavian, chief executive officer of Autos Drive America, said in a statement. International automakers have increased their United States production by more than 85% over the past 25 years, the report said, going from about 2.4 million to 4.9 million. Meanwhile, the Detroit Three's domestic production has dropped by about half in that period as foreign-owned brands claimed larger shares of the rich U.S. market. Much of that Detroit Three production has headed elsewhere, including Mexico, Canada and China. Foreign automakers now build vehicles across nine states. And they have either auto plants, component plants, and battery plants across 13 states. Almost all are in the South, with the major exceptions being Ohio and Indiana. The report's figures are "confirmation of the difficulty that the Big Three are having," said Marick Masters, a professor emeritus of business at Wayne State University — including as they try to keep up amid the electric vehicle transition both domestically and in international markets. Foreign automakers, meanwhile, have been aggressive in recent years expanding their U.S. manufacturing footprints. The growing production disparity between Detroit Three and foreign-owned vehicle production also underscores the necessity for the United Auto Workers to organize non-Detroit Three auto plants, a campaign that has been unfolding in recent months. The Detroit union has been pushing to organize more foreign-owned plants, achieving success on its third try at a Volkswagen plant in Tennessee. But the UAW failed in a unionization vote in May at a Mercedes production complex in Alabama. The union has pledged to continue on and try to organize more foreign plants as well as domestic EV producers like Tesla. The campaign to organize foreign automakers has "existential dimensions" for the UAW, Masters said: "As the position of the Detroit Three shrinks, the bargaining power of the UAW falls commensurately in the U.S." Sam Fiorani, AutoForecast’s vice president of global vehicle forecasting, said while 2023 was the first time the traditional Detroit Three was surpassed in production by foreign transplant automakers, another notable milestone came five years ago. That was when the Detroit Three fell to less than half the overall U.S. production market for the first time, making fewer cars, trucks and SUVs domestically than foreign and other U.S. automakers like Tesla combined. In a statement, Ford said its manufacturing in the United States has remained robust. It pointed to figures showing it has consistently led other automakers in U.S. production volume in recent years, including assembling about 1.8 million vehicles domestically in both 2022 and 2023. "The real story is that year after year, Ford leads all automakers by a wide margin when it comes to producing vehicles in America with American workers," the automaker said in a statement sent by spokesperson Jess Enoch. "We expect to continue that legacy in 2024." Spokespeople for Stellantis and GM did not immediately respond to a request for comment on the report. |
UAW President Shawn Fain DeJanay Booth-Singleton (CBS DETROIT) - United Auto Workers union President Shawn Fain and other union leaders are under investigation by a federal court-appointed monitor, according to a court filing. According to a 32-page status report filed on Monday, Fain is being investigated for allegations that the union has not been cooperating with the monitor, Neil Barofsky, in providing requested documents and that Fain retaliated against the UAW secretary-treasurer for her refusal to authorize "certain expenditures of funds at the request of and/or for the benefit of those in the President's Office." In the report, Barofsky wrote that members of the International Executive Board (IEB) passed a motion allowing Fain to withdraw assignments from the secretary-treasurer following allegations of misconduct. The report also stated that Barofksy is investigating Fain's removal of one of the union's vice presidents from oversight of the Stellantis Department in May 2024. The vice president claimed that Fain retaliated against him for "refusing to engage in acts of financial misconduct to benefit others." In an unrelated investigation, Barofsky received allegations that a regional director was involved in possible embezzlement. Fain issued the following statement: "Taking our union in a new direction means sometimes you have to rock the boat, and that upsets some people who want to keep the status quo, but our membership expects better and deserves better than the old business as usual. We encourage the Monitor to investigate whatever claims are brought to their office, because we know what they'll find: a UAW leadership committed to serving the membership, and running a democratic union. We're staying focused on winning record contracts, growing our union, and fighting for economic and social justice on and off the job." Barofsky was appointed in 2021 to investigate the union related to bribery and embezzlement, resulting in convictions of former UAW leaders. The report stated that the union was cooperating shortly after Barofsky's third report in July 2022, which concluded that UAW was concealing information. However, in February 2024, he started investigating executive members, including Fain, the secretary-treasurer, and one of the union's regional directors, after UAW's level of cooperation started to "erode." Around that time, the union submitted about 2,600 of the 116,000 requested documents. More than 80% of the documents submitted were given days before the latest report was issued on June 6. "Although the Union has cooperated in making UAW employees and senior leaders available to be interviewed by the Monitor's investigative team, the Union has not cooperated in producing documents that are relevant to the investigation in a complete and timely manner, instead requiring the Monitor to conduct those interviews without the benefit of the full production of potentially relevant and contemporaneous documents," Barofsky wrote in the report. The report cited a consent decree, which states that the monitor has full access to the requested documents and has the authority to remove "fraud, corruption, illegal behavior, dishonesty, and unethical practices from the UAW and its constituent entities." UAW argued that it could withhold documents due to privilege; however, Barofsky said that only pertains to when he attends board meetings, which he does as an observer. |
Cyberattacks force ‘hundreds’ Sean Previl If you’re hoping to purchase a new car in North America this week, you may be in for a bit longer of a process after back-to-back cyberattacks hit CDK Global, which provides software for thousands of auto dealerships, forcing many to look at alternative methods. The company said the attacks led to an outage that is still impacting its operations, and by relation, the work of dealers across Canada and the U.S. Tim Reuss, president and CEO of the Canadian Automobile Dealers Association, told Global News in an interview that the outage by CDK had impacted “hundreds” of dealerships in Canada. “We’re talking hundreds of dealerships across Canada and they have all brands under the sun,” he said. Stellantis, which has dealerships in Canada and the U.S., told Global News many of its dealerships have switched to manual processes to help customers — including with pen and paper. “The CDK situation continues to evolve. Our dealerships remain open at this time, and we continue to monitor it closely with CDK as they work to resolve this issue,” a spokesperson for Stellantis said in an email. Group 1 Automotive, which owns and operates 202 auto dealerships, 264 franchises and 32 collision centres in the U.S. and U.K., said in a news release on Monday that its business applications and processes at its American operations were impacted. It said that when the issue arose, it activated its cyber incident response procedures to protect and isolate its systems from CDK’s platform, and has been using “alternative processes” to conduct business until CDK’s systems are available again. It added dealerships in the U.K. don’t use CDK systems, so those have not been impacted. What is CDK Global? CDK is considered a major player in the auto sales industry and provides software to dealers which help with operations like facilitating vehicle sales, as well as financing, insurance and repairs. More than 15,000 retail locations are serviced by CDK Global in North America. Where does restoration stand? Restoration is still slow-going, with the company having shut down all of its systems “proactively” when the attacks occurred. In an update over the weekend, spokesperson Lisa Finney told the Associated Press it had begun the restoration process. However, she said consumers should anticipate the process to take several days and the company would engage with customers to provide alternative ways to conduct business. She also said it is working with third-party experts to investigate the incident and had notified law enforcement. Dealerships have been warned, however, to be cautious of any attempted phishing as “bad actors” posing as CDK could try to obtain system access. Global News has reached out to CDK Global for comment but has not yet received a response. Are sales still happening? Ford also confirmed to Global News on Monday that the CDK outage had impacted some of its dealers, but that sales operations continue. Asbury Automotive Group in the U.S. said in a statement it too was affected by the attack, with sales, service and inventory functions impacted. For some like Plaza Ford general manager Katie Walls Gugliota in Baltimore, working without the CDK systems has left paperwork to build. After the second cyberattack, she said the company decided to shut down business until systems are back up and running. “This is a first for us, so this is uncharted territory,” she told CBS News’ Baltimore last Thursday. “We are completely dead in the water.” It’s not yet known how long the impact of the outage will last, with no date for full restoration. Yet some cybersecurity experts have cautioned that consumers connected to CDK should assume their data may have been breached and to monitor credit and be wary of phishing campaigns. Reuss said it will be pressing CDK for more transparency and if any customer data was impacted from the cyberattacks. He added, based on what the CADA and its members have received, restoration is likely to be a “matter of days,” yet he added that even once that is done, it would still take longer for dealerships affected. “All of the things that they’re doing in other ways currently, pen and paper, other systems, et cetera, it then needs to be put back into their central systems and then reconciled with their reality,” he said. “So there’s going to be a bit of a hangover for this one for quite some time.” |
Ford manages Q2 sales increase Breana Noble Ford Motor Co.'s U.S. sales rose less than 1% year-over-year in the second quarter, propelled by growth in sales of trucks as well as vehicles with alternative powertrains even as cyberattacks disrupted dealership operations at the tail end of the quarter. Sales increased 0.8% to 536,050 in the April-to-June period, the Dearborn automaker said Wednesday. A 4.5% increase in truck sales reflects a lineup that includes the refreshed F-150 and new Ranger midsize pickup. Meanwhile, electric vehicle sales rose 61% and hybrid sales were up almost 56% to a quarterly record, while the bulk — 85% — of Ford's sales that are in gas- and diesel-powered vehicles fell 5%. Even as vehicle pricing somewhat retreats and automakers up incentives, high interest rates have made financing a new vehicle a challenge for some customers, and political uncertainty heading into the presidential election also may be contributing to hesitancy. Meanwhile, two cyberattacks on digital management system provider CDK Global Inc., which supports thousands of dealers across the country — including some of Ford's — disrupted operations. Some dealers took to doing sales on pen and paper, ran documents to the secretary of state by hand and were unable to access vehicle service histories and appointment logs. CDK says its management system should be back up for dealers by Thursday. Expected to boost Ford sales in the latter half of the year is the refreshed Ford Explorer SUV that will begin shipping to dealers soon. That'll be followed by the new Lincoln Aviator SUV, Mustang Mach-E Rally SUV and extended-range E-Transit commercial van. F-Series truck sales were down 6.1% in the second quarter from last year. The all-electric F-150 Lightning was up 77%, representing 4% of F-Series sales. Hybrid models had their best quarter and represented 20% of the non-EV deliveries. Ranger sales rose 5.1%. Maverick compact truck sales were up 81%; its hybrid model had its best quarter yet. Transit commercial van sales rose 32%, contributing to a first-half sales record. E-Transit sales represented 8% of those sales and gained 96%, the vehicle's best quarter since debuting in 2022. Ford also highlighted consumer adoption of its Ford Pro Intelligence software platform with 600,000 subscribers at the end of the quarter, up about 33% from last year. SUV sales fell 5.3%, though with sales in the segment up 5.3% in the first half of 2024, it still makes a best first half for them. In the second quarter, sales of the Expedition rose 8.7%, the Explorer and Bronco were flat, the Bronco Sport fell 15% and the Escape dropped by 13%. Mustang Mach-E SUV sales increased 46%. Ford has been looking at ways to encourage EV sales. Last week, it notified employees and retirees under its management lease program that it was offering for model year 2025 the opportunity for participants to lease an additional vehicle from the base program if it's a Mach-E or Lightning. Sales of the Mustang coupe were up 27%. Luxury brand Lincoln SUV deliveries rose 19% in the second quarter. Aviator sales grew by 90%. The new Nautilus captured a 20% increase. Corsair was up 17%, though Navigator fell 27%. Despite the disruptions at dealers on the service side because of the cyberattacks, Ford emphasized there was a 175% increase in remote service jobs by dealers during the first half of the year. Ford's sales trend was better than those of its crosstown rivals. General Motors Co.'s saw a 0.6% increase in deliveries. Stellantis NV's fell by a whopping 21%. Foreign automakers Toyota Motor Corp., Honda Motor Co., Hyundai Motor Corp., Subaru Corp., Mazda Motor Corp., BMW AG and Volkswagen AG all reported quarterly U.S. sales increases. Kia Corp., Nissan Motor Co. Ltd. and Mitsubishi Motors Corp. posted slight declines, as did Texas-based Tesla Inc. for its global sales. |
Ford CEO: EV adoption Breana Noble Ford Motor Co. CEO Jim Farley took to LinkedIn on Friday to emphasize politics and policy won't be what turns the United States to electric vehicles — ensuring they are desirable and accessible will. "The tipping point we’re working toward will come not from regulators who push us or from politicians who try to hold us back," Farley said in a post titled "Confessions from a lifelong Petrol Head. I love electric vehicles and it has nothing to do with politics" that was shared hours after President Joe Biden and former President Donald Trump took to the stage for their first debate of the election season. Farley continued that the tipping point "will come from consumers. Not when an arbitrary market share is reached, but when electric vehicles are simply better for more customers — better to drive, cheaper to own, and easier to integrate into daily life. This is the reality for millions already." The role of the government in the EV transition is a major difference between policies espoused by the presumed major-party candidates for president, contributing to the politicization of EV ownership. The Biden administration as a part of its environmental initiatives has finalized the most stringent tailpipe emissions reduction standards to date, approved funding for charging infrastructure and rolled out incentives for the manufacturing of EVs and their parts in the United States here, while reforming requirements around tax credits for consumer purchases of plug-in models. Meanwhile, Trump has promised to roll back regulations as he did during his previous administration. He has said many Americans don't want EVs, arguing they are too expensive and less reliable than gas-powered vehicles because of their range, charging speeds and performance in varying weather conditions. As a result, he has suggested American manufacturing could be put at risk. Ahead of his appearance Friday at the Aspen Ideas Festival in Colorado, Farley in his post recognized that the Dearborn automaker is losing money on its early EV models "largely due to the upfront investment costs." Ford is predicting its Model e EV division will lose up to $5.5 billion in 2024. Executives have said the company's next generation of EVs will be cheaper to build. "We are in a global race to compete in a future where electric propulsion will undoubtedly be a giant force in transportation," the CEO wrote. "America cannot cede innovation leadership to China, Europe, or any other region." Although Ford has said it's moving forward with a portfolio of gas-powered and hybrid vehicles in addition to EVs, Farley highlighted his own experience with his F-150 Lightning Platinum. He discussed that almost all drives Americans take are within the range of Ford's EVs and noted the declining prices of EVs, the cost savings from fuel and maintenance, and the loyalty rates of EV buyers. "For me, and for millions of Americans," he wrote, "electric vehicles are removing daily hassles and reminding us why we love to drive.
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Ford recalls over 550,000 pickup Tom Krisher Detroit – Ford is recalling more than 550,000 pickup trucks in the U.S. because the transmissions can unexpectedly downshift to first gear no matter how fast the trucks are going. The recall covers certain F-150 pickups from the 2014 model year. Ford's F-Series pickups are the top-selling vehicles in the U.S. Ford says in documents posted Tuesday by U.S. safety regulators that the downshifting can cause drivers to lose control of the trucks, increasing the risk of a crash. The recalls come after U.S. auto safety regulators in March began investigating complaints that more than 540,000 Ford pickup trucks from 2014 can abruptly downshift to a lower gear and increase the risk of a crash. Documents say the problem is caused by a lost signal between a transmission speed sensor and the powertrain control computer. There also could be corrosion and problems with connector pins. Dealers will update the powertrain control software at no cost to owners, who will be notified by letters in early July. In a statement Tuesday, Ford said it expects repairs to be available in the third quarter of this year. Owners will be able to use mobile service or pickup and delivery at participating dealers. Ford says in documents posted Tuesday by the National Highway Traffic Safety Administration that it has 396 warranty and field reports and 124 customer complaints about the problem, covering 482 trucks. The Dearborn, Michigan, automaker says it knows of 130 complaints to the government, with 52 alleging that rear wheels locked up or that drivers lost control of the trucks. Two of the complainants reported injuries and one reported a crash that could have been caused by the problem, Ford said. Ford's statement said that before the trucks downshift, drivers could see a malfunction indicator light on the dashboard. In some cases, signals can be restored while the trucks are moving, and they can be driven normally. In other cases drivers may need to stop and restart the engine to get the transmissions to work properly. The company says it expects fewer than 1% of the recalled vehicles to have the problem. NHTSA said it started its investigation in March after getting complaints about sudden downshifts in the trucks’ automatic transmissions. The agency is looking into whether those trucks should have been included in previous recalls for the problem. Ford started recalling trucks and other vehicles from the 2011 and 2012 model years in 2016, and added two recalls in 2019 covering pickups from the 2011 to 2013 model years. The recalls covered about 1.5 million vehicles. The company said it’s working with NHTSA to support the investigation.
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Ford Sacrifices Short-Term Keith Naughton, Bloomberg News (Bloomberg) -- Ford Motor Co. CEO Jim Farley is so fed up with being the most recalled automaker in America that he’s willing to lose money to fix what’s ballooned into a $4.8 billion a year problem. For the foreseeable future, Farley says, the company will hold newly redesigned models for up to six weeks to perform extra quality checks that go beyond the extensive tests Ford undertakes in its factories. Over time, the automaker hopes to reduce warranty reserves that have more than doubled in five years. In the short term, however, it means Ford will take a revenue hit by not immediately shipping models to dealers. “Our earnings may be a little lumpy,” Farley told analysts on Ford’s first quarter earnings call in April. “What we’re going to see long term is fewer recalls and lower warranty costs because of this new process.” Earlier this year, Farley pioneered this “build-and-hold” approach with the newly redesigned F-150 pickup — Ford’s best-selling vehicle. More than 60,0000 fully built F-150s sat in parking lots around Detroit for weeks so engineers could check them for quality problems. Ford reported a 65% decline in earnings before interest and taxes in its internal combustion engine unit while holding one of its most profitable models. But the extra quality checks also allowed the automaker to avoid 12 recalls, Farley said, including software glitches and assembly problems. Now, Farley is holding another marquee model, a redesigned version of the Explorer sport-utility vehicle, for extra tests. He plans a similar approach later this year with updated editions of the Bronco Sport compact SUV and hot-selling Maverick small pickup. Quality challenges have afflicted Ford throughout its history, but it has become a crisis in recent years. The company is recalling more cars and spending more to fix them.
Last year, Ford set aside $1,203 for warranty repairs on each vehicle it sold, up from $591 in 2019, according to Warranty Week magazine, which tracks corporate repair expenses. In total, the automaker spent $4.8 billion last year fixing its customers’ cars, or about 4% of automotive revenue — a rate roughly three times the industry. In general, automakers are issuing more recalls. The increased complexity of advanced electronics and a greater proclivity toward preempting potential problems have led to a 42% jump in vehicle recalls from 2013 to 2023, according to the latest data from the National Highway Traffic Safety Administration. Still, Ford’s annual recalls have soared past competitors: It’s had the distinction of being the most recalled automaker in the US since 2020. “It’s frustrating to investors not to see the problem go away,” David Whiston, auto analyst with Chicago-based Morningstar Inc., said. “At a minimum, you’d like to see Ford on parity with GM and striving to be on parity with Toyota, the industry gold standard. But there’s a long way to go.” The company said that it has seen a 10% improvement on quality in 2024 models, based on internal measurements. Its defect rate for its latest launches has fallen to 20%, which Ford says is in line with the industry average. Independent studies show Ford is still ranks below average among its peers. “We are somewhere in the middle of the pack and obviously we’re not happy with being in the middle of the pack,” Kumar Galhotra, Ford’s chief operating officer, said in an interview. “The goal is to move very rapidly to catch Toyota.” Toyota Envy Farley, who spent the first two decades of his career at Toyota Motor Corp., has been sounding the alarm on Ford’s flagging quality since he became CEO in October 2020. Ford “needed a much more fundamental reset than I had realized,” the CEO told investors at the Wolfe Research Global Auto Conference in February. He added: “We all have regrets and that’s a big one for me. It’s a humbling thing.” In addition to more rigorous testing, the company has reworked executive compensation so salaried staff don’t get their full bonus without hitting quality targets. Stubborn quality problems have dogged several recent additions to Ford’s line-up. High-profile snafus include a battery-connector flaw in the electric Mustang Mach-e crossover that caused some to lose power, engine failures in the cash-cow Bronco SUV and the risk of engine fires in the otherwise well-received Maverick hybrid pickup. “Launches have been very problematic for Ford,” Frank Hanley, senior director overseeing JD Power’s initial quality survey, said in an interview. “They do recoup and fix those problems over time,” he said, but “then the next launch would come and the vehicle would suffer again.” Before Ford started holding new vehicles for extra quality checks, the CEO told investors in April that it saw a 70% increase in flaws when it launched new models. The carmaker’s growing line of electric vehicles tend also to be among the most feature laden models, which often means more glitches. Ford further complicates matters by rushing to market nascent advanced technologies, such as its hands-free driving system BlueCruise, ahead of Asian rivals. Columbus, Ohio, Ford dealer Rhett Ricart said he complained to Farley about the automaker's growing recalls five years ago, before the Ford executive had become CEO. Ricart was fed up with receiving new cars from Ford filled with flaws that would then sit on his lot, awaiting repair parts, leaving him unable to sell it until his mechanics fixed it. While the current approach means waiting longer for new models, Ricart thinks it’s an improvement. “In the old days they would have delivered them, but now they're saying, ‘No, we're going to fix ‘em first before we get ‘em to you,’” Ricart said. “Ford’s got it right now.” That troubleshooting of the F-150, for example, uncovered one defect involving a wiring harness — a sheath full of important electrical wires — that was being improperly installed behind the dashboard instrument panel. That caused the harness to rub against a metal bracket that would have led to a rupture in the wiring and could have caused the instrument gauge screen to go blank. Engineers fixed it before it went to dealer lots, avoiding a lengthy repair process. Overall, The F-150 launch this year has resulted in fewer defects than last year's rollout of the Super Duty, Farley said in April, without offering specifics. Ultimately, though, fixing cars after they’re already built — and taking a hit to earnings while they sit in holding lots — is not an ideal solution, nor is it how the highest quality automakers operate, automotive experts say. Ford needs to address issues farther upstream in how it designs and engineers its models if it wants to be in the same league with Toyota. “They’ve got to get to a point where they aren’t having to take drastic actions to avoid being the most recalled,” said Karl Brauer, executive analyst for researcher iSeeCars. “They’ve got to do better.” |
Court awards $57M payout Breana Noble A federal court this spring directed Ford Motor Co. to pay almost $57 million after a jury found the Dearborn automaker responsible for injuries from a 1998 Expedition SUV that backed over her left leg. The company is challenging the verdict, whose assigned damages would put it among some of the largest personal injury payouts in U.S. history. The case almost never made it to trial. Lorelle Thompson in 2016 sustained fractures to her tibia and fibula bones after exiting her vehicle to go to her mailbox. Thompson slipped as she stepped out, her left leg falling behind the driver's-side front wheel when her parked Expedition "self-shifted into powered reverse and began to roll backwards," according to the complaint that was originally filed in 2018. The vehicle crushed her left leg, requiring surgeries, physical therapy and temporary uses of a wheelchair and walker. Thompson, according to the complaint, now frequently uses a cane, has a limp and experiences pain in her leg. An eight-member jury in the trial overseen by U.S. Colorado District Court Judge Maritza Dominguez Braswell determined Ford was liable for and negligent with a design defect in the vehicle. It awarded Thompson $56.575 million, including $45 million in punitive damages. "While our sympathies go out to Ms. Thompson and we respect the jury’s decision, we do not believe the verdict is supported by the evidence," according to a statement sent by spokesperson Richard Binhammer. "We have filed post-verdict motions that are currently pending before the court." The lawsuit alleged the Expedition's shifter was defective and that Ford knew there was a problem dating to the 1980s. Ford denied the claims. "Any injury or damage allegedly sustained by Plaintiff," Ford attorney Theresa Wardon Benz wrote in a response last year, "was caused solely by her own negligence in exiting a running vehicle while it was in Reverse, which Plaintiff admitted to Second responders while she was still under the stress of excitement caused by the incident." The Colorado court originally dismissed the case in 2019. After it granted a motion to reconsider, Ford successfully moved the case to Michigan. A motion to transfer the case back to Colorado, however, was granted in 2022 before a seven-day trial in April. |
This vehicle is No. 1 again on Kalea Hall For the third year in a row, Tesla Inc.’s Model Y is the most American-made car, according to a ranking released Tuesday by Cars.com. The Jeep Gladiator produced by Stellantis NV was the only Detroit automaker vehicle to rank in the top 10 on the annual list, coming in at No. 8. Meanwhile, Tesla's Model S and Model X also ranked in the top 10, along with Honda Motor Co.'s Honda Passport, Odyssey and Ridgeline, Toyota Motor Corp.'s Camry and Lexus TX, and the Volkswagen ID.4. To determine if a car qualifies for the American-Made Index, Cars.com evaluates the location of vehicle assembly, parts sourcing as determined by the American Automobile Labeling Act, U.S. factory employment relative to vehicle production, engine sourcing and transmission sourcing. Cars.com researchers independently evaluated more than 400 vehicles to generate the list of 100 vehicles contributing most to the U.S. economy in manufacturing, parts sourcing and employment. Austin, Texas-based Tesla did not repeat its 2023 sweep of the top four spots, with the Model X dropping to No. 9 and the Model 3 landing at No. 21 because of changes in workforce and domestic parts content. “Over the last year, domestic manufacturing was thrust into the spotlight by the recent United Auto Workers organizing efforts and continues to be a hot topic with the impending presidential election,” said Patrick Masterson, lead researcher for Cars.com’s American-Made Index, in a statement. “Pundits championhomegrown corporations as the key to investments in local and state economies. However, when it comes to the global automotive industry, the badge on the hood doesn’t always reveal a vehicle's economic contributions." Masterson noted that 66% of vehicles on the list are made by foreign automakers that support communities in Alabama, Indiana, Michigan and Ohio. While Michigan "remains a powerhouse for auto assembly" with 16 vehicles on the index, more than half of the vehicles on the list were assembled in the South, outpacing the 45% assembled inthe Midwest. Alabama leads Southern states in auto assembly with 15 vehicles on this year's list built there. General Motors Co. has 18 vehicles on the list that were built in Michigan, Kansas, Kentucky, Missouri, Tennessee or Texas. The highest-ranking GM vehicle on the list is the Missouri-built Chevrolet Colorado, coming in at No. 23. Despite a 10% decrease in representation on the list since 2020, GM consistently has the most representation. Ford Motor Co. has 12 vehicles on the list, assembled in Illinois, Kentucky, Michigan and Missouri. The Lincoln Corsair at No. 29 and Ford Mustang at No. 31 were Ford's highest-ranking vehicles. Ford's representation on the index has increased 20% since 2020. Stellantis, which considers itself a Netherlands-based company with a headquarters in Auburn Hills, has six vehicles on the index. |
UAW President Shawn Breana Noble Shortly past his one-year anniversary as the United Auto Workers' first directly elected president, Shawn Fain says he's planning to run again in 2026. Arguably the most consequential UAW president since Walter Reuther, labor experts say Fain likely all but solidified a victory. Moving the union from a "reactive" to an "offensive and aggressive" communications strategy, Fain said, has made him a public — and at times sharp-tongued — figure. "I didn't come up here to play around," Fain said in an interview at Solidarity House. "I came up here to effect change. And I intend to keep doing it as long as the membership will choose to have me." Last year's negotiations with Detroit's three automakers secured record contracts following a six-week strike. A $40 million commitment through 2026 to organize autoworkers is yielding results. Volkswagen AG employees in Tennessee voted overwhelmingly to join the UAW. Fain has called for unions to align their contract expirations for a general strike on May 1, 2028. The former administrative assistant spent his first full day as president overseeing a divided bargaining convention after a close runoff against incumbent Ray Curry, an election instituted as a result of a corruption scandal. Uniting the membership through rallies, Facebook Lives and professional-grade videos makes him most proud. "We've put the past behind us," Fain said. "We've done 30 years of work in a year. When you bargain good contracts, you give people a reason to want to be a part of something bigger and better." He cites the appointment of outsiders in the union's success. They include strategist Chris Brooks, Communications Director Jonah Furman, Organizing Director Brian Shepherd and new outside counsel. But most of the staff carried over from the old regime. "They were held back from being inventive and creative, and we've just unleashed them and said, 'Create,'" he said. "The biggest change is not making this about me or not making it about the (International Executive Board). Our focus is on the members now. Why it resonates so well with the public is because when people look at (promotionals), they see themselves." Detroit's automakers agreed to wage hikes, cost-of-living adjustments and billions of dollars in investments. After, competitors improved compensation. In a few months, the UAW said more than 10,000 nonunionized autoworkers signed authorization cards. "Shawn has been so powerful with his narrative," AFL-CIO President Liz Shuler said. "The way he messaged through the strike really galvanized public support. It really gave inspiration to a lot of others." It wasn't all smooth sailing. Ford Motor Co.'s CEO has suggested soured relations with the UAW is causing the automaker to rethink where it builds future vehicles. Fain has criticized job terminations at Stellantis. UAW membership in 2023 fell to its lowest since 2009. Midway through the VW drive, the campaign got a new organizing team, and Fain sent higher education members to assist. "It just felt like we needed some new energy," he said about VW. "It just totally changed the dynamic of that move. That's part of being a leader: you have to be able to adapt and be able to listen to other people. "I don't hate anyone," he added about his approach. "But at the end of the day, this membership pays dues for a reason. And they expect to be treated fairly." |
Ford posts healthy Breana Noble Ford Motor Co.'s U.S. sales rose 11% year-over-year in May, boosted by popular new models now hitting dealer lots. Across the industry, inventory levels are up, prompting additional incentives to move vehicles off lots, though elevated vehicle prices and interest rates continue to challenge affordability. Cox Automotive Inc. was forecasting a 3.5% increase in U.S. sales in the industry compared to May 2023. It's already been a big product year for Ford, which sold 190,014 vehicles last month. New models of the refreshed F-150 pickup, new midsize Ranger truck, freshened Lincoln Nautilus and Mustang editions now are available. Meanwhile, the Maverick compact truck posted record sales for the month — up 96%, including its hybrid option, whose sales were up 81% — as did the Transit commercial van. Bronco sales rose 18%. F-Series trucks, however, declined 1.6%. Ranger sales increased by 18%. The Mustang coupe was up 45%. Hybrid sales rose 64.5%, electric vehicle sales were up 64.7% and gas-powered vehicle sales increased by 5.6%. Ford EV sales are off to their best yearly start yet. Sales of Mustang Mach-E SUV sales rose 46%. F-150 Lightning deliveries were up 91%. E-Transit sales increased by 88%. Ford SUVs were up 7.4%, though Bronco Sport sales fell 6.2%. The Explorer, whose refresh launches this summer, gained 15%. Expedition had a 16% increase, and the Escape was up 20%. Lincoln says sales in May increased 28% from a year ago. Nautilus sales rose 36%, including the hybrid version representing 45% of its sales. Corsair and Aviator were up 17% and 131%, respectively. Navigator was down 22%. General Motors Co. and Stellantis NV only report U.S. sales on a quarterly basis. Among other automakers who report monthly, Honda Motor Co. Ltd.'s U.S. sales rose 6.4% year-over-year, Subaru Corp.'s increased 7% and Volvo's grew by 10%. At the end of May, new-car inventory in the industry was 76 days, 23 days higher than a year ago, according to Cox. Incentives are running nearly twice the level seen a year ago. |
Ford CEO says 'partial Breana Noble Ford Motor Co. CEO Jim Farley said Thursday that "partial electrification" options like hybrids and extended-range electric vehicles are more than just "transitional" technologies. The auto industry over the past year has reevaluated all-electric vehicle adoption timelines, given affordability and range challenges. Ford and others have reemphasized hybrid technologies or said they are reintroducing them in the coming years. The circumstances and China's strength in new-energy and advanced driving assistance systems have convinced Farley the company must be able to compete at the low-priced end of the market. "I come here at this moment in time as a CEO much clearer about our executional priorities," Farley said at the Bernstein Annual Strategic Decisions Conference. "And the way we need to make our way through this successfully to be a great company is a lot clearer than it was last year." Partial electrification, Farley said, is increasingly part of that solution, noting that the hybrid F-150 truck represents a quarter of sales. Beyond hybrids and plug-in hybrids, the category includes extended-range electric vehicles, or EREVs. Typically, they're vehicles that run fully off batteries, but have a generator, usually a combustion engine, onboard that recharges the battery, extending its range. The combination allows the vehicles to have a smaller battery, which represents most of the cost of an EV. "EREVs in the U.S. could be 120 miles of all-electric, and they drive like EVs," Farley said. "They don't drive like combustion engine vehicles, so you get an EV, and you have 700 miles of range. You don't have range anxiety for a long trip. You don't have to rely on any charges. And those vehicles have half the batteries, so they're very profitable." The fitness test for an automaker, he said, will be how quickly a company can adopt an in-between technology like this: "We really like that solution," Farley said about EREVs. So do competitors. Stellantis NV is expected to launch before the end of the year the Ram 1500 Ramcharger pickup alongside the all-electric Ram 1500 REV. The Ramcharger is an EREV that the company says can provide 690 miles of range — 145 miles from its battery and 545 miles from a 3.6-liter Pentastar V-6 eTorque engine. In comparison, the REV's extended-range battery is expected to provide 500 miles. Ford's extended-range all-electric F-150 Lightning truck offers 320 miles. The technology, however, begs the question of how regulators will see it, since it's not a zero-carbon emissions vehicle like traditional EVs, though most trips would be able to be run all-electric, because they're short-distance. Former Ram CEO Tim Kuniskis said Ramcharger sales would count toward Stellantis' EV goals. "We're going to have to talk to all the regulators," Farley said, "because they really bet on pure EVs, but EREVs in China are really the growing part of the EV market." As for the fitness of competitors, Farley suggested Ford's legacy ICE business, particularly its Pro commercial division, is a strength. All-EV brands in the United States and China that don't have a profitable business are going to face capital challenges, he said. He predicted state-owned enterprises in China will be rationalized and noted that the significant capacity for vehicle production that surpasses the Chinese, North American and European markets combined will create pricing pressure on EVs. That consolidation creates opportunity for Ford, Farley said: "The most important part of this consolidation is talent walking from one brand to another." Still, Chinese automakers are ahead of the West in areas like software and digital services, he said. Technologically, Farley said, he'd be surprised if the leaders in Level 3 — categorized as hands-free, eyes-free driving under certain conditions — aren't in the U.S. market in two years. One of the biggest challenges, though, he said is determining under what weather conditions the vehicle can take over all driving functions. "How do you prove the operating domain is safe?" he said. "That part is a little bit less clear to me." Major discussions within Ford about the pricing of such technology are happening now, he said. He likened the opportunity to when he sold for $5,000 a high-occupancy vehicle sticker on his Toyota Prius when he left the Japanese automaker in 2007. "I know at least 16 years ago that people were willing to pay $5,000 to drive in the HOV lane in California for a couple of minutes a day," Farley said. "How much are people willing to pay to get 45 minutes back in their life? I think for a while it's going to be a pretty good run." Ford and Volkswagen AG absorbed autonomy partner Argo AI in 2022 after it struggled to attract more investors. Farley said Ford hasn't split its software teams into a separate division like it had between its ICE and hybrid business called Ford Blue and its EV division, Model e. "It's safety-critical, so you can't just take someone from Apple and Google. You can't fire an airbag from the cloud," Farley said. "I think that the most important thing is to have talent and to have that talent be heavily integrated into the legacy part of the company, because we have a safety product, and so we purposely did not do what others did." That structure is another sign of Ford's various powertrain options being more than just transitional: "We don't differentiate between ICE and non-ICE on digital," Farley said, "because we have this incredible Pro business that will increase and will continue to be ICE. Why would we want to restrict ourselves for our digital revenue to be just EVs?" |
Legislation banning replacement Catherine Lévesque Speaking after the vote, Labour Minister Seamus O'Regan said he was© Provided by National Post OTTAWA — Cheers erupted in the House of Commons on Monday after MPs of all stripes, including Conservatives, unanimously voted in favour of legislation to ban replacement workers used during strikes and lock-outs in federally regulated workplaces. Speaking after the vote, Labour Minister Seamus O’Regan said he was “very relieved, happy and delighted” that all MPs voted in favour of his bill, and said it sends a “real message” to workers across the country that “they are valued and that parliamentarians have heard them.” “This is a big moment for workers in this country. It’s a big moment for labour, and we’re thrilled that it passed unanimously,” said O’Regan. The ban will effect federally regulated sectors including air travel, banks, railways, shipping, telecommunications and radio and TV broadcasters, as well as all Crown corporations, such as Canada Post and the Canadian Air Transport Security Authority. NDP Leader Jagmeet Singh took the credit for the legislation going through, thanks to his party’s supply-and-confidence deal with the government. The Liberal party had also promised to ban replacement workers as part of its election platform in 2021. “I want to be clear, this would not have happened but for New Democrats forcing the government to do this,” Singh said. The legislation will now be sent to the Senate, where it will be studied and eventually adopted. The changes will come into effect one year after the bill becomes law. The initial bill proposed 18 months to make the changes come to effect, but it was amended in committee hearings to 12 months instead. The Bloc Quebecois criticized the delays, saying the ban on replacement workers at the federal level should come into effect immediately once the bill receives royal assent. “Why wait a year before its implementation?” asked Bloc House leader Alain Therrien. “Twelve months is much too long. We’ve had this law in Quebec for the past 47 years.” Therrien however said that he hopes the Senate does not decide to amend the legislation once more, as he fears a legislative game of “ping pong” that could delay the bill even more. The Conservatives made it clear last February at second reading that they would support a ban on replacement workers as they seek to court the blue collar vote. Conservative Leader Pierre Poilievre said in a speech last month that his party supported the legislation because “working people have the right to bargain and fight for wage increases that they need in order to keep up with the galloping inflation that has ripped them off.” Singh said he does not buy Poilievre’s position on replacement workers, arguing that he has voted against similar legislation multiple times in the past. “When Conservatives are in power, they attack the strength of unions, they attack the strength of workers, so I have concerns … based on facts, based on Pierre Poilievre’s record,” he said. The Canadian Chamber of Commerce has been critical of the legislation, which it said will harm the economy in federally regulated sectors like telecommunications and transportation. “Replacement workers allow organizations in rail, ports, telecom and air to sustain a basic level of ‘lights on’ continuity that preserves critical services for Canadians,” Robin Guy, vice president and deputy leader of government relations for the Canadian Chamber of Commerce, wrote in an op-ed in the Financial Post . “There are serious ramifications for all Canadians if we prohibit these workers from keeping those lights on,” he added. O’Regan rejected the assertion that the new legislation would harm the economy, arguing that banning replacement workers in fact speeds up the negotiation process. “You would not believe how disruptive it is … how much time and energy that takes away from what we need their time and energy spent at, which is at the table finding solutions, providing more stability, more certainty for our economy,” he said. |
UAW asks NLRB to reject Kalea Hall Breana Noble The United Auto Workers asked federal officials Friday to reject the results of last week's failed Mercedes-Benz unionization vote and order a new election. The Detroit-based union wants the National Labor Relations Board to void the organizing election the union lost last week at the Mercedes complex in Vance, Alabama — a vote that delivered a blow to the UAW's nationwide autoworker organizing campaign after successfully unionizing Volkswagen AG's plant in Chattanooga, Tennessee, in April. The UAW is calling for a new election at Mercedes on the grounds that the German automaker allegedly fired four pro-union workers and allowed anti-union employees to solicit support on company time while barring union supporters from doing the same, among other discriminatory actions. After a five-day election last week, 56% of workers at the Mercedes plant voted against unionizing with the UAW. Kayla Blado, a spokesperson for the NLRB, confirmed in a statement that the agency's Region 10-Atlanta office received the UAW’s three-page filing objecting to the election: "The Regional Director will review the objections and could order a hearing over them. If the Regional Director finds that the employer's conduct affected the election, she can order a new election." The NLRB is also investigating six unfair labor practice charges filed by the UAW since March. The charges allege Mercedes disciplined workers for talking about unionization at work, prevented distribution of union materials and made statements against the union. In a statement Friday, the UAW said that "over 2,000 Mercedes workers voted yes to win their union after an unprecedented, illegal anti-union campaign waged against them by their employer. What that tells us is that in a fair fight, where Mercedes is held accountable to following the law, workers will win their union. All these workers ever wanted was a fair shot at having a voice on the job and a say in their working conditions. "And that’s what we’re asking for here. Let’s get a vote at Mercedes in Alabama where the company isn’t allowed to fire people, isn’t allowed to intimidate people, and isn’t allowed to break the law and their own corporate code, and let the workers decide.” A Mercedes spokesperson responded to the UAW's filing on Friday with a statement, saying: "Over 90 percent of Mercedes-Benz U.S. International (MBUSI) Team Members made their voices heard through a secret-ballot vote and the majority indicated they are not interested in being represented by the UAW for purposes of collective bargaining. "Our goal throughout this process was to ensure every eligible Team Member had the opportunity to participate in a fair election. We sincerely hoped the UAW would respect our Team Members’ decision. Throughout the election, we worked with the NLRB to adhere to its guidelines, and we will continue to do so as we work through this process." The vote count was 2,642 against union representation and 2,045 for, according to results posted by the National Labor Relations Board following the five-day election. Kirk Garner, a 26-year Mercedes employee who has worked on unionizing the plant since 2000, agreed with the union's objections. "What do these objections mean for us going forward? Well, we might get another election out of it," he told The Detroit News via text message. "The company might not be able to change wages, benefits and working conditions. We could probably file for another in April of next year before all this goes to court." Garner added: "The company is going to blame the UAW and say they were ready to improve conditions, but the UAW filed objections." Unfair labor practice charges filed around an election is not uncommon, experts said. The NLRB did not immediately have comprehensive data on rerun elections, but they have happened in recent years — including in Alabama. Workers at an Amazon.com Inc. warehouse in Bessemer, Alabama, received a new election in 2022 after labor officials ruled the company's anti-union campaign affected the results of a vote the union lost in 2021, NPR reported. Because of challenged ballots, that second vote has remained undecided. Whether the NLRB takes up a challenge, though, can be affected by who is in the White House. “It depends on whether it’s a Republican or Democrat in power and who is appointed on the committee," said Art Wheaton, an automotive industry specialist at Cornell University's Industrial and Labor Relations School who has done training for automakers like General Motors Co. and Ford Motor Co. as well as the UAW. "Under the current administration, it’s a little bit more pro-union than the previous administration. There’s specific intent under the NLRB to give more of an even playing field for the union. They’re more proactive to give the workers the opportunity to share their voice if people were blocked from voting or expressing their true intent.” Given comments from Alabama politicians, the number of flyers and commercials around the vote and captive audience meetings with employees, Wheaton said the charges are more than a formality. Filing them also could support the UAW's charges against Mercedes in Germany alleging the company violated a new law on global supply chain practices. Dan Gilmore, a labor attorney who also teaches classes on labor law at the University of Tennessee at Chattanooga, said by text message that the alleged conduct by Mercedes is "in very sharp contrast to the lack of opposition that VW provided prior to each of the elections involving that automaker, especially the first one in 2014. The allegations described in the objections include some classic conduct that has, in prior cases, resulted in the setting aside of elections and the ordering of new elections." The union's move to seek another vote at Mercedes is consistent with the UAW's actions and $40 million organizing campaign of nonunion autoworkers, said Marc Robinson, principal of consultancy MSR Strategy and a former GM internal consultant who was involved in labor negotiations. Still, even if the NLRB called for a second election, there may not be a high likelihood of the union winning it. Filing the charges, even if unsuccessful, still communicates to others that the union is willing to put up a fight. Leaders might even be happy, Robinson said, if there isn't a second election because another loss would produce another of round of bad headlines for the UAW. "It obviously was a massive setback," he said of the UAW's loss. "They really can’t afford a second consecutive defeat. They would want to be fairly confident, at least for this particular round of organization."
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New US tariffs on Chinese electric MATTHEW DALY – AP WASHINGTON (AP) — New tariffs on Chinese electric vehicles and batteries, solar cells, medical equipment and other goods are intended to protect U.S. jobs and manufacturers. They could raise prices on certain specific items, experts say, though a broad inflationary impact is unlikely in the short term. The tariffs will be phased in over the next three years, officials said. Those that take effect in 2024 include EVs and EV batteries, along with solar cells, syringes, needles, steel and aluminum and more. Some would not take effect until 2026. The election-year tariffs could increase friction between the world’s two largest economies. China’s foreign ministry said in a statement that the tariffs “will seriously affect the atmosphere of bilateral cooperation.” Administration officials say they don’t expect the tariffs to significantly escalate tensions between the two counties, although China is likely to explore ways to respond to the new taxes on its products. President Joe Biden said Chinese government subsidies for EVs and other consumer goods ensure that Chinese companies don’t have to turn a profit, giving them an unfair advantage in global trade. “For years, the Chinese government has poured state money into Chinese companies .... it’s not competition, it’s cheating,’' the Democratic president said Tuesday at the White House. The tariffs come in the middle of the presidential campaign between Biden and his Republican predecessor, Donald Trump, in which they are vying to show who’s toughest on China. The Biden administration has insisted that its approach is more targeted and less inflationary than the across-the-board tariffs proposed by Trump. HOW DO THE TARIFFS AFFECT THE U.S. AUTO INDUSTRY? Under the White House action, tariffs on EVs from China will quadruple, from 25% to 100% this year. There are currently very few EVs from China in the U.S., but the Biden administration and U.S. automakers worry that low-priced, heavily subsidized EVs could soon flood the U.S. market. China’s global exports of EVs grew by 70% from 2022 to 2023. “A 100% tariff rate on EVs will protect American manufacturers from China’s unfair trade practices,″ the White House said in a statement. John Bozzella, president and CEO of the Alliance for Automotive Innovation, a major industry group, applauded the White House action, saying it would help prevent the U.S. from becoming a “dumping ground” for subsidized Chinese EVs. “We can’t let China’s EV overcapacity problem turn into a U.S. auto industry problem,’' he said. While Chinese EVs are largely a future threat, tariffs on EV batteries may have a more immediate impact because China dominates mining and processing of critical minerals such as lithium, cobalt and graphite used in EV batteries. U.S. automakers such as Ford and Tesla use lithium iron phosphate batteries made in China, said Sam Abuelsamid, principal mobility analyst for Guidehouse Insights. Tesla uses battery cells from China’s Contemporary Amperex Technologies Ltd., or CATL, in versions of its Model 3 car. Ford uses CATL products in some versions of the F-150 Lightning electric pickup and the Mustang Mach E electric SUV. Lithium iron phosphate batteries generally cost less but don’t go as far per charge than the lithium-ion chemistry now in use in most EVs. However, they can handle more frequent fast-charging than other battery chemistries. Ford didn’t immediately respond to a question about battery tariffs but said in a statement that it favors U.S. policies that support American manufacturing and protect supply chains, national security and data privacy. The tariffs could raise the cost of batteries and battery materials for EVs that likely would be passed on to the consumer as part of the vehicle cost. WHAT ABOUT THE SOLAR INDUSTRY? The price of solar panels also may rise because of the new tariffs. The tariff rate on solar cells will increase from 25% to 50% in 2024. The White House said China has used unfair practices to dominate upwards of 80% to 90% of the global solar supply chain. Chinese policies are flooding global markets with artificially cheap solar modules and panels, undermining investment in solar manufacturing outside of China, the White House said. Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, commended the Biden administration for acting to support the continued buildout of U.S. solar and storage manufacturing. The administration was “thoughtful” to exclude tariffs on key machinery used to manufacture solar components in the United States, Hopper said. A temporary tariff exclusion will encourage domestic manufacturing of solar products, she said. Colorado Gov. Jared Polis, a Democrat and clean-energy advocate, was less optimistic. He called the tariffs on solar cells and other items “horrible news for American consumers and a major setback for clean energy.’' “Tariffs are a direct, regressive tax on Americans and this tax increase will hit every family,’' Polis said on X, the social media site. STEEL AND ALUMINUM Tariffs on steel and aluminum products will triple in some cases, from the current range of zero to 7.5% to 25% in 2024. China controls over 50% of global production of steel and aluminum, and its products are “among the world’s most carbon intensive,” the White House said. While the exact effect of the higher tariffs is uncertain, “tariffs do create deadweight loss, so we can expect them to exact some costs on the U.S. economy,’' said Sarah Bauerle Danzman, an associate professor of international studies at Indiana University. Still, “the certainty in price protection that these tariffs afford producers could induce new investments in the U.S. supply chains for these items,’' she added. MEDICAL PRODUCTS Tariff rates on syringes and needles will increase from zero to 50% in 2024, while certain personal protective equipment, including some respirators and face masks, will see tariffs increase from zero to 7.5% now to 25% in 2024. Tariffs on rubber medical and surgical gloves will increase in 2026. The tariffs on needles and syringes should not have a noticeable impact on U.S. supply, according to Steve Brozak, a health care analyst and president of WBB Securities. New Jersey-based Becton, Dickinson and Co. is the largest supplier in the U.S., where manufacturing has increased since the COVID-19 pandemic, Brozak said. The Food and Drug Administration said earlier this month that the supply and manufacturing capacity for plastic syringes made outside China is enough to support current demand. The FDA had warned last fall it was evaluating plastic syringes made in China for potential problems like leaks and breaks. The agency has since recommended that suppliers avoid using those syringes if possible, cooling demand for the Chinese products. Greta Peisch, a former Biden administration trade lawyer, said the tariffs will bolster health and national security by ensuring domestic supplies of crucial medical equipment. “We can argue about whether and how much prices will rise, but this heads off a potential supply bottleneck’’ now and during a future pandemic, she said.
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Feds have 'significant safety Tom Krisher Detroit — Federal investigators say they have “significant safety concerns” about a Ford SUV recall repair that doesn't fix gasoline leaks that can cause engine fires. The U.S. National Highway Traffic Safety Administration is demanding volumes of information from the automaker as it investigates the fix in a March 8 recall of nearly 43,000 Bronco Sport SUVs from the 2022 and 2023 model years, and Escape SUVs from 2022. All have 1.5-liter engines. Ford Motor Co. says the SUVs have fuel injectors that will crack, allowing gas or vapor to leak near hot engine parts that can cause fuel odors, fires and an increased risk of injuries. In an April 25 letter to Ford released Thursday, the agency's Office of Defects Investigation wrote that based on its review of the recall repairs, it "believes that the remedy program does not address the root cause of the issue and does not proactively call for the replacement of defective fuel injectors prior to their failure.” Ford’s remedy for the leaks is to add a drain tube to send the gas away from hot surfaces, and a software update to detect a pressure drop in the fuel injection system. If that happens, the software will disable the high pressure fuel pump, reduce engine power and cut temperatures in the engine compartment. Owners also will get a “seek service” message. But in the 11-page letter to the automaker, the agency asks Ford to detail any testing it did to verify the remedy resolved the problem and whether hardware repairs are needed. It also asks the company to explain any other remedies that were considered and any cost-benefit analysis the company did when it picked the fix. Safety advocates have said Ford is trying to avoid the cost of replacing the fuel injectors and instead go with a cheaper fix that drains gasoline to the ground. Ford said Thursday it is working with the NHTSA during its investigation. NHTSA also is asking Ford to detail how the software will detect a fuel pressure drop, how much time elapses between cracking and detection, and what messages will be sent to the driver. It also asks what effect disabling the high-pressure fuel pump has on other fuel system parts, and how the SUVs will perform when the pump is disabled. The agency also wants to know how much fuel will leak and whether the amount complies with federal environmental and safety standards. And it wants to hear Ford's take on “its obligations (legal, ethical, environmental and other) to prevent and/or limit fuel leakage onto the roadway at any point during a vehicle's lifespan.” Ford has to provide information to the agency by June 21, the letter said. Depending on the results of its investigation, the agency can seek additional repairs that fix the fuel leaks. The company has said in documents that it has reports of five under-hood fires and 14 warranty replacements of fuel injectors, but no reports of crashes or injuries. In a previous email, Ford said it is not replacing fuel injectors because it is confident the recall repairs “will prevent the failure from occurring and protect the customer.” The new software triggers a dashboard warning light and allows customers to drive to a safe location, stop the vehicle and arrange for service, the company said. NHTSA documents filed by Ford say the problem happens only in about 1% of the SUVs. The company also said it will extend warranty coverage for cracked fuel injectors, so owners who experience the problem will get replacements. Repairs are already available, and details of the extended warranty will be available in June, Ford said. The recall is an extension of a 2022 recall for the same problem, according to Ford. The repair has already been tested on vehicles involved in the previous recall, and Ford said it’s not aware of any problems. The company also said it isn’t recommending that the SUVs be parked only outdoors because there’s no evidence that fires happen when vehicles are parked and the engines are off. NHTSA said in documents that in the 2022 recall, which covered nearly 522,000 Bronco Sports and Escapes, Ford had the same remedy as the latest recall. |
Ford CEO Jim Farley says Breana Noble Ford Motor Co. CEO Jim Farley on Thursday said semi-solid state batteries are "looking very promising for production," as the automaker has emphasized the need for breakthroughs in electric vehicle technology to improve affordability. "We're getting more and more excited about the potential," Farley said in response to a shareholder question during the Dearborn automaker's virtual annual shareholder meeting. "We don't see them ready for mass production yet, but we believe semi-solid state could be in our lineup in the coming years." The largest cost of EVs is their batteries. Solid state batteries are one way researchers are seeking to address that challenge, since they potentially can offer a greater energy density. That means the vehicle would need fewer battery cells to travel the same distance as a vehicle with lithium-ion batteries. In these traditional EV batteries, lithium ions flow through a liquid electrolyte to charge and discharge the battery. In a solid state battery, the liquid electrolyte and separator often are replaced by a polymer or ceramic. Semi-solid state batteries are a variation of that, typically composed of a solid, conductive material suspended in a liquid electrolyte to help ease the movement of the lithium ions. The development of these batteries, though, takes time because of extensive testing required, longevity needed from the batteries, costs and manufacturing challenges. Ford has invested in Colorado-based all-solid-state startup Solid Power Inc., which uses a sulfide-based electrolyte. Farley said Ford's Ion Park team in southeast Michigan is working on the semi-solid state batteries. Farley said leveraging data collected from vehicles, Ford has found most long road trips don't go beyond 350 miles before some kind of break. Offering that as a competitive range seeks to balance the need for range and the ability of consumers to afford an EV. Ford expects its Model e electric vehicle division to lose up to $5.5 billion this year after recording a $1.32 billion loss in the first quarter, double from the same period the year prior. Meanwhile, Ford will have refreshed 60% of the lineup in its Ford Blue division, which includes internal combustion engine vehicles and hybrids, over the past couple of years by the end of 2024, executive chairman Bill Ford Jr. said during the meeting. "I would argue," he said, "that our ICE business is healthier than it's ever been." During the annual meeting, 92.9% of shareholders in an advisory vote approved executive compensation packages. Farley's 2023 compensation package was valued at nearly $26.5 million, and Ford's was $20.6 million. Proposals made by shareholders to have equal voting rights per share, to hold a child labor audit and to increase supply chain traceability disclosures were rejected. |
Ford April sales decline, Breana Noble Ford Motor Co.'s U.S. sales declined 2.4% in April, though hybrid deliveries hit a new all-time monthly sales peak, the automaker said Thursday. The drop from 184,002 vehicles to 179,588 came from declines for F-Series trucks, Broncos and other SUVs. Auto prices are declining, and automakers, including Ford, said they are increasing incentives, but rising interest rates still have kept monthly payments high. April also had one less selling day than the same month in 2023. "With the impact of tax refund season effectively over, the vehicle market is seeing declining sales momentum," Jonathan Smoke, chief economist for auto information services firm Cox Automotive Inc., wrote in response to the Federal Reserve's decision to keep monetary policy and interest rates unchanged this week. "The next few weeks and months could be challenging if consumers en masse believe they are better off waiting to purchase." General Motors Co. and Stellantis NV only post sales on a quarterly basis. Honda Motor Co. Ltd.'s U.S. sales were flat, Hyundai Motor Co Ltd. was down 3% and Subaru Corp. was up 9.5% Meanwhile, Ford has emphasized hybrids and committed to a full lineup of them by the end of the decade, as electric vehicles haven't kept with sales expectations, are experiencing a price war and consumers remain wary of their cost and the limited access to charging stations. Still, Ford EV sales rose 129% year-over-year. Ford hybrid vehicle sales hit 17,997, up nearly 60% from last year. F-150 and Maverick hybrid trucks drove those sales, rising almost 94% and 64%, respectively. Hybrids represented 22% of F-150 sales. In general, Ford truck and van sales rose 2% in April, though F-Series trucks were down 7.2%, including a nearly 57% increase in the all-electric Lightning version. The automaker started shipping refreshed 2024 F-150s at the end of February and lifted on April 16 a stop-shipment that had been in place since Feb. 9 on the Lightning. The automaker at the start of April also cut a second shift at the Dearborn Electric Vehicle Center that assembles the Lightning. Super Duty sales rose 2.9% year-over-year. Ranger sales increased 3% as the automaker increases production of the all-new model. Maverick compact pickups were up nearly 84%. Transit commercial van vehicles rose 32%, including an almost 86% increase in sales of the electric E-Transit. Heavy trucks fell 28%. SUV sales dropped 9.8% in April from the same month a year ago. Bronco sales declined 12%, the Bronco Sport fell by 33%, Escape dropped by 28% and Edge declined by 29%. Explorer and Expedition were up 5.3% and 26%, respectively. The electric Mustang Mach-E rose 205%. As Mustang celebrates its 60th anniversary, sales of the coupe fell 9.4%. Sales of the Lincoln luxury brand rose 24% from a year ago. The refreshed Nautilus' sales increase by almost 16%, the Corsair rose 163% and the Aviator was up 6.8%. Navigator sales declined by 20%. |
Ford Q1 profits fall 28% as Ford Breana Noble Ford Motor Co. said Wednesday it made $1.3 billion in net income in the first quarter of 2024, a 28% decrease year-over-year, as earnings from Ford's gas-engine and hybrid business tumbled from the ramp-up of the refreshed 2024 F-150 pickup truck. The profit that represented 33 cent earnings per diluted share came on $42.8 billion in revenue, which was up 3.1%. Those are mixed results compared to Wall Street expectations. Analysts, according to Yahoo Finance, on average were projecting the Dearborn automaker to record $37.63 billion in revenue and 40 cents for earnings per share. The Blue Oval's shares in post-market trading were up 2% to $13.31 per share. “Customers want vehicles that they’re passionate about, choices in how they’re powered, quality that’s constantly getting better and great value,“ CEO Jim Farley said in a statement. “With Ford+, we’re increasingly giving them all those things in ways that others don’t and creating a company that will lead for the long haul." For the January-through-March quarter, Ford posted adjusted operating earnings of $2.8 billion, down 18% year-over-year. Operating income of Ford Blue, the company's internal combustion engine and hybrid vehicle business, declined 65% to $905 million with a 4.2% operating margin. Ford's U.S. sales rose 6.8% in the first quarter, though F-Series trucks were down 10%. The automaker, though, now has a full lineup of the refreshed F-150 full-size trucks, including the Lightning all-electric model, and the new midsize Ranger being shipped. Meanwhile, Ford Pro, the commercial vehicle business, was the shining star of the report. It posted more than $3 billion in operating income, up 120% from last year, and a 16.7% operating margin. Super Duty sales drove the increase, according to the automaker. Software services also represented 13% of the earnings, nearing the goal of 20%. The loss posted by Ford Model e, the business unit dedicated to electric vehicles, was $1.32 billion compared to $722 million a year ago. Lightning shipments were held up starting in early February over an undisclosed quality issue. Those shipments resumed last week, though the company cut the third shift of production at the Rouge Electric Vehicle Center in Dearborn at the start of April. Ford maintained its guidance for full-year adjusted operating income of $10 billion to $12 billion. The company increased adjusted free cash flow upward: $6.5 billion to $7.5 billion from the initial outlook of $6 billion to $7 billion. Additionally, Ford anticipates capital expenditures for the year of $8 billion to $9 billion, narrowing the $8 billion-to-$9.5 billion original estimation. The company also remains on track to cut $2 billion in areas like materials, freight and manufacturing. Annual adjusted operating earnings outlook remains $8 billion to $9 billion for Ford Pro and $7 billion to$7.5 billion for Ford Blue. The automaker also expects a $5 billion to $5.5 billion loss for Ford Model e. It anticipates earnings before taxes of about $1.5 billion for Ford Credit. Ford will pay a 15-cent regular dividend on June 3 to shareholders of record at close on May 8. Beating expectations on Tuesday, crosstown rival General Motors Co. in the first quarter made $3 billion in net income on revenue of $43 billion, prompting it to increase its guidance for the year. Stellantis NV will report first quarter revenue and shipments on April 30.
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GM beats profit expectations Kalea Hall General Motors Co. beat Wall Street expectations on Tuesday, delivering first-quarter net income of $3 billion on revenue of $43 billion. The Detroit automaker increased its guidance for the year of adjusted earnings to be in a range of $12.5 billion to $14.5 billion, up from $12 billion to $14 billion. The automaker expects its net income for the year will be between $10.1 billion and $11.5 billion, above its previous guidance of $9.8 billion to $11.2 billion. GM's first-quarter 2024 net income was up from last year's $2.4 billion, which it made on revenue of $40 billion. GM's adjusted earnings per share of $2.62 was above the average Wall Street estimate of $2.14. GM's revenue also beat the Street's average estimate of $41.88 billion. The results come after GM saw a 1.5% decline in overall sales year over year in the first quarter as fleet deliveries slipped 23%. GM's U.S. dealers sold 594,233 new vehicles in the first three months of this year compared with 603,208 a year ago. The automaker noted its retail sales, or sales to individual customers, increased 6%. It attributed the sales decline to the drop in fleet deliveries, which were affected by temporary production constraints on midsize pickups and vans. "Our consumer has been remarkably resilient in this period of higher interest rates," CFO Paul Jacobson said on a conference call. "And we've seen that in all of our transaction prices and our strong go-to-market strategies. It's been a strategy that's worked for us and we think in this environment that we can continue to perform." GM's adjusted earnings before interest and taxes in the first quarter were $3.87 billion, a slight increase from the $3.8 billion reported in the first quarter of 2023. GM's net income margin for the quarter was 6.9%, up from last year's 6%. Pre-tax earnings in GM North America totaled $3.8 billion in the quarter. GM International lost $10 million in pre-tax earnings. GM is focusing on getting more EVs launched this year after selling 16,425 in the United States during the first quarter, down from 20,000 in the first quarter of 2023 — a milestone that was supported by sales of the since-discontinued electric Chevrolet Bolt, which was not based on GM's Ultium EV platform. The automaker did see sizable gains in the EVs based on Ultium. The Bolt, which GM halted production of in December, still led GM's EV sales with 7,040 delivered, down 64% from last year. Meanwhile, the Cadillac Lyriq's sales increased 499% from 968 to 5,800. "In our EV business, we’re seeing good early sales momentum for vehicles like the Cadillac LYRIQ," CEO Mary Barra wrote in a letter to shareholders. "We also continue to see sequential and year-over-year improvements in profitability as we benefit from scale, material cost and mix improvements." GM is aiming to build and wholesale between 200,000 and 300,000 Ultium EVs in North America this year. Ford Motor Co. releases its first-quarter earnings on April 24. Stellantis NV releases first-quarter shipments and revenues on April 30. |
UAW wins big in historic Story by Nora Eckert CHATTANOOGA, Tennessee (Reuters) -Workers at Volkswagen's Tennessee plant have voted to join the United Auto Workers, in a seismic victory for the union as it drives beyond its Detroit base into the U.S. South and West. A majority of eligible workers cast ballots in favor of the union, with the final tally on Friday at 2,628 to 985, or 73% for joining the UAW. The landslide win will make the Chattanooga factory the first auto plant in the South to unionize via election since the 1940s and the first foreign-owned auto plant in the South to do so. It is also a huge shot in the arm for UAW President Shawn Fain's campaign to unionize plants owned by more than a dozen automakers across the U.S., including Tesla. Fain, known for his aggressive bargaining tactics, and his team have committed to spending $40 million through 2026 on the effort. Jubilant workers, some in tears, raised their arms in victory and held aloft "Union Yes" posters as the final tally came in. "I'm exhilarated that we actually accomplished what we set out to accomplish," said VW employee Lisa Elliott as she hugged her coworkers. "Tell Mercedes they’re next," she cheered. A Mercedes plant in Alabama, at which a majority of workers have signed cards indicating they support unionization, will be the next facility to hold a UAW election, during the week of May 13. "You all have just done the most important thing a working class person can do, and that is stand up," Fain told workers at the count watch party. "You guys will lead the way. We will carry this fight on to Mercedes and everywhere else," he added. Although the UAW narrowly lost votes at the same plant in 2014 and 2019, this year's vote was preceded by surging public support for unions and successful contract negotiations last year with the Big Three automakers. "The margin is overwhelming," said Harley Shaiken, professor of labor at the University of California, Berkeley. "This is a historic moment." VW took a neutral position on the vote at its only non-union factory globally. The UAW has previously represented VW workers at a Pennsylvania plant that built Rabbit cars before it closed in 1988. The UAW - which has seen its membership fall as Detroit automakers restructured - has for decades struck out at southern auto plants, where anti-union sentiment has long been entrenched. Earlier this week Republican governors in six southern states including Tennessee spoke out in opposition to the union drive. In addition to the two narrow losses at VW previously, the UAW sustained three more significant misses at southern factories owned by Nissan, the last in 2017 in Mississippi. But the broader labor movement has since gone through somewhat of a renaissance, with a record number of workers across various industries going on strike last year. Last autumn U.S. President Joe Biden walked picket lines outside Detroit, where the union scored double-digit percentage raises as well as cost-of-living increases from General Motors, Ford Motor and Stellantis. That sparked a wave of hikes by non-union automakers that some analysts said were designed to keep out unions. Biden rebuked the Republican governors after the vote, citing several union victories in recent months. "These union wins have helped raise wages and demonstrate once again that the middle-class built America and that unions are still building and expanding the middle class for all workers," he said in a statement. In addition to the Mercedes plant, the UAW has said that more than 30% of employees at a Hyundai plant in Alabama and at a Missouri Toyota auto parts factory have signed cards indicating they want to join the UAW. Pro-union workers at the VW plant say they have campaigned to secure improved safety on the job, better work-life balance and improved benefits. "Now that it’s official I can relax," said Robert Crump, who has worked at VW for 12 years, and voted yes in all three union elections. "It’s a really good feeling." |
Ford recalls nearly 43,000 SUVs Associated Press Detroit – Ford is recalling nearly 43,000 small SUVs because gasoline can leak from the fuel injectors onto hot engine surfaces, increasing the risk of fires. But the recall remedy does not include repairing the fuel leaks. The recall covers certain Bronco Sport SUVs from the 2022 and 2023 model years, as well as Escape SUVs from 2022. All have 1.5-liter engines. Ford says in documents filed with U.S. safety regulators that fuel injectors can crack, and gasoline or vapor can accumulate near ignition sources, possibly touching off fires. Dealers will install a tube to let gasoline flow away from hot surfaces to the ground below the vehicle. They’ll also update engine control software to detect a pressure drop in the fuel injection system. If that happens, the software will disable the high pressure fuel pump, reduce engine power and cut temperatures in the engine compartment, according to documents posted Wednesday on the National Highway Traffic Safety Administration website. Owners were to be notified by letter starting April 1. The company says in documents it has reports of five under-hood fires and 14 warranty replacements of fuel injectors, but no reports of crashes or injuries. In an email, Ford said it is not replacing fuel injectors because it is confident the recall repairs “will prevent the failure from occurring and protect the customer.” The new software also will trigger a dashboard warning light and allow customers to drive to a safe location, stop the vehicle and arrange for service, the company said. NHTSA documents filed by Ford say the problem happens only in about 1% of the SUVs. The company also said it will extend warranty coverage for cracked fuel injectors, so owners who experience the problem will get replacements. Ford said repairs are already available, and details of the extended warranty will be available in June. Ford said the recall is an extension of a 2022 recall for the same problem. The repair has already been tested on vehicles involved in the previous recall, and Ford said it's not aware of any problems. The company also said it isn't recommending that the SUVs be parked only outdoors because there's no evidence that fires happen when vehicles are parked and the engines are off. Michael Brooks, executive director of the nonprofit Center for Auto Safety, called Ford's remedy for the fuel leaks a “Band-aid type recall” and said the company is trying to avoid the cost of repairing the fuel injectors. A 1% failure rate, he said, is high, and even with the repairs, drivers still could be forced to exit a freeway at a low speed, placing them at risk of a crash. NHTSA, he said, should do more to make sure recalls fix the root causes of vehicle problems rather than making less-costly repairs. In the past, NHTSA has said it does not have legal authority to pre-approve recall fixes. But in a statement Wednesday, the agency said it will “closely track their performance using field data.” The agency said owners who have questions should contact their dealership or Ford. Brooks said Congress should change the law so the agency can “require something more than the rubber stamp that NHTSA is currently deploying” on recalls. The agency, he said, has been more aggressive of late in investigating recall fixes. “That is a post-remedy inquiry that won't make the fixes better, and further stretches out the process and leaves consumers in limbo,” he said. |
Ford delays EV launches, will Breana Noble Ford Motor Co. on Thursday said it will delay the launch of new three-row electric vehicles in Ontario, adjust the timing of its next-generation electric truck and will offer hybrid powertrain across its entire internal combustion engine lineup in North America by the end of the decade. Executives of the Dearborn automaker have admitted that they and the industry got the adoption growth timeline for EVs wrong after a leap in sales amid a global microchip shortage and limited inventories that skewed expectations on capacity for EVs and batteries. With greater availability of all vehicles, the majority of customers are showing they aren't ready for EVs because of how expensive they are, the lack of accessible and reliable charging infrastructure and how fast they take to charge up. Although Ford reported U.S. first-quarter EV sales rose 86% and hybrids were up 42% year-over-year, it expects to lose at least $5 billion on its Model e EV division in 2024 even after cutting $12 billion in planned EV investments. Tesla Inc., the top seller of EVs in the United States, posted a global sales decrease of 8.5%. General Motors Co.'s U.S. EV sales also fell to almost 16,500, down from 20,000 in the first quarter of 2023. “As the No. 2 EV brand in the U.S. for the past two years, we are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time,” Ford CEO Jim Farley said in a statement. “Our breakthrough, next-generation EVs will be new from the ground up and fully software enabled, with ever-improving digital experiences and a multitude of potential services.” Ford says it wants to give the market for three-row EVs to develop further and take advantage of emerging battery technologies that could offer more range and better value. Leaders have discussed how the company is shifting its focus to cheaper, smaller EVs, including the development of a new platform with a small "skunkworks" team in California. As a result, launch of the vehicles at Oakville Assembly Plant will begin in 2027 instead of the previously expected 2025. Retooling of the plant from from the gas-powered Edge crossover still is expected to begin in the second quarter. Some skilled trades workers will maintain their position through the updates, but most of the 2,700 employees at the plant will be on layoff until production resume again. The company says it will work with Canadian labor union Unifor to mitigate the effect of the delay on workers. Ford also is tweaking the timing of the next all-electric F-Series truck that will be built at the sprawling $5.6 billion Blue Oval City campus being constructed in Tennessee — a part of the $11.4 billion in investments Ford announced in 2021 in that state and Kentucky, the single largest manufacturing investment in its history. Deliveries of the trucks will begin in 2026. The automaker previously said their production would begin in 2025. Construction continues on the BlueOval SK joint venture battery plants in Tennessee and Kentucky, though one of the plants in Kentucky already has been delayed by a year. Progress at BlueOval Battery Park in south-central Michigan's Marshall also proceeds for Contemporary Amperex Technology Co. Ltd.-licensed lithium-iron-phosphate battery production. That technology is less expensive than traditional lithium-ion batteries. Ford also is expanding Ohio Assembly Plant in Avon Lake for a Ford Pro commercial EV; installation of tooling is expected to begin in spring 2025. Unifor extremely disappointed in APRIL 9, 2024 TORONTO—Unifor calls on Ford Motor Company to consider all possible options to mitigate the negative impact on workers following the announced substantial delay in the launch of EV production at the Oakville Assembly Plant. “Unifor is extremely disappointed by the company’s decision. Our members have done nothing but build best-in-class vehicles for Ford Motor Company and they deserve certainty in the company’s future production plans,” said Unifor National President Lana Payne. “I want to be very clear here. Our members can be assured that we will push the company to explore every single possible opportunity to lessen the impact of this decision on them and their families.” Ford has announced that while the retooling of Oakville Assembly Plant will commence this Spring as planned, the company is delaying the launch of EV production from 2025 to 2027. Unifor was informed of the revised timeline during a meeting with Ford executives earlier this week. Unifor represents more than 5,600 Ford Canada workers, including 3,200 Local 707 members employed at the Oakville Assembly Plant. In 2020, Ford announced an historic $1.8 billion investment to retool the Oakville Plant for EV and battery pack production. In 2023 contract negotiations with Ford, Unifor negotiated innovative income and benefit transition supports, covering members at the Oakville plant for what was originally forecasted to be an eight-month retooling period. Negotiations included a provision that should the retooling period extend beyond eight months the company and the union will meet to discuss extending this arrangement. “There will be unexpected setbacks in the transition to EV, but we fully expect Ford to investigate every available option to support our Oakville members. It is unacceptable, after 120 years of operation in this country, that Ford does not plan to build a single vehicle in Canada for years on end,” said Local 707 Oakville Assembly Complex Chairperson Marc Brennan. Given the magnitude of the delay Unifor has requested a meeting with Ford to be held as soon as possible to discuss job and income security measures for workers. Ford Edge production at Oakville Assembly is scheduled to end in approximately one month. “This is a significant setback and while the first stages of retooling are still on track and we remain committed to securing an EV future for the workers of Oakville, the immediate challenges faced by our members will be front and centre in our discussions with the company,” Payne added. Unifor is Canada's largest union in the private sector and represents 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future. |
Ford pickups probed over Associated Press Detroit — U.S. auto safety regulators are investigating complaints that more than 540,000 Ford pickup trucks can abruptly downshift to a lower gear and increase the risk of a crash. The National Highway Traffic Safety Administration says in documents posted on its website Friday that it opened the investigation this week after receiving 86 consumer complaints about the problem with the trucks' automatic transmissions. Investigation documents say the probe covers F-150s from the 2014 model year. The agency is looking into whether those trucks should have been included in previous recalls for the problem. The complaints allege that the trucks can suddenly shift to a lower gear without warning. Often, the rear wheels locked up, with one consumer telling the agency that his truck downshifted abruptly, causing it to crash into a concrete barrier and another vehicle. Both the pickup driver and the driver of the other vehicle were hurt. The company said it’s working with NHTSA to support the investigation. Ford’s F-Series pickups are the top-selling vehicles in the U.S. Certain F-150 pickups from the 2011 and 2012 model years were recalled for the same problem in 2016. Ford later added 2013 models to the recall. |
Cultural LTC admissions drying By Allison Jones, The Canadian Press In an Italian long-term care home in Toronto, about three new non-Italian residents are admitted each month due to government changes to priority rules, leaving them confused and isolated in a setting where they do not speak the language. Villa Colombo’s programming is done in Italian, and many of the new residents don’t speak Italian or even English, said executive director Lisa Alcia. But they are being admitted because of how hospital patients who can be discharged but can’t be cared for at home are now prioritized. “I feel for these residents,” Alcia said. “They’ve been in a hospital, now they’re forced into an environment where all the residents around them speak Italian, and they don’t. If you’ve got slight dementia, that triggers a whole lot of negative behaviours because you’re culturally isolated.” It’s a situation playing out in the several dozen cultural long-term care homes across the province, which cater to seniors from Korean, Jewish, francophone and many other communities, according to the association representing non-profit homes. A law known as Bill 7, enacted in 2022, has garnered much criticism for allowing people to be placed in a long-term care home not of their choosing, but AdvantAge Ontario CEO Lisa Levin said the law has had other consequences as well. “The priority has gone to … people coming out of the hospitals and there’s a very rigid bureaucracy behind these admissions,” she said. “So the first person on the list could be someone who doesn’t have a preference for a cultural home and the second person on the list could be someone who wants to get into a Finnish home, because they’re Finnish. The first available space may be in a Finnish home. It will go to the other person who was No. 1 on the list.” Bill 7 is aimed at moving so-called alternate level of care patients — who can be discharged from hospital but need a long-term care bed and don’t yet have one — in order to free up hospital space. If there are no spaces available in long-term care homes a patient has put on their preferred list, they can instead be transferred to a home up to 70 kilometres away — or 150 kilometres if they are in northern Ontario — selected by a placement co-ordinator at the hospital. Hospitals are required to charge patients $400 a day if they refuse the transfer. Levin, of AdvantAge Ontario, said it seems like the impact on cultural home admissions was an unintended consequence of Bill 7 and she has had “encouraging” conversations with Minister Stan Cho about how to address it. Cho, who took over as long-term care minister in a cabinet shuffle in September, said that as a Korean Canadian, issues around cultural homes are hugely important to him. “We are looking actively at a solution,” he said. “We think there’s some good traction with the homes as well as organizations like AdvantAge to find that. You don’t want unintended consequences to have further unintended consequences, especially when we have an overall capacity issue.” At the Ivan Franko Long-Term Care Home, a Ukrainian cultural home in Toronto, occupancy is at about 25 per cent non-Ukrainian residents, up from between eight and 10 per cent pre-pandemic, said CEO Olya Vovnysh. “We go far and beyond … we do anything possible (that) we can do for them to provide best care environment,” she said. “I would say that those residents, they face challenges in adapting to our culture, traditions, cuisine and our home.” When it comes to cuisine, for example, the Ukrainian menu features potatoes prominently, but people from some other cultures prefer rice or pasta, leaving the dietary staff preparing extra meals, she said. Ukrainians celebrate Orthodox Easter, which this year falls on May 5, but the home has now started having two Easter celebrations in order to accommodate residents who celebrated it this year at the end of March, Vovnysh said. Staff members also try to greet all of the residents in their own language and ask them basic questions about their needs, for example asking if they would like a drink of water, she said. It is becoming more challenging with people in the home from Canadian, Jamaican, Polish, Italian, Romanian, Serbian, French, Cuban, Spanish, Greek, Portuguese, Croatian, Russian and German backgrounds. Vovnysh said she doesn’t want to criticize the government, which she said has provided a lot of supports, but she hopes the admissions process can be improved. “It’s not about legislation,” she said. “It’s about people and their choices … Not every Canadian wants to be in a Canadian home. Not every representative of a specific ethnic group wants to be at an ethnic group home. There are choices and we need to enable that choice and understand their needs.” |
Here's the value of Ford Breana Noble Ford Motor Co. CEO Jim Farley's 2023 compensation package totaled nearly $26.5 million — up 26% from 2022's following changes to the awarding of stock grants. The total package that Farley, 61, earned in 2023 included an unchanged base salary of $1.7 million. Most of the upped value in his and other executives' packages came from an increase in the value reported of stock awards after the automaker changed its calculation of the grants by hinging a majority of their vestment on future shareholder returns relative to other corporations. The automaker reported the value of those stock awards as $20.3 million, which is up 26% from 2022, though a fraction of that so far has been vested. The total value could differ based on Ford's stock worth when those awards vest after a certain amount of time or, for most, the performance metric is met. Farley's bonuses decreased 13% to almost $2.4 million after the automaker missed certain performance targets. The automaker didn't disclose which. Farley also received more than $2 million worth of other compensation, up 46% year-over-year, in the form of perks like the use of private aircraft and company vehicles. Farley's total compensation amounted to 312 times the median annual total compensation of all Ford employees last year: $84,829. That was up from 281 times in 2022, when the median employee compensation was $74,691. Executive compensation was disclosed in an annual proxy statement filed Friday with the U.S. Securities and Exchange Commission. Last year, Ford flipped an annual net loss to profit. In 2023, it recorded $4.3 billion in net income, up from a $2 billion net loss in 2022. Despite facing challenges around quality and a United Auto Workers strike, Executive Chairman Bill Ford Jr. said it was a "solid year." "Our 2023 results underscore the potential of our plan, our leadership, and our people," he said in a letter to shareholders in the proxy statement. "Looking ahead, we have an opportunity to deliver a very strong 2024 and differentiate Ford like never before." Ford's total compensation was $20.6 million in 2023, up 19% from $17.3 million in 2022. The package included an unchanged $1.7 million salary. His stock awards as reported were up 23% to $15.8 million. Bonuses were down 13% to $705,600. “Bill’s and Jim’s salaries were flat with 2022 and their bonuses were down — and well below target levels — based on the overall performance of our business," spokesperson T.R. Reid said. "Most of their potential compensation is directly tied to the best interests of shareholders, primarily in stock grants. The reported value of those grants is hypothetical, since they’re dependent on future performance. And much of the estimated value of the grants was higher because of a change in how it’s calculated specifically as a result of our decision to link the stock grants exclusively to total shareholder return.” The report drew criticism from UAW President Shawn Fain, who in a recent statement criticized remarks from Farley about rethinking where the automaker builds its vehicles. Fain's statement came after the union stopped production at the Kentucky Truck Plant during last fall's targeted strike, despite Ford employing more UAW members than the other two companies and building all of its full-size trucks in UAW-represented plants. “Just a few weeks ago Farley was crying to the press about how the UAW’s record contracts were forcing the company to rethink where they build their vehicles, but they have no problem finding the money to give him a 26% pay raise to $26.5 million a year," Fain said in a statement Friday. “Let’s be clear: this is corporate greed, plain and simple." The company is required to report compensation packages for all of its top five named executives. They all saw their compensation packages increase except for Peter Stern, president of integrated services, who joined Ford last year. Chief Financial Officer John Lawler's total compensation was about $10 million in 2023, up 12%. His salary was up 5.5% to almost $1.2 million. The $5.4 million in stock awards as reported were down 17%. Bonuses were up 27% to $1.4 million. Doug Field is the chief advanced product development and technology officer. His compensation of $15.3 million was up 1.7%. His base salary rose 2.7% to $513,500. The value of stock awards was reported as basically flat for him at $14.2 million. Bonuses totaled $440,748, up 32%. Stern received $8.3 million last year after starting in August at Ford. He came from Apple Inc. For 2023, executives' annual bonuses were based on the company's performance on percentage margin for adjusted operating income, quality improvement, electric vehicle growth and growth in valued-added services. Their payout is based on a formula that includes their base salary, and modifiers including a business performance factor and an individual performance factor. Their individual performance factors were set at 84% last year. Rival Stellantis NV's package to CEO Carlos Tavares last year included direct compensation, incentives, non-vested stock grants and other benefits. For his third year leading the maker of Jeep SUVs, Ram pickup trucks and other vehicles, the total remuneration was $39.5 million. General Motors Co. hasn't released its executive compensation numbers for 2023. Its proxy statement usually is filed in April. In 2022, GM CEO Mary Barra was the highest-paid Detroit auto executive with a $28.97 million package. |
Volkswagen workers to vote on Associated Press Detroit – Workers at Volkswagen’s factory in Chattanooga, Tennessee, will vote next month on whether they want to be represented by the United Auto Workers union. The National Labor Relations Board said Monday that the election will take place from April 17 to 19 at the plant, in the first test of the union's effort to organize nonunion automobile factories across the nation. Workers at the 3.8 million square foot (353,353 square meter) factory with more than 4,000 production workers filed paperwork March 18 seeking the election. Both sides reached agreement to have the election in April, the NLRB said. The UAW announced its organizing campaign last fall after it won strong contracts with Detroit automakers. The UAW said it would simultaneously target more than a dozen nonunion auto plants including those run by Tesla, Nissan, Mercedes-Benz, Hyundai, Kia, Toyota, Honda, and others. The drive covers nearly 150,000 workers at factories largely in the South, where the union thus far has had little success in recruiting new members. The UAW said a supermajority of the VW plant’s production workers had signed cards supporting union representation, but it would not provide a number. A union can seek an election run by the NLRB once a majority of workers support it. Volkswagen has said it respects the workers' right "to a democratic process and to determine who should represent their interests. “We will fully support an NLRB vote so every team member has a chance to vote in privacy in this important decision.” Tennessee Gov. Bill Lee recently told reporters that he opposed the factory unionizing, saying that it was important for employees to “keep their future in their own hands.” Lee opposed a similar organizing effort at the same plant in 2019, warning that business recruitment could take a hit. But Isaac Meadows, one of the VW workers who make Atlas SUVs and the ID.4 electric vehicle, said in a union statement that they want better lives for their families. “We need a say in our schedules, benefits, pay, and more. We’re proud to work at Volkswagen, but we also know the value of a voice at work.” he said. The union has come close to representing workers at the VW plant in two previous elections. In 2014 and 2019, workers narrowly rejected a factorywide union under the UAW. The year after the 2014 vote failed, 160 Chattanooga maintenance workers won a vote to form a smaller union, but Volkswagen refused to bargain. Volkswagen had argued the bargaining unit also needed to include production workers. As a result, the 2019 factory-wide vote followed. In February the union said a majority of workers at a Mercedes plant in Vance, Alabama, near Tuscaloosa, also had signed union cards. The Alabama factory complex has about 6,100 employees. The union embarked on its organizing effort last year after it went on strike against General Motors, Ford and Stellantis, earning big raises and other benefits. After the Detroit Three contracts were approved, many nonunion factories announced worker pay increases. In November, VW gave workers an 11% pay raise at the plant, but the union says VW’s pay still lags behind Detroit automakers. Top assembly plant workers in Chattanooga make $32.40 per hour, VW said. The UAW pacts with Detroit automakers include 25% pay raises by the time the contracts end in April of 2028. With cost-of-living increases, workers will see about 33% in raises for a top assembly wage of $42 per hour, plus annual profit sharing. |
Most automated driving systems are Tom Krisher Detroit — Most electronic systems that take on some driving tasks for humans don't adequately make sure drivers are paying attention, and they don't issue strong enough warnings or take other actions to make drivers behave, according to an insurance industry study published Tuesday. Only one of 14 partially automated systems tested by the Insurance Institute for Highway Safety performed well enough to get an overall “acceptable” rating. Two others were rated “marginal,” while the rest were rated “poor.” No system received the top rating of “good.” “Most of them don't include adequate measures to prevent misuse and keep drivers from losing focus on what's happening on the road,” said IIHS President David Harkey. The institute, Harkey said, came up with the new ratings to get automakers to follow standards, including how closely they watch drivers and how fast the cars issue warnings if drivers aren't paying attention. It also says it is trying to fill a “regulatory void” left by inaction on the systems from the U.S. National Highway Traffic Safety Administration. Harkey said the agency needs to do more to set standards for the systems, which are not able to drive vehicles themselves. The agency said Tuesday that it welcomes the IIHS research and will review the report. IIHS safety ratings are closely followed by automakers, which often make changes to comply with them. The 14 systems, which include several variations from single automakers, are among the most sophisticated now on the market, Harkey said. Only one of the systems, Teammate in the Lexus LS, earned the adequate rating. General Motors' Super Cruise in the GMC Sierra and Nissan's Pro-Pilot Assist with Navi-Link in the Ariya electric vehicle were rated marginal. Other systems from Nissan, Tesla, BMW, Ford, Genesis, Mercedes-Benz and Volvo were rated poor. Harkey said the driving systems initially were combinations of safety features such as automatic emergency braking, lane departure warnings, lane centering and blind-spot detection. But now they give drivers the chance to not pay attention for some period of time, raising safety risks, he said in an interview. “That's why the focus is on how do we make sure that the driver remains focused on the driving task,” Harkey said. Some automakers, he said, market the systems in a way that drivers could think they are fully autonomous. “The one thing we do not want is for drivers to misinterpret what these things can or cannot do,” he said. The systems, IIHS said, should be able to see if a driver's head or eyes are not directed on the road, and whether their hands are on the wheel or ready to grab it if necessary. The institute also said if a system doesn't see a driver's eyes on the road or hands aren't ready to steer, there should be audible and visual alerts within 10 seconds. Before 20 seconds, the system should add a third alert or start an emergency procedure to slow down the vehicle, the institute said. Automakers should also make sure safety systems such as seat belts and automatic emergency braking are activated before the driving systems can be used, it said. None of the 14 systems met all the driver monitoring requirements in the test, but Ford's came close, the group said. Lexus' Teammate system and GM's Super Cruise met the warning requirements, while systems from Nissan and Tesla were close. Harkey said automakers already are responding to the tests and preparing changes, many of which can be accomplished with software updates. Toyota, which makes Lexus vehicles, said it considers IIHS ratings in setting up safety standards, while GM said the IIHS ratings are important. Nissan said it will work with the institute. Mercedes said the company said it takes the findings seriously, and it relies on the system collaborating with the driver, while Hyundai luxury brand Genesis said it is quickly improving its system, including the addition of an in-cabin camera. BMW said it respects IIHS's efforts, but it differs philosophically about how systems should monitor drivers. One BMW system evaluated by IIHS is not intended for drivers to take their hands off the wheel and only considers input from steering wheel sensors. BMW tests have not found a clear advantage in turning on the driver monitoring camera, the company said. Another more sophisticated system intended for drivers to take hands off the steering wheel uses a camera to watch drivers, the company said. Ford said its Blue Cruise system monitors drivers and sends repeated warnings. The company said it disagrees with IIHS’ findings but will consider its feedback in updates. Other automakers did not immediately comment. |
Manitoba Public Insurance 2nd lawsuit filed against Ford by public insurer over block heater fires Sarah Petz · CBC MPI is suing Ford for the cost of eight vehicles that burned in Manitoba from March 2022 to April 2023. (Lloyd Carr/Shutterstock) Manitoba Public Insurance has launched another lawsuit against Ford, alleging faulty block heaters caused fires that destroyed eight vehicles in the province. The lawsuit against Ford Motor Company of Canada Ltd., which was filed last week in Court of King's Bench, claims the fires were caused by defects in the design, manufacture and/or installation of the block heaters. The fires happened in Russell, Kenville, Stonewall and Winnipeg from March 2022 to April 2023, according to the statement of claim. In all cases, the vehicles' block heaters were "plugged into an appropriate power source" when the fires started and were damaged "beyond reasonable repair," the statement of claim says. In one example, a 2014 Escape was plugged into a power source inside a parkade in Winnipeg last February when it caught fire, and the flames spread to two other Ford vehicles parked nearby, the lawsuit says. The insurer's lawsuit accuses the vehicle manufacturer of negligence by failing to adequately test the block heaters to make sure they were free from defects and/or properly installed. As the insurer of the vehicles, MPI's lawsuit is seeking $252,212 in damages, which is the sum of the costs MPI had to pay out to the owners of the eight vehicles, plus court costs. The lawsuit doesn't say whether any of the vehicles' block heaters or other parts were subject to safety recalls. Second lawsuit This is the second time in less than a year that MPI has sued Ford over a block heater fire. Last November, the insurer filed a statement of claim seeking $15,932 for the loss of a 2014 Escape that caught fire outside a business on Raleigh Street in Winnipeg while its block heater was plugged in. There were 127 vehicle-fire-related claims involving block heaters or block heater cords in gas or diesel vehicles reported to MPI from 2019 to 2023, including 41 in 2022 and 21 in 2023, data provided by the public insurer says. When it comes to hybrid vehicles, MPI received 30 claims for the same issue within the same time period. None of the claims have been tested in court and no statement of defence has been filed yet. CBC News reached out to Ford for comment but has not received a response. |
GreenShield call centre shut Online services not impacted By Terry Gangcuangco Non-profit health and benefits company GreenShield has issued a service update amid the ongoing strike by Unifor-represented workers in Windsor and Toronto. “GreenShield is disappointed by the decision of Unifor Locals 240 & 673 to strike instead of continuing to bargain,” the company said on Monday (March 4). “We remain optimistic that a settlement will be reached through constructive and focused discussions. In the meantime, we have strong contingency plans in place, which we will leverage to provide essential services for our valued clients, including the vulnerable communities we support across the country. “Please note that our call centre is closed; however, our online services, where almost 95% of our claims are typically submitted, will continue to be available and will not be impacted by the Unifor strike. We encourage you to use these services where possible as we work to mitigate any service impacts.” The statement comes after more than 600 Unifor members hit the picket line after midnight on March 1 amid issues surrounding fair wages, job security, and contracting out. Of these, over 580 are from Windsor, and 24 are from Toronto. Unifor national president Lana Payne declared: “It is extremely disappointing that a deal could not be reached. Our bargaining committee worked hard to get there, but it takes two to tango. We expect the employer to come to the bargaining table with the goal of getting an agreement that our members can support.” According to Jodi Nesbitt, president of Unifor Local 240, assurances have not been provided that “work would not be taken away” from their members, whose roles span adjudicators and call centre representatives, as well as positions in accounting, client administration, and IT services. Unifor Local 673 president Maryellen McIlmoyle added: “GreenShield purchased a lot of entities over the years, and we just want to ensure job security isn’t being outsourced. This is the first time in 65 years in GreenShield’s existence there has been a strike.” Negotiations for a new collective agreement began on January 15, with the previous contract expiring at the end of February 2024. “The Unifor strike impacts GreenShield Insurance as well as GreenShield Administration’s claims adjudication business (formally HBM+) only. It does not impact GreenShield Health or GreenShield Administration’s other services,” GreenShield said. |
Ford agrees to pay DOJ Story by Will Potter For Dailymail.Com and Reuters DOJ said Ford presented customs officers with 'sham rear seats' and other temporary features to make them falsely appear to be passenger vehicles This allowed Ford to avoid paying the 25 percent duty rate that is placed on all cargo vehicles, prosecutors alleged, instead paying duty of just 2.5 percent Ford are set to pay $365 million to resolve allegations the auto giant violated US federal tariff law by understating the value of its Transit Connect vehicles. The Department of Justice said the settlement has resolved the allegations, which centered on a suspected scheme to avoid higher duties by misclassifying cargo vans imported from Turkey from April 2009 to March 2013. The government said the settlement is one of the largest customs penalty settlements in recent history. 'When companies misclassify imports to avoid paying what they owe, they will be held accountable,' declared Acting Associate Attorney General Benjamin C. Mizer following the settlement. Ford is accused of adding fake rear seats to its Ford Transit Connect vehicles (pictured) to trick US border patrol into believing they are passenger cars, before ripping them out to avoid a 25 percent cargo tax © Provided by Daily Mail Mizer praised the settlement as a 'victory for American taxpayers', and to 'combat trade fraud and ensure compliance with United States trade laws.' Ford are set to pay $365 million to resolve allegations the auto giant violated US federal tariff law by understating the value of its Transit Connect vehicles. The Department of Justice said the settlement has resolved the allegations, which centered on a suspected scheme to avoid higher duties by misclassifying cargo vans imported from Turkey from April 2009 to March 2013.©South China Morning Post via Get / AP The settlement is notably not an admission of guilt on the part of Ford, but rather settles the allegations against it levied by the US government. 'Companies that attempt to evade customs duties with sham representations and workarounds will not be rewarded,' he added. Specifically, the DOJ accused Ford of carrying out a multi-year scheme in its importation of cargo vans into the US from Turkey. Prosecutors said the company presented customs officers with 'sham rear seats' and other temporary features to make them falsely appear to be passenger vehicles. 'These temporary rear seats were never intended to be, and never were, used to carry passengers,' the DOJ alleged in a statement after the settlement. It was claimed that the fake door features would allow Ford to avoid paying the 25 percent duty rate that is placed on all cargo vehicles, as they would technically be classified as passenger vehicles instead. By carrying out the alleged scheme, Ford would instead pay a duty rate of just 2.5 percent. Despite telling border patrol that they were 'principally designed for the transport of persons', Ford would then allegedly modify the transits and rip out the rear seating. David Westerman, Managing Director of Ford's Asia Pacific Emerging Markets division, at the presentation of the Transit Connect © Provided by Daily Mail Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said after the settlement: 'Importers have an obligation to truthfully declare the nature of their products and pay the duties that are owed. 'The government will not permit companies to evade duties by adding sham features to their products and then misclassifying them.' 'This settlement, which is one of the largest customs penalty settlements in recent history, demonstrates that U.S. Customs and Border Protection will pursue even the largest companies to ensure that all importers follow the rules,' added Senior Official Performing Duties of the Commissioner Troy A. Miller of CBP. 'Our intent is to enforce the customs laws fairly, which means that non-compliance is not an option for anyone. 'The partnership between CBP and the Justice Department provides a critical safeguard to protect the revenue of the United States.'
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UAW hits initial organizing Breana Noble The United Auto Workers said Wednesday that 30% of workers at a Toyota Motor Corp. subsidiary plant in Missouri have signed union authorization cards. The facility is the first Toyota plant to meet the union's threshold to announce a public organizing campaign since the UAW last fall expressed its intention to seek to double its autoworker membership with campaigns at more than a dozen automakers. The Troy, Missouri, plant every day produces thousands of cylinder heads — the engine's lungs — for Toyota engines produced in North America, according to the company's website. As of August, the site employed 1,037 people. When 30% of workers at a workplace sign authorization cards, a union is eligible to pursue a National Labor Relations Board election there. The UAW's strategy calls for demanding that a company recognize its representation when 70% of workers at a plant sign cards, or else pursue an election. The announcement comes after the union last week said a majority of workers at Mercedes-Benz Group's Tuscaloosa plant in Alabama had signed cards weeks after workers at Volkswagen AG's Chattanooga, Tennessee, plant reached that threshold. Hyundai Motor Co. workers in Montgomery, Alabama, also have an ongoing public organizing campaign. The UAW has committed $40 million to the organizing efforts at automakers and battery manufacturers through 2026.
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UAW board removes secretary- Kalea Hall & Breana Noble The United Auto Workers' International Executive Board has removed Secretary-Treasurer Margaret Mock from overseeing some departments for allegedly abusing her authority and violating union policies, according to a UAW caucus that supported Mock. The United All Workers for Democracy Steering Committee, which endorsed Mock in the 2022 IEB election, issued a statement Wednesday explaining why the IEB voted to remove Mock from overseeing certain departments, including the union's Women’s Department and the Technical, Office, & Professional (TOP) Department. A push to remove Mock from the departments occurred after a report by the UAW’s compliance director showed that Mock "repeatedly abused her authority and violated UAW policies," according to the UAWD. Specifically, the UAWD claims Mock "withheld approval of routine expenditures in an attempted exchange for votes on the IEB" and didn't approve supplies purchased for the UAW's Stand-Up Strike against the automakers last fall. She allegedly also "improperly denied" reimbursement requests and would not approve "legitimate expenditures for ongoing organizing campaigns in a timely manner, risking the loss of NLRB elections and the waste of millions of dollars." In a statement, Mock commended UAW members and her fellow IEB leaders for the record contracts at the Detroit Three last fall and defended actions she has taken in her role. "It saddens me that many do not understand my responsibilities as UAW Secretary Treasurer," Mock said. "I must protect the sacred dues dollars that our members work so hard to earn and that they policies are established by the UAW International Executive Board, and/or by the Special Monitor ordered by the court to oversee the UAW, and/or by federal laws or federal agencies, it is my responsibility when these policies are adhered to. While it saddens me ever further that I get criticized, attacked, and retaliated against because I insist on the policies that are in place be adhered to, I will not waver in enforcing financial policies intended to protect our members sacred due dollars." The International UAW declined to comment. Region 1 Director LaShawn English will lead the Women's Department. Region 1A Director Laura Dickerson will lead the TOP Department. The measures against Mock come as the UAW aggressively is trying to organize non-union vehicle assembly and battery plants across the country in a $40 million campaign. Just this week the union said a majority of workers at Mercedes-Benz's largest plant in the United States have signed authorization cards for UAW representation. Mock was a UAW Members United slate candidate, which was backed by the union's reform-focused UAWD caucus. She was one of several UAW Members United candidates, including UAW President Shawn Fain, to oust incumbents affiliated with the Reuther Administrative Caucus in the union's first-ever direct election of top officials following a years-long corruption scandal. "Secretary-Treasurer Mock’s abuses of authority have directly undermined militant, forward-looking initiatives that the UAW membership voted for, such as building a strong Big 3 contract campaign," the UAWD wrote . "As a democratic caucus, Secretary-Treasurer Mock was endorsed by our membership along with other members of our slate, and we as leadership do not unilaterally make decisions about rescinding endorsements. Our caucus will decide democratically whether further action is necessary." |
Ford again the only Detroit Kalea Hall Ford Motor Co. with its Maverick Hybrid is once again the only Detroit automaker to make the annual "Top Picks" list released Tuesday by Consumer Reports. This is the second time the Dearborn automaker made the cut with its Maverick compact truck. The truck also made the list last year. In 2022, Ford's electric Mustang Mach-E made the list. No Detroit Three vehicles made the list in 2021. Consumer Reports also released its brand rankings, and again, as in past years, not one Detroit-based auto brand ranked in the top 10. European and Japanese brands dominated the list because of their solid reliability. General Motors Co.'s Buick brand placed the highest on the list of 34 at No. 13, followed by Cadillac at No. 14. GM's Chevrolet brand came in at No. 22 and GMC was GM's lowest-ranking brand at No. 31. The Ford Motor Co. Ford brand came in at No. 17 and Lincoln came in at No. 21. Stellantis NV's brands ranked at the bottom of the list with Chrysler at No. 24, Dodge at No. 25, Maserati at No. 27, Alfa Romeo at No. 28 and Jeep dead last at No. 34. For "Cadillac, Ford, Buick, if you look at just the road test score, it's pretty similar to the same road test score average as an Acura or a Toyota," said Jake Fisher, CR’s senior director of automotive testing. "It's not that they're making bad cars that people don't like. They're actually making some very, very good cars. The issue tends to be the reliability, so the reliability kind of drags them down." 2024 Top Picks Consumer Reports, a nonprofit consumer research and advocacy organization, selects the year's top models from hundreds of current vehicles. "Top Picks" vehicles receive the highest scores in CR's ratings. They come standard with key safety features, have high marks for reliability and satisfaction from owners in CR's member surveys. The organization tested more than 250 vehicles and had member survey stats on more than 330,000 vehicles that it used for both "Top Picks" and Brand Rankings. Since plug-in hybrid demand is growing, CR expanded testing and rating for those vehicles. The organization evaluated 13 popular PHEVs and found they are often "quicker, quieter, and more satisfying to drive than the gas-only versions of the same vehicles." CR noted it made "key changes to its scoring for PHEVs. The fuel economy scores are now based on the overall fuel economy from CR’s testing and the EV range, which is based on U.S. Environmental Protection Agency data, counts as a bonus. CR also added a new PHEV "usability rating" to assess PHEV-specific controls and displays, including electric-only range, and the ease of operating in electric mode. Only three of this year’s "Top Picks" vehicles are repeat winners from the prior year: the Subaru Forester, Toyota Camry Hybrid, and Ford Maverick/Maverick Hybrid. The seven new entrants are the Tesla Model Y, Subaru Crosstrek, Mazda3, Toyota Prius/Prius Prime, Toyota Highlander Hybrid, Toyota RAV4 Prime, and BMW X5/X5 PHEV. The "Top Picks" by category:
The Maverick, Fisher said, "is a nice package," with the hybrid version's 37 miles per gallon and reliability. "In terms of the other Top Picks, what you see is there's a lot of hybrids," he said. "The domestics don't have a lot of hybrids. There it is one electric ... some of the electric vehicles from the domestic automakers are either very expensive or have reliability issues." In a statement, Ford said it "is laser focused on delivering high-quality products and services that our customers deserve. While we are encouraged by Ford Maverick / Maverick Hybrid’s second year in a row as a Top Pick and Ford’s highest ranking since 2016, we continue working to increase vehicle quality and deliver the best experience for our customers." Ford CEO Jim Farley tweeted about the Maverick again making the "Top Picks" list: Brand rankings CR's brand rankings are based on an average Overall Score, which is a combination of road-test scores, predicted reliability, safety ratings and owner satisfaction data. CR runs the vehicles through more than 50 tests at its 327-acre test facility in Connecticut. The tests include acceleration, braking, emergency handling and fuel economy. To be included in brand rankings, CR has to test at least two current models from a company. Lucid, Polestar and Ram aren’t included this year because CR tested only one of their models. For the second consecutive year, German automaker BMW landed in the No. 1 spot, making it the first back-to-back winner since 2017. Japanese automaker Subaru took the second spot as it did last year. Volkswagen AG's Porsche is new to the top 10 this year at No. 3 after placing No. 14 out of 32 brands last year. Other brands in the top 10 were Honda, Lexus, Mini, Kia, Mazda, Toyota and Hyundai. On the domestic side, thanks to reliability improvements Cadillac moved to No. 14 from the No. 24 spot last year, marking its highest ranking in seven years. Buick came in at No. 13 from No. 12 last year. GMC moved from No. 31 to No. 27. Chevrolet moved to No. 22 from No. 23. Ford came in at No. 17, its highest charting since 2016. Lincoln dropped to No. 21 after hitting No. 16 last year. Dodge went from No. 15 last year down to No. 25 this year. Jeep came in dead last this year after coming in second to last last year. Alfa Romeo came in at No. 28 from No. 29 last year and Chrysler came in No. 24 from No. 25. Tesla came in at No. 18 after hitting No. 17 in 2023. GM declined to comment on the "Top Picks" and brand rankings. Stellantis in a statement said it "regularly consults third-party survey information to improve the experiences of our customers. We also compile data from multiple internal sources. We rely more heavily on this information, which may conflict with third-party results, because it is verified and draws from our entire customer base." |
UAW threatens new strike at Breana Noble Kalea Hall The United Auto Workers is threatening another strike next week at Ford Motor Co.'s largest and most profitable plant if local contract issues aren't resolved, the union said in a news release Friday. Nearly 9,000 UAW members at the Kentucky Truck Plant could go on strike at 12:01 a.m. Feb. 23 if local contract issues with UAW Local 862 aren't resolved by then. The plant produces Ford Super Duty pickup trucks, Ford Expedition full-size SUVs and Lincoln Navigator SUVs. The threat comes a day after Ford CEO Jim Farley suggested that the Dearborn automaker is rethinking its U.S. footprint after the union opted to strike at the Kentucky plant last fall, making it the first truck factory hit during the Detroit-based union's targeted strike amid the 2023 contract talks. At the time, the automaker said the plant generated about $25 billion a year, which is a seventh of Ford's 2023 global revenues. The 41-day "stand-up" UAW strike last year cost the automaker $1.7 billion in profit. It's been more than five months since the contract deadline for an agreement with Local 862, according to the union. Issues being discussed center around health and safety, including minimum in-plant nurse staffing levels and ergonomic issues, and skilled trades staffing. UAW Vice President Chuck Browning requested authorization from UAW President Shawn Fain to set the strike deadline. “Negotiations continue," Ford spokesperson Jessica Enoch said in a statement, "and we look forward to reaching an agreement with UAW Local 862 at Kentucky Truck Plant.” Unions are able to strike over local contracts, even with a national contract in place. Such work stoppages aren't unprecedented, but they're not as common as they once were in the early days of the union's activism. Members at UAW Local 1166 representing workers at Stellantis NV's casting plant in Kokomo, Indiana, went on strike over their local agreement in 2022. Farley on Thursday told financial analysts during the the Wolfe Research Global Auto and Auto Tech Conference that Ford's relationship with UAW, which historically had been productive, has changed since the union’s battle with the Dearborn automaker last fall. The automaker builds all of its full-size pickups in UAW-represented plants in the United States and employs approximately 58,000 autoworkers, more than its crosstown rivals. Still, Fain during talks characterized the automakers as "enemies" and said in response to remark by Ford executive chairman Bill Ford Jr. that the union and Ford "being a team to fight other companies are over." At Thursday's event, Farley said: “Our reliance on the UAW turned out to be we were the first truck plant they shut down. And that was a moment for us. Clearly, our relationship has changed … does it have business impact? Yes.” As a result, Farley added, the company would "have to think carefully about our (manufacturing) footprint." Local 862 President Todd Dunn said Farley's comment "doesn't have any bearing" on the union's announcement of a potential strike. Making a threat of a walkout "has happened before," he said. "It's an oddity, or rarity. I've never seen or experienced a local contract strike. My job as president is to facilitate and execute that plan if necessary. (In the fall,) we saw what we were able to do, and the leverage we had. I don't know what would change (members') mind" on the solidarity they expressed then. The warning, said Marick Masters, a management professor at Wayne State University, shows the "bottom-up" and "vigilant" approach that has marked the Fain administration, the first one directly elected by UAW members. "UAW made clear that this is a whole new era of negotiations," he said. "They were going to be more audacious in their terms and demands than they have in the past. Their overall approach is to be more ambitious in their goals and be more willing to strike than in the past." UAW members last year ratified record contracts with the Detroit Three automakers, securing a 27% compounded wage increase through April 2028, cost-of-living adjustments, increased pension and retirement contributions and the right to strike over plant closures. Ford reported a $4.3 billion net income on $176.2 billion in revenue in 2023. A $2 billion effort to cut costs in manufacturing this year is expected to offset increased labor costs and expenses related to product refreshes. Meanwhile, the union has been empowered by its bargaining gains that prompted non-union automakers to raise their workers' pay, cut wage progression timelines and improve benefits. It launched a campaign seeking to double roughly its 146,000 UAW autoworker members by organizing foreign and EV startup plants. "They’re signaling to workers in general that they stand up for their workers at the local level," Masters said. "That’s very important that they not just represent their interests company-wide, but with the kind of concerns they have at the local level, too." Along with Kentucky Truck, there are 19 other open local agreements across Ford, according to the union, along with several open local agreements at General Motors Co. and Stellantis NV. |
Ford Model e COO: 'We don't Breana Noble Detroit — The chief operating officer of Ford Motor Co.'s electric-vehicle division said Wednesday the development of EVs is more than just about environmental concerns — it's a hedge against the potential threat of Chinese automakers in the United States. "That's coming here eventually," Marin Gjaja, Ford Model e's COO, said during a panel on disruptive technology held by the automaker. "So, we better get fit now and better get going on EVs, or we don't have a future." Chinese automakers are dominating their domestic market, making inroads in Europe, and setting up shop in Mexico with eyes on the United States. They led the way in introducing less-expensive EV battery chemistries, and subsidized material prices have helped them to provide low-priced vehicles. The BYD Seagull EV city car starts at roughly $11,000 (78,800 yuan). “I don't know exactly the timing, but I think they're going to end up here,” Gjaja said, “just as the Japanese ended up here. The Koreans ended up here. The Germans ended up here. It's a big market.” Traditional automakers have seen their share of the Chinese luxury market fall from 60% to less than 5%, Gjaja said: “It’s not that they haven’t tried to introduce EVs. They’re just that are far behind. … That’s the scale of the disruption.” EVs in China represent nearly a quarter of its new-car market — close to 7 million vehicles, about 60% of EVs in the world. The United States’ adoption is less than 8%. “The size of the market in China is so big that those players are going to be in a position to go potentially dominate the world, unless we as Ford and other OEMs can respond,” Gjaja said. “Think about all of the capital: the human capital, physical capital, financial capital that’s built into these ecosystems to build vehicles — that is all being massively disrupted, because this technology is progressing so fast.” Ford understands this: It’s partnered with Chinese battery maker Contemporary Amperex Technology Co. Ltd. to license its technology to make those lower-cost batteries with lithium-iron-phosphate chemistry in south-central Michigan’s Marshall. Ford CEO Jim Farley last week during an earnings call also discussed a low-cost EV platform the Dearborn automaker has been developing for the past two years in hopes of having the flexibility to offer affordable options. Gjaja declined to detail timing on that, but says the goal is a sticker tag in the $25,000 to $30,000 range. With the $7,500 federal subsidy, that would bring the total price closer to $20,000. “We look at the market, and you look at the scale that's required, and the installed base that you get with smaller vehicles, which are going to be where the fastest growth and adoption of EVs will be,” he said, “we need an affordable vehicle platform to be able to compete.” In addition to EV affordability, the industry also is seeing hesitation because of insufficient public chargers, charging speeds and grid reliability concerns, which Gjaja dismissed. Bernstein analyst Toni Sacconaghi said that based on the adoption curve of other technologies historically, hitting 1% population adoption is when there begins to be a faster uptake rate. “Typically, what you need is some combination of a reasonable price point, and advanced functionality,” Sacconaghi said. “What we've observed is ... in a new product's evolution, once a product is sort of sufficiently attractive on a price and feature set that it commands 1% penetration, going from 1% to 80% happens really quickly.” Gjaja said given the capital investment required for vehicles and based on results in other countries, he believes for EVs that the tipping point is closer to 10% of new-vehicle sales, though that still represents a drop in the bucket compared with total vehicles on the road. The adoption also depends on region. The San Francisco Bay Area adoption is around 40%, while North Dakota’s is 1%. “There’s not a magic number, if you look across the geographies,” he said. “But I personally feel like at 10%, you’re hitting critical mass where people are like, ‘Oh, I see these charging stations.’ There are enough people buying.” |
US closes 7-year probe into Ford Associated Press U.S. auto safety regulators have closed a seven-year investigation into complaints about power-assisted steering failures in Ford Fusions without seeking additional recalls. The National Highway Traffic Safety Administration says in documents posted Monday that its testing found only minor steering effort changes if the power-assist failed. It also found a declining failure trend, and a lower failure rate in Fusions that were not recalled. The agency opened the probe in September of 2016 after getting over 500 complaints that the power steering failed suddenly, making the midsize sedans difficult to steer. The probe covered nearly 263,000 Fusions from the 2010 model year. In 2017, the investigation was upgraded to an engineering analysis to look at the scope and frequency of the problem after the agency and Ford got thousands more complaints including allegations of 59 crashes and 13 injuries. But the documents posted Monday said the agency did not find any safety-related defect trend. NHTSA noted that in 2015, Ford recalled nearly 394,000 Fusions and other vehicles in the U.S. from the 2011 to 2013 model years to fix power steering that could shut down due to a steering motor sensor fault. |
UAW has signed majority of Kalea Hall The United Auto Workers has signed up a majority of workers at Volkswagen AG’s Chattanooga, Tenn., plant to join the Detroit-based union, according to a UAW news release sent Tuesday. The news comes less than 60 days after the UAW said 30% of VW workers at the German automaker's only U.S. plant had signed union authorization cards. The facility employs about 5,500 workers and produces the Volkswagen ID.4, Atlas and Atlas Cross Sport, according to VW. Tuesday's news marks the first time the UAW has announced majority support at a non-union auto plant, according to the union. The UAW launched a campaign to organize non-union automakers after negotiating record contracts with Detroit Three automakers last year. Reaching this point at the VW plant is significant for the UAW because of the "shortness of time" since the start of the campaign, said Marick Masters, a business professor at Wayne State University. "I would imagine that, like anything else, that getting the next tranche of workers to sign up will be more difficult," Masters said. "The easiest two tranches are the first two ... but when you try and go above and beyond that, that's when resistance may begin to stiffen and people have more reservations as you get closer to actually holding an election." He added: "The sooner they can move on this and get an election held, once they reach that threshold, the better." Zach Costello, a Volkswagen worker and trainer, said in a statement that "the excitement has been building, and now that we have reached 50%, it is just continuing to grow. New organizers are joining each day spreading our effort to every area of the plant. Just because we are in the South, it does not mean that our work is worth less, that our benefits should be diminished, or that we don’t have rights. All workers should have a voice, and I hope the success that we’re having here is showing workers across the country what is possible.” "A clear majority" of about 4,100 hourly employees at the Chattanooga plant have signed cards to join the UAW, the union said. When 50% of workers sign authorization cards at a plant, the UAW has said it will hold a rally there. At 70% support, the UAW would demand recognition from the company, or request a National Labor Relations Board election. The threshold needed to be able to pursue an NLRB election is 30%. The union has not asked the company to recognize it yet and it has not filed to have an election. “We respect our workers' right to decide the question of union representation," Michael W. Lowder, a VW spokesperson, said in a statement. "And we remain committed to providing accurate information that helps inform them of their rights and choices.” This is not the first time the UAW has pursued an organizing drive at the plant. In 2019, VW workers at the plant voted 51.8% against union representation. There also was a narrow defeat in 2014. “We realized that the working conditions could be a lot better,” said Victor Vaughn, a logistics team member at Volkswagen, in a statement. “And the employees, we don’t have a say in any of the decisions that are going on within the plant. We’re not being recognized as a major resource for the company. We have a very important job, to put a vehicle on the road that our families are buying, that our kids are riding in. We take pride in what we do, but we don’t have a voice in how we operate. That’s why we’re taking the lead.” Other than VW, workers at Mercedes-Benz and Hyundai Motor Co. plants in Alabama have announced public campaigns to join the UAW. |
Ford profit sharing: Here's Breana Noble Ford Motor Co. said Tuesday it will pay profit-sharing bonuses on average of $10,400 to hourly autoworkers in the United States for 2023. The payout is a reflection of a new profit-sharing formula negotiated last year during contract talks with the United Auto Workers. Since the Dearborn automaker no longer reports financial results for North America, a new formula calculates the payout based on the company's global earnings figures, including Ford Credit. Ford recorded an adjusted operating income of $10.4 billion in 2023, which was flat year-over-year. For the first time, temporary employees are eligible for profit sharing. Before the new contract, 2-3% of Ford's approximately 58,000 U.S. autoworkers were temps, though Ford agreed upon ratification to roll over temps with at least three months of experience. Autoworkers can expect to receive the payouts on March. 14. For 2022, Ford workers could receive up to $9,176 in profit sharing. Under the formula used for that, workers received $1,000 for every $1 billion that Ford made in adjusted operating earnings in North America. Last week, crosstown rival General Motors Co. said it would pay its 45,000 eligible hourly workers $12,250 in profit sharing, down from last year's record $12,750. Stellantis NV will report its 2023 financial results and profit sharing for U.S. employees on Feb. 15. |
Ford posts year-over-year Kalea Hall Ford Motor Co.'s January sales increased 4.3% year over year with dealers selling 152,617 vehicles, the Dearborn automaker said Friday. Ford's electric vehicle sales dropped 10.9% from 5,247 to 4,674. Meanwhile, hybrid sales were up a record 42.7% with 11,157 delivered. Sales of internal combustion engine vehicles increased 2.6% to 136,786. Ford's SUVs and trucks saw sales gains of 8.5% and 1.5%, respectively. Car sales dropped 6%. In January 2023, Ford sold 146,356 new vehicles in the United States. The Maverick pickup saw record sales of 12,443 last month, with the hybrid version accounting for nearly half of that total. Maverick Hybrid sales of 6,092 marked an increase of 118% over last year. Ford sold 80,726 trucks and vans in the month. The Transit commercial van's sales were up 40.1% over last year with 14,191 vans sold. Lincoln saw a 20.3% increase in sales, with Corsair up 27.1%, Nautilus up 26.5% and Aviator up 58.3%. Ford's gains came amid mixed results for other automakers that report monthly sales. Honda Motor Co. on Thursday reported its January sales increased 10.3% year over year with 93,210 vehicles sold. Kia Corp. said Thursday it delivered 51,090 vehicles in January, down slightly from last year January's sales of 51,983 and Hyundai Motor Co. said Thursday its January sales dropped 9% from last year with total sales of 47,543 vehicles. Subaru Corp. reported 44,510 vehicle sales for January 2024, a 0.3% increase from January 2023. General Motors Co. and Stellantis NV do not release monthly sales reports. In late January, analysts at Cox Automotive, an automotive services provider, estimated total new-vehicle sales in the first month of the year would come in at 1.08 million, below their previous forecast of 1.15 million, but up from year-ago levels. “January is normally one of the slowest months for vehicle sales, as the December hangover and cold weather keep car and truck shoppers from wandering dealer lots,” said Charlie Chesbrough, senior economist at Cox Automotive, in a statement. “This January will be no exception, compounded by a few large storms and deep freezes across the country, which likely had an additional negative impact on sales. Unlike last year, though, available inventory and incentives will not be a problem.” Cox expects 2024's total sales volume will be nearly 15.7 million, up slightly from 15.5 million in 2023.
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UAW President: If corporations Breana Noble United Auto Workers President Shawn Fain on Monday said government should make up for pensions if corporations won't pay for them, downplayed security along the southern border and called for a just transition to electric vehicles. Fain's remarks came during the union's National Community Action Program Conference in Washington, D.C. Hundreds of members have gathered to discuss policy priorities and partake in workshops focused on activism during this year's presidential election. The UAW has yet to endorse a candidate even as other major unions have backed President Joe Biden, but Fain has suggested an endorsement could come as early as this week. "We have to take the issues that matter to the working class and poor, and we have to make our political leaders stand up with us," Fain said during his opening remarks. "Our message in doing this is simple: Support our cause, or you will not get our endorsement." Fain described political activism as an extension of the gains the union obtained this fall in its new contracts with the Detroit Three automakers. The new pacts delivered record wage hikes, resumed cost-of-living adjustments, obtained improvements to retirement packages and other benefits and secured billions of dollars in investments. The union, however, was unsuccessful in delivering its demand to secure pensions and post-retirement health care for all 146,000 autoworkers. Those hired after 2007 have 401(k)s with matching contributions that were upped in the latest round of negotiations. Analysts have estimated the union's demand would cost billions of dollars. "We're going to keep pushing for this in the next round of negotiations," Fain said. "But we're thinking even bigger, and we're not going to wait until 2028. Either the Big Three guarantee retirement security for workers who give their lives to these companies or an even bigger player does: the federal government." He criticized identity politics as divisive contributors that distract from the focus on billionaires and "corporate greed." The idea of border security being a major issue in this year's election, he said, is "a joke." "They try to divide us nationally by nationality," Fain said. "Right now, we have millions of people being told that the biggest threat to their livelihood is migrants coming over the border. The threat we face at the border isn't from the migrants. It's from the billionaires and the politicians getting working people to point the finger at one another, when in reality, we're all on the same side of the war against the working class." He likened the situation to his own grandparents who crossed "state lines instead of federal lines" to become autoworkers and join the UAW: "They went somewhere else to find a better life. That's all these people are trying to do." Fain also emphasized the need for a just transition to cleaner energy vehicles. He said the union must play a leading role in that, even as the UAW's own reports suggest the move to EVs could risk jobs. "We have to, as a union, lead in the area of environmental safety," Fain said. "It does no good to bargain for another dollar an hour or another week's vacation, if on the vacation you take you can't swim in the lake, because it's dirty, and you can't breathe clean air." |
Ford Kicks Off 2024 By Story by Christopher Smith The 2023 recall leader aims to keep the title thanks to A-pillar trim that could fly off while driving. It's January 24, and Ford is already almost one-third the way to all the recalls it had last year. That's saying something, seeing as how Ford was the most-recalled automaker in 2023 by a wide margin. A total of5.6 million Blue Oval vehicles in the US were potentially affected by some issue, and now, 1.8 million Explorers in the States have trim pieces that could come off while driving. That number expands to 2.2 million vehicles globally, according to Automotive News, and it all stems from a simple problem. Recall number 24V-031 from the National Highway Traffic Safety Administration (NHTSA) states that "some of the exterior A-pillar applique trim clip attachments are not properly engaged due to improper assembly or repair." The issue affects Explorers from the 2011 through 2019 model years, and as you can probably guess, clips that "are not properly engaged" can lead to the trim piece flying off. Ford states there have been no accidents or injuries resulting from this failure. However, there appear to be a good deal of incident reports. Perusing a chronology report on the recall, Ford identifies 568 Vehicle Online Questionnaire reports and 14,337 warranty reports of the exterior A-pillar trim either detached or missing. Curiously, the report states that Ford conducted an initial investigation on its own back in 2018 at the request of the NHTSA. It was deemed to be "not an unreasonable risk to safety due to the low mass/geometry of the part with NHTSA alignment." That apparently changed in February 2023 when NHTSA opened a preliminary investigation of its own into the problem, ultimately deciding that yes, plastic parts flying off a car could be a safety hazard to other drivers on the road. Total Recall:
Fortunately, the fix is very simple. Ford dealers will inspect the Explorer's A-pillar trim and repair or replace if it's not securely fastened. Owner notification will begin in March, but folks with concerns can call Ford customer service at 1-866-436-7332 and reference Ford recall 24S02 for more information.
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Ford cuts F-150 Lightning output, Breana Noble Ford Motor Co.'s decision to reduce all-electric F-150 Lightning pickup production is affecting 1,400 jobs in Dearborn. Meanwhile, it's hiring nearly 900 people in Wayne for assembly of Bronco SUVs and Ranger midsize trucks. The Dearborn automaker in a Friday news release said it’s seeking to balance production to meet customer demand. It says it expects growth for Lightning sales this year, but it’s less than previously anticipated. The production cut is the latest pullback by the automaker in the EV space. “We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability. Customers love the F-150 Lightning, America's best-selling EV pickup,” Ford CEO Jim Farley said in a statement. “We see a bright future for electric vehicles for specific consumers, especially with our upcoming digitally advanced EVs and access to Tesla's charging network beginning this quarter." The Rouge Electric Vehicle Center will become a one-shift operation effective April 1. Roughly 700 affected employees will transfer to the Bronco and Ranger factory, Michigan Assembly Plant off Michigan Avenue in Wayne. Ford is adding a 1,600-person third crew at Michigan Assembly in preparation for the launches of the new Ranger and off-road-focused Ranger Raptor. The plant will produce vehicles seven days a week instead of five with three crews working two shifts. Others affected by the Lightning production cut will be placed in roles at the Rouge Complex or other facilities in southeast Michigan, according to the company. Anyone else will be able to take advantage of the Special Retirement Incentive Program available this year through the new United Auto Workers contract. Depending on the number of employees who apply for the buyout, a few dozen workers at component plants supporting Lightning production could be affected. Ford says it would provide placements for those employees within southeast Michigan, too. Lightning sales last year were up 55%, making it the country's best-selling all-electric pickup. Ford implemented a several thousand-dollar price drop in July. In January 2022, Ford announced plans to double Lightning production to 150,000 vehicles per year. The Rouge Electric Vehicle Center was down for six weeks last summer to expand capacity. Ford in October said it was cutting $12 billion in planned EV investment as the growth in adoption slows. That included almost halving the size of its planned west Michigan battery plant in Marshall and delaying by a year the launch of production at one of its two battery plants in Kentucky with SK On. The automaker also cut back production in Mexico of the Mustang Mach-E SUV and has decreased requirements for dealers to be EV certified in the coming years. |
FCC chair asks automakers Associated Press Detroit — The top U.S. telecommunications regulator is asking automakers how they plan to protect people from being stalked or harassed by partners who have access to vehicle location and other data. In a letter sent Thursday to nine large automakers, Federal Communications Commission Chairwoman Jessica Rosenworcel asks for details about connected car systems and plans to support people who have been harassed by domestic abusers. “No survivor of domestic violence and abuse should have to choose between giving up their car and allowing themselves to be stalked and harmed by those who can access its data and connectivity,” she said in a statement. Nearly all new vehicles have convenience features that use telecommunications to find cars in parking lots, start the engine remotely, and even connect with emergency responders, Rosenworcel's letter said. “These features rely on wireless connectivity and location data that in the wrong hands can be used to harm partners in abusive relationships,” she wrote. The letter asks automakers for details about their connected services and whether they have policies in place to remove access to connected apps and other features if a request is made by someone who is being abused. Rosenworcel asks if the companies remove access even from someone whose name is on the vehicle's title. Letters were sent to top executives at General Motors Co., Ford Motor Co., Honda Motor Co., Hyundai Motor Co., Mercedes-Benz Group, Nissan Motor Co., Stellantis NV, Tesla Inc. and Toyota Motor Corp. Similar letters also went to wireless voice providers, the commission said. Messages were left Thursday seeking comment from the automakers. The Alliance for Automotive Innovation, a large trade association, said in a statement that misuse of connected vehicle technology to stalk or harass people is not acceptable. "The industry is considering how to best broaden federal or state policies and other protections to help prevent these incidents,” the statement said. The association has raised the issue with regulators previously, the group said. Rosenworcel's letter to automakers said it came after a story last week in the New York Times about how connected cars are being weaponized in abusive relationships. |
Tesla is raising factory worker Associated Press Detroit – Factory workers at Tesla have been told to expect pay raises this year, a move that comes as the United Auto Workers union tries to organize the electric vehicle maker's U.S. plants. The UAW said Thursday that Tesla workers have told the union about company statements on the raises, which did not give details about the size of the increases. After winning strong contracts with Detroit's three automakers last year, the union has embarked on an effort to organize all nonunion auto plants in the U.S., including Tesla's assembly and battery factories in Texas, California and Nevada. The Tesla raises come after nearly all companies with nonunion auto plants announced worker pay increases shortly after the UAW contracts were ratified. The UAW said its organizing drive will target more than a dozen U.S. plants run by Toyota, Honda, Hyundai, Nissan, Subaru, Mazda, Volkswagen, Mercedes, BMW and Volvo. Tesla also is on the list, along with EV startups Rivian and Lucid. UAW President Shawn Fain has called the raises at nonunion automakers the “UAW bump," saying that they were given in an effort to thwart union organizing efforts. “As great as these raises are, they still fall far short of what the companies can afford and what autoworkers are worth,” Fain said in a statement Thursday. A message was left Thursday seeking comment from Tesla, which is based in Austin, Texas. Tesla production workers, material handlers and quality inspectors will get a “market adjustment” pay raise, according to Bloomberg News, which reported the raises early Thursday. The UAW said this week that over 30% of workers at a Mercedes-Benz plant near Tuscaloosa, Alabama, have signed cards authorizing a vote on union representation. The action at Mercedes comes after more than 1,000 workers at Volkswagen’s Tennessee factory signed similar cards authorizing a vote. The union says its strategy includes calling for an election at factories when about 70% of the workers sign up. A union can seek an election run by the National Labor Relations Board once a majority of workers support it. The UAW pacts with General Motors, Ford and Jeep maker Stellantis include 25% pay raises by the time the contracts end in April of 2028. With cost-of-living increases, workers will see about 33% in raises for a top assembly wage of $42 per hour, plus annual profit sharing, the union said. Tesla also has found itself locked in an increasingly bitter dispute with union workers in Sweden and neighboring countries. The electric car maker’s CEO Elon Musk is staunchly anti-union. |
Ford Recalls 1.0L EcoBoost Story by Anthony Alaniz US regulators are also investigating Ford’s 2.7- and 3.0-liter EcoBoost engines. Not even Ford's nifty 1.0-liter EcoBoost engine could escape the regulatory eye of the US government. Ford has issued a recall for certain 2018-2022 EcoSport and 2016-2018 Focus models equipped with the three-cylinder engine and 6F15 automatic transmission. They could suffer from a loss of engine oil pressure due to a defect with the oil pump drive belt tensioner arm. According to the recall notice, the belt tensioner arm may fracture because the retention caulk joint isn’t robust enough to withstand engine vibrations. If this happens, the tensioner could separate from the backing plate and cause the belt to degrade by losing teeth. If this happens, the engine might experience a loss of oil pressure, which could damage and seize the engine. Drivers might experience a loss of engine and braking power, which could lead to an accident. Ford is aware of one crash allegedly related to this issue that injured two but is unaware of any fatalities. The recall arrives after the National Highway Traffic Safety Administration opened an investigation into nearly a quarter-million EcoSport crossovers for reports of alleged engine failure in 2018-2021 models in September. Ford’s EcoBoost engines have been under scrutiny since 2022 when NHTSA began investigating issues with the Bronco. In October, the federal agency expanded its “catastrophic engine failure probe” to 700,000 Ford and Lincoln vehicles. It’s now looking at the 2.7-liter and 3.0-liter EcoBoost engines that power the Edge, Explorer, F-150, Lincoln Nautilus, and Lincoln Aviator models. The recall affects 139,790 EcoSport and Focus models, two vehicles the automaker no longer offers in the US. Last year saw Ford retain the unwanted title of being the most recalled automaker, with 54 affecting 5.6 million vehicles. That’s down from 68 recalls for 8.5 million cars in 2022. |
Alabama Mercedes-Benz Breana Noble More than 30% of workers at Mercedes-Benz's plant in Tuscaloosa, Alabama, have signed United Auto Workers authorization cards, the second transplant factory to hit the threshold, the union said on Wednesday. Obtaining 30% support is legally what workers need to be able to pursue a National Labor Relations Board election to obtain union representation with a majority vote. The UAW's strategy calls for announcing a public campaign at a plant once it hits that threshold. It says it will demand that the company voluntarily recognize the union once 70% of workers sign online authorization cards or else pursue an NLRB election. The Tuscaloosa plant is the second to reach the 30% threshold since the Detroit-based union in November formally launched its campaign to organize foreign-owned and electric-vehicle maker assembly plants. It's seeking to build off the momentum of record labor contracts with the Detroit Three automakers to roughly double the union's 146,000 automotive members. Volkswagen AG's plant in Chattanooga, Tennessee, was the first plant where 30% of workers signed cards one month ago. A request for comment was sent to a Mercedes-Benz Group representative on Wednesday afternoon. The Tuscaloosa plant employs approximately 6,300 workers, according to its web page. It produces SUVs: the GLE, GLE coupé and GLS model series, including the Mercedes-Maybach GLS. It also assembles the all-electric EQS SUV and EQE. A previous attempt to organize the plant fizzled out in 2014 after years of seeking to gain support. In a news release, the union highlighted the German automaker's $156 billion in profits over the last decade, including a 200% jump over the past three years. It says U.S. workers' wages have stagnated as Mercedes vehicles' prices rose 31% since 2020. “Back in the day, you could get by on the pay here,” Derrick Todd, an online quality team member who’s been at Mercedes since 2005, said in a statement provided by the union. “We topped out in two years. Now some people go through a temp agency for years before they even get on the pay scale. Year after year, the company says they’ve got record profits and sales, but our pay doesn’t keep up. It’s time to set things right. It’s time that we had our voice heard.” |
Safety Alert: Ford Initiates Major Story by Henrik Rothen Ford has announced a recall of over 130,000 vehicles, citing a critical issue that could potentially lead to increased crash risks. This precautionary step is in response to a discovered fault in the vehicles' oil pressure system. Affected Models and Risk Factors The recall specifically targets two models: the Ford Focus (years 2016 to 2018) and the Ford EcoSport (years 2018 to 2022). The concern revolves around the possibility of the oil pump drive belt or the drive belt tensioner failing. Such a failure could result in a loss of engine oil pressure. According to the details shared by the National Highway Traffic Safety Administration, the loss of oil pressure might lead to an engine stall and a subsequent reduction in power-breaking assist – a scenario that significantly heightens the risk of accidents. Scope and Solution Approximately 139,730 vehicles are potentially impacted by this issue. Ford, committed to customer safety, has arranged for the replacement of the oil pump tensioner assembly and the oil pump drive belt at no cost to vehicle owners. This measure aims to address and rectify the identified risk efficiently. Customer Guidance and Contact Information Ford plans to initiate owner notifications about the safety risk on February 13, with a follow-up notice once the necessary remedy parts are available. Vehicle owners can reach out to Ford's customer service at 1-866-436-7332 for assistance and further information. The recall is officially identified as number 23S64. |
Detroit Three to skip Breana Noble, Kalea Hall The Detroit Three automakers say they are passing on advertising at the 2024 Super Bowl, even with their hometown team having its best chance at winning the NFL title in years. Pricing for Super Bowl LVIII set to air Feb. 11 on CBS is said to be around $7 million for a 30-second spot, according to Ad Age. Last year, 115.1 million viewers tuned into watch the Kansas City Chiefs defeat the Philadelphia Eagles. The playoffs will determine who plays in this year's game outside Las Vegas. The Detroit Lions are their division's champions this season. The auto industry in 2023 saw increased sales as supply-chain issues resolved and pent-up demand from the pandemic was satisfied. In 2024, that sales growth is expected to moderate as interest rates remain high, and customers are looking for incentives to make a purchase. That means squeezed profit margins unless the companies cut costs. Skipping the super Bowl is Stellantis NV's latest move to adjust its marketing spending. The company this week pointed to challenging market conditions in its decision to evaluate its appearance at auto shows on a case-by-case basis. Stellantis won't attend next month's Chicago Auto Show "With a continued focus on preserving business fundamentals to mitigate the impact of a challenging U.S. automotive market, we are evaluating our business needs and will take the appropriate decisions to protect our North America operations and the Company," according to a statement sent by spokesperson Diane Morgan. "In light of this assessment, we will not be participating in the Big Game this year." Stellantis aired two commercials during last year's game. One promoted the Jeep 4xe plug-in hybrids with a new version of the "Electric Boogie." The second premiered the all-electric Ram 1500 REV. Five days later, the automaker closed reservations for the truck that'll launch in the fourth quarter. The automaker's Super Bowl ads in the past have delivered buzz. In 2020, the commercial with actor Bill Murray and a Jeep Gladiator spoofing the "Groundhog Day" film topped USA Today's Ad Meter. Eminem introduced the Chrysler 200 in a 2011 Super Bowl ad that also focused on the revitalization of Detroit. General Motors Co. in recent years has used the Super Bowl to sell its EV future, though it isn't doing so this year. Last year, the automaker brought in actor Will Ferrell to promote its EVs and a new partnership it had with the streaming service Netflix. The automaker also had Ferrell appear in a 2021 ad called "No way, Norway," where Ferrell goes on a mission to get back at Norway for selling more EVs. "We continually evaluate our media strategies," GM spokesperson Arianna Kughn said in a statement, "to ensure they align with our business priorities." Ford hasn't aired a Super Bowl ad in several years, and it won't again in 2024, said spokesperson Mike Levine, referring to a previous statement from CEO Jim Farley: "If you ever see Ford Motor Co. doing a Super Bowl ad on our electric vehicles, sell the stock." |
Ford posts best sales year since Breana Noble Ford Motor Co.'s U.S. sales rose 7.1% in 2023 compared to 2022, the Dearborn automaker said Thursday, marking its best results since 2020. The Blue Oval was just shy of selling 2 million vehicles last year compared to 1.86 million in 2022. It maintained its position as the No. 2 seller of electric vehicles behind Tesla Inc., though its 72,608 EV sales rose 18% compared to 126% in 2022 over 2021 — hence, Ford's decision to cut $12 billion in planned EV investment as it anticipates the buildout of a charging network that will open the way for more consumer adoption. Despite inflationary pressures, improved production in 2023 as supply-chain challenges were resolved from 2022 and pent-up demand stemming from the pandemic supported growth in vehicle sales last year. Automotive services resource Cox Automotive Inc. estimated that 15.5 million vehicles were sold in 2023. Ford sold 192,343 vehicles in December, up 7.3% year-over-year. Fourth-quarter sales of 487,840 were up 0.8%. Ford hybrid vehicle sales were up 25% on record annual sales. For a 47th year in a row, the F-Series trucks were the top-selling trucks, up 15% in 2023, with 750,789 pickups. That includes the all-electric Lightning, whose sales rose 55% to 24,165. Hybrid truck sales were up 41%. General Motors Co. sold 555,148 Chevrolet Silverados, though the Detroit automaker sold an additional 295,737 full-size trucks with the GMC Sierra. Stellantis NV's Ram sold 444,926 pickups. Ford's other EVs also saw sales increase and a record fourth quarter for EV sales. The Mustang Mach-E's deliveries rose 3.3% to 40,771 in 2023, and the E-Transit commercial van was up 18% to 7,672. The Transit van sales totaled 129,009, up 30%, leading its top-selling commercial van lineup for a 45th year. “In a year of challenges, from a labor strike to supply issues, our amazing lineup of gas, electric and hybrid vehicles and our fantastic dealers delivered solid growth and momentum. We have the products that customers want,” Ford CEO Jim Farley said in a statement. “I am especially proud Ford remained the No. 2 EV brand in America and our next-gen, digitally advanced new EVs are on the way. "Now we are spring-loaded for 2024 with new versions coming of our most popular trucks and SUVs, a full year of new Super Duty and Mustang, and a big year for Lincoln.” Sales of Lincoln, Ford's luxury brand, fell 2% in 2023, but were up 8.8% in the fourth quarter. Bronco SUV sales declined 9.7% to 105,665 last year, under the Jeep Wrangler's 156,581 sales, which also were down. The smaller Bronco Sport supplied an additional 127,476 sales, which were up 28%. Explorer, one of the most popular Ford brand SUVs, saw sales fall 10% for the year, but a new Explorer is coming this year. Expedition sales were up 18% for the year. In the truck segment, Ranger sales were down 43% in 2023, while sales of the popular Maverick rose almost 27%. More than half of Maverick sales were hybrids. |
The Year Ahead: Politics in 2024 Emily Landau 1. Justin Trudeau will face new challengers—both within his party and beyond Many political insiders are predicting a federal election in 2024. But after nine years in power and three election wins, the bloom is off the rose for Justin Trudeau, who’s staring down generation-high interest rates, a dire housing crisis and his lowest approval ratings ever. A recent Angus Reid poll suggests most Canadians, including almost half of Liberal respondents, think he should step down before the next election; potential successors include Finance Minister Chrystia Freeland, Foreign Affairs Minister Mélanie Joly and former Bank of Canada governor Mark Carney, who’s already floated the idea of a leadership run. Meanwhile, Trudeau’s Conservative counterpart, Pierre Poilievre, will keep picking up popularity as he promises to lower the cost of living and calls for an end to carbon taxes. The CPC also stands to benefit from a redrawn federal electoral map, set to take effect in April. 2. The Liberals will prepare for a Trump victory in the U.S. MSNBC is prepping its electoral map, the New York Times is dusting off its prediction needle and all eyes are on America as the Democrats prepare to square off against an as-yet-unknown Republican adversary. Should Donald Trump or another ultra-conservative prospect win in November, Canada might expect an influx of political refugees, increased economic and diplomatic isolationism and a rise in far-right movements on home soil. Foreign Affairs Minister Mélanie Joly has said the Trudeau government is readying a game plan for every scenario. 3. Danielle Smith will try to create an Alberta pension plan Smith won the Alberta premiership last spring on a platform powered by anti-federalist sentiment. One of her top promises was that Alberta would pull out of the Canadian Pension Plan and create its own, with lower contributions and higher returns. Support is growing for the idea, and Smith plans to hold a referendum next year. A report commissioned by the province suggests that if it defects, it’s entitled to 53 per cent of the CPP’s $375 billion in assets—a figure disputed by the Canada Pension Plan Investment Board, which estimates the province would get 16 per cent, and economist Trevor Tombe, who puts the number between 20 and 25 per cent. 4. LGBTQ+ rights will be an election issue In 2023, both New Brunswick and Saskatchewan tabled legislation requiring schools to receive parental consent before allowing students to use their preferred name or gender identity at school. These moves are part of a burgeoning movement called “parental rights,” which has received considerable pushback from students, parents and educators who claim that kids should be free to make identity choices without their parents’ involvement. Both provinces have elections scheduled for October, and the issue will no doubt be a litmus test for voters’ enthusiasm for—or abhorrence of—social conservatism. 5. The Greenbelt will haunt Doug Ford Ontario’s premier spent much of 2023 touting the Greenbelt expansion, an ambitious plan that would allow urban development on a ribbon of the province’s pristine farmland. After months of outcry from farmers and conservationists, allegations that he favoured certain developers and a damning report from Ontario’s auditor general, Ford walked back the deal. But he’s not off the hook yet: the RCMP has launched a probe into the deal and allegations of corruption. (Ford has denied any criminal activity took place and promised to co-operate with the investigation.) In a symbolic gesture of regret, his government is introducing laws to ensure any further Greenbelt changes will occur via the legislature rather than regulations. 6. New policies will detect Pretendians Last year, several notable Canadians were accused of feigning or fudging their Indigenous identity—alleged Pretendians included former judge Mary-Ellen Turpel-Lafond, ex–Memorial University president Vianne Timmons and folk music icon Buffy Sainte-Marie. To deter future fakers, a number of universities are implementing Indigenous identity verification systems for future hires, with requirements such as signed affidavits, government ID and references from family and Elders. This year, that practice will likely extend to school boards (the Toronto District School Board says it’s developing new procedures for verification) and the private sector (the Saskatchewan NDP is pushing for a policy requiring employers to independently confirm Indigenous identity claims).
7. Pharmacare could splinter a fragile political alliance In 2022, the federal NDP and Liberals entered into a shaky coalition: in exchange for the NDP’s support, the Liberals agreed to push for affordable housing and a universal pharmacare program. A year and a half later, the Libs hadn’t come through on the pharmacare promise, and the NDP was threatening to pull its support unless the party made good. By the end of 2023, the parties had confirmed that the legislation will be tabled by March. A new report suggests that a single-payer drug plan will cost the government $11 billion in its first year, but create net savings of up to $1.4 billion for the economy, since the feds will be able to negotiate on bulk drug prices. 8. Canada will welcome half a million immigrants The government plans to welcome 485,000 new permanent residents this year—roughly 1.2 per cent of the current population—and 500,000 in both 2025 and 2026. The goal is to boost the economy, fill labour shortages and compensate for Canada’s lagging fertility rate. The problem, critics say, is that Canada doesn’t have the housing, public resources or resettlement services to absorb that many newcomers in such a short period of time. But Immigration Minister Marc Miller insists that the influx of new Canadians is essential to solve deeply entrenched problems like the housing crisis: the government’s intention is to bring in the kinds of skilled workers who can build new housing stock. 9. Quebec will court Francophone newcomers Under the Canada-Quebec Accord, established in 1991, Quebec sets its own immigration targets. This year, that means 60,000 new international students and economic migrants—but, as part of Premier François Legault’s aggressive francophone-first policy, all temporary foreign workers will have to pass a French-language exam before they’re admitted. This is in keeping with the government’s goal of having 89 per cent of the Quebec workforce qualify as French-language speakers (a huge bump from the 2023 goal of 66 per cent). The move has been controversial in Quebec, where business owners say the new requirements will add more barriers to hiring. 10. The federal government will pay for its past Last summer, a federal judge approved the largest class-action settlement in Canadian history: a whopping $23.4 billion to compensate some 300,000 Indigenous children and families who were victims of Canada’s discriminatory child welfare system. The Canadian Human Rights Tribunal ruled that, going back to 1991, the claimants in the case were adversely affected by racist government policies and, in some cases, denied services altogether in areas like health care and education. Each claimant is entitled to $40,000 plus interest, and payments will start rolling out this year. On top of that, the government has also agreed to set aside an additional $20 billion for long-term child welfare reform.
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Ford Is The Most Recalled Ford is the most recalled brand for the third straight year, according to data from the National Highway Traffic Safety Administration. By: Christopher Smith According to data from the National Highway Traffic Safety Administration (NHTSA) through December 20, Ford has issued 54 recalls potentially affecting 5,692,135 vehicles in 2023, the most of any automaker. This year marks the third year in a row Ford has held the top spot for recalls in the United States. Going strictly by vehicles affected, Ford had nearly twice as many as second-place Kia at 3 million, the bulk of which came through a single recall for leaking brake fluid leading to a fire risk. If you go by total recalls, Fiat Chrysler Automobiles USA was second to Ford with 45, affecting 2.7 million cars. BMW had 29 recalls, Mercedes-Benz had 27, and Nissan rounds out the top five for automakers at 22. Ford's numbers are down from 68 recalls affecting 8.5 million cars in 2022 but it's still way ahead of other automakers. Things have improved roughly 30 percent over last year per Ford, which offered the following statement to Motor1: "We’re constantly working to improve vehicle quality and deliver the best experience for our customers. Voluntary recalls are one of the ways we proactively protect customers from experiencing an issue. Our initial quality is improving and customers with our latest vehicles are benefiting from it. Compared with 2022, about 30% fewer Ford customers were affected by safety related recalls in 2023." The surprise recall story for 2023 is actually Volkswagen. You may recall the German brand holding the number two spot behind Ford for 2022, clocking 45 recalls affecting 1 million vehicles. Imagine our surprise when VW didn't show up on NHTSA's pie chart for 2023, which only shows 12 brands. We thought perhaps data wasn't available, but searching specifically for the company reveals a total of 18 recalls for 332,700 cars. That's considerably lower than last year. We asked VW about the year-over-year improvement. A spokesperson offered the following statement to Motor1: "Volkswagen Group of America has been working diligently to improve the quality of its vehicles, which in turn reduces the potential for recalls. Recently, quality problems have been reduced significantly, warranty claims are at a historical low and our regional Quality Testing and Validation program is showing positive results." While Ford still leads for recalls, Tesla takes the dubious honor of having the largest single recall for automakers in 2023 over its Autopilot driver-assist system. This one is likely fresh in your memory as it occurred in early December, affecting 2,031,220 vehicles. That's pretty close to every Tesla the company built for the US market, but it likely won't be a costly recall for the automaker. NHTSA determined that Autopilot doesn't do enough to prevent misuse, which Tesla plans to remedy with an over-the-air software update. With a few days left in 2023, it's always possible a big recall could crop up. If that happens, we'll certainly update the post. But with folks headed out for extended holiday breaks, don't hold your breath. |
20 years of Dodge muscle comes DAVID KENNEDY After Dec. 22, 2023, output of the Dodge Charger and Challenger muscle cars and the Chrysler 300 sedan ends An eight-year run for the boxy sedan with undersized windows and an unmistakable oversized grille would have been enough for Stellantis designer Ralph Gilles to call the Chrysler 300 a success. Yet nearly 20 years after workers at Brampton Assembly Plant built the first 300 in early 2004, production of the car continues to hum along northwest of Toronto, even if it’s more a trickle than a flood. “It has exceeded all of our expectations,” and to this day, the “performance numbers it puts down are fantastic,” said Gilles, chief design officer at Stellantis, who was instrumental in bringing the 300 to life. “There were a lot of battles behind the car [for] a lot of our era. The company’s transitioned, yet it’s a constant,” he told Automotive News Canada. Dodge teases next-generation Charger in U.S. holiday ad Gilles provided no details about what Chrysler plans to roll out, but said a new vehicle is on deck. “I don’t think people are going to say it’s a new 300 per se, but they will say it’s a fantastic new Chrysler,” he said. After nearly 20 years of the 300, Charger and Challenger, the Brampton plant will be down for up to two years for retooling. WHAT’S NEXT FOR BRAMPTON? In the spring of 2022, Stellantis pledged to transition the plant to build electrified vehicles, ending months of uncertainty about Brampton as production of the three cars comes to an end. “That put ease in our members because we didn’t know what was going on, and now, we have a clear path,” said Unifor’s Beato. The two-year timeline will be a long haul for members, he said. But given the rapid progress of some other recent EV retooling projects — namely the short turnaround of General Motors’ CAMI Assembly Plant in Ingersoll, Ont. — the union is optimistic that Stellantis will be able to reduce the downtime. The Brampton plant is slated to build the new Jeep Compass crossover in both gasoline and battery-electric variants when it reopens in late 2025. Among other improvements, the plant will have a new paint shop, tandem stamping lines and new body-in-white and underbody spaces, Beato said. Members have logged some “historic memories” over the past 20 years, he said. But with plenty of fans of the Jeep brand on the line, excitement is building for the new era. “This new retool and transition for our plant into the EV future will support our members and their families for generations to come as well.” |
Ontario has announced big
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Environmental groups demand Breana Noble A group of 10 environmentalist organizations are calling on General Motors Co. and Ford Motor Co. to distance themselves from the lobby group Automotive Alliance for Innovation, which has voiced opposition to proposed federal standards that would demand a 56% reduction in emissions from model years 2027 to 2032. In a letter sent to GM CEO Mary Barra, Ford CEO Jim Farley and other executives, the organizations that include the Sierra Club, League of Conservation Voters and Center for Biological Diversity demand the companies break off connections with the trade association that represents most major automakers selling vehicles in the United States. The request comes as GM and Ford have pulled back on electric-vehicle investment plans, decreasing battery-plant project sizes, delaying EV launches and postponing production targets. Demand for EVs has been less than expected, the companies say, even though EV sales are increasing. They're just not increasing at as fast as a rate as they once were as charging station availability, charging speeds, affordability and grid reliability remain obstacles to mass adoption. "GM and Ford: Don't let AAI’s anti-EV lobbyists speak for you," the environmentalist groups wrote. "Unless you distance yourselves from the AAI and express clear support of the clean cars standards, your companies are complicit in blocking progress on EVs." The other signatories were Ekō, Coltura, the Electric Vehicle Association, GreenLatinos, Interfaith Power & Light, Public Citizen and The Sunrise Project The standards could push automakers to ensure more than two-thirds of their U.S. sales are EVs. The alliance, though, has expressed concerns that requiring automakers to spend more on reducing emissions will direct investments into improving gas engines and away from EVs to meet federal standards if EV demand isn't there. AAI CEO John Bozzella was unavailable to respond to the letter on Wednesday while representing light-duty manufacturers at a federal working group on EV transition policies hosted by U.S. Energy Secretary Jennifer Granholm and U.S. Transportation Secretary Pete Buttigieg. A spokesperson directed The Detroit News to a post on Bozzella's LinkedIn on Monday. "My mantra: the future is electric. This will happen," he wrote. "But … the auto industry, policymakers and everyone in between needs a realistic vision of success when it comes to automotive electrification and a real partnership to make this happen." Missing emissions standards can subject automakers to fines or require that hey purchase credits from competitors. Ford, GM and Stellantis NV are the worst-performing of major automakers for fuel economy and carbon emissions in the EPA's most recent Automotive Trends Report. “Our commitments and investments in an all-electric future place GM in an excellent position to contribute to the Administration’s goals," the automaker said in a statement sent by spoksperson Bill Grotz. "To best ensure industry can successfully achieve the transition to electrification, we encourage coordination across the U.S. federal government and with (the California Air Resources Board), to include alignment on EV regulatory ratings and vehicle class definitions.” GM last week said it's still planning to be all-electric by 2035. Supply-chain issues resulted in the automaker selling fewer EVs than hoped this year, Barra said Wednesday before the Economic Club of Washington, D.C. The Detroit News reported late last month, though, that GM was considering the return of hybrids in North America. It withdrew its target of 400,000 production EVs by the first half of 2024; put off the launches of the Chevrolet Equinox EV and the Silverado RST for retail customers and the GMC Sierra EV Denali; postponed launching more capacity for the Chevrolet Silverado and GMC Sierra EVs; and nixed an affordable EV program with Honda Motor Co. Ltd. Ford did not immediately have comment on the letter, but a spokesperson directed The Detroit News to its written comments to the EPA on the proposed standards. "Ford is all-in on electrification. ... As we begin the work of bringing EVs to scale here in the U.S. and globally, we are creating new jobs, supporting communities, and growing our business in ways that are good for people and the planet. Just like we did 120 years ago when we put the world on wheels, we are shaping the future of mobility — one that’s inclusive, equitable, and sustainable." The Dearborn automaker reported record U.S. EV sales in November. Still, it has cut $12 billion in planned EV investments. That includes nearly halving the battery plant it's building in west Michigan's Marshall and delaying the launch of one of two joint-venture battery plants it's building in Kentucky with South Korean battery manufacturer SK On. It's also reducing production volumes of EV models. |
Ford Executive Doug Field Buys By Brett Foote In the midst of a major executive shakeup as it continues to execute its Ford+ plan for the future, one of The Blue Oval’s many hires originating from tech giants was Doug Field, former Apple VP of special products, who was hired to be Ford’s chief advanced technology and embedded systems officer back in September 2021. Now, Field has reportedly made a major Ford stock purchase that totals a whopping $2 million, according to Barron’s. According to a regulatory filing, that purchase totaled 182,000 shares of Ford stock, which Field acquired at an average cost of $11.05 per share – accounting for a total of around $2 million. It also brings Field’s total ownership of Ford stock up to 720,000 shares (not including restricted stock units), though this latest purchase appears to be the executive’s first open-market acquisition – at least in terms of The Blue Oval’s stock. Back in December 2022, the automaker’s board’s compensation committee recommended that Field hold three times his base salary of $500,000 in Ford stock, though he has far exceeded that number now. As such, it seems as if Field is bullish on the current state of that stock, which has dropped by around 18 percent over the past year largely due to slow EV sales growth and soaring interest rates. Regardless, large stock purchases by Ford executives are certainly nothing new, as CEO Jim Farley bought $1 million dollars worth of shares back in May 2020 – which, at the time, was the largest open-market share purchase by a Ford executive in at least the past 10 years. A few months later, executive chairman Bill Ford bought $2 million dollars worth of Ford stock as well, all while other auto execs were busy selling off shares. |
Ford decreasing F-150 Breana Noble Ford Motor Co. is decreasing production of its all-electric F-150 Lightning pickup truck after the new year in Dearborn, according to a report from Automotive News. "We will continue to match production to customer demand," spokesperson Jess Enoch said in a statement, declining to provide specifics about changes at the Rouge Electric Vehicle Center, which employs 2,200 people. In its report, Automotive News cited a supplier memo that states the automaker will produce 1,600 vehicles per week. The plant had planned production for double that. The change is the latest in a series of moves by the Dearborn automaker and others in the industry to pull back on electric vehicle production. Availability of charging stations, charging speeds, grid reliability and EV affordability remain obstacles to mass adoption. Ford in October said it was cutting $12 billion in planned EV investment as the growth in adoption slows. That included almost halving the size of its west Michigan battery plant in Marshall and delaying by a year the launch of production at one of its two battery plants in Kentucky with SK On. The automaker also cut back production in Mexico of the Mustang Mach-E SUV and has decreased requirements for dealers to be EV certified in the coming years. "We're ... not changing our strategy," Chief Financial Officer John Lawler said last month, "but changing our tactics and pulling back on some of the capital investment around the capacity that we're putting in place so that we can better match capacity with demand." The Lightning's U.S. sales are up. In November, they rose 113% to a record monthly and year-to-date high. But sales aren't growing as quickly as expected, despite a several thousand-dollar price drop in July. In January 2022, Ford announced plans to double Lightning production to 150,000 vehicles per year. It was down for six weeks this summer to expand the capacity. "The demand is there," Marin Gjaja, chief customer officer for Ford Model e, said when the expansion was completed. "We now have the supply to match it.” |
GM has to pay $8 million to Kalea Hall The United Auto Workers has secured nearly $8 million in back pay for General Motors Co. employees affected when the automaker "unallocated" three plants in Michigan, Ohio and Baltimore, UAW Vice President Mike Booth told members in a Dec. 5 letter obtained by The Detroit News. The $8 million will be for about 800 union members and will include payments for lost overtime, 401(k) and pension contributions, performance bonuses and nearly $800,000 in interest, Booth wrote in the letter. "The arbitrator awarded nearly everything the UAW sought as a remedy for GM's breach," Booth wrote in the letter. GM in 2018 announced it would idle five plants: Detroit-Hamtramck, Warren Transmission, Lordstown Assembly in Ohio, Oshawa Assembly in Ontario and Baltimore Operations in Maryland. Of the five, GM closed Lordstown, Warren and Baltimore. Detroit-Hamtramck is now GM's Factory Zero electric vehicle plant and Oshawa workers, represented by Unifor in Canada, are back building trucks for the automaker. The UAW sued the company in 2019, alleging GM had breached its 2015 deal with the union but then dropped the suit and agreed to go through arbitration as part of the UAW-GM 2019 contract. In its lawsuit, the UAW said GM's use of the word "unallocated" purposely avoided the words "idle or "close," which were noted in the 2015 UAW-GM agreement. At the time, GM said its unallocation announcement in 2018 did not "violate the provisions of the UAW-GM National Agreement." The arbitrator in 2022 found that GM did violate the contract. Booth in his letter said "the union is pushing the company to implement the award as soon as possible." He said the award doesn't resolve the union's issue with mutually satisfactory retirement benefits, "which the arbitrator found not to be subject to arbitration in an earlier phase of the case," but the union is going to "continue to fight" to get those benefits for eligible members. In a statement, GM spokesperson Kevin Kelly wrote: "GM is pleased with the arbitrator’s decision related to the mutually satisfactory retirement benefits. We plan no further legal action regarding the arbitrator’s ruling." |
UAW hits major threshold Breana Noble More than 30% of Volkswagen AG workers at the German automaker's only U.S. plant in Chattanooga, Tenn., have signed union authorization cards in less than a week, the United Auto Workers said in a news release Thursday. That includes more than 1,000 workers at the plant that builds the Atlas, Atlas Sport and electric ID.4, according to the union, which last week formally launched a campaign to organize workers at 13 non-union automakers across the country. Hitting the milestone means the organizing drive is going public there. If 50% of workers sign authorization cards at the plant, the UAW says it will hold a rally there. If it receives 70% support, that's when it would demand recognition from the company, or else request a National Labor Relations Board election. The threshold needed to be able to pursue an NLRB election, though, is 30%. “People are standing up like never before,” Steve Cochran, a skilled trades worker and leader of the workers building the union at Volkswagen, said in a statement provided by the UAW. “There are a lot of young workers in the plant now and this generation wants respect. They’re not okay with mistreatment by management. They see what’s happening at Starbucks and Amazon. They know that standing up to join the union is how you win fair treatment, fair pay and a better life.” In a statement posted on Volkswagen's website, the company said workers in Chattanooga have a "world-class production environment" and recently received an 11% pay increase. It described its benefits and development opportunities as reflective of "our constant commitment to our team members." "We believe in frequent, transparent, and two-way dialogue with our people to help them stay informed and connected and help shape our world-class assembly environment," the company said. "We also respect the right of our workers to determine who should represent their interests in the workplace." Organizing foreign-owned assembly plants has been a long-sought goal that turned out to be just out of reach for the UAW as the Detroit Three's market share has fallen from competition. Many plants were built in right-to-work and southern states. Tennessee is a right-to-work state, but General Motors Co. has an enormous Spring Hill Manufacturing campus southwest of Nashville. Hourly workers at the plant, which employs nearly 4,000 people, are organized. Chattanooga is about two-and-a-half hours southeast of Spring Hill. It's not the first time the UAW has pursued an organizing drive at the VW plant. In 2019, VW workers at the plant voted 51.8% against union representation 833 to 776. There also was a narrow defeat in 2014. Now, the UAW says VW has made $184 billion over the last decades. It noted its vehicle prices are up 37% in the past three years. VW says it is "massively invested in our people, the city of Chattanooga and the State of Tennessee." Since 2008, the company has invested more than $4.3 billion in Chattanooga, creating more than 125,000 direct and indirect jobs. In the past two years, it added more than 1,200 production roles and another shift to build the ID.4 SUV. "We are proud to be a part of the automotive growth and innovation happening in the American South," the company's statement said. UAW President Shawn Fain last week told The News that thousands of workers at non-union auto plants have shown their support. The union's campaign is seeking to build off the momentum of three new four-and-a-half-year contracts at the Detroit Three that secured wage increases, cost-of-living adjustments, billions of dollars in investments and increased retirement contributions. Fain declined to provide a timeline or budget for the campaign. In the wake of the UAW-Detroit Three agreements, some other automakers like Toyota Motor Corp. and Honda Motor Co. Ltd. said they were increasing wages, decreasing timelines to the top pay and improving benefits for their own workers. The union has set up a website, uaw.org/vw, where workers can learn more and legally sign up to support representation. |
More than 1,000 VW workers Reuters WASHINGTON (Reuters) - The United Auto Workers union said on Thursday that more than 1,000 factory workers at Volkswagen AG's Chattanooga, Tennessee assembly plant have signed union authorization cards. Last week, the UAW said it was launching a first-of-its-kind push to publicly organize the entire nonunion auto sector in the U.S. after winning record new contracts with the Detroit Three automakers. The UAW, which said 30% of workers at the VW plant had signed cards, has outlined its organizing strategy that says if 30% of workers at a nonunion plant sign cards seeking to join, it would make that public. If 50% of workers seek to join, the UAW would hold a rally with UAW President Shawn Fain to tout the effort. At 70% and with an organizing committee in place, the UAW would seek recognition or demand a union representation vote. The Detroit-based UAW said workers at 13 nonunion automakers were announcing simultaneous campaigns across the country to join the union, including at Tesla, Toyota, Volkswagen, Hyundai, Rivian, Nissan, BMW and Mercedes-Benz. Those automakers employ nearly 150,000 workers at their U.S. assembly plants, about the same number as those employed by the Detroit Three companies with which the UAW just signed new labor agreements. The UAW's deals with General Motors, Ford Motor and Stellantis included an immediate 11% pay hike and 25% increase in base wages through 2028, cuts the time needed to reach top pay to three years from eight years and is boosting the pay of temporary workers by 150% and making them permanent. VW said last month it would hike pay for factory workers in Tennessee by 11%, joining several foreign automakers who have announced significant pay and other compensation improvements in response to the UAW contracts. Many analysts and industry officials saw the move as an effort to keep the UAW out of their plants. The UAW for decades has unsuccessfully sought to organize auto factories operated by foreign automakers. Efforts to organize Nissan plants in Mississippi and Tennessee failed by wide margins, and two attempts to organize VW's plant in Chattanooga narrowly failed. In 2019, VW workers at the plant voted 833 to 776 against union representation. |
Ford sales down year-over-year in Breana Noble Ford Motor Co.'s U.S. sales fell 0.5% in November, though electric vehicle sales hit a record high. Ford on Monday reported selling 145,559 vehicles last month, down from 146,364 in November 2022. Sales of EVs were up 43% to almost 9,000 vehicles with Ford No. 2 behind Tesla Inc. Hybrid vehicle sales, meanwhile, rose 75%. The record high EV sales come as the Dearborn automaker is pulling back its EV investments. Ford has cut $12 billion in planned expenditures, including nearly halving the size of its future battery plant in west Michigan's Marshall and delaying the launch of production at one battery plant in Kentucky. Those pullbacks are in response to slower growth in EV sales than had been forecasted, though EV sales volumes still are growing. The bulk of deliveries in November, however, came from internal combustion engine vehicles. Those were down 6.5% as several products built at plants that the United Auto Workers had struck this fall during labor talks saw fewer sales than last year. Pickup trucks took a hit. They were down 2.8% year-over-year. SUV sales were up 0.7%. Mustang sales were up nearly 32%. Numerous nameplates under the Ford brand were down in October, including the Bronco SUV, the Explorer SUV, the Expedition SUV, the Ranger pickup, the Transit and E-Transit cargo vans, the F-Series trucks and heavy trucks. The plants producing most of these vehicles had been on strike as a part of the UAW's 41-day work stoppage that ended Oct. 25. Although F-Series trucks were down 3.8% year-over-year, sales of the electric F-150 Lightning rose 113% to a record monthly and year-to-date high. The F-150 Hybrid's sales were up 36%. Together, they made up a quarter of F-150 sales. The Mustang Mach-E SUV rose 21% in sales. The company highlighted the Maverick as the best-selling hybrid pickup, with sales up 252% over last year. Overall, Maverick sales were up 39% in November. Sales of Ford's luxury Lincoln brand rose 2.2% on a nearly 58% increase in Nautilus SUV sales. Corsair and Aviator SUV sales dropped. The Blue Oval's stock was at nearly 462,000 vehicles at the end of November, including 186,000 F-Series trucks alone. The company produced 2.278 million vehicles in North America through the first 11 months of the year, including more than 205,000 in November. Ford has been ramping production back up at its three assembly plants the UAW struck: Michigan Assembly Plant in Wayne, home of the Ranger and Bronco; Chicago Assembly Plant, which builds the Ford Explorer and Lincoln Aviator; and Kentucky Truck Plant, which produces Super Duty trucks, the Lincoln Navigator and the Ford Expedition. The strike also disrupted production at numerous other Ford plants, resulting in thousands of temporary layoffs. As of Monday, all workers had been called back to work, Ford spokesperson Jessica Enoch said. The company also has returned to full production schedules at the three assembly plants where workers went on strike. Ford reported last week that the strike resulted in a $1.7 billion earnings hit. Sill, the company is forecasting a full-year adjusted operating income of $10 billion to $10.5 billion. Ford workers in late November ratified a new agreement that includes 27% wage increases over four-and-a-half years, a shorter timeline to the top wage, cost-of-living adjustments, increased retirement contributions and $8.1 billion in investments. Ford says the contract will add $900 in cost per vehicle on average by 2028, which the automaker says it will look to absorb with improved efficiencies and cost reductions elsewhere. Crosstown rivals General Motors Co. and Stellantis NV report sales on a quarterly basis. Of the automakers that report U.S. sales on a monthly basis, several reported year-over-year gains in November, including Honda Motor Co. Ltd. up 33%, Hyundai Motor Co. up 11% to a record volume and Subaru Corp. up 6.4%. Auto information resources Cox Automotive Inc. was predicting a 6.5% increase in sales for November for the overall industry with a seasonally adjusted annual rate near 15.3 million vehicles. Inventory levels, now at 2.4 million, are recovering from years-long parts shortages and nearing 2020 levels. “A slight rise in sales volume is expected in November, but the sales pace will decline for the second straight month," Charlie Chesbrough, Cox's senior economist, said in a forecast. "October is normally one of the slowest sales months of the year, and the buying pace generally increases in November and December. This year, however, despite more discounting and more promotion, we are expecting the sales pace to slow slightly in a weak buying climate.” |
Ford shares new guidance Breana Noble Ford Motor Co. on Thursday said it's anticipating full-year adjusted operating income of $10 billion to $10.5 billion in 2023 that reflects $1.7 billion in lost profits from the United Auto Workers' 41-day strike against it. The Dearborn automaker had withdrawn its annual guidance last month pending the ratification of a tentative agreement with the Detroit-based union that wrapped up earlier this month. Now that workers have approved the agreement and to make up for expected decreases in electric-vehicle premiums, Ford is looking at cost-cutting measures and improvements to its manufacturing process. After increasing its guidance following the second quarter from improvements in supply chain, higher volumes, new Super Duty trucks and lower commodity costs, Ford previously said it had expected an adjusted operating income of $11 billion to $12 billion in 2023. Its original guidance was between $9 billion and $11 billion. "So, if you take that $10.5 (billion), if we hadn't lost that volume due to the strike," Ford Chief Financial Officer John Lawler said Thursday at the Barclays Global Automotive and Mobility Tech Conference, "we would be at the high end of our original guidance of $11 to $12 (billion)." The UAW employed a simultaneous, targeted "stand-up strike" against the Detroit Three. It interrupted production of high-margin trucks and SUVs, resulting in a loss of about 100,000 vehicles, Ford said. The bulk of the $1.7 billion in lost profits — $1.6 billion — will be reflected in fourth-quarter results to be shared on Feb. 6. That's when Ford will share 2024 guidance, as well. Full-year 2023 adjusted free cash flow also is expected to be between $5 billion and $5.5 billion. That's down from the previously forecasted $6.5 billion and $7 billion as well as down from Ford's original 2023 guidance of about $6 billion. Ford says its target is a 40% to 50% return to shareholders. What its 15-cent dividend doesn't cover will be issued in the first quarter of next year as a supplemental dividend. The Blue Oval generated $4.9 billion of net income and $9.4 billion in adjusted operating income through the first three quarters of the year, prior to the full effects of the work stoppage. In total, Ford said the new UAW contract is expected to cost $8.8 billion over the agreement's four-and-half years. Gross wages that include a 27% general wage increase, a three-year wage progression down from eight years and the returned cost-of-living adjustments account for the largest portion of the costs. The company anticipates the deal will add about $900 in costs per vehicle by 2028, which is up to 0.7% of adjusted operating income margin. Ford hopes to offset that with lower expenses and improved productivity. "We need to do that by reducing the number of hours it takes to build a vehicle, simplifying designs and reducing complexity," Lawler said, "as well as driving increased efficiencies through our factories, and that's what we're focused on." The agreement allows the automaker to be able to rebalance manufacturing lines, its footprint and automation, Lawler said. The company sees opportunity on material, warranty and structural costs as well. Those are a part of Ford's greater plans as it expects to earn a smaller premium on EVs than in previous years as the market shifts for early adopters to the mass market where customers are more price-sensitive. The next few years are about quality and cost, Lawler said. Slower growth in EV sales has prompted a pullback in spending on EV investments. Ford has cut $12 billion in planned spending on capacity, halving the size of its battery plant in west Michigan's Marshall and delaying the start of production at one of two joint-venture battery plants in Kentucky. It also has altered its approach to bringing major components on EVs in-house to focus more on pieces like battery management systems and inverters. "Now, vertical integration is going to be important in areas where you have a distinct competitive advantage," Lawler said. "And we did pivot a bit and say that over time, we don't believe batteries, per se the cell and pack, are going to be a differentiating element of the electric vehicle. And so if that's the case, you have to think about your capital allocation in that space." For its second-generation EVs, Ford is expecting revenue to be equal to gas-powered vehicles, and the company is working on how to get to its 8% margin target with that. "We're ... not changing our strategy," Lawler said, "but changing our tactics and pulling back on some of the capital investment around the capacity that we're putting in place so that we can better match capacity with demand." When asked about the UAW agreement's impact on the battery plant, Lawler said: "Our battery plants are not part of the contract. They're joint ventures with SK (Corp.) and they are not part of the countract. They will have to be organized by the UAW. ... That may be different from what others had agreed to but the battery plans are not part of the settlement on this contract for Ford." The Marshall plant, which is wholly owned by a Ford subsidiary, also would need to be organized by the UAW. The UAW agreement does allow the union to use a card-check system there that makes it easier to organize a plant. If a majority of workers sign cards to unionize, that plant would fall under the master agreement. Ford's updated guidance comes after General Motors Co. on Wednesday reinstated a full-year guidance of $11.7 billion to $12.7 billion in operating profit after losing $1.1 billion in operating profit during the United Auto Workers' 46-day targeted plant strike. GM also announced a $10 billion accelerated share repurchase program. GM expects its new UAW contract and three-year agreement with Canadian autoworkers union Unifor will cost the company $9.3 billion over terms of the deals. They are estimated to add $575 to the average cost of a new vehicle, which GM said it expected to be able to absorb for 2024. Stellantis NV CFO Natalie Knight last month said the union's 44-day strike was expected to reduce the company's 2023 net income by less than $800 million, and the deal's financial impact per vehicle was in line with Ford's estimates. |
Transport Canada Warns Story by Mike Chaar Transport Canada has published several car recalls in Canada from manufacturers including Nissan, Toyota, Tesla and Honda to name a few. The recalls are due to several health and safety risks posed to both drivers and passengers of the affected vehicles. From issues involving faulty seatbelt retractors, airbags and issues with the rearview mirror all the way to steering gearboxes that were not manufactured accurately, the federal department is urging Canadian drivers to verify if their cars are included in the recalls, and is instructing on which steps to take in order to fix the problem(s) concerning the current recall. Here is the complete list of the nine recalled vehicles flagged by Transport Canada: Recall Reason: Per the Transport Canada recall page, "the rear outboard seat belt retractors may not have been manufactured correctly. As a result, the seat belts may not extend and/or retract correctly." What You Need To Do: Hyundai will notify owners by mail and advise you to take your vehicle to a dealership to inspect the left and right-rear seat belt retractors and replace them if necessary. "Hyundai recommends that if you hear a noise when extending the seat belt or are unable to extend it, you should not transport a passenger in that seat, and you should contact a dealer immediately to have the vehicle inspected," the recall warning indicated. Hyundai Recalled Cars:
Recall Reason: Per the Transport Canada recall page, "the rear outboard seat belt retractors may not have been manufactured correctly. As a result, the seat belts may not extend and/or retract correctly." What You Need To Do: Hyundai will notify owners by mail and advise you to take your vehicle to a dealership to inspect the left and right-rear seat belt retractors and replace them if necessary. "Hyundai recommends that if you hear a noise when extending the seat belt or are unable to extend it, you should not transport a passenger in that seat, and you should contact a dealer immediately to have the vehicle inspected," the recall warning indicated. Mercedes-Benz Recalled Cars:
Recall Reason: Per the recall warning page, the rearview camera image could freeze while backing up. If this happens, the driver's visibility can be greatly reduced and the likelihood of a crash is greater. What You Need To Do: Mercedes-Benz will notify owners by mail and advise you to take your vehicle to a dealership to have the rearview camera replaced. Tesla Recalled Cars:
Recall Reason: According to the recall page, "on a small number of vehicles, the wrong airbag may have been installed on the steering wheel after it was replaced from yoke steering to a round steering wheel, or vice versa." A car fit with a poorly installed airbag could increase the risk of injury in a crash. What You Need To Do: Tesla will notify owners by e-mail and advise you to contact Tesla Service to arrange for an inspection and, if necessary, the replacement of the steering wheel airbag. Honda Recalled Cars:
Recall Reason: Certain vehicles may have a steering gearbox that was not manufactured accurately. This issue could lead to the steering rack locking up while the vehicle is in motion. Such an unexpected loss of steering control poses a significant risk of a potential collision, per the recall warning. What You Need To Do: Honda will notify owners by mail and advise you to take your vehicle to a dealership to replace the steering gearbox. BMW Recalled Cars:
Recall Reason: There is an issue with the driver's seat belt, as it may fail to lock up as intended during braking or in the event of a crash. This poses a safety concern, as a malfunctioning seat belt that doesn't lock properly in a crash could significantly increase the risk of injury, the Transport Canada page noted. What You Need To Do: The company will notify owners by mail and instruct them to take their vehicle to a dealer to replace the driver's seat belt assembly. Fiat Chrysler Recalled Cars:
Recall Reason: "On certain vehicles equipped with a 3.0 L diesel engine, the high-pressure fuel pump could fail. If this happens, you may notice a change in engine performance, a fuel leak, or a malfunction indicator lamp and/or service electronic throttle control tell-tale may turn on. This could also result in a sudden loss of engine power while driving," the recall page indicated. What You Need To Do: FCA Canada will notify owners by mail and instruct you to take your vehicle to a dealership to replace the high-pressure fuel pump. Ford Recalled Cars:
Recall Reason: Per the recall warning, a software glitch may lead to the incorrect rearview camera image being shown during the reverse process. Consequently, there is a possibility that the hitch or trailer view image might be displayed instead of the standard rearview image. It is important to note that Canadian regulations mandate the display of the rearview image when in reverse. What You Need To Do: Ford will notify owners by mail and advise you to take your truck to a dealership to update the advanced drive assistance system module software. Toyota Recalled Cars:
Recall Reason: "On certain vehicles, the battery hold-down assembly may not properly secure certain 12 V aftermarket batteries. As a result, the battery could shift positions and cause the positive battery post to contact the hold-down bracket. If this happens, there could be a short circuit," the Transport Canada page said. What You Need To Do: Toyota will notify owners by mail and advise you to take your vehicle to a dealership to replace the battery clamp sub-assembly, battery tray, and positive terminal cover. Nissan Recalled Cars:
Recall Reason: The wiring harness of the rearview camera is susceptible to damage from movement and vibrations. In the event of such damage, the rearview camera image may exhibit incorrect or no display at all. Compliance with Canadian regulations mandates that the rearview image must be visible during the reversing process, the recall page said. What You Need To Do: Nissan will send notifications to owners via mail, instructing them to take their vehicles to a dealership for an inspection of the rearview camera wiring harness. If necessary, protective tape will be applied, and the wiring will be rerouted. In cases where damage is detected, both the rearview camera and wiring harness will be replaced. |
Detroit's Big Three Union workers at Ford approved a new contract with the company by a 2-to-1 ratio after General Motors employees ratified it in a much closer vote. Nov. 20, 2023, Union members at Ford, Stellantis and General Motors have ratified a new 4½-year contract, locking in at 11% pay increases secured after a six-week strike in September and October. The United Auto Workers said that roughly 67% of Ford employees represented by the UAW voted in favor of the contract, which will last through April 30, 2028. Voting officially ends Friday, but with around 57,000 union employees at Ford, the contract appeared headed toward easy ratification. The contracts were negotiated after members of the UAW went on strike from Sept. 15 until late October. Union members will get a total pay increase of 25% over the course of the deal. The new contracts also reinstate cost-of-living adjustments, let workers reach top wages in three years instead of eight and protect their right to strike over plant closures. Both the UAW and the carmakers described the deals as “record” contracts based on those pay increases. The union also said members were regaining some of the benefits they agreed to give up after the Great Recession to help keep the automakers alive. Workers at GM approved the contract, but they did so by a much narrower margin than Ford's employees did, with about 55% of workers voting yes. While UAW President Shawn Fain has called the contacts a victory for workers, he has also said they are part of a larger plan to win back more benefits over the long haul. According to the UAW's ratification vote tracker, Stellantis employees were on pace to approve the deal at margins similar to Ford workers. With 17,391 votes tallied as of Thursday evening ET, about 66% of ballots had been cast in favor of accepting the contract. While the general terms of the contracts are similar, workers at Detroit's Big Three automakers are voting to accept or reject them independently. |
UAW ratifies deal with GM November 17, 2023 The agreement passed by a margin of 55 percent to 45 percent, winning by nearly 3,300 votes out of more than 35,000 cast. In contrast to the close voting at GM, the UAW's deals with Ford and Stellantis are easily headed toward ratification. Hourly workers at General Motors component plants, parts distribution centers and battery plants canceled out opposition from higher-paid assembly plant employees to ratify a labor agreement that puts nearly everyone on the same wage scale. The agreement passed by a margin of 55 percent to 45 percent, winning by nearly 3,300 votes out of more than 35,000 cast. The deal received support from about 81 percent of workers at GM Components Holding plants and parts distribution centers, as well as 96 percent of those at two electric vehicle battery plants. Many will receive immediate raises of up to 89 percent. Meanwhile, 53 percent of workers at GM’s assembly, metal and propulsion plants voted no. Workers who already were on GM’s top wage scale will get immediate 11 percent raises upon ratification. All workers also get a $5,000 ratification bonus. The UAW and GM declined to immediately comment Thursday. The agreement was in doubt earlier in the week after workers at seven of the company's 11 U.S. assembly plants rejected it. But support from 61 percent of workers at Arlington Assembly in Texas helped to prevent the deal's failure. In contrast to the close voting at GM, the UAW's deals with Ford Motor Co. and Stellantis are easily headed toward ratification. Both were passing by roughly 2-to-1 margins as of Thursday afternoon. Highlights of the terms The GM agreement, which runs through April 2028, includes roughly $2 billion in new investment for future electric vehicle and parts production at three plants, brings employees at GM's joint-venture battery plants under the national UAW agreement and bumps wages and retirement contributions for its U.S. hourly work force. With the restoration of a cost-of-living adjustment, top wages would rise from about $32 per hour today to more than $42 by the end of the deal, and new hires would get to that level in three years instead of eight. Temporary workers with at least 90 days on the job will see their wages rise between 51 and 115 percent at ratification as they are converted to full-time employees with seniority, the union has said. Workers at GM’s parts distribution centers and components plants will move to the main production rate under the new agreement. Their wages currently start around $16 or $17 per hour, with top wages maxing out at less than $32 per hour for manufacturing workers. The wage gains in this contract for newer employees at a GM parts distribution center in Hudson, Wis., will be “life-changing,” said Steve Frisque, president of UAW Local 722, where 93 percent of workers voted to ratify the deal. “We feel they’re working right alongside us and should be making the same wage,” Frisque said. Most Toledo workers opposed the deal, according to the union’s vote count. Totty said the plant has many employees who are nearing retirement in the upcoming contract cycle, and many employees are concerned retirement benefits in the agreement don’t go far enough. GM agreed to increase its contribution into employees' 401(k) retirement accounts to 10 percent from 6.4 percent and provide a $5 increase to the basic monthly benefit for traditional pension holders, which would equate to an increase of $1,800 annually for future pensioners, the union said in a document highlighting the key contract changes. The contract provides gains that workers are pleased with, but “there’s still a glaring hole in it, and that’s for the pension,” Totty told Automotive News. “This is a better deal for somebody who doesn’t even work for our company yet than for somebody who just put in 30 years,” he said. “Now’s the time to fix it.” Art Wheaton, a labor relations expert at Cornell University, said the close vote wasn’t a bad thing. “It’s the sign of a good negotiations,” Wheaton said. “If they got a 99 percent vote, that means GM overspent. If they got 49 percent, that means GM was too cheap. If you’re at more than 50 percent, it means you threaded the needle.” He said the vote revealed lingering differences among the various subsets of workers. “Those with a higher seniority did not get as much of an increase because the union’s lifting up the lower-paid workers,” he said. “Those that were used to getting paid more than the others aren’t as happy.” |
Autoworkers to wrap up voting The Canadian Press DETROIT (AP) — In a tight vote, thousands of United Auto Workers members at General Motors are expected to finish casting ballots Thursday on a tentative contract agreement that could be a giant step toward ending a prolonged labor dispute with Detroit’s Big Three automakers. The outcome of the GM vote is uncertain, despite the UAW's celebrations of victories last month on many key demands that led to six weeks of targeted walkouts against GM, Ford and Stellantis, the maker of Jeep, Dodge and Ram vehicles. The union is expected to announce GM results Thursday. The three contracts, if approved by 146,000 union members, would dramatically raise pay for autoworkers, with increases and cost-of-living adjustments that would translate into a 33% wage gain. Top assembly plant workers would earn roughly $42 per hour when the contracts expire in April of 2028. Voting continues at Ford through early Saturday, where 66.1% of workers voted in favor so far with only a few large factories still counting. At Stellantis, workers had voted 66.5% in favor of the deal as early Thursday, with some large factories yet to finish casting ballots, according to a vote tracker on the UAW website. Questions remain on new contract between UAW and GM About 46,000 UAW members at GM were wrapping up voting. As of Thursday morning, those for the agreement outnumbered those against it by about 2,500 votes. That total didn’t include the tally from a 2,400-worker assembly plant in Lansing, Michigan, where 61% of members cast ballots against the contract. The union local there didn't release actual voting figures. Of the four GM plants that went on strike, workers at only a large SUV plant in Arlington, Texas, approved the contract. Workers in Wentzville, Missouri; Lansing Delta Township, Michigan; and Spring Hill, Tennessee, voted it down. Workers said that longtime employees at GM were unhappy that they didn’t get larger pay raises like newer workers, and they wanted a bigger pension increase. Several smaller facilities were still voting, many of them parts warehouses or component factories where workers got big pay raises and were expected to approve the contract. Keith Crowell, the local union president in Arlington, said the plant has a diverse group of workers from full- and part-time temporary hires to longtime assembly line employees. Full-time temporary workers liked the large raises they received and the chance to get top union pay, he said. But many longtime workers didn’t think immediate 11% pay raises under the deal were enough to make up for concessions granted to GM in 2008, he said. That year, the union accepted lower pay for new hires and gave up cost of living adjustments and general annual pay raises to help the automakers out of dire financial problems during the Great Recession. Even so, GM and Stellantis, then known as Chrysler, went into government-funded bankruptcies. “There was something in there for everybody, but everybody couldn’t get everything they wanted,” Crowell said. “At least we’re making a step in the right direction to recover from 2008.” Citing the automakers' strong profits, UAW President Shawn Fain has insisted it was well past time to make up for the 2008 concessions. President Joe Biden hailed the resolution of the strike as an early victory for what Biden calls a worker-centered economy. But the success of the tentative contracts will ultimately hinge on the ability of automakers to keep generating profits as they shift toward electric vehicles in a competitive market. Thousands of UAW members joined picket lines in targeted strikes starting Sept. 15 before the tentative deals were reached late last month. Rather than striking at one company, the union targeted individual plants at all three automakers. At its peak about 46,000 of the union’s 146,000 workers at the Detroit companies were walking picket lines. In the deals with all three companies, longtime workers would get 25% general raises over the life of the contracts with 11% up front. Including cost of living adjustments, they’d get about 33%, the union said. The contract took steps toward ending lower tiers of wages for newer hires, reducing the number of years it takes to reach top pay. Many newer hires wanted defined benefit pension plans instead of 401(k) retirement plans. But the companies agreed to contribute 10% per year into 401(k) plans instead. Tom Krisher, The Associated Press |
UAW workers at major Ford November 15, 2023 Autoworkers at Ford's Kentucky Truck Plant in Louisville, Ky., voted no on the contract agreement reached by the United Auto Workers union. According to vote trackers on the UAW's website, 54.5% of the 4,118 ballots cast in Kentucky — Ford's largest plant — were no votes, the results showed Monday. The plant, which builds Ford's F-Series Super Duty pickup trucks among other models, is estimated to employ 8,700 workers. This indicates that the road ahead for the UAW may not be as smooth as union leadership had hoped for, after reaching record agreements with all three major automakers following a six-week auto strike. GM workers in Flint also voted no This comes after another loss last week, when 52% of the 3,425 ballots cast at General Motors' Flint Assembly plant were also no votes. Roughly 4,700 workers at that plant build Chevy Silverado and GMC Sierra pickup trucks. By most measures, the contracts have been generous. They provide workers with a 25% wage increase and in some cases more by 2027, cost of living allowances and improved retirement contributions. But even with those historic gains, they don't bring workers back to where they were before 2007, when wages and benefits were slashed amid tough economic times. Most workers must vote in favor Only by 2027, will the top wage at each of the Big 3 reach where it was 20 years ago, when adjusted for inflation, and none of the carmakers conceded to the union's demands to bring back pensions and retiree health care. "There were a lot of gains," says Kentucky Truck Plant worker Jenn Thompson, who voted no. "But there were just a few things that I would have liked to have seen in this contract that didn't make it," including retiree health care. Despite these setbacks, a majority of the union members overall still support the contracts, with about 10,000 ballots cast so far at GM and 25,000 at Ford. A majority of workers at each of the Big 3 must vote in favor of ratifying the contracts for them to take effect. UAW President Shawn Fain has repeatedly called the workers the union's highest authority. Should any of the contracts fail to reach a majority of yes votes, negotiators would have to return to the bargaining table. Finally tallies at the Big 3 automakers are expected this week and next. |
Unifor auto talks: a quiet end to The Canadian Press Unifor auto talks: a quiet end to one of the year's biggest labour clashes© Provided by The Canadian Press TORONTO — One of Canada's most highly anticipated set of labour talks in years wrapped up this week, but there’s no victory parade planned. Unifor’s marathon three months of high profile contact talks with the Detroit Three automakers — where gains and losses often set the tone for other industries — instead ended with a tepid 60 per cent vote of support from Stellantis production workers Monday, before the union quickly moved on to other labour fights in a year that’s been full of them. “It seems like every week we have another strike deadline that we're facing. This has been a very big bargaining year for us,” said Lana Payne, national president of Unifor in an interview. But while the union has seen some 85,000 members at the bargaining table this year, expectations were especially high for the nearly 20,000 who work at Stellantis, Ford Motor Co. and General Motors. After decades of concessions to the automakers, the combination of high frustration about the rising cost of labour and the record profits of the companies had combined to create what looked like a generational opportunity to claw back past losses. “We told the automakers that the expectations were high, and nothing short of a historic collective agreement was going to get ratified in these moments,” said Payne. The result was a deal that secured base wage gains for production workers of nearly 20 per cent, along with a long list of other improvements including to pensions, job security, a faster path to seniority, bonus pay and more vacation days. The low approval rate at Stellantis, along with the 54 per cent vote in favour rate at Ford in late September, show just how high those expectations were among workers. “The most fascinating part of this round of bargaining was the contrast between the relative strength of the pattern agreement, and the relative weakness of the ratification,” said Brock University Labour Studies professor Larry Savage. “Workers aren't content to tread water in the context of a cost-of-living crisis; they expect their unions to deliver more at the bargaining table.” GM workers, heavily weighted toward recent hires at the Oshawa plant who will benefit the most from the faster route to senior pay, voted 84 per cent in favour. But older workers at other plants, some whom have lived through decade of belt-tightening and job losses, clearly wanted to make up more ground. “I don't think it's that older generation of workers got a bad deal. It's just that they remember what things used to be like,” said Savage. The wage picture shows just how much things have changed. The starting rate for workers will go from the current $24.26 an hour $31.16 by the end of the contract for a notable 28 per cent jump. But the starting rate in 2007 was $28.82, which is almost $41 in today’s dollars, said Tony Leah, a labour activist and retiree at the Oshawa local. “They're getting big increases only because of how badly they've been treated over the last 10 or 15 years,” said Leah. The voting results also don’t reflect the voices of the thousands of union retirees like Leah, who made some of the biggest concessions in past bargaining rounds. In 2007, for example, workers agreed to pensions that weren’t linked to inflation, and so haven’t seen a penny increase since. This year, Unifor secured $800 a year in a ‘health-care allowance’ for those workers, but it’s not guaranteed long-term, and amounts to little more than a coffee a day, said Leah. “There was a lot of anger from retirees because we had been told that pensions were the No. 1 demand.” Payne said the union made improvements on pensions across the board this year, including a shift back to defined benefit plans. She said the boost for retirees, the last concession they were able to squeeze out of Ford, is something they can build on, but that it’s also the area where companies are most resistant. “When you go to bargaining table, the last thing, and the hardest thing to do, is to bargain improvements in pension plans.” Given how far autoworkers wages and benefits had slipped, it was never going to be regained in one contract, said Peggy Nash, a past labour negotiator with the Canadian Auto Workers, Unifor’s predecessor. “You can't redress changes that have taken place over many, many years, all in one contract. Collective bargaining is always incremental” said Nash, who now heads the advisory committee at Toronto Metropolitan University’s Centre for Labour Management Relations. There’s always the potential to push for more concessions, but negotiations are based on relationships, and at some point negotiators need to decide they’ve met their key demands. “You just make a judgment call at a given point in time that you have bargained as much as you're going to be able to get, without a significant amount of pain on both sides.” Unifor did go on strike at GM and Stellantis after the companies resisted matching the terms agreed to at Ford, but they only lasted about as long as a shift before the union secured tentative agreements. It was a sharp contrast with the aggressive stance of the UAW which spent six weeks in escalating strikes. The Canadian union faces the extra complication of making sure the American companies stay committed to Canada. “It reflects the fact that the union in Canada wanted to walk tight rope between making significant gains at the bargaining table, without scaring the (Detroit Three) into pulling investments out of Canada,” said Savage. Payne said the question of investments, especially as auto companies undergo the massive transformation to the electric vehicle future, is always close at hand. “Every conversation I have with the CEOs of these companies is why they should be investing more in Canada.” She said the union has set a template for other sectors, while also putting autoworkers back on the road to prosperity. “We've achieved a lot here,” said Payne. “People will look back on this moment as kind of a turning point in terms of building the sector up, and having these jobs once again be the premium jobs in manufacturing in Canada.”
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Honda hikes production workers' Story by Reuters (Reuters) -Honda Motor said on Friday it was implementing an 11% pay hike for production workers at its U.S. facilities from January, days after the United Auto Workers (UAW) union and the Detroit Three automakers agreed to record contracts. The company also said it would cut the time it takes for a worker to get to the top wage tier to three years from six, confirming an earlier Wall Street Journal report. Non-unionized automakers such as Honda have come under pressure to improve pay and benefits following record contracts the UAW won at the Detroit Three automakers. Honda, which began manufacturing in America in 1979, currently has 12 plants in the country which produce five million products annually. The Japanese automaker has over 23,000 employees that help build its products in the U.S. General Motors, Ford Motor and Chrysler-parent Stellantis have all agreed to hike employee base wages by 25% and restore cost of living allowances (COLA) in deals with the UAW. Union workers are now voting on contracts from each of Detroit's Big Three automakers. The UAW has also signaled that the next step in its campaign was to capitalize on its gains in bargaining with the Detroit Three, by launching organizing drives at Toyota, Tesla and other non-union U.S. auto factories. Honda had told Reuters it was evaluating the recent UAW deals with the Detroit Three automakers and would remain competitive. |
Biden wants UAW style labor deal for all U.S. auto workers The president spoke to UAW workers here in Illinois as the Democratic president tries to rally support for his economic agenda and firm up sagging popularity numbers. BELVIDERE, Ill. — President Joe Biden said on Thursday he wants all U.S. autoworkers to get labor deals like the tentative one the UAW reached with the Detroit 3 automakers after a more than six-week strike. "I want this type of contract for all auto workers and I have a feeling the UAW has a plan for that," Biden said. He said Toyota Motor Corp. "had no choice" but to raise wages for U.S. hourly workers because of the UAW deal. Biden spoke to UAW workers here in Illinois as the Democratic president tries to rally support for his economic agenda and firm up sagging popularity numbers, ahead of a re-election campaign next year. Donning a red UAW T-shirt, Biden congratulated Shawn Fain, the head of the UAW, and highlighted the tentative contract agreements between the union and the Detroit 3 that ended more than six weeks of strikes. As part of the deal, Chrysler parent Stellantis agreed to reopen its assembly plant in Belvidere and invest billions of dollars in new operations in the area. En route to the event, Biden told reporters that he “absolutely” supports the UAW's efforts to unionize Tesla Inc. and Toyota workers. In response to Biden's remarks, Toyota said it wants to "foster positive morale" and boost productivity in its workforce. "The decision to unionize is ultimately made by our team members," the Japanese automaker said in a statement. Nichelle Cruz, who was laid off from the Belvidere plant, said she was shocked when she heard Tuesday that Biden was coming to town. That shock then turned to nervousness when she was asked to tell her story and introduce Illinois Gov. JB Pritzker. Cruz, who has been with the company for nearly 30 years, had worked at the plant since 2009. She came to Belvidere Assembly Plant after working at Chrysler's St. Louis minivan plant until it closed in 2008. Cruz has been living apart from her husband, who lost his job in Belvidere in 2019 and now works at the Toledo Assembly Complex in Ohio. Cruz proudly proclaimed during her speech that she was getting her husband back thanks to the UAW’s tentative agreement that is being voted on now, which will allow displaced Belvidere workers to return. The Belvidere plant, which was idled in February, now is slated to build a midsize pickup on two shifts starting in 2027. The plant last built Jeep Cherokee SUVs. Stellantis also plans to open a $100 million Mopar parts hub next year by consolidating work from its Marysville, Chicago, and Milwaukee parts distribution centers in Belvidere. The UAW says the automaker will begin stamping operations in support of replacement parts for the Belvidere hub in 2025. In 2028, Stellantis plans to open a $3.2 billion joint-venture battery plant in Belvidere that will create 1,300 jobs. Cruz told Automotive News before her speech that she was honored to see Biden join the picket line with striking GM workers at a Detroit-area parts distribution center last month. “I just think this is awesome,” Cruz said. “This is a beautiful day. To have the presence of him here, the president of the United States? Come on now. That is huge. Just for him to take time out his schedule to come here to support UAW.” Belvidere Mayor Clint Morris spoke to Biden on Thursday and said it was a “historic day” for Belvidere. Morris said he empathized with the laid-off workers because he went through a similar situation in 1982, when he lost his job in the machine tool industry while supporting his young family. He was happy to see a deal come together that will bring jobs back to the area. “I couldn't be more proud of the agreement that they were able to strike between Stellantis and the UAW,” Morris told Automotive News. “Then all the help that the state and the governor, Gov. Pritzker, and all the way up even on a federal level to local representatives here. We were able to pull together with a common goal and pull in the right direction.” Musk fight Biden's comments may renew friction between the U.S. president and Tesla CEO Elon Musk, as the UAW seeks to organize Tesla workers. Musk and Biden sparred in recent years, and in 2021 Musk said Biden's EV policy appeared to be controlled by labor unions. Biden first publicly acknowledged Tesla's EV production in February 2022, after Musk repeatedly complained about being ignored by the president. Recently, the UAW tried and failed to win enough support from workers at Tesla’s Fremont, Calif., factory to hold an organizing vote. The plant was a UAW shop when it was jointly owned by GM and Toyota and known as NUMMI. The UAW filed a complaint with the National Labor Relations Board over a 2018 Musk tweet in which he asked "why pay union dues & give up stock options for nothing." The NLRB ruled the tweet violated laws prohibiting management threats against workers for supporting unionization. Endorsement questions Thursday's appearance once again allowed Biden to showcase his pro-union credentials to the UAW, which has yet to endorse him, unlike most other labor organizations. In September, UAW's Fain ruled out meeting Trump, casting him as an out-of-touch billionaire, who does not have "any bit of care about what our workers stand for, what the working class stands for." Labor leaders and Democratic officials said an endorsement from the UAW for Biden is expected after the union's members approve their tentative contract agreements, which dramatically raises pay for auto workers and ended a strike targeting GM, Ford and Stellantis, the maker of Jeep, Dodge and Ram vehicles. The relationship between Biden and Fain "didn't start as cozy as it is now," said Mark Burton, a partner at the law firm of Honigman and a former chief strategist of Michigan Gov. Gretchen Whitmer, a Democrat. But Biden taking on a "more supportive but silent role" during the UAW negotiations improved the relationship, Burton said, adding that Biden "has formed a good working relationship with Shawn Fain and I think the near-term result will be an endorsement."
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Toyota’s non-unionized workers BYCHESTER DAWSON AND BLOOMBERG Toyota is raising wages for assembly workers in the US after its Detroit carmaking rivals reached tentative deals with their union to boost pay. The Japanese auto giant plans to increase the highest wage for most assembly line workers by 9.2% to $34.80 an hour as of Jan. 1, a person familiar with the matter said Wednesday. The move by Toyota follows major compensation gains negotiated by the United Auto Workers union on behalf of hourly workers it represents at plants in the US run by General Motors Co., Ford Motor Co. and Stellantis NV. Workers at US plants operated by Toyota, like other foreign brands and Tesla Inc., are not unionized. But UAW President Shawn Fain has vowed to expand his union’s reach beyond the Detroit three by 2028. Toyota currently operates nine auto parts and vehicle assembly plants across eight states and is building a new battery production facility in North Carolina. The wage hike by Toyota was reported Tuesday by Labor Notes, a trade publication that supports collective bargaining. |
Stellantis workers vote in favour The Canadian Press Stellantis workers vote in favour of collective agreement: Unifor© Provided by The Canadian Press TORONTO — Unifor says Stellantis production workers voted 60 per cent in favour of a new three-year contract with the automaker. The deal covers workers at the company's Windsor and Brampton, Ont., assembly plants and Etobicoke Casting Plant. Approval for smaller agreements covering Stellantis workers in other units ranged from 85 to 100 per cent. The union reached the tentative deal with the automaker, which mirrored deals already in place with Ford Motor Co. and General Motors Co., after a brief strike on Oct. 30. Unifor members at Ford had voted 54 per cent in favour of the contract, while GM members voted 81 per cent in favour. The Stellantis contract, which will cover around 8,200 workers, will see general wages rise by 10 per cent in the first year, two per cent in the second and three per cent in the third. The deal also adds two paid holidays, makes pension improvements and halves the time for workers to reach full pay, among other gains. Alongside the improvements also gained by Ford and General Motors members, Unifor national president Lana Payne said in a statement that the contract confirms investment and product commitments for the three plants, including the retooling of the Brampton plant to build electric vehicles. In a press release, Stellantis said its operations in Canada will continue to play a critical role as it prepares to introduce more battery-electric vehicles in Canada and the U.S. by the end of the decade. “It was always our intention to reward our Unifor-represented employees for their contributions to our business during this round of bargaining,” said Mark Stewart, chief operating officer of Stellantis in North America, in the release. “The Canadian workforce plays a key role in the Stellantis global Dare Forward strategic plan as we make the transition to electrification, so it was especially important for us to reach an agreement that secures the future of the company for our employees, their families and our customers." |
Ford's sales down in October Jordyn Grzelewski Ford Motor Co.'s sales fell 5.3% in October, the first month that reflected the impact of the United Auto Workers' strike of the Detroit automakers that halted production at numerous assembly plants. Ford on Thursday reported selling 149,938 vehicles last month, down from 158,327 in October 2022. Sales of electric vehicles were up 9.1%, sales of hybrid vehicles reached a new monthly record with a 37.9% gain, and sales of internal combustion engine vehicles — which make up the bulk of Ford's volume — were down 8.8%. The company has increasingly focused on growing sales of hybrid vehicles that are proving to be popular with customers. SUV sales were essentially flat in October compared to a year ago, while truck sales dropped 10.5%. Car sales were up 10.7%. Numerous nameplates under the Ford brand were down in October, including the Bronco SUV, the electric Mustang Mach-E crossover, the Expedition SUV, F-Series trucks, Ranger pickups, Transit and Transit Connect cargo vans, and heavy trucks. Sales were up across Bronco Sport, Escape, Edge, Explorer, Maverick and E-Series. Sales of the electric F-150 Lightning rose more than 50%. Mustang posted an 11% sales gain for the month. Sales of Ford's luxury Lincoln brand fell 4.5%. At the start of the week, Ford began calling back to work thousands of UAW-represented workers who had either been on strike or were laid off as a result of the strike. Ford and the UAW reached a tentative agreement on a new four-and-a-half year contract last week; the strike ended Monday after 46 days when the union settled with General Motors Co. The pacts must still be ratified by workers. Ford is ramping production back up at the three assembly plants the UAW struck: Michigan Assembly Plant in Wayne, which assembles the Ranger and Bronco; Chicago Assembly Plant, which builds the Ford Explorer and Lincoln Aviator; and Kentucky Truck Plant, which builds Super Duty trucks, the Lincoln Navigator and the Ford Expedition. The strike also disrupted production at numerous other Ford plants, resulting in thousands of temporary layoffs. Ford reported last week that the strike resulted in a $1.3 billion earnings hit. Crosstown rivals GM and Stellantis NV report sales on a quarterly basis. But of the automakers who report U.S. sales on a monthly basis, several reported gains in October, including American Honda Motor Co., Toyota Motor North America and Hyundai Motor Co. Industry forecasters had been expecting sales to increase from year-ago levels in October. Cox Automotive had forecasted a 4% sales gain and for the month's seasonally adjusted annual rate to finish near 15.8 million units. “Though there are many headwinds in the market today, new-vehicle sales continue to show gains over last year’s supply-constrained market," Charlie Chesbrough, Cox's senior economist, said in a statement ahead of the sales reports. "Concerns about high interest rates, a potential economic recession, and the ongoing UAW strike are all likely holding back some potential vehicle buyers. However, there are still enough individuals and businesses with the need and ability to buy vehicles, which has helped sustain the sales recovery.” |
What's the deal? UAW details Kalea Hall The United Auto Workers’ “record” contract with General Motors Co., outlined Saturday by top union leaders, raises pay and sweeps new groups of workers into a new national agreement likely to set a higher standard for labor in the U.S. auto industry as it marks the likely end of a months-long battle. Similar to deals with Ford Motor Co. and Stellantis NV, the UAW-GM contract includes 27% in compounded base wage increases for hourly employees, revives cost-of-living adjustments, requires a shorter timeline to the top wage, sets rollover commitments for temporary/supplemental workers and charts a pathway for employees at future battery plants to become unionized under the union's master agreement with the companies. The deal would end in April 2028. "We were able to wrench back so much of what these companies have stolen from us over the past few decades," UAW President Shawn Fain said on a Saturday Facebook Live where he detailed specifics of the deal to members with UAW Vice President Mike Booth. "We won back billions in contract gains. We won back our dignity as autoworkers. We won back our pride in being UAW." A significant win for the union was persuading GM to agree to bring its joint-venture battery plant employees and subsidiary employees at GM Subsystems LLC under the master agreement. GM is so far the only Detroit Three automaker with an operating, and organized, battery cell manufacturing facility. GM and and LG Energy Solution's Ultium Cells LLC plant in northeast Ohio has more than 1,000 employees. The companies have plans to open two more battery cell plants together. "After they said for months that it was impossible, Ultium Cells workers will now be under our national agreement," Fain said. "The significance of this cannot be overstated. Right now, the future of our industry is being defined and employers like GM have used joint ventures to drive a race to the bottom. These jobs at Ultium Cells are dangerous, difficult, and pay low wages. But all of that comes to an end in this agreement." GM Subsystems, a subsidiary of GM, employs a lower-paid workforce to perform some jobs previously performed by workers under the national UAW-GM contract and tasks dedicated to battery electric vehicle production. Its employees work in Orion Assembly in Orion Township, Factory Zero at Detroit Hamtramck Assembly Center, Flint Assembly, Lansing Grand River and the Brownstown battery plant. The UAW-GM tentative deal also includes $1.94 billion in investment for GM's Fairfax plant in Kansas, GM's Lansing Grand River plant in Michigan and Tonawanda Engine facility in New York, according to the UAW-GM contract highlighter. GM's Lansing Grand River plant is slated to receive a $1.25 billion investment and Fairfax would get a $391 million investment also for future electric vehicles. Tonawanda would receive a $300 million investment for drive unit production. GM declined to comment on the new tentative agreement and comments made during the union's Facebook Live event, but in a statement the company said: "We are pleased that the new tentative agreement allows us to continue to invest in our U.S. manufacturing footprint and provide good jobs for our team members. We'll have more specifics around product details moving forward." After the Detroit Three deals are approved by members, the UAW's next goal will be to organize other automakers — a combination of foreign-owned rivals and such startups as Tesla Inc. that together represent the majority of vehicles sold in the rich U.S. market. "The Big Three aren't the only auto companies making record profits," Fain said Saturday. "Autoworkers at Toyota, Honda, Volkswagen, Hyundai and Tesla, they deserve record contracts, too. And we're going to do everything we can to support them in the fight to win what they deserve." Economics of the deal Compounded, wage increases would total 27% over the four-and-a-half years, up from the $32.22 per hour top wage today. That includes an immediate 11% increase followed by 3% hikes in 2024, '25 and '26. Members would get a 5% increase in 2027. There also is a $5,000 ratification bonus for all GM employees, including members at GM Subsystems, CCA, Ultium Cells and Components Holdings. All active temporary employees with 90 days service prior to effective date would also receive the $5,000 ratification bonus. With reinstatement of cost-of-living adjustments that were suspended in 2009, the union estimated the top wage will rise 33% to more than $42 per hour. The starting wage would increase by 67% compounded with estimated COLA to more than $30 an hour. For production workers, the top rate, not including estimated COLA, would increase to $35.88 from $32.32 upon ratification; to $36.96 next year; to $38.07 in 2025; to $39.21 in 2026; and to $41.17 in 2027. The union estimates that COLA would add $1.78 to base wages by the end of the agreement and a total value of about $8,800. GM's temporary employees would start at $21 per hour and convert to full-time after nine months. All employees at GM Subsystems, Customer Care and Aftersales and GM Components Holdings will immediately convert to GM's main production rate upon ratification of the deal. These union members will have an immediate wage boost of between 36% and 89%, according to the union. For example, a current Components Holdings member with three years of service making $18.96 per hour will have hourly wages increase nearly $17 upon ratification to $35.88. The wage scales at Subsystems, CCA and Components Holdings are identical to the scale for in-progression GM workers with pay per hour starting at $25.12 and going to $35.88 in three years. For health care coverage, the deal would come with no increases in co-pays, deductibles or out-of-pocket costs for members. Additionally, coverage will now start on the date of hire for all new employees. The deal would end tiered vacation time and would make employees with 20 years or more of service eligible for 200 hours of vacation. GM has added Juneteenth as a paid holiday. GM, according to the union, also agreed to provide eligible members up to two weeks of paid time off for a leave of absence for birth, adoption, surrogacy or foster care situations. This would be effective Jan. 1, 2024. The deal with GM includes similar benefits to what's in the pacts with Ford and Stellantis including:
The UAW-GM agreement includes $500 annual payments for current retirees and surviving spouses. For current traditional members, it includes a $5 increase to the basic benefit that will bring an increase of $1,800 a year to future pensioners. And the company plans to offer three special attrition programs starting in January and lasting through the end of the agreement. The program would offer $50,000 lump-sum retirement incentives for eligible traditional employees. "The company and the union will agree on timing, size and scope of the offering," according to the highlighter. And members with 401(k)s will see the employer contribution increase to 10%, with no required member contribution. The highlighter also notes a program that will allow members to purchase GM stock through payroll deductions "in the near future." For its represented salaried GM workers, the union touted that for the first time ever it was able to negotiate general wage increases for the unit. "Not only did we get GWIs, we got them every year, and matched our hourly raises for a total of 25% over the life of the contract," the union said in the salaried highlighter. Gains at Ultium Cells If the deal is ratified, Ultium Cells workers would receive an immediate pay increase of at least $6 to $8 per hour, according to the highlighter. All new hires at Ultium would make a minimum of 75% of the maximum wage rate under the deal. Upon ratification of the deal, an Ultium worker making $20 per hour currently would see a 34% increase in pay to $26.91. By the end of the deal, that worker would go to $30.88 per hour. The Detroit News reported Friday that the contract will allow workers displaced by the 2019 closure of Lordstown Assembly Plant the opportunity to transfer to GM's nearby joint-venture battery plant in northeast Ohio. Should the deal be ratified, there would be a six-month window for former Lordstown employees working at the plant on Nov. 26, 2018, to apply to return and work for the GM and LG Energy Solution Ultium Cells LLC plant next door to the Lordstown facility GM closed after 50 years of production. Former workers who transfer would retain their current wages, benefits and seniority. Ultium worker Liz Lisk, who currently makes $23 per hour as a crew leader, said in a statement: "It's great we are included in the national agreement, but seems it was truly an afterthought and we aren't valued the same as current employees. Our top wage is $5 less than everyone else. And to top it off, ex-Lordstown employees can transfer to our plant and keep their higher wages. How is that fair to those of us that have been there through the growing pains." Ultium worker Johnny Pence was happy with the deal since the wage increases are "a far cry from where I started a year ago at $17." Pence currently makes $22 per hour on the night shift at the Ultium plant. Pence noted that others are "upset about not starting at the same wage as everyone else in the master," but in a statement he said he's "happy and shocked and thankful that we are even in the master. This sounded near impossible a few months ago."
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What is the CPP anyway? And CBC News answers questions about how the Canada Pension Plan works and what Alberta could do Anis Heydari Alberta Premier Danielle Smith's government is looking into whether Alberta should leave the Canada Pension Plan. (Darryl Dyck/The Canadian Press) The government of Alberta's plan to potentially create its own retirement plan and pull out of the Canada Pension Plan has prompted questions, concerns and confusion from any part of Canada that includes members of the existing CPP. At CBC News, readers, listeners and viewers have sent in questions or commented about what's proposed and what's to come. Here's some of what you wanted to know. What exactly is the CPP, anyway? The Canada Pension Plan began in the late 1960s as a nationwide pension scheme that took contributions from workers' paycheques to provide pensions upon retirement. Both employers and employees have been required by law to contribute to the CPP, except in Quebec where a separate QPP — the Quebec Pension Plan — was set up concurrently with CPP. Combined, employees and employers paid 11.4 per cent of a worker's wages into CPP in 2022, based on annual income between $3,500 and $64,900. Retirees can receive a pension starting as early as age 60. Contributions have gone up from just above 10 per cent in 2019 to closer to 12 per cent by 2023. "You all contribute with the understanding that when it comes your time to retire, you can expect your own steady stream of income where the risks are being managed directly by the plan," explained Sebastien Betermier, associate professor of finance at McGill University and executive director of the International Centre for Pension Management. Jim Dinning watches as Premier Danielle Smith speaks at the Sept. 21 release of a report about an Alberta pension plan. Dinning, a former provincial finance minister, heads an engagement panel that will hold a series of telephone town halls across Alberta to gauge support for the proposed plan. (Chris Schwarz/Government of Alberta) For CPP members, those risks have been managed by the Canada Pension Plan Investment Board (CPPIB), an entity created in 1997 that is independent of the Government of Canada. The CPPIB manages $575 billion. According to its most recent annual report, it's had a net average return of nearly 10 per cent per year over the last decade, usually referred to as annualized return in the industry. It's also been ranked one of the top managed pension funds in the world. CPP funds are "kept separate from government funds" and neither provincial nor federal governments can access the money in the Canada Pension Plan. Betermier said his personal opinion is that the CPPIB would not want to have to sell off investments to be able to pay out Alberta for a theoretical departure. "The best way to generate efficiency as an asset manager is to invest over the long term.... What you do not want is a situation where from one year to the next, you're losing a big chunk of your capital because that's going to require you to sell quite a few of the assets," he said. How come Quebec can have their own pension plan but no one else can? The federal act that created the Canada Pension Plan allows provinces to leave. So, first of all, other provinces can have their own pension plans. In fact, any province that is not part of CPP must offer a comparable pension plan. Alberta is permitted to leave if it chooses, by giving three years' written notice. As for why Quebec has its own pension plan? "Quebec is not part of [CPP] because Quebec opted out at the beginning," said Edmonton-based lawyer Dennis Buchanan, who has publicly opposed the proposal to separate from the Canada Pension Plan. Lawyer Dennis Buchanan said Quebec and Alberta can't be compared when it comes to leaving the Canada Pension Plan, as Quebec was never in it. (Dennis Buchanan) Buchanan said it's fair to describe Alberta leaving the Canada Pension Plan as a type of metaphorical divorce. Quebec didn't have to divorce the CPP because it never got married, so to speak. "Alberta ends up having to go through a process for exiting [the CPP] because we're part of it. Quebec was never part of it," he said. Buchanan expects that if the government of Alberta tries to proceed with leaving the CPP under current demands that could amount to withdrawing more than half the value of the plan, it will end up in the courts and litigated. "I don't see the federal government or the other provinces being OK with that," he said. How would Alberta pulling their funds out impact other people's pensions? The multibillion-dollar question — that has no clear answer — is just how much "their funds" would be. The Government of Alberta, citing a report it commissioned by TELUS-owned Lifeworks, claims it would be entitled to more than half of the CPP's assets — or $334 billion by Jan. 1, 2027. However, their calculations have been disputed by independent experts such as University of Calgary economist Trevor Tombe, who said if both Ontario and Alberta used the LifeWorks formula to leave the CPP, they'd withdraw more money than currently exists in the plan — a "potentially absurd outcome." In an analysis Tombe wrote last month, he said there is not enough publicly available data to definitively assess what an Alberta exit would mean, along with uncertainty about how the law would be interpreted. "There's fundamental ambiguity in the language of the act," the economist told Reuters. However, Tombe has also said in interviews with both CBC News and Reuters that CPP contributions could increase for Canadians outside of Alberta if it leaves the plan. Trevor Tombe is a professor of economics at the University of Calgary who has said non-Albertan contributions to the CPP could increase if Alberta leaves, depending on the conditions. (Erin Collins/CBC) Even if Alberta took less than it is suggesting — say, more than 22.5 per cent of the plan's existing assets — CPP contributions from everywhere else in the country may have to increase. And if Alberta were to take the 53 per cent proposed in its report, that could destabilize the fund entirely and would "dramatically" increase incentives for British Columbia and Ontario to also leave the CPP — and to do it quickly. Do benefits follow if Alberta Pension Plan members leave Alberta? Maybe. This would be subject to negotiation between Alberta and other jurisdictions after leaving the plan. While CPP has agreements with other plans, including Quebec, Alberta would be negotiating from scratch after departing the plan. "It's very unclear how portability might be affected if Alberta pulled out of the CPP," said Bill VanGorder, chief advocacy officer for the Canadian Association of Retired Persons. VanGorder, who is based in Halifax, used the example of someone who worked in Alberta but lived — or planned to live — in Nova Scotia in retirement, saying at this point it's unknown whether employment hours or contributions in one region would count toward a full pension in others. Why is CPP so low? We can't live on it Experts say the CPP was never intended to be a complete retirement income on its own, and that Canadians should not have this expectation, regardless of a potential Alberta separation from the plan. "It's supposed to represent about 25 per cent of your earnings [from] while you're working," said Bonnie-Jeanne MacDonald, director of financial security research at Toronto Metropolitan University's National Institute on Ageing. According to MacDonald, the rest of Canadian retirement is meant to be funded by employer pension plans, private savings such as RRSPs or TFSAs, and the government's Old Age Security plan. MacDonald admits that because a large majority of Canadians do not have access to an employer pension plan or to sufficient private savings, a stable CPP is of critical importance to all members. Prime Minister Trudeau sends an open letter to Alberta Premier Danielle Smith warning of the consequences of pulling out of the Canada Pension Plan. The NDP drops a pharmacare ultimatum on the Liberals. Plus, Quebec’s plan to hike tuition fees for out-of-province students. Will Alberta pensions go up if the province leaves CPP? One of the potential benefits of an Alberta Pension Plan, as claimed by the United Conservative Party government, is the potential for increased benefits paid to Alberta seniors. Experts say this — like everything else at this point — is unclear but it may be unlikely in the long term, according to Bonnie-Jeanne MacDonald. She pointed out that the amount of benefits paid out is going to be directly connected with how much money Alberta withdraws from the CPP. "The idea that by Alberta separating, they're going to automatically be receiving higher pensions is a big assumption because nobody's agreed to what that number should be. And that would really be the first step to actually start then discussing how much the pensions would change," she said. Federal Finance Minister Chystia Freeland will meet with provincial and territorial counterparts over Alberta's proposal to leave the Canada Pension Plan. (CBC News) Finance ministers from across the country plan to meet to discuss Alberta's proposal later this week. So what's next? Alberta has said it could hold a provincial referendum on withdrawing from the CPP as early as 2025, but Premier Danielle Smith has said she'd need a number on how much Alberta would be able to withdraw from the plan first. According to the first major poll conducted since Smith began making the pitch to take Alberta out of the CPP, the proposal is widely opposed by Albertans.
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Detroit Three start calling Jordyn Grzelewski Breana Noble Detroit Three autoworkers who were on strike or laid off as a result of the United Auto Workers' work stoppage are starting to return to work after tentative agreements were reached between the union and all three automakers. Ford Motor Co. said in an update Monday night that all of its workers who had been on strike had returned to work and that it was in the process of calling back to work thousands who had been laid off at other plants. Ford last week became the first of the Detroit automakers to reach a tentative agreement on a new four-and-a-half-year contract with the UAW; Stellantis NV followed over the weekend and General Motors Co. reached an agreement Monday. Pending ratification votes by rank-and-file members in the next couple of weeks, the UAW agreed to immediately send members back to work. Still, auto executives and industry experts have said it will take weeks to fully restart production as the companies work to ramp operations back up to previous levels of output and re-engage suppliers who, in a tight labor market, may have to replace workers who left. "The restart of this will be complex. We've got to bring back up operations that have been shut down. And we have to do it promptly but safely and without, most importantly, sacrificing quality," John Lawler, Ford's chief financial officer, said during the company's third-quarter earnings release last week. "Companies throughout our supply chain are going to have to do the same thing. And in many cases, our suppliers will have to rebuild at least a portion of their workforce where people left for other jobs." As of Monday, Ford said it had called back about 94% of the nearly 20,000 workers who were either on strike or laid off. That includes all of the 16,613 workers who were on strike at assembly plants in Chicago, Louisville and Wayne, and 1,949 of the 3,167 workers who were laid off at 10 plants. Meanwhile, as of Sunday night’s third shift, about 15,800 Stellantis employees had been recalled to work, spokesperson Jodi Tinson said in an email, after the union ended a 44-day strike against the automaker Saturday night. Stellantis’ chief financial officer, Natalie Knight, during a financial results call on Tuesday said the walkout had cost it less than $800 million in net income, 50,000 produced vehicles and $3.2 billion in revenue. GM on Tuesday didn’t have specifics on employees being recalled after the UAW officially ended its strike against the Detroit automaker Monday afternoon. “Our manufacturing plants and parts distribution centers that had been shut down,” spokesperson David Barnas said in a statement, “are working to safely restart operations over the next 12 to 24 hours.” The UAW's unprecedented, simultaneous, targeted strike of Ford, GM and Stellantis ended Monday after 46 days with the announcement of a tentative agreement with GM. The agreements, which are largely similar to one another, include 25% in base wage increases through April 2028. The top wage rate is slated to cumulatively rise by 33% to more than $42 an hour when accounting for cost-of-living adjustments, according to the UAW. The deals also eliminate several wage tiers; restore COLA; reduce the time it takes to reach the top of the wage scale from eight years to three; improve wages and benefits for temporary workers; give workers the right to strike over plant closures; and include improvements to pensions and 401(k)s. Ford's deal includes $8.1 billion in product commitments and plant investments; further highlights of the Stellantis and GM deals will be rolled out later this week. |
Unifor reaches tentative The Canadian Press Unifor announced Monday it has reached a tentative deal with Stellantis, ending a brief strike at the automaker. More than 8,200 workers represented by Unifor had walked off the job at Stellantis facilities in Canada after the two sides failed to reach a deal by a Sunday deadline, however the union and the company continued to negotiate through the night. The union said that while the strike was brief, it was an "important act of solidarity and determination." Unifor Local 444 members were at the union hall on Friday, Oct. 27, 2023, preparing for a possible strike action that could begin Monday if a deal is not reached by 11:59 p.m. Sunday. (Chris Campbell/CTV News Windsor) "It demonstrated the strength of our union and provided your bargaining team with the means to achieve a tentative agreement that meets both the core economic demands in the union’s pattern agreement and our Stellantis specific demands," Unifor national president Lana Payne, Stellantis master bargaining chairperson James Stewart and Vito Beato, Stellantis master bargaining acting vice-chairperson, said in statement. The deal with the automaker behind such brands as Fiat, Chrysler, Dodge and Jeep comes after Unifor reached earlier agreements with Ford Motor Co. and General Motors. A strike by Unifor at GM also lasted less than a day. Stellantis North America chief operating officer Mark Stewart said he was proud of the negotiating teams and thankful for their commitment. "Once ratified, this agreement will reward our 8,000 represented employees and protect the long-term health of our Canadian operations," Stewart said in a statement. Details of the Stellantis agreement were not immediately available, but Unifor had been seeking the automaker to agree to the same core economic terms the union reached with the other big companies. The union said last week it was also working on specifics from Stellantis on its electric vehicle plans for its Canadian plants. Union members at Ford and GM ratified deals that will see workers get close to 20 per cent wage gains over three years, among numerous other improvements. In the U.S., Stellantis had seen escalating strikes over the past six weeks from United Auto Workers members at its operations there, but the company reached a tentative deal with the union as of Saturday. |
Unifor sends 8,200 Stellantis Breana Noble Jordyn Grzelewski Some 8,200 Stellantis workers were called to strike minutes after the automaker and the Canadian autoworkers union Unifor reached an 11:59 p.m. bargaining deadline Sunday. A bargaining update from union leaders, including Unifor President Lana Payne, instructed Stellantis workers in Canada to report for their next regularly-scheduled shift to receive instructions from their strike captain. Still, the leaders said negotiators would continue discussions throughout the night and said that progress had been made in the talks. “We are extremely disappointed,” Stellantis said in a statement provided by spokesperson LouAnn Gosselin. “We will continue to bargain in good faith until an agreement is reached. We look forward to getting everyone back to work as soon as possible.” Unifor had instituted the deadline for the negotiations ahead of resuming talks with the maker of Chrysler, Dodge, Jeep and Ram vehicles on Oct. 18 after workers at General Motors Co. in Canada ratified a deal with 80.5% support. The union said in a social media post about 10:15 p.m. Sunday that negotiations "continue with progress being made" and to "stay tuned for further updates." In an update on Friday, Payne said progress was slow after the company proposed "concessions" compared to the pattern adopted by Ford and GM, thought talks had picked up that day. Sticking points mentioned by Payne included increased pension contributions, protections for salaried bargaining-unit workers, anti-outsourcing measures for parts distribution workers and the extension of bargaining rights to workers at the automaker's NextStar Energy joint-venture battery manufacturing plant with LG Energy Solution that is expected to launch production in the first quarter of 2024. At Ford and GM, Unifor secured three-year deals with wage increases of 10% in year one, 2% in year two and 3% in year three; cost-of-living adjustments; a halved timeline of four years to the top wage; increased contributions to pensions and a new quarterly Universal Health Care Allowance for retirees. The union extended talks beyond the contract expiration at Ford to reach a deal on Sept. 19. Workers there ratified the agreement with 54% support on Sept. 24. Unifor did strike GM's plants for about 13 hours on Oct. 10 before the Detroit automaker agreed to follow its crosstown rival's pattern, putting the walkout on hold. The autoworkers there ratified their contract on Oct. 15. ************************************************************ Unifor says tentative deal reached Kerri Breen · CBC · Posted: Oct 30, 2023 A tentative deal has been reached between Unifor and Stellantis for its Canadian plants and workers, according to the union. In an emailed statement sent at 7:40 a.m., Unifor's director of communications, Kathleen O'Keefe said, "A tentative agreement has been reached with Stellantis ending strike action at all Unifor facilities." |
UAW announces tentative Breana Noble Marnie Muñoz Sterling Heights — The United Auto Workers and Stellantis NV have reached a tentative agreement, ending a 44-day strike at the maker of Chrysler, Dodge, Jeep and Ram vehicles, the UAW confirmed in a video posted to social media Saturday evening. The four-and-a-half-year agreement mirrors the economics of the tentative deal the union reached with Ford Motor Co. earlier this week, according to the union, which championed that the agreement would add 5,000 jobs and represents $19 billion in U.S. investments. The deal ultimately will have to be approved by a majority vote of the rank-and-file members at Stellantis. The UAW National Stellantis Council will vote whether to send the agreement to members on Thursday when an update with more details will be shared. The deal includes product allocation for most U.S. plants, including a midsize pickup truck at the Belvidere, Illinois, assembly plant that Stellantis idled earlier this year, UAW Vice President Rich Boyer said in the video. The automaker also committed new product to Trenton Engine, protecting jobs there, and to Toledo Machining, which would double the workforce there. Saturday was the 44th day of the union's strike against Stellantis and General Motors Co., the same number of days as the original sit-down strike against GM in Flint for which this year's targeted "stand-up" strike against the Detroit Three was named. "Once again, we've achieved what just weeks ago, we were told was impossible," UAW President Shawn Fain said in a recorded video update posted to social media in which he stated the company had been looking to cut close to 5,000 jobs when bargaining began. "The power of the stand-up strike cannot be understated. ... We have begun to turn the tide on the war on the American working class, and we truly are saving the American dream." Mark Stewart, Stellantis' chief operating officer in North America, said in a statement that out of respect for the ratification process, the company would refrain from commenting on the details of the contract until they are shared with UAW members. The automaker, however, will provide a financial update on Tuesday when it reports its third-quarter shipments and revenues before stock markets open in Europe. "Today, as we announce that we have reached a tentative agreement with the UAW on a new labor contract, I would like to thank all the negotiating teams who have worked tirelessly for many weeks to get to this point," Stewart said. "We look forward to welcoming our 43,000 employees back to work and resuming operations to serve our customers and execute our Dare Forward 2030 strategic plan to maintain Stellantis’ position at the forefront of innovation." Stellantis and GM made new offers late this week that match a 25% raise over the course of Ford's agreement reached Wednesday that would expire in April 2028. Negotiations with GM were ongoing Saturday when the union called GM's Spring Hill Assembly Plant in Tennessee out on strike, joining nearly 15,000 other members. The 25% at Stellantis breaks down to an immediate 11% wage increase upon ratification; 3% hikes in 2024, '25 and '26; and 5% in '27, according to two sources familiar with the deal who spoke to The Detroit News on the condition of anonymity because they weren't authorized to speak on the subject publicly. Stellantis' top pay currently is $31.77 per hour compared to $32.32 at Ford and General Motors Co. The breakdown would bring the pay to $40.46 per hour at Stellantis by the end of the contract. There also would be a $5,000 ratification bonus. With reinstituted cost-of-living adjustments that were suspended in 2009, the union estimated the top wage will rise 33% to more than $42 per hour. The starting wage will increase by 67% compounded with estimated COLA, to more than $30 an hour. Supplemental workers would be converted to full-time before the end of nine months, Fain said. The Stellantis agreement would convert more than 3,200 supplemental current workers to full-time, according to two sources. Supplemental starting pay would be $21 per hour. "The amount of money we won in gains for temporary workers in this contract," Fain said, "is more than the total amount in gains we won for everyone in the 2019 agreement. ... The days of low wage, unstable jobs at the Big Three are coming to an end." These lowest-paid workers would see a raise of more than 165% over the life of the agreement, according to the union. Bringing Mopar parts distribution workers up to production pay would mean some of those employees see an immediate 76% increase upon ratification. Stellantis also would extend the automaker's new car lease program, currently available to management, to workers with at least one year of experience, according to the two sources. "We truly believe that we got every penny possible out of this company," Fain said. "We left nothing on the table." Stellantis had more than 14,000 UAW members on picket lines at two assembly plants in Sterling Heights and Toledo, Ohio, and parts distribution centers across the country. Close to 10,000 General Motors Co. workers remain on strike. Hundreds more workers at both companies had been laid off because of the downtime. The union had elevated its strike against both Stellantis and GM this week. On Monday, the UAW directed 6,800 members at Stellantis' Ram 1500 plant in Sterling Heights to go on strike. On Tuesday, hours after GM said the strike had cost it $800 million, the UAW sent out another 5,000 workers at its most profitable plant in Arlington, Texas, which makes full-size SUVs. "Taking down that Ram 1500 plant helped put more pressure on them, because they can’t afford to lose that much revenue," said Art Wheaton, an automotive industry specialist at Cornell University's Industrial and Labor Relations School who has performed training for the UAW, GM and Ford. "There would be too much of a cost disadvantage, especially with Ford getting production back up. The purpose of the pattern always has been the other two would follow suit.” The UAW's negotiations with the two automakers intensified after Ford and the union reached a "historic" tentative deal to end a 41-day strike targeting selected plants at the Dearborn automaker, particularly the Blue Oval's profit engine known as Kentucky Truck Plant, home to Ford's Super Duty pickups and full-size Ford Expedition and Lincoln Navigator SUVs. Like the Ford agreement, the Stellantis deal more than doubled the value of the automaker's original proposal and included gains valued at more than four times what workers received in the 2019 contract, according to the union. It provides more in base wage increases than Stellantis workers have received in the past 22 years. Following after Ford, it would take full-time Stellantis workers three years to get to the top wage. The agreement also would increase retirement contributions for current retirees, workers with pensions, and those who have 401(k) plans. The Stellantis deal also includes a right to strike over plant closures as well as a right to strike over product and investment commitments, a first for the union. President Joe Biden and Gov. Gretchen Whitmer both praised the agreement in statements issued Saturday evening. "This groundbreaking contract rewards the autoworkers who sacrificed so much to revive our auto industry with record raises, more paid leave, greater retirement security, and more rights and respect at work," Biden said. "This contract is a testament to the power of unions and collective bargaining to build strong middle-class jobs while helping our most iconic American companies thrive." Whitmer said: "This agreement will raise wages for workers and shore up the company’s footprint in Michigan. ... Let’s build on our momentum and ratify these agreements so Michiganders can get back to doing what they do best — making the world’s best cars and trucks." The UAW Ford National Council on Sunday will vote on whether to send its tentative agreement to the 56,000 members at the Blue Oval. A Facebook Live update for members with more details is expected that evening. The full ratification process could take two to three weeks. Stellantis workers react Flin Fike, 57, of Farmington Hills, who works in skilled trades at Sterling Heights Assembly Plant, said he wishes the 25% wage increase would come all at once given the increases in inflation over the past few years. "It seems like it would be a better gratitude toward us," the 36-year UAW member said. "Because it’s like making us wait. Eleven percent is really only a $3 raise." Tomas Rangel, 33, a worker at the Sterling Heights plant, said he was excited to hear about the deal, especially the wage increases, and hopes that the membership ratifies it. "It would mean a lot," said Rangel, who lives in southwest Detroit. "It would mean more chance of not living paycheck to paycheck. More chance to buy a home and things like that." Plant worker Brandon Davis, 37, of Warren, has worked at the Sterling Heights facility for just over five years, installing dashboards and connecting wires in Ram pickups produced at the plant. Davis said the top thing he's looking for in the deal is significant improvement in wages so he can someday buy a house and treat his kids to restaurant meals and bounce house visits. "As long as it's better than last contract and it makes a substantial increase to pay, I'm probably voting yes on it," he said. "But we'll see when the details come out." Rickey Lawrence Jr., 26, lives about a mile from the plant, where he has worked for five years. He's hoping the tentative contract requires the automaker to upgrade temporary part-time workers to permanent full-time status faster. He said his girlfriend was a part-time stamping facility worker and went a long time without being scheduled for shifts. "I came in, I was part-time for a couple months or something, then they rolled me over," he said. "But she was part-time for over a year. That's not fair to me." The deals' possible impacts Ford on Thursday said the agreement is expected to add about $850 to $900 per vehicle to its labor costs. "Shawn Fain has achieved a stunning victory in 2023,” said economist Pat Anderson, CEO of Lansing-based Anderson Economic Group which specializes in the auto industry, of the Ford agreement. “He completely controlled the public debate and proclaimed victory on his timeline. The UAW has reset the playing field. The industry will not go back to bargaining the way they had for generations before this.” Anderson sees the Ford deal being largely adopted by GM and Stellantis. “But there are two serious consequences of this unequivocal UAW victory. First, the rhetoric that Fain used declaring automakers the enemy will have long-tern negative consequences. And, two: Costs are reaching the point of no return and investments will be canceled. We already have acknowledgement of that fact from GM, Ford and Stelantis that have begun pushing back manufacturing plans.” Stellantis in December announced that it was idling at the end of February its Belvidere Assembly Plant, about 70 miles northwest of Chicago, citing the cost of electric vehicles and a microchip shortage. The change in status of the plant affected 1,350 salaried and hourly workers. Boyer confirmed Belvidere would be getting new product in the form of a midsize pickup truck on two shifts and a battery plant, which he said would bring "thousands" of jobs to the Illinois city, including more than 1,000 alone at the battery plant. A Mopar parts distribution hub would open there, as well, two sources said. "My plant was idled, and now we're out here doing this," Alfonso Galindo, 44, of Sylvania, Ohio, who transferred to Stellantis' Toledo Assembly Plant in July after Belvidere idled, said on the picket line on Saturday morning. "I'd love to go back." Boyer said workers who wish to return to Belvidere will have the right to do so, and those who lost their jobs at the plant without transferring elsewhere will be on temporary layoff and eligible for supplemental unemployment and health-care benefits until the Illinois factory gets back up and running. There are risks with making the agreement at Stellantis before the Ford deal is ratified, experts said. UAW members at Mack Trucks Inc. earlier this month rejected a tentative agreement and hit the picket lines. Such a move could wreak havoc for the automakers. But the offered raise and benefits in the record agreement with Ford are greater than what was initially offered to the Mack workers. Ratification at Ford could be a two- to three-week process, one of the reasons members there were sent home from the picket lines once the union announced the deal. "There are risks, but they outweigh the cost of prolonging this strike," said Marick Masters, a a management professor at Wayne State University. "The union knew it wasn’t going to get a much better deal out of this strike. It's fish or cut bait at this point in time and give the membership a chance to vote." Plus, the weather is getting colder for members on the picket lines, and high interest rates and consumer prices are hitting pocketbooks for those receiving the $500 per week strike stipend, Cornell's Wheaton said. Since Sept. 15, workers at Stellantis' Toledo Assembly Plant, home of the Jeep Wrangler and Gladiator, had been on strike. Workers on the picket line Saturday morning said they were hesitant to give resounding approval to the deal reached with Ford without all of the specifics, but several said they were ready to get back to work. "Twenty-five percent and COLA? That sounds pretty good," said Sonny Lizcano, 32, of Toledo, a 12-year UAW member. "But I want to see the full details." The union didn't mention anything about extending health-care coverage in retirement for workers hired after 2007. Several workers cited that as a concern, noting the toll working in the plants takes on their bodies. "If I need to make ends meet, I always can get a part-time job," said Amanda Smith, 48 of Toledo, a 10-year UAW member. The health-care coverage "is what I need to be able to retire." The team in the plant's paint shop on the picket line was celebrating with cupcakes the Sunday birthday of Lashanda Johnson, 52, of Toledo. Johnson said she normally celebrates a birthday weekend by traveling. "I'm being responsible this year," the UAW member for almost 30 years said. "We have to be out here to be able to afford things like travel with the economy and prices the way they are."
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Ford details UAW strike impact, Jordyn Grzelewski Ford Motor Co. on Thursday detailed the financial impacts of the 41-day United Auto Workers strike that was called off just hours before, and revealed a further slowdown in its electric-vehicle rollout due to market dynamics. The Dearborn automaker reported taking a $1.3 billion hit to its earnings as a result of the strike and withdrew its earnings guidance for the rest of the year, pending ratification of the tentative agreement on a new labor contract it reached with the union Wednesday night. Meanwhile, executives said they are pushing back some $12 billion in planned spending on the company's EV strategy and delaying the launch of one of two joint-venture battery plants it's building in Kentucky with South Korean battery manufacturer SK On. Overall, the company delivered what executives characterized as "mixed" results for the July-September period, with results dragged down by the strike and nagging cost and quality issues. Ford reported $1.2 billion in profit on revenue of $43.8 billion for the quarter. The profits compare to a loss of $827 million in the same period last year. Revenue was 11% higher than a year ago. Adjusted earnings stood at $2.2 billion for the quarter, up from $1.8 billion a year ago. Ford Blue, the company's internal combustion engine and hybrid vehicle business, posted earnings of $1.7 billion. Ford Pro, the commercial vehicle business, reported nearly $1.7 billion in earnings. And Ford Model e, the business unit dedicated to electric vehicles and software, posted an earnings loss of $1.3 billion, which the company attributed to "continued investment in next-generation EVs and challenging market dynamics." Ford posted $9.4 billion in adjusted earnings before interest and taxes through the third quarter. The company had previously said it expected to have adjusted earnings of between $11 billion and $12 billion for the full year. The company now says that while it "had been poised to delivery profitability within that range," it is withdrawing its guidance due to the effects of the UAW strike and while ratification of the deal is pending. Strike impact John Lawler, Ford's chief financial officer, reported that the strike negatively affected the company's adjusted earnings by $100 million in the third quarter. In total, through last week, it cost the company about 80,000 units of production and $1.3 billion in earnings. The company expects to provide an update on expectations for 2023 results after an agreement is ratified and production is back up and running. Lawler also said that while the strike is over, disruptions will continue to be felt as Ford and its network of suppliers begin the complex process of restarting operations at the three assembly plants that were on strike. The strikes at Ford's Chicago, Kentucky and Michigan assembly plants affected production at numerous other Ford facilities, as well. “The restart of this will be complex," Lawler said. "We’ve got to bring back up operations that have been shut down, and we need to do it promptly but safely and without, most importantly, sacrificing quality.” He declined to comment on the total cost of the tentative agreement to Ford and other specifics ahead of ratification by members, but said that it is expected to add about $850 to $900 per unit to the company's labor costs. The company also expects an impact of about 60 to 70 basis points of margin. The impact means that Ford must find ways to boost productivity and deliver efficiencies throughout the company, Lawler said, but "there's no doubt" that the company will remain profitable. “This is something we’re gonna have to work on," he said. "But … we’re seeing inflation. And when you’re in a period of inflation, you have to pay your people, because it puts a hardship on them. And then you as a company have to go out and find a way to operate more efficiently, increase your productivity and eliminate waste. And that’s what we need to do going forward.” The tentative agreement includes 25% in base wage increases through April 2028 and will raise the top wage, now $32.32 an hour, by over 30% to more than $40 an hour, and raise the starting wage by 68%, to over $28 an hour over the life of the contract, according to the union. Workers will receive an immediate 11% wage increase upon ratification. Also included are cost-of-living adjustments and a reduction in the time for new workers to reach the top wage scale from eight years to three years. The deal also includes improvements for current retirees, workers with pensions, and those who have 401(k) plans. It also includes a right to strike over plant closures. The agreement brings the UAW's unprecedented simultaneous strike of all three Detroit automakers closer to a resolution, as negotiations continue with rivals General Motors Co. and Stellantis NV and a ratification vote on the Ford deal is expected in the coming weeks. The targeted strike sent more than 45,000 autoworkers from eight assembly plants and 38 parts distribution centers to picket lines. About 20,000 Ford workers are now being sent back to work. EV slowdown Meanwhile, Thursday's report included further signals and confirmation that the EV transition is encountering some bumps in the road. Lawler emphasized that while consumer adoption of EVs continues to grow, it's at a slower pace than what Ford and others in the industry initially expected, prompting some pullback in plans. Ford already had taken steps such as pushing back some of its EV production targets and pausing a planned $3.5 billion investment to build an EV battery plant in Marshall, which the company said Thursday it is still "reevaluating." Lawler also revealed Thursday that Ford plans to push back about $12 billion in planned EV investments after determining it wouldn't need additional capacity in the near term. The company also has reduced some production of its electric Mustang Mach-E. “Given the dynamic EV environment, we are being judicious about our production and adjusting future capacity to better match market demand," Lawler said. Still, executives reiterated the company's plans to launch a second generation of EVs and that development work continues on a third generation. CFRA Research, an investment research firm, on Thursday reiterated its "hold" opinion on Ford's stock and reduced its 12-month price target to $12 from $13 per share. "While we think the new labor deal will be ratified, we view the concessions the company made as significant and they will weigh on margins and affect its competitiveness relative to Tesla and other non-union automakers," Garrett Nelson, senior equity analyst at CFRA Research, wrote in a note. "Comps should also turn much less favorable in 2024 and we see a higher-for-longer interest rate scenario hurting sales volumes." |
Autoworkers reach a deal with Story by The Canadian Press DETROIT (AP) — The United Auto Workers union said Wednesday it has reached a tentative contract agreement with Ford that could be a breakthrough toward ending the nearly 6-week-old strikes against Detroit automakers. The four-year deal, which still has to be approved by 57,000 union members at the company, could bring a close to the union’s series of strikes at targeted factories run by Ford, General Motors and Jeep maker Stellantis. The Ford deal could set the pattern for agreements with the other two automakers, where workers will remain on strike. The UAW called on all workers at Ford to return to their jobs and said that will put pressure on GM and Stellantis to bargain. Announcements on how to do that will come later. “We told Ford to pony up, and they did,” President Shawn Fain said in a video address to members. “We won things no one thought possible.” He added that Ford put 50% more money on the table than it did before the strike started on Sept. 15. UAW Vice President Chuck Browning, the chief negotiator with Ford, said workers will get a 25% general wage increase, plus cost of living raises that will put the pay increase over 30%, to above $40 per hour for top-scale assembly plant workers by the end of the contract. Previously Ford, Stellantis and General Motors had all offered 23% pay increases. When the talks started Ford offered 9%. Assembly workers will get 11% upon ratification, almost equal to all of the wage increases workers have seen since 2007, Browning said. Typically, during past auto strikes, a UAW deal with one automaker has led to the other companies matching it with their own settlements. GM said in a statement it is "working constructively" with the union to reach an agreement as soon as possible. Stellantis also said it's committed to reaching a deal “that gets everyone back to work as soon as possible.” Browning said temporary workers will get more in wage increases than they have over the past 22 years combined. Temporary workers will get raises over 150% and retirees will get annual bonuses, he said. “Thanks to the power of our members on the picket line and the threat of more strikes to come, we have won the most lucrative agreement per member since Walter Reuther was president,” Browning said. Reuther led the union from 1946 until his death in 1970. Fain said that the union’s national leadership council of local union presidents and bargaining chairs will travel Sunday to Detroit, where they’ll get a presentation on the agreement and vote on whether to recommend it to members. Sunday evening the union will host a Facebook Live video appearance and later will hold regional meetings to explain the deal to members. While on the picket line at Ford’s Michigan Assembly Plant west of Detroit Wednesday night, local union leaders invited workers across the road to the union hall for a briefing on the deal. As they trickled out of the building, many were smiling and most were relieved. “It’s an emotional time for me. I’m emotional,” worker Keith Jurgelewicz said as his eyes welled up with tears. “But just super excited that this is over with. I just can’t wait to get back to work and just get on with my life.” Jurgelewicz said he is happy that the end of the strike came during his shift on the picket lines, where he has faithfully appeared for all of his shifts. “Hopefully, GM and Stellantis can get their deals done. … Historic day for us,” he said. In a statement, President Joe Biden, who had visited GM picketers near Detroit early in the strikes and has billed himself the most union-friendly president in American history, praised the settlement. “I’ve always believed the middle class built America and unions built the middle class,” Biden said. “This tentative agreement is a testament to the power of employers and employees coming together to work out their differences at the bargaining table in a manner that helps businesses succeed while helping workers secure pay and benefits they can raise a family on.” Workers with pensions also will see increases for when they retire, and those hired after 2007 with 401(k) plans will get large increases, Browning said. For the first time, the union will have the right to go on strike over company plans to close factories, he said. “That means they can't keep devastating our communities and closing plants with no consequences,” Browning said. “Together we have made history.” Ford said it is pleased to have reached the deal, and said it would focus on restarting the huge Kentucky Truck Plant in Louisville, as well as the Chicago Assembly Plant. The Louisville plant alone employs 8,700 workers and makes high profit heavy duty F-Series pickup trucks and big truck-based SUVs. In all, 20,000 workers will be coming back on the job and shipping the company’s full lineup of vehicles to customers, Ford said. Ford’s statement made no mention of the cost of the contract. Company executives said last week they were at the limit of what they could pay while still being able to invest in new vehicles and the transition from internal combustion to electric vehicles. All three companies have said they don't want to be saddled with high labor costs that could limit their ability to invest in future vehicles and potentially force them to raise prices. “This agreement sets us on a new path to make things right at Ford, at the Big Three, and across the auto industry. Together, we are turning the tide for the working class in this country,” Fain said. Associated Press Writer Mike Householder contributed from Wayne, Michigan. Tom Krisher, The Associated Press |
UAW says 'more to be won' despite Michael Wayland
DETROIT – The United Auto Workers union believes there is "more to be won" in ongoing contract negotiations with the Detroit automakers following five weeks of labor strikes against the companies, UAW President Shawn Fain said Friday. His comments come despite record contract offers from General Motors, Ford Motor and Stellantis that now include 23% hourly pay increases and other significantly enhanced benefits during the terms of the four and a half-year deal. "There is more to be won," Fain said during an online broadcast. "These are already record contracts, but they come at the end of decades of record decline. So it's not enough to be the best ever, when auto workers have gone backwards over the last two decades. That's a very low bar." Despite Fain's comments, the union did not announce additional strikes Friday against any of the companies. He said the "bottom line is we've got cards left to play, and they've got money left to spend." Fain did not address a Friday report by Bloomberg that the union has asked for a 25% increase in general wages. The union has not announced any additional strikes since initiating an unexpected walkout on Oct. 11 at Ford's Kentucky Truck Plant that produces highly profitable pickup trucks and SUVs. That's despite Ford having the best proposal regarding economics, as outlined Friday by Fain. Fain spent quite a notable amount of time during the online broadcast discussing how the union plans to use these talks to assist in organizing non-union plans. He also heavily criticized the Monday comments of Ford Chair Bill Ford to bring an end to the negotiations. "Bill Ford said it shouldn't be Ford versus the UAW. He said it should be the UAW and Ford against foreign automakers," Fain said. "I want to be crystal clear on one thing: The days of the UAW and Ford being a team to fight other companies are over ... Non-union autoworkers are not the enemy. Those are our future union family." Ford said it remains "eager to conclude these negotiations with a contract" that benefits its workers, citing it's "good that Mr. Fain acknowledged Ford's contract offer 'already' is a record and remains the best one on the table." Stellantis said the sides "continue to be productive, building on the momentum from the past several weeks," but declined to discuss specific details. GM declined to comment regarding Fain's comments, citing details it released of its most recent offer earlier Friday. The UAW hasn't expanded strikes at GM since Sept. 29 or at Stellantis since Sept. 22, despite offers made this week not meeting details of Ford's proposal from last week and Fain last week saying the union was initiating a "new phase" of strikes and contract negotiations. "Right before a deal is when there's the most aggressive push for that last mile. They just want to wait us out," Fain said. "They want division. They want fear. They want uncertainty. And what we have is our solidarity." The strike at Ford's Kentucky plant — responsible for $25 billion in revenue annually — marked a major escalation in the UAW's targeted, or "stand-up," strikes. It also represents a shift in strategy, as Fain had previously publicly announced the targets before the work stoppages occurred. The UAW has been gradually increasing the strikes since the work stoppages began after the sides failed to reach tentative agreements by Sept 14. About 34,000 U.S. automakers with the companies, or roughly 23% of UAW members covered by the expired contracts with the Detroit automakers, were on strike. Here are details of current proposals by the companies to UAW:
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Unifor sets Oct. 29 as strike October 19, 2023 'We also have the added challenge of negotiating future product commitments for the Brampton Assembly,' says Unifor President Lana Payne Unifor will restart talks with Stellantis on Wednesday, six weeks after the union put bargaining with the automaker on hold as it concentrated on securing new contracts with Ford Motor Co. and General Motors. It also set a strike deadline, giving the automaker until 11:59 p.m. on Oct. 29 to agree to a deal or face a walkout. The union said it is “looking forward” to locking in a deal that matches the pattern set by collective agreements with the other two members of the Detroit Three, while making “additional gains” on workplace issues specific to Stellantis. “We also have the added challenge of negotiating future product commitments for the Brampton Assembly plant that secures a future for all of our Stellantis members in the EV transition,” Unifor President Lana Payne said in a release. Unifor represents about 8,200 Stellantis workers at nine workplaces across Canada. The majority work at assembly plants in Windsor and Brampton, Ont. As in its deals with Ford and GM, Unifor is seeking roughly 20-per-cent wage increases for longtime workers over a three-year term, bonuses of $10,000 for full-time staff and a compression of the wage grid that allows workers to climb the pay scale in four instead of eight years. “Our bargaining team is fully committed to negotiating a strong agreement that delivers on the core priorities set by our members and ensures that unionized autoworkers continue to set the highest standards for all manufacturing workers in Canada,” James Stewart, Stellantis master bargaining chairperson, said in a statement. As union negotiators battle the company for the desired contract terms, Unifor’s national office is also feeling internal pressure from Local 444 President Dave Cassidy, who represents workers at the Windsor Assembly Plant. Cassidy has repeatedly said his local members are not satisfied with the pattern set at Ford and GM, and has telegraphed he may push members to break pattern to pursue a better deal. To date, Unifor leadership has rejected any calls to make changes to the core tenets of its agreement and expressed faith in its pattern bargaining strategy. The company says it's set to resume talks following the weekslong hiatus. “We look forward to productive ongoing discussions with Unifor and are confident we will reach an agreement that both rewards the contributions of our employees, as well as ensures our future competitiveness in today's rapidly evolving industry,” Stellantis spokeswoman LouAnn Gosselin said in an email. |
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Ford Executive Chair Bill Ford Tom Krisher, DETROIT (AP) — Ford Motor Co. Executive Chairman Bill Ford called on autoworkers to come together to end a monthlong strike that he says could cost the company the ability to invest in the future. In a rare speech during contract talks in the company's hometown of Dearborn, Michigan, Ford said high labor costs could limit spending to develop new vehicles and invest in factories. “It’s the absolute lifeblood of our company. And if we lose it, we will lose to the competition. America loses. Many jobs will be lost,” said the great grandson of company founder Henry Ford. The company, he said, builds more vehicles in America and has more United Auto Workers employees than any company, which has increased its costs in a highly competitive industry. Ford has 57,000 UAW workers compared with 46,000 at GM and 43,000 at Stellantis. “Many of our competitors moved jobs to Mexico as we added jobs here in the U.S.,” Ford said. The company is near an impasse with the United Auto Workers union, which walked out in targeted strikes at all three Detroit automakers on Sept. 15, Last week 8,700 union members walked out at the largest and most profitable Ford plant in the world, the Kentucky Truck Plant in Louisville. Ford said the strike at the Kentucky plant is harming tens of thousands of Americans who work for parts suppliers and Ford dealers. The strike also could cause a fragile parts supply base to collapse, he said. “If it continues, it will have a major impact on the American economy and devastate local communities,” he said. There was no response from the UAW on Monday when The Associated Press sought comment. Bill Ford, only the fourth family member to lead the 120-year-old company, said he has watched other countries lose their auto industries, then all of their manufacturing base. He said strong American manufacturing is essential for national security. “We need to come together to bring an end to this acrimonious round of talks,” Ford said. “I still believe in a bright future – one that we can build together. I still believe the automobile industry is a major force for good in our country. We will continue to be there when America needs us most.” Last week, after the Kentucky strike began, a top Ford executive said on a conference call with reporters that Ford had reached the limit in how much it was willing to spend to end the strike. At the Ford Michigan Assembly Plant in Wayne west of Detroit, few workers are on the picket lines Monday afternoon said they listened to Ford’s speech. When told what Ford said about investing in the future, line worker Steve Applebee said he agreed. “I get that,” he said. “I can see both sides.” But he also said Ford is paying CEO Jim Farley $21 million per year when starting pay for Ford factory workers is up only about $3 per hour from when he started with the company 31 years ago. Ford’s offer of a 23% general wage increase barely covers inflation over the last three or four years, said Applebee, 59. Carlos Hollins 47, of Detroit, who just started with Ford in July and is at the low end of the pay scale, said workers gave up raises in 2008 when Ford and the others were in financial trouble. They were promised that concessions would be restored when the company recovered. “We shouldn’t have to suffer, especially for the retirees,” he said. “they need to pay us what we deserve.” The union has said retirees haven’t received a pension increase for at least a decade. Hollis says workers should get everything they are asking for, and Ford has enough money to pay it. The speech from Ford arrives with the entire auto industry making a historic and expensive shift from internal combustion engines to electric vehicles. UAW President Shawn Fain has said Ford and crosstown rivals General Motors and Jeep maker Stellantis are making billions in profits, and that workers should get a share. He says the workers should be repaid for sacrificing general pay raises, cost of living adjustments and agreeing to lower wage tiers to keep the companies afloat during the Great Recession. The union began striking at targeted factories after its contracts with the companies expired. It started picketing one assembly plant from each company, but that has since spread to 38 parts warehouses at GM and Jeep maker Stellantis. The UAW later added another assembly plant at both GM and Ford and on Wednesday, Fain made the surprise announcement that the union would walk out at the Kentucky plant, which makes Super Duty pickups and large Ford and Lincoln SUVs. About 34,000 of the union's 146,000 employees at all three automakers are now on strike. The seemingly widening labor rift suggests Ford and the union may be in for a lengthy strike that could cost the company and its workers billions of dollars. The union has said Ford’s general wage offer is up to 23% over four years and that it has reinstated cost of living raises. GM and Stellantis were at 20%. But Fain said none was high enough. |
Unifor's pattern bargaining 'There’s no question they’re organizing to push to break the pattern,' labour professor Larry Savage says of Unifor Local 444 in Windsor, Ont. GREG LAYSON Unifor Local 444 President Dave Cassidy, who represents about 4,800 hourly Stellantis workers at the Windsor Assembly Plant, said he “didn’t hear anybody supporting the deal” during a local meeting Oct. 1 that drew 600 members. Unifor, the union that represents 23,500 auto workers in Canada, is staring down a potential revolt by its members when it comes the longstanding tradition of pattern bargaining with the Detroit Three automakers, warns one labour expert. “For years, the union had to contend with the Detroit Three wanting to break the pattern, now it looks like the greatest threat to the pattern is from within the union,” Larry Savage, a labour studies professor at Brock University in St. Catharines, Ont., told Automotive News Canada. Unifor members working at a Stellantis assembly plant in Windsor, Ont., could ultimately try to break the pattern, set by a record-setting contract with Ford Motor Co. of Canada. The agreement, ratified Sept. 24 by only 54 per cent of Ford hourly workers, will net longtime employees nearly 20-per-cent wage gains over three years, including cost-of living allowance fold-ins. As well, members on defined contribution pension plans will switch over to superior defined benefit plans in 2025. Employees also get a record-setting lump-sum signing bonus of $10,000. Unifor Local 444 President Dave Cassidy, who represents about 4,800 hourly Stellantis workers at the Windsor Assembly Plant, said he “didn’t hear anybody supporting the deal” during a local meeting Oct. 1 that drew 600 members. “My membership will not accept what was delivered. And I heard my membership loud and clear,” Cassidy said. “I’m just being honest and laying the groundwork.” MEMBERSHIP HAS ‘FINAL SAY’ Cassidy warned that “the membership ultimately has the final say.” “I work for my membership.” Savage said there’s definitely a movement afoot. “I don’t think you saw [Cassidy] mobilizing people to vote against the Ford deal. But, there’s no question they’re organizing to push to break the pattern,” he said. Unifor Local 444 has the largest number of members eligible to vote on a new Stellantis deal and can easily sway the result, Savage said. By contrast, Brampton Assembly Plant employs about 2,200 hourly workers, according to the automaker’s website. Cassidy and Savage attribute much of the anger on Canadian shop floors to United Auto Workers President Shawn Fain. The fiery labour leader began contract talks in the United States asking for a 46-per-cent wage increase, a four-day work week and more. Fain has since lowered his wage demand to 36 per cent, although the union has been staging strikes across select Detroit Three plants in the U.S. Cassidy said his members in Windsor, a border town connected to Detroit by a tunnel and bridge, “are paying attention to Fain” and expecting similar demands be made by Unifor and met by the Detroit Three in Canada. That, even though Cassidy called the Ford deal one of the best on record. “I know that in my 30 years at Chrysler, the pattern that’s in place today is one of the highest bars that’s ever been set. However, I also know that we haven’t had the big wage increases, because of the situations we’ve been in for the past 15 years.” He said the Great Recession of 2008 and 2009 and COVID-19 have left the industry “in disarray for that long.” Savage said workers view these contract talks as “a golden opportunity to catch up after years of concession bargaining.” “Coming out of the pandemic, workers are more generally fed up and in a mood to fight back,” he said. Savage said workers haven’t wielded this much bargaining power since the turn of the century. THE ‘NEED TO BE CLEAR’ Cassidy is one of 60 Unifor members that will bargain with Stellantis. He’ll sit alongside Unifor President Lana Payne. “I need to be clear with her,” Cassidy said. “I believe we still have a lot of work to do, even after General Motors has completed their round of bargaining.” Payne wasn’t immediately available for comment, but on Oct. 4, she posted a pointed three-minute video message on YouTube, entitled “Why Pattern Bargaining Works.” It could be viewed as targeting Cassidy or General Motors, which Unifor said on Oct. 6 was putting up “some resistance” to the pattern. Resistance to the pattern is nothing new. General Motors in 1996 threatened to break pattern, leading the union to occupy the GM Fabrication Plant in Oshawa, Ont., until the company agreed to the pattern. The late Sergio Marchione, while head of Chrysler and then Fiat Chrysler Automobiles, made it abundantly clear he hated pattern bargaining, alleging smaller automakers couldn’t afford the bigger wage increases set early in negotiations. Payne calls the process “essentially” and “one of the most powerful acts of solidarity we have.” In the video, Payne said without a pattern deal, automakers would sew division, lower wages, lower work standards and pit workers against each other. “We have to fight for this pattern agreement, for the the thousands of members, whose lives will be changed for the better,” Payne says. |
2023 UAW strike update: GM BY SARA POWERS (CBS DETROIT) - UAW President Shawn Fain made an announcement on Friday, sharing the latest bargaining updates in the union's historic strike against the Big Three automakers. Fain announced significant progress in negotiations with General Motors and no additional strikes. Major breakthrough with GM After threatening to strike a major General Motors plant in Arlington, Texas, Fain said the automaker has agreed to place electric vehicle battery plants under a national contract with the UAW. "This week, GM did something that was unthinkable until just today," said Fain. "They agreed to put the future of this industry under our national agreement. This victory is a direct result of the power of our membership. It's your willingness to stand up when called. It's your commitment to winning what you are owed. The companies see it. The world sees it. And today, I was ready to call on one of GM's biggest and most important plants to stand up. And it was that threat that brought GM to the table." Even though the strike at the Arlington plant was avoided, here's what's made at that facility:
GM issued the following statement after Fain's announcement: "Negotiations remain ongoing, and we will continue to work towards finding solutions to address outstanding issues. Our goal remains to reach an agreement that rewards our employees and allows GM to be successful into the future." Negotiation updates Two of the big three automakers committed to a cost of living adjustment. Ford and Stellantis have agreed, and Fain said General Motors is not far behind. In addition, Ford has given up a $1.50 tool allowance, Stellantis is at $1.00 and General Motors has not budged. Fain also said they have made significant progress fighting for pension increases and getting subcommittees addressed. "We're still fighting hard to win retirement security for both our pre-2007 and post-2007 hires," Fain said. The UAW president ended his announcement, saying it's back to the bargaining table to win three record contracts. "We know their pain points, we know their moneymakers, and we know the plants they really don't want to see struck. And they know that we've got more cards left to play," Fain said. "We're not going to let one company fall behind and wait for movement at another table. We're not going to let them sit back and lowball us while others make progress. We expect results at every company. And we've been crystal clear on how you catch a strike and how you avoid one." Stellantis provides update on recent offer to UAW "We continue to have good momentum at the bargaining table and have been working diligently with the UAW over the last week to build on that. We are making progress, but there are gaps that still need to be closed. Since the beginning of these negotiations, our focus hasn't wavered – that is, to reach a balanced agreement as soon as possible that establishes the framework that will allow the Company to be competitive and sustainable in a rapidly changing market and brings our workforce along on the journey. We recently made a serious proposal to the UAW that reinforces our previous commitments: • Provide significant wage increases of 21.4% when compounded through 2027 for all full-time hourly employees Additionally, the Company and union have discussed various solutions to address job security for all of our employees, including those in Belvidere. Beyond our significant economic offer, we also proposed a number of other enhanced benefits. If accepted, this record proposal would bring our represented employees immediate financial benefits, improve work-life balance and secure jobs through the term of the contract. In fact, by the end of this contract, all of our represented employees would see significant increases to their annual salary. Below is what they could expect: While we still have some work to do, I remain optimistic that our discussions are providing a pathway to a tentative agreement. It would be one that fairly rewards our workforce while preserving our ability to compete with non-union manufacturers and protects the future of the Company for our employees, our families and our customers. With more than 8,000 of our colleagues on the picket line, some now in their third week, we are committed to continuing this momentum, so we can get everyone back to work building the vehicles that our customers want and that enable their freedom of movement." |
UAW strike day 21: GM presents Jordyn Grzelewski General Motors Co. has put a new counter offer to the United Auto Workers on the table, the automaker said Thursday, as the union signaled plans to make a new strike announcement on Friday. "We can confirm that we provided a counter offer to the UAW's most recent proposal — our sixth since the start of negotiations," GM spokesperson David Barnas said in a statement. "We believe we have a compelling offer that would reward our team members and allow GM to succeed and thrive into the future. We continue to stand ready and willing to negotiate in good faith 24/7 to reach an agreement." The company did not detail its latest proposal. News of the offer being presented comes as the UAW on Thursday said it planned to have another "stand up announcement" at 2 p.m. Friday. For the past few weeks, UAW President Shawn Fain has been announcing expansions of the union's auto strike strike, in its 21st day Thursday, during Facebook Live events on Fridays. The union's targeted strike of all three Detroit automakers began with walkouts at GM's Wentzville Assembly plant in Missouri, Ford Motor Co.'s Michigan Assembly Plant in Wayne, and the Stellantis NV Jeep plant in Toledo on Sept. 15. It has since expanded to 38 GM and Stellantis parts distribution centers across the country, and most recently to Ford's Chicago Assembly Plant and GM's Lansing Delta Township plant. The UAW has been using a strike strategy in which leaders call on more workers to join the strike if sufficient progress hasn't been made at the bargaining table, a tactic the union has said enables greater flexibility. GM is the only one of the three automakers that has not been spared in expansions of the strike. Some 25,300 autoworkers out of the roughly 146,000 who are represented by the UAW now are on strike. Negotiations continue The union gave its latest counter offer to GM on Monday. At the time, the company said it was "assessing" the proposal but that "significant gaps" remained. The UAW has not publicly detailed its latest demands or offers. GM also has not disclosed many specifics of its offers, but previously offered a 20% wage increase over the length of the contract, a reduction of half of the time it takes workers to reach the top of the pay scale, raises for temporary workers, and elimination of some wage tiers, among other items. Meanwhile, Ford on Tuesday said it made its seventh and "strongest" offer to the union. The Dearborn automaker's latest offer includes product commitments for every UAW-represented plant in the United States, an increase in starting pay for temporary workers to $21 per hour, conversion upon ratification of all temporary workers with at least three months of continuous service and a wage increase of "more than 20%." It also includes the restoration of cost-of-living allowances, elimination of wage tiers that currently have workers at components plants on different wage scales than assembly plant workers, and reducing by "more than half" the time it takes workers to reach the top of the wage scale. But one key sticking point, according to Ford, is the issue of electric-vehicle battery plants. The company has said the union of taking a "hard line" on the issue and "holding the deal hostage" over it. Stellantis last week was spared from more of its plants joining the strike after it moved on several issues right before new strike targets were announced. The Jeep and Ram maker made progress in talks with the union on areas including cost-of-living adjustments that had been suspended in 2009, the right not to cross a picket line, the right to strike over product commitments and plant closures, and an outsourcing moratorium. The UAW initially sought a non-compounded wage increase of 40% over the length of the contract. It's also seeking stronger job security language, elimination of a tiered wage system, restoration of pensions for all workers, the right to strike over plant closures, and other items. The union has not publicly commented on the latest offers its gotten from the companies, but Fain is expected to update members on where negotiations stand during the live streamed event on Friday. Strike impacts The strike, which is the first time the UAW has conducted work stoppages at all three automakers at the same time, has had ripple effects on production across the companies as well as their suppliers. Most recently, Ford said it was temporarily laying off about 400 workers at its Livonia Transmission and Sterling Axle plants because of production impacts tied to the strike at Chicago Assembly Plant, which builds the Ford Explorer, Lincoln Aviator and police utility vehicles. In all, Ford has temporarily laid off about 1,330 workers due to the strike. GM has laid of 2,175 workers at plants that supply plants that are on strike or that use parts from those plants. The union is providing the equivalent of strike pay, $500, to its members who are laid off and not eligible for unemployment benefits. |
Ford's Q3 sales rise on strong Jordyn Grzelewski, Kalea Hall Ford Motor Co.'s sales rose 7.7% year-over-year in the third quarter, buoyed by higher sales of hybrid vehicles and trucks. The effects of a United Auto Workers strike of all three Detroit automakers that began Sept. 15 have yet to show up in sales results, but that could start to change this month. Some 25,300 autoworkers are on picket lines as the strike stretched into its 20th day Wednesday. Barclays analysts wrote in a note Wednesday that the strike had a "limited impact" on September sales, with the Detroit automakers reporting just a 1% sales decline vs. their average monthly sales year-to-date. Analysts expect greater disruption in the months to come but noted that the companies have a "fair level" of buffer stock on hand: "While certain D3 models/segments have more or less inventory than others — with large pickups/SUVs seeing higher inventory levels — we believe these inventories overall will likely be supportive of near-term sales volumes, at least at the current intensity and pace of the strike." Ford reported Wednesday that it sold 500,504 new vehicles in the United States in the July-September period, up from 464,674 in the same period last year. The gains were reported a day after much of the rest of the auto industry reported higher Q3 sales. Crosstown rival General Motors Co. on Tuesday reported that its Q3 sales were up 21%. The Detroit automaker sold 674,336 vehicles, including more than 20,000 electric vehicles. GM's Chevrolet Traverse and Buick Enclave SUV plant in Delta Township, Wentzville midsize pickup truck and commercial van plant outside St. Louis, and parts distribution centers across the country are on strike. The work stoppage also has brought down Cadillac XT4 and Chevrolet Malibu production at GM's Fairfax plant in Kansas City, Kansas. Meanwhile, Toyota Motor Corp. reported U.S. sales were up 12.2%, Honda Motor Co. Ltd.’s rose 52.7%, Hyundai Motor Co.’s grew by 9%, and Nissan Motor Co. Ltd.'s increased by 40.8%. Sales at Stellantis NV — maker of Chrysler, Dodge, Jeep, Ram and other vehicles — fell 1% to 380,563 units. Stellantis' Jeep Wrangler and Gladiator plant in Toledo and all of its U.S. parts distribution centers are on strike. Two Ford assembly facilities are on strike: Michigan Assembly Plant in Wayne, which builds the Bronco and Ranger, and Chicago Assembly Plant, which builds the Ford Explorer and Lincoln Aviator. Analysts at Cox Automotive said in a note Wednesday that new-vehicles sales in Q3 in the United States were "solid, spurred on by vastly improved inventories, higher fleet sales and consumers still in market despite elevated prices and high auto loan rates." Initial estimates indicate that sales were "slightly above" Cox's forecast of a 15% increase. GM, Toyota, Hyundai and Nissan posted "particularly strong" results." At the start of September, new-vehicle inventory was 68% higher than in 2022, according to Cox. Incentives have been up, too. Meanwhile, Ford sold 20,962 electric vehicles in the quarter, up 14.8%. Hybrid sales of 34,861 vehicles were up 41.4%, led by F-150 and Maverick hybrid sales. Ford reported that sales of the F-150 hybrid were up 46.9%, and that the hybrid model now makes up 56.5% of all Mavericks sold. Internal combustion engine vehicle sales of 444,681 were up 5.4%. Year to date, Ford's sales are up 9.2% from the first nine months of 2022. Truck sales rose 15.3% in the quarter to 275,554 units while SUV sales were essentially flat at about 215,000 units. “We saw strong balanced sales growth providing choice to our customers in the third quarter, with growthcoming from our gas engine, electric, hybrid and commercial van lineup,” Andrew Frick, Ford's vice president ofsales, distribution and trucks, said in a statement. “Ford’s truck lineup remains the industry’s top seller. The Maverick and Bronco Sport remain red hot after Ford boosted manufacturing capacity earlier this year. The all-new seventh generation Mustang is off to a jack-rabbit start in its first full month, up 90 percent in Septemberover last year.” Rhett Ricart, owner of Ricart Automotive Group in Columbus, Ohio, which includes Chevrolet and Ford dealerships, said that in a recent meeting with other dealers, they’re wasn’t much concern about the strike affecting inventory levels and sales, but more the “parts availability to keep customers rolling down the road.” Dealership shops and outside service centers have already been struggling to get parts during the pandemic. Automakers battled supply shortages on semiconductors chips and other supplies for months. “This is just gonna exacerbate it,” Ricart said. Ricart had one of the best September sales months on record at his dealerships because pent-up demand is still there, he said, even with high prices and interest rates. Ricart thinks the constant strike news has consumers heading to get new vehicles now before lower supply takes hold as a result of the strike and affects pricing. “The intuition is that people hear about this strike and they were thinking about buying a car here in the next two, three, four months, they're figuring if this strike keeps going on, these cars are gonna get more expensive because the supply is going to be down,” he said. “I think they're thinking, ‘I buy one now before that strike depletes the inventories.’” Sales of Ford brand SUVs were up across nearly every nameplate, including a 55.1% gain for Bronco Sport and 42.5% increase for the electric Mustang Mach-E. The outliers were the Expedition and the Explorer; the Explorer recently was under a stop-sale over an issue with the vehicle's rearview camera system and the facility where it's built now is on strike. In the truck segment, sales of Ford's flagship F-Series rose 13.4% in the third quarter to 190,477 units, retaining its status as the best-selling truck in the country. Sales were up across Maverick, E-Series, Transit and heavy trucks. They were down across the electric F-150 Lightning, Ranger and Transit Connect nameplates. Mustang sales fell 4.9%. The new 2024 model of the Mustang had its first full month of sales in September. Ford reported it's turning on dealer lots in just six days. Ford's luxury Lincoln brand reported a 1.8% sales gain in the quarter. |
Ford makes seventh contract Detroit Free Press Ford Motor Co. made an offer to the UAW on Monday in an effort to reach a tentative agreement on a new master labor contract, the automaker announced Tuesday evening. The agreement, which would run through April 30, 2028, is the seventh and strongest offer Ford has made on the key economic issues since Aug. 29, Ford said in a news release. "Ford has received two comprehensive counteroffers from the UAW, the last on Sept. 25. Ford’s latest offer provides our 57,000 UAW-represented employees with a record contract and a strong future," Ford said. Ford said its offer includes "unprecedented improvements in wages (putting employees among the top 25% of all U.S. jobs, hourly and salaried) and benefits, product commitments for every UAW factory and job security." At the same time, it preserves Ford’s ability to invest and grow, the Dearborn automaker said. “There’s no doubt our UAW workforce put us on their shoulders during the pandemic, and these same workers and their families were hit hard by inflation. We want to make sure our workers come out of these negotiations with two things — a record contract and a strong future,” Ford CEO Jim Farley said in a news release. “We’ve put an offer on the table that will be costly for the company, especially given our large American footprint and UAW workforce, but one that we believe still allows Ford to invest in the future.” Ford said the union has taken a hard line on unionizing future battery plants. A future that will include battery plants "While Ford remains open to the possibility of working with the UAW on future battery plants in the United States, these are multibillion-dollar investments and must operate at competitive and sustainable levels," the news release said. "Three of the four battery plants under construction are part of the BlueOval SK joint venture between Ford and SK On. The workforce for these operations has not been hired." Future employees at the battery operations may choose to be represented by the UAW and enter into the collective bargaining process, Ford reiterated. "As Ford has made clear, none of our employees, including powertrain employees, will lose their jobs due to our battery plants during this contract period," Ford said in its news release. "In fact, for the foreseeable future, we will have to hire more workers as some workers retire, in order to keep up with demand for our ICE (internal combustion engine) products." Here are the details Here are the highlights, according to a release by Ford at 5:32 p.m. Tuesday:
UAW: No comment The UAW declined to immediately comment on the Ford announcement. Some 25,000 UAW workers have been strategically deployed to strike Ford Motor Co., General Motors and Stellantis since mid-September. Michigan Assembly, which builds the Ford Bronco SUV and Ranger truck, had strike lines set up on Sept. 15. Then parts distribution sites for GM and Stellantis (which owns Jeep, Ram, Chrysler and Dodge) joined the campaign on Sept. 22, disrupting the flow of parts to car dealers and repair shops. On Friday, the UAW hit Ford with a strike on the Chicago Assembly Plant that builds the Ford Explorer and Lincoln Aviator. Farley held a news media briefing to say the Dearborn automaker would have made a deal already but the UAW was holding the company hostage with battery plant demands. Hours later, General Motors CEO Mary Barra lashed out at the UAW for its "theatrics." The company confirmed Monday it had received a counterproposal from the UAW. |
UAW strike day 17: Negotiations Kalea Hall Negotiations between the United Auto Workers and Detroit Three automakers continued Sunday — day 17 of an unprecedented strike by the union against Ford Motor Co., Stellantis NV and General Motors Co. The strike started Sept. 15 with the UAW unleashing a targeted walkout strategy starting with plant work stoppages at Ford's Michigan Assembly in Wayne, Stellantis' Toledo Assembly Complex and GM's Wentzville Assembly in Missouri. The strike has been expanded twice to include all Stellantis and GM parts distribution centers and on Friday added two SUV plants: GM's Lansing Delta Township plant and Ford's Chicago Assembly — bringing the number of autoworkers on strike to 25,300 out of 146,000 UAW members at the companies. Stellantis' facilities were spared the latest expansion since the Jeep and Ram maker made progress in talks with the union on areas including cost-of-living adjustments that had been suspended in 2009, the right not to cross a picket line, the right to strike over product commitments and plant closures, and an outsourcing moratorium. "I actually took it as a big sigh of relief that Stellantis made significant movement," said Art Wheaton, an automotive industry specialist at Cornell University's Industrial and Labor Relations School. "To me, that was great news. Primarily because I was most concerned about Stellantis going in. It seems to me that they are going along closer to the pattern and they may actually stick with pattern bargaining." Ford had previously been spared in the union's first move to expand the strike targets. The Dearborn automaker had made progress the week leading up to Sept. 22 in talks with the Dearborn automaker on cost of living adjustments, wage disparities at feeder plants and job security protections. Despite some progress on certain items, Ford slammed the union on Friday after the strike expansion that added the Chicago Assembly plant where the Ford Explorer and Lincoln Aviator are built. Ford CEO Jim Farley accused the union of "holding the deal hostage" over the automaker's four planned electric-vehicle battery plants in the United States. Late Friday, GM CEO Mary Barra issued a scathing statement against the union claiming it has "no real intent to get to an agreement." The automakers and union have remained far apart on the union's demands to provide pensions for all employees, retiree health care, a restored jobs bank and wage increases of 36% over four years. The companies have offered wage hikes of about 20% while expressing concern that granting all of the union priorities would further widen the gap between their employee costs and those of non-union competitors such as Tesla Inc., Toyota Motor Corp. and Honda Motor Co. Detroit Three automaker costs are in the mid-$60 range while foreign automakers' labor costs are in the mid-$50 range and Tesla Inc.'s are in the high-$40 range. With Stellantis and Ford making moves on cost-of-living increases, Wheaton thinks GM could be next. "Maybe GM will follow suit ... especially with all of the firepower that's all on the UAW side at the moment," he said. "I don't hear a whole lot of criticism from the public." How it feels on the picket line Workers who build the Bronco and Ranger at Ford's Michigan Assembly are heading into their third week on strike. "I would like to get back to work but only with the proper contract," said Patrick Smalley, who's been with Ford for 35 years. Smalley, 56, of Westland is ready to stay out for "however long it takes." Feelings about still being on strike are mixed on the picket line, Smalley said. "Some people had prepared for it and others may not have and it's getting to the point where, 'OK, I would love to go back to work,' some people are saying, but if we just have to do it, we have to do it," he said. Fellow Michigan Assembly worker Kim McCartha, who's been at Ford since 2012, is ready for the two sides to come to an agreement. "But I know that we do want a good deal, a fair deal," the 58-year-old from Redford said, noting she wants to see wage increases, restoration of cost-of-living allowances and the tiered-wage system addressed in the next contract. Before the strike, McCartha started watching her spending. Now, with strike pay at $500 a week, she's still "being real cautious and just waiting, not going on trips or not doing anything extra," she said. Being on strike, "it's a little bit different for me than being on the line," she said. "But hey, I'm ready to grind it out as long as we have to." Auto sales out this week The Detroit Three report their third-quarter sales this week, but experts don't expect to see the strike affecting them just yet. Analysts at Edmunds.com Inc., a vehicle information website, are forecasting sales of 3.9 million new cars and trucks in the United States for the third quarter of 2023, marking a 16% year-over-year increase. Before the strike, Edmunds' data showed Detroit Three vehicles sat on dealer lots longer than the industry average. In a statement sent last week, Edmunds Director of Insights Ivan Drury said: “Availability is currently strong for American-branded trucks and SUVs, but shoppers contemplating a new-vehicle purchase from any of the Detroit brands may consider expediting their search process given the strike’s unpredictable impact on supply." |
US expands probe into Ford engine Associated Press Detroit – U.S. auto safety investigators have expanded a probe into Ford Motor Co. engine failures to include nearly 709,000 vehicles. The National Highway Traffic Safety Administration also said in documents posted Monday on its website that it upgraded the investigation to an engineering analysis, a step closer to a recall. The investigation now covers Ford's F-150 pickup truck, as well as Explorer, Bronco and Edge SUVs and Lincoln Nautilus and Aviator SUVs. All are from the 2021 and 2022 model years and are equipped with 2.7-liter or 3.0-liter V6 turbocharged engines. The agency says that under normal driving conditions the engines can lose power due to catastrophic engine failure related to allegedly faulty valves. The agency opened its initial investigation in May of last year after getting three letters from owners. Initially the probe was looking at failure of the 2.7-liter engine on Broncos. Since then, Ford reported 861 customer complaints, warranty claims and engine replacements including the other models. No crashes or injuries were reported. The company told the agency in documents that defective intake valves generally fail early in a vehicle's life, and most of the failures have already happened. The company told NHTSA said it made a valve design change in October of 2021. Ford said in a statement Monday that it’s working with NHTSA to support the investigation. The agency says it will evaluate how often the problem happens and review the effectiveness of Ford's manufacturing improvements designed to address the problem. |
Ford CEO says UAW holding By David Shepardson WASHINGTON (Reuters) - Ford Motor Chief Executive Jim Farley on Friday accused the United Auto Workers union of holding up a new U.S. labor agreement in a bid to force the automaker to pay workers at new battery plants the same top wages as workers at assembly plants. Farley also disclosed the automaker is awaiting "final language" from the U.S. Treasury on whether batteries made at a planned Michigan plant using Chinese technology will qualify for tax credits. "The UAW is holding the deal hostage over battery plants," Farley said, and claimed a "bad deal" could threaten financial viability of some U.S. vehicle production. . UAW President Shawn Fain said Farley was not telling the truth about the negotiations and said the sides were far apart on core economic proposals including "job security in this EV transition, which Farley himself says is going to cut 40% of our members’ jobs." On Monday, Ford said it had paused work on its $3.5 billion Marshall, Michigan battery plant that will use technology licensed from Chinese battery company CATL, citing concerns about its ability to operate competitively. In 2022, Congress passed the Inflation Reduction Act (IRA) barring $7,500 in future consumer EV tax credits if any battery components are manufactured or assembled by a "foreign entity of concern." Ford is awaiting guidance to determine if batteries produced by the Marshall plant would meet the requirements. "We can make Marshall a lot bigger or a lot smaller," Farley said. On Sept. 8, Ford wrote Treasury Secretary Janet Yellen and Energy Secretary Jennifer Granholm warning that an unfavorable interpretation of the foreign entity provision would lead the automaker to make "fewer batteries in Michigan, shrinking that project and affecting the volume at EV assembly plants outside of Michigan. This will mean fewer U.S. jobs." This week, the chairs of three U.S. House committees demanded Ford turn over documents tied to the CATL partnership. Republican lawmakers have been probing Ford's battery plant plan for months over concerns it could send U.S. tax subsidies to China and leave Ford dependent on Chinese technology. |
UAW makes new counter By David Shepardson and Joseph White (Reuters) - The United Auto Workers made a new counter-proposal to Chrysler-parent Stellantis on Thursday, just one day before the union is set to strike additional Detroit Three automotive facilities without serious progress in ongoing labor negotiations. A union official confirmed the new proposal as talks remain active with Stellantis, General Motors and Ford Motor in the strike's fourteenth day. The UAW and the Detroit Three have been far apart on key issues. As of Thursday, the UAW's position is that workers should get 40% pay increases, cost of living adjustments pegged to inflation, job or pay guarantees, an end to lower wages for lower seniority workers and defined benefit pensions. The automakers are offering 20% wage increases, but have proposed less generous cost of living and retirement benefits. The automakers also have not agreed to the UAW demand that new hires get top pay after 90 days on the job. UAW President Shawn Fain plans to disclose the union's next steps Friday at 10 a.m. ET (1400 GMT) in an online address. The flurry of activity on Thursday comes after a week in which there appeared to be little movement in the contract talks. Fain hosted U.S. President Joe Biden's historic visit to a union picket line on Tuesday. Fain met Wednesday with GM negotiators. Stellantis and GM did not immediately comment. Stellantis earlier on Thursday criticized the UAW's rhetoric. "The deliberate use of inflammatory and violent rhetoric is dangerous and needs to stop. The companies are not 'the enemy' and we are not at 'war,'" Stellantis said, adding it has "put a record offer on the table and are working hard to reach an agreement as quickly as possible." Last week, the UAW expanded strikes that initially began with three assembly plants - one at each Detroit automaker - to 38 GM and Stellantis parts distribution centers but did not add any Ford facilities citing progress. Stellantis last week indefinitely laid off more than 350 workers in Ohio and Indiana because of the strike impact. Ford has furloughed 600 workers at a Michigan plant, and GM has furloughed 2,000 workers and halted production at a Kansas plant because of strike-related impacts. |
Donald Trump: UAW negotiations Craig Mauger Clinton Township — Republican Donald Trump railed against electric vehicles during a campaign stop in suburban Detroit Wednesday night, saying they're too expensive, aren't capable of traveling far enough and would spur job losses for Americans. Trump, a former president who's seeking to challenge current Democratic President Joe Biden next year, made the comments during a speech at Drake Enterprises, a parts supplier in Clinton Township. Amid a historic strike by the United Auto Workers against Ford, General Motors and Stellantis, Trump said: "Your current negotiations don’t mean as much as you think." Trump argued that regardless of the outcome of the strike, the bigger threat to employees was the shift to electric cars and trucks, which he described as a "hit job" on Michigan and Detroit. "You can be loyal to American labor or you can be loyal to the environmental lunatics," Trump said at one point. "But you can’t really be loyal to both. It’s one or the other." Biden and other Democrats, including Michigan Gov. Gretchen Whitmer, have promoted the transition to electric vehicles and sought to compete with other countries to produce them. Whitmer has said switching to electric vehicles will save families money over the lifetime of the vehicles, support tens of thousands of well-paying auto jobs in Michigan and help "safeguard clean air and water for future generations." Trump's speech Wednesday night was about an hour long. He described a future "fueled by American energy" and "built by highly skilled American hands and high-wage American labor.” But his address was short on specifics for how he would accomplish the goals. Trump's visit came a day after Biden appeared on a picket line in Wayne County and told members of the United Auto Workers union they deserved a "significant raise." On Wednesday, Trump said he supported the push for fair wages but added that workers should be concerned about the promotion of electric vehicles. Kevin Munoz, spokesman for Biden's reelection campaign, described the speech as "incoherent" and "a pathetic, recycled attempt to feign support for working Americans." "Americans have seen him try this before, and they aren’t buying it," Munoz said. "They know who Donald Trump really is: a billionaire charlatan running on empty words, broken promises and lost jobs." During his remarks, Trump heaped blame on Biden and encouraged the crowd to get the UAW to endorse him. He told workers to reach out to Shawn Fain, president of the UAW, and tell him if the union backs Trump, Fain could take a vacation and they would better off than they ever were. Trump later characterized the transition from gas engines to electric vehicles as "a transition to hell," a phrase he has repeated on the campaign trail this year. "The auto industry is being assassinated," Trump said. "If you want to buy an electric car, that's absolutely fine. I'm all for it. But we should not be forcing consumers to buy electric vehicles they don't want to buy." Nathan Stemple, president of Drake Enterprises, said it was "unbelievable" Drake had a chance to host the former president on Wednesday. Among the products of Drake Enterprises are gear shift levers and transmission components for heavy trucks with gas-powered engines, according to the company's website. While Trump criticized Biden's push to support electric vehicles, Stemple said the transition is not his top cause of worry currently. The toughest obstacle for his company is finding the right workers, Stemple said ahead of Trump's speech. "It would definitely affect us if it changed like a light switch," Stemple said of moving to electric vehicles. "I don’t see that happening.” About 400 to 500 Trump supporters were inside a Drake Enterprises facility for the speech. Drake Enterprises employs about 150 people, and the UAW doesn't represent its workforce. It wasn't clear how many auto workers were in the crowd for the speech, which was targeted at them. One individual in the crowd who held a sign that said "union members for Trump," acknowledged that she wasn't a union member when approached by a Detroit News reporter after the event. Another person with a sign that read "auto workers for Trump" said he wasn't an auto worker when asked for an interview. Both people didn't provide their names. One of the attendees for Trump's speech, Doug King, a 55-year-old auto worker from Clawson, said ultimately, consumers, not the government, should decide which vehicles to purchase. King said he supported Trump's efforts to pressure auto manufacturers to keep jobs in the United States during his term in the White House. “The four years under Trump were the best years that we had in the auto industry," contended King, who works for Stellantis. But Democrats blasted Trump's record on manufacturing. U.S. Rep. Haley Stevens, D-Birmingham, said while Trump had claimed to support to support union workers, he didn't even go to a union facility. Biden's reelection team announced Wednesday morning, about 14 hours before Trump's speech at 8 p.m. in Macomb County, that it was launching its first Michigan-focused TV ad of the 2024 race. Entitled "Delivers," the commercial accuses Trump of passing tax breaks for "rich friends" while automakers shuttered plants and Michigan lost manufacturing jobs. "Manufacturing is coming back to Michigan because Joe Biden doesn't just talk, he delivers," says the new ad, which will air in the Detroit, Grand Rapids and Lansing markets. While Trump was president from 2017 to 2021, Ford's engine plant in Romeo shuttered and GM shuttered a transmission plant in Warren, a powertrain plant in Baltimore and closed its Lordstown, Ohio assembly plant. Stellantis (formerly Fiat Chrysler Automobiles) opened a new Jeep plant on Detroit's east side, while idling its Mount Elliott Tool & Die plant. While Biden has been president, Stellantis idled its one part of its Trenton engine plant last year and its Belvidere Assembly Plant in Illinois in February. Meanwhile, the Democratic National Committee is rolling out billboards in Metro Detroit that criticize Trump's approach to autos. One says "thousands" of auto workers were laid off while Trump was president and includes the words "promises broken." Going electric The early Democratic barrage, about 13 months before the November 2024 election, was likely meant to preempt Trump's address on Wednesday night. The former president's stop happened 13 days into the United Auto Workers strike against GM, Ford Motor Co. and Stellantis NV, a day after Biden visited the picket line in Michigan and on the night of the second Republican presidential primary debate, in which Trump didn't participate. A past report from the United Auto Workers acknowledged the shift to electric vehicles means replacing key powertrain components, such as engines, with mechanically simpler lithium-ion batteries and electric motors. "Whereas traditional powertrains have often been made by automakers themselves and created quality union jobs, EV batteries are mostly made by suppliers in other countries, with China in the lead," the report said. Biden's administration has attempted to promote the use of electric vehicles, but it's also invested in building the cars and trucks in the U.S. In August, Biden signed a $280 billion bipartisan bill to boost domestic high-tech manufacturing in a bid to help the country compete with China. So far, the number of jobs in vehicle and parts manufacturing in Michigan has held essentially steady during Biden's term in the White House, increasing by 2% to about 169,000 jobs in August, according to data from the Bureau of Labor Statistics. During Trump's four-year term, the number of jobs in vehicle and parts manufacturing in Michigan fell by 5% to about 166,000, according to the bureau's tracking. But the industry was still recovering from the COVID-19 pandemic in January 2021 when Trump left office. Kristina Karamo, chairwoman of the Michigan Republican Party, defended the former president Wednesday, saying now, both parents in a family have to work and people are still struggling to afford to get by. There's been a shift within the GOP in favor of protecting workers and opposing "crony capitalism," Karamo said. Asked if she would ever show up on a UAW picket line, Karamo replied, "I don’t know. … I don’t know. What I don’t like is that the UAW continues to back candidates who harm the economy.” 'The way it was' Trump has often touted his administration's efforts to rework trade deals in ways that he said would benefit manufacturing in the U.S. For instance, during Trump's tenure, automakers and groups that lobby for the industry hailed the passage of the U.S.-Canada-Mexico Agreement, which replaced the North American Free Trade Agreement of 1994 that Trump railed against in his successful 2016 campaign for the White House. Retired auto worker Brian Pannebecker of Harrison Township helped recruit people to attend Trump's event on Wednesday. Pannebecker said he expected about 300 auto workers to show up. And he touted Trump's efforts to renegotiate trade deals. Pannebecker said it was rare for a candidate for president to get to hold an event focused on workers inside a company's facility in Michigan, like Trump did Wednesday. "The auto plants typically don’t let a candidate campaign in their plants," Pannebecker said. Rachel Case, who said she worked at a truck plant in Flint, drove to Macomb County to try to get into Trump's speech. Case said she wants to see prices for items, like milk, go back to where they were before Biden's term. “I would hope that he could bring it back to the way it was,” Case said of Trump. But, on Tuesday, Shawn Fain, president of the United Auto Workers, criticized Trump's past stances on auto jobs in the U.S. "I find it odd he’s gonna go to a non-union business to talk to union workers," Fain added of Trump's visit. "I don’t think he gets it." |
UAW strike day 12: Talks continue Kalea Hall Negotiations continued Tuesday between the United Auto Workers and the Detroit Three automakers while President Joe Biden visited a picket line Tuesday with UAW President Shawn Fain. Biden spoke with union members at General Motors Co.'s Willow Run Redistribution Center in Van Buren Township on Tuesday — the 12th day of the union's strike against GM, Ford Motor Co. and Stellantis NV. Using a targeted plant strike strategy, the UAW called on workers to walk out Sept. 15 at GM's Wentzville, Missouri, midsize truck plant, Ford's Bronco and Ranger plant in Wayne and Stellantis' Jeep Gladiator and Wrangler plant in Toledo. On Friday, the UAW expanded the strike against GM and Stellantis, adding all of their parts distributions centers. Ford was spared since the Dearborn automaker and the union have made progress in talks. With the addition of the parts centers, about 18,300 union members are on strike. Biden's visit Tuesday marked the first time in at least a century that a sitting president has visited a labor union's picket line, according to the White House. Former President Donald Trump is visiting Michigan Wednesday. The leading Republican candidate for the 2024 election is skipping the second GOP presidential debate on Wednesday evening and instead hosting a rally in Clinton Township with "current and former union members." He'll deliver remarks at automotive supplier Drake Enterprises, whose members are not represented by the UAW. The union is striking the Detroit Three to fight for higher wages, an end to tiered-wage systems and temporary employee usage, and other demands. The automakers have offered up double-digit wage increases and cutting the time it takes to get to the top wage rate in half, among other items. Ford's talks with the UAW have progressed since the Dearborn automaker offered to restore of the cost-of-living adjustment that was suspended in 2009; and, for the first time, the right to strike over plant closures. Fain told reporters that the union is "moving with all three companies still. It’s slower, but it’s bargaining — some days you feel like you make two steps forward, the next day you take a step back. Things are moving, but we just have to see. We analyze every day.” The automakers are concerned about the UAW's demands pushing their labor costs, which already are higher than their foreign and domestic non-union competitors, up even more. On Tuesday, Tesla CEO Elon Musk tweeted about the striking UAW-represented autoworkers on the X social media platform, formerly known as Twitter, that he also owns: "They want a 40% pay raise *and* a 32 hour workweek. Sure way to drive GM, Ford and Chrysler bankrupt in the fast lane." When asked if the union would expand the strike to other plants, Fain said: “We just have to reflect where we are every day. We basically take an assessment as we have talks and see where we are. We could take action tonight; we can wait until the end of the week. That’s the beauty of the situation we’re in right now; we have a lot of options and we’ll use those options when we feel like we need to.” The strike at GM's Wentzville plant led the automaker to halt production at its Fairfax Assembly plant in Kansas where the Chevrolet Malibu and Cadillac XT4 are built. The Detroit automaker also had to lay off 140 employees at its Toledo Propulsion plant since the facility manufactures parts for the rear-wheel drive, eight-speed transmissions installed in trucks built at Wentzville. Toledo has about 1,382 represented employees and most will continue to work since they make parts for other products. The strike has also hit some suppliers. Eagle Industries Inc., in a notice to the state, said it could temporarily lay off 171 employees in production and administration out of 230 workers at a plant in Wixom. Even with a strike and unknowns of what's to come between the Detroit Three and the UAW, the U.S. auto industry’s sales through the end of September showed a continued "robust" recovery, according to a Cox Automotive forecast released Tuesday. Despite rising interest rates on new vehicle loans and the strike, experts at Cox said sales in September should reach nearly 1.3 million — an increase of more than 13% from 2022. Overall, sales in the third quarter should come in at more than 3.9 million for an increase of more than 15% year-over-year. After strong momentum in the third quarter, Cox Automotive is increasing its full-year new-vehicle sales forecast to between 15.3 million and 15.4 million units, up from the forecast of 15 million made at the end of the first half of the year. The Detroit Three and other automakers will report sales for July through September next week. Stellantis and GM will both report on Oct. 3. Ford will report on Oct. 4. Stellantis went into the strike with higher inventory levels on Dodge, Chrysler, Ram and Jeep models, according to Cox. Ford also had high levels for both of its brands: Ford and Lincoln. Meanwhile, GM's inventory levels on Chevrolet and Cadillac brands were tight. GMC and Buick had higher levels. Automakers have been working to rebuild new-vehicle inventories but avoid a glut after pandemic-induced parts supply issues limited production for months at a time. The low supply, coupled with continued strong demand, caused prices to increase. Monthly payments on new vehicles were up 24% from August 2019 to August 2023, according to Cox. A strike could put more upward pressure on pricing for some products. "My concern is that if the strike lasts beyond Thanksgiving, the industry at that point is very likely to see a setback ... and we're going to see it first (affect) the brands and the models with the tightest supply," Cox Automotive Chief Economist Jonathan Smoke said on a call with reporters Tuesday. "So far, the impact has been negligible. However, we are likely to start seeing the first signs of that impact, we think, next month in October, and again, it's going to be in those vehicles that are in the tightest supply." Dealers on Tuesday were positive about the inventory they have on the ground and in transit to their dealerships. In the pandemic, dealers had to learn how to function with very little inventory and preselling new vehicles before they arrived. They have been starting to see recovery this year. "We have over 200 units on the ground and another 250 in transit, so there's no effect whatsoever," said Walt Tutak, general manager of Matthews-Hargreaves Chevrolet in Royal Oak. "We've got the best inventory that we've had in a long, long time. The sad part is things are starting to get caught up, and even in service for parts ... and then this might throw a little bit of a wrench into it." Across the country in Seattle, Ram, Chrysler and Dodge dealer Jim Walen has ample supply to get through the next month or two. There's more concern about the future availability of parts with Stellantis' parts distribution plants down in the strike. "Nothing has happened yet," Walen said. "Our day supply is fine ... and I don't think there's negative repercussions with the buying public." Consumers are more concerned about high interest rates and a potential government shutdown than if Stellantis, Ford and GM "can get along with the UAW," Walen said. "Outside the bubble, it's not as big a deal, but it will be if it continues." |
Unifor chooses next company for Breana Noble Kalea Hall The Canadian autoworkers union Unifor is pivoting to negotiate with General Motors Co. after its members ratified a historic contract with Ford Motor Co. on Sunday. Unifor chose GM over Stellantis NV, maker of Chrysler, Dodge, Jeep and Ram vehicles, for its next set of contract talks, which are set to resume Tuesday. Unifor President Lana Payne in a video message said the union currently has more leverage over the Detroit automaker than it does its crosstown rival to bring the pattern set at Ford to its other autoworker members. “We’ve got an incredibly strong pattern agreement at Ford that will serve us well over the coming years," she said. "Our job now is to negotiate that pattern in the form of a renewal collective agreement with General Motors and Stellantis." In a statement sent by GM spokesperson Jennifer Wright, the automaker said it welcomes the resumption of negotiations to reach a tentative agreement: "We look forward to working with our Unifor partners to build a competitive future that also recognizes our employees’ contributions to our shared success.” Unifor’s negotiations with GM cover approximately 4,300 workers at the St. Catharines Powertrain Plant building engines for the Chevrolet Equinox and Corvette, Oshawa Assembly Complex making light- and heavy-duty Chevrolet Silverado pickup trucks and parts for other vehicles, and the Woodstock Parts Distribution Centre in Ontario. “Just as we had with Ford Motor Company, we hold a lot of negotiating leverage with GM," Payne said. "Their Oshawa facility is working around-the-clock producing very lucrative pick-up trucks. The St. Catharines engine and transmission facility, like Ford’s powertrain operations, is a lynchpin for GM’s North American operations. Our Woodstock distribution centre is also a key element of the company’s parts network. I don’t expect this to be an easy round of talks, and I want to make sure our union is best positioned to move this pattern forward for the benefit of all members, active and retired." Larry Savage, a labor studies professor at Brock University in Ontario, said in an email that GM's operations are highly integrated: "Targeting GM makes sense insofar as shutting down plants in Oshawa and St. Catharines and the GM distribution centre in Woodstock would give Unifor maximum leverage in bargaining." In contrast, Payne said Stellantis' Windsor Assembly Plant, where it builds the Chrysler Pacifica minivans, is slated for retooling as a part of a $2.8 billion investment in the plant and the Brampton Assembly Plant outside Toronto, which builds the Dodge muscle cars and Chrysler 300 sedan that are going out of production at the end of the year. Downtime at Windsor limits Unifor's leverage, Payne said, and the union is seeking more specifics on the company's product and investment plan for Brampton. "I believe we need more clarity on this before our talks commence," she said. Unifor's three-year deal with Ford acknowledges workers' greatest priorities, the union said Saturday, and includes the single largest negotiated general wage increase in the history of Unifor, formerly the Canadian Auto Workers. Workers approved the agreement with a 54% majority. "That's a sign of a successful negotiation," Art Wheaton, an automotive industry specialist at Cornell University's Industrial and Labor Relations School, said about the slim margin. "There was no fat left on the table. Both sides did their job." That also is helpful for GM to know the Ford offer is the minimum they can expect Unifor's rank-and-file to support, he added, which likely will help it to reach a tentative agreement with the United Auto Workers in the United States, as well. The UAW is on strike at GM's Wentzville midsize pickup truck and full-size commercial van plant outside St. Louis as well as its parts distribution centers. "Now that Ford has a deal, GM can follow the pattern in Canada with Unifor," Wheaton said. "Once they find a solution in Canada, that can help GM find a solution in the U.S." The approval of the deal at Ford means 5,600 employees, split between three plants in Ontario — Oakville Assembly, Essex Engine and Windsor Engine — once again have a contract. Unlike the UAW, Unifor opted to negotiate only with one company at a time. The UAW went on strike Sept. 15 at select facilities of Ford, GM and Stellantis. Unifor's contract with Ford includes wage increases of 10% the first year, 2% the second year and 3% the year after, as well as cost-of-living adjustments. It also reduces the amount of time an in-progression employee needs to reach the top pay scale from eight years to four. For those workers who haven't reached top scale, it raises the percentage those workers get in the first three years. Over the life of the agreement, senior employees will see their hourly rate rise from $37.33 Canadian to $44.52, an increase of 19.2%. Kathleen O'Keefe, a Unifor spokesperson, said the union projects inflation of 2.5% over the next three years, translating to an additional $1.61 in COLA added to top-scale members' wages, bringing their projected hourly rate to $46.13. The Canadian dollar is equivalent to 74 cents in U.S. currency. Permanent workers will get a ratification bonus of $10,000 Canadian, while temporary ones will get a $4,000 Canadian bonus. The agreement also includes "significant increases" to retirement programs, Ford said. Defined benefit contributions likely will be a sticking point at GM, Wheaton said, but with Ford being its main direct competitor, it likely won't want to be left behind either. "Ford is the good. GM is the bad. Stellantis is the ugly," he said. "They chose Ford first, got an agreement, and it helped set the pattern. General Motors will be difficult. I don’t think it will be a quick negotiation, but I think it's possible. Stellantis is a nightmare, though I think they want a deal more so in Canada than they do the U.S. It's harder for GM to pull out of the U.S. than Stellantis. |
PRESIDENT OF UNIFOR HeartRadio.ca John D'Agnolo, president of Unifor Local 200 in Windsor and chair of Unifor's Ford Master Bargaining Committee. Unifor for has announced the Ford Motor Company will be the target company in pattern bargaining with the Detroit 3 automakers. Aug. 29, 2023 (Photo: Rusty Thomson) The President of Unifor Local 200 in Windsor is 'elated' with the tentative agreement between Unifor and Ford Motor Company. On Tuesday evening it was announced by Unifor that a tentative agreement had been reached, covering more than 5,600 members at the Canadian Ford facilities. John D'Agnolo, who also is the Chair of the Ford Master Bargaining Committee, says that while it was an exhausting 48 hours of bargaining, but it was important to push forward to support the members. The contract between Unifor and Ford expired Monday at 11:59 p.m., however just minutes before the strike deadline Ford made a "significant offer" to the union. Unifor stated that the offer was significant enough to allow for a 24-hour extension. On August 29, Unifor selected Ford Motor Company as the target company, focusing on negotiations with Ford to set the pattern agreement for the union's 18,000 members. D'Agnolo says if the deal is ratified, it will move onto Stellantis and General Motors. "Then the members will obviously see it through the highlight packages, and then the Stellantis leadership or the GM [General Motors] leadership, whoever is next, will be coming to Toronto to start their bargaining." He says his message to workers is to wait and see. "You're going to hear a lot of rumours at times, you're going to hear things that aren't factual. So until you have that paper in front of you, until you hear it come out of our leadership's mouths, wait and see, because it's very important that you know all of the information when it comes to bargaining." He says he's elated with the tentative agreement. "We want to make sure we covered absolutely everybody, from the new hires to the retirees, to the retired workers, to the people that have the opportunity to retire in the near future. So, we wanted to make sure that everybody in this agreement was affected and I believe we did so." D'Agnolo says that a ratification vote at all Ford units will be taking place at their respective locations on Saturday, September 23. He says times will be shared in the coming days. The new tentative agreement covers members of Unifor Locals 707, 200, 584, 1087, 240 and 1324 at Ford's Oakville Assembly Plant, Annex and Essex Engine Plants in Windsor, Ontario in addition to Parts Distribution Centres in Bramalea, Paris and Casselman in Ontario and Leduc, Alberta. Unifor represents 978 workers at the Annex Engine Plant which produces the 6.8-litre and 7.3-litre engines for use in the F-Series of pick-up trucks. There are 756 workers at the Essex Engine Plant which produces the 5.0L V8 engine. |
Ford, Unifor reach tentative agreement, averting Breana NobleKalea The Detroit News Unifor, the autoworkers' union in Canada, and Ford Motor Co. said Tuesday night they had struck a tentative agreement, averting a strike for the Dearborn automaker in a second North American country. Details on the deal won't be presented until after they are shared with Unifor members at ratification meetings being held "in the near future," according to a news release. The parties early Tuesday morning had agreed to extend the talks 24 hours after the original deadline of 11:59 p.m. Monday, with Unifor instructing its members to remain at work unless they received alternate instructions from the union. “We believe that this tentative agreement, endorsed by the entire master bargaining committee, addresses all of the items raised by members in preparation for this round of collective bargaining,” Unifor National President Lana Payne said in a statement. “We believe that this agreement will solidify the foundations on which we will continue to bargain gains for generations of autoworkers in Canada.” Ford of Canada said in a statement sent by spokesperson Said Deep: "Ford of Canada and Unifor have reached a tentative agreement on a three-year national labour contract covering more than 5,000 unionized employees in Canada." "The agreement is subject to ratification by Ford-Unifor members," the statement said. "To respect the ratification process, Ford of Canada will not discuss the specifics of the tentative agreement." Ford on Monday had presented a "substantive" offer "minutes before the deadline," according to a Unifor statement sent by spokesperson Kathleen O'Keefe at the time, which also noted "members should continue to maintain strike readiness." Payne had said on Monday if the union did strike, all of its 5,600 members at Ford would have been on the picket line at Oakville Assembly Plant, two engine plants in Windsor, parts and distribution centers, offices and technical units. Downtime at those plants could have had implications for production at plants in the United States. “In addition to reaching a master agreement, our members at each Ford location face their own unique set of issues that needed to be resolved by our committees at the bargaining table,” Unifor Ford Master Bargaining Chair John D’Agnolo said in a statement. “This agreement makes the kind of gains our members need today and adds greater financial security for the future.” Obtaining an agreement without a strike action juxtaposes with the United Auto Workers' negotiations strategy. Unifor's approach was more traditional, selecting a lead company to start the pattern with the threat of a national strike if discussions stalled. Meanwhile, the UAW opted to continue talks with all three of the Detroit automakers and on Friday began executing its "stand-up strike" strategy. It has sent one plant on strike from each of the companies with the risk the union could add more as soon as noon on Friday if "substantial progress" isn't made by then. "It looks like Ford was very motivated to secure a deal and Unifor proved a willing dance partner," said Larry Savage, a labor studies professor at Brock University in Ontario. "While we don't know the details of the tentative agreement, we should expect Canadian autoworkers to have made significant gains in this round of bargaining." The question remains if those gains, whatever they are, will be enough to have the agreement ratified by members since the UAW's "militant posture" has raised autoworker expectations, Savage said. "You can bet that the content of that deal is going to be judged relative to what UAW members are expected to secure south of the border." The breakthrough in Canada may serve as a sort of morale booster at Ford and an incentive to get a deal done with the UAW, said Marick Masters, a management professor at Wayne State University. “The more clarity you can bring to the situation, the better at this point in time,” he said. “A strike would have only complicated the situation in the U.S., having adverse implications for Ford and perhaps necessitating the layoff of additional workers, and at the same time, it removes that as a source of Ford’s attention. They can now focus exclusively on negotiations in the U.S.” An agreement between Unifor and Ford without a strike doesn't necessarily mean the Canadian union had the superior strategy, Masters said, but the approaches do reflect the different circumstances in which the unions find themselves. "The UAW is operating in uncharted waters," he said. "The test of the wisdom of this strategy will be time. It's a risky strategy, and you're in a high-risk game. The downside is great. The upside is great. (UAW President) Shawn Fain's leadership is obviously on the line. Everything revolves around whether he gets a successful contract. If he doesn’t, he will probably have just one term in office." Fain was the first UAW president to be elected directly by the rank-and-file. Unifor's leadership is voted upon through locally elected delegates. "The union (Unifor) isn’t encumbered with the internal challenges the UAW has had," Masters said. The UAW "has brand new leadership at a pivotal time, which is more militant. They’re asking for a whole lot. I think they have to know that some of these issues are nonstarters. If they’re insistent on all of that along with the wage increase, in-progression and tiers, they're a long way off from an agreement." Brock University's Savage said the unions have "overlapping priorities," but there are some key differences and Unifor's leadership could see that "gap is significant enough to make a different set of strategic choices." For example, Unifor selected Ford as its focus initially, unlike the UAW, he said. Unifor also hasn’t publicly released what it wants to see from the automakers in terms of wages and other economic gains. "They have made some very different strategic choices,” Savage said. “It sounds like they've been in contact with one another, but there doesn't seem to be any high level of coordination.” There also are issues that affect Unifor's negotiations to a lesser extent, Masters said. For example, the UAW wants to see all of its Detroit Three members receive retirement health care coverage. Canada, meanwhile, has a publicly funded health care system. Additionally, the automakers have announced billions of dollars in commitments to build electric vehicles at its Canadian assembly plants. Stellantis NV is building a battery plant with LG Energy Solution in Windsor as well. In the United States, though, sites like the idled Jeep Cherokee plant in Belvidere, Illinois, and Trenton Engine Complex could be at risk without product promises. The Canadian government has played a more direct role securing an electric-vehicle future for Unifor members, Masters said. Although the White House says it's sending top aids to Detroit to help broker an agreement, the U.S. federal government is more disconnected from granting subsidies and incentives to specific manufacturers. Still, both Unifor and the UAW are seeking increased wages and improved pensions following high rates of inflation, job security and support to transition workers from building internal combustion engine vehicles and their parts to EVs. "The contract," Masters said about Unifor's agreement, "could offer insights into with what Ford might be forthcoming in the U.S." To the UAW, the Blue Oval has offered at least 20% wage increases over four and a half years, a four-year progression to the top wage, a $20 per hour starting wage for temporary employees and the return of a cost-of-living allowance. Unifor's tentative agreement came as the United Auto Workers' strike against all three Detroit automakers in the United States headed toward its sixth day. Unifor in August announced that it had selected Ford to serve as the lead company with which it would bargain to model contracts with the other automakers. Unifor represents around 18,000 autoworkers at Ford, General Motors Co. and Stellantis. |
UAW justifies wage demands Story by The Canadian NEW YORK (AP) — It’s been a central argument for the United Auto Workers union: If Detroit's three automakers raised CEO pay by 40% over the past four years, workers should get similar raises. UAW President Shawn Fain has repeatedly cited the figure, contrasting it with the 6% pay raises autoworkers have received since their last contract in 2019. He opened negotiations with a demand for a similar 40% wage increase over four years, along with the return of pensions and cost of living increases. The UAW has since lowered its demand to a 36% wage increase but the two sides remain far apart in contract talks, triggering a strike. Fain's focus on CEO pay is part of a growing trend of emboldened labor unions citing the wealth gap between workers and the top bosses to bolster demand for better pay and working conditions. In June, Netflix shareholders rejected executive pay packages in a nonbinding vote, just days after the Writers Guild of America wrote letters urging investors to vote against the pay proposals, saying it would be inappropriate amid Hollywood's ongoing strike by writers. The WGA wrote similar letters targeting the executive pay at Comcast and NBCUniversal. Fain has pushed back against arguments that a big pay bump for the union would jack up costs of vehicles and put the Big Three automakers — General Motors, Ford and Stellantis (formerly Chrysler) — at a disadvantage against foreign competitors with lower-cost workforces in the race to transition to electric vehicles. “The reason we ask for 40% pay increases is because in the last four years alone, the CEO pay went up 40%. They’re already millionaires," Fain told CBS’ “Face the Nation” on Sunday. “Our demands are just. We’re asking for our fair share in this economy and the fruits of our labor." CEO pay has ballooned for decades, while wages for ordinary workers have lagged. But did the Big Three chief executives really get 40% pay increases? Not exactly. “I don’t know where the 40% came from,” said General Motors CEO Mary Barra at a new conference when asked if the UAW’s numbers were accurate. Executive pay is notoriously complicated to calculate because so much of it comes in the form of stock grants or stock options. A detailed look at the compensation packages at all three companies shows how the UAW's claim both overstates and understates reality, depending on the view. THE BIG THREE CEO PAY PACKAGES Barra, the only one of the three who held the role since 2019, is the highest paid, with a compensation package of worth $28.98 million in 2022. The single biggest component was $14.62 million in stock grants, which vest over three years and whose ultimate value depends on stock performance and other metrics. Her pay has increased 34% since 2019, according data from public filings analyzed for AP by Equilar. Ford CEO James Farley received nearly $21 million in total compensation in 2022, a 21% increase over the $17.4 million then-CEO Jim Hackett received in 2019, according to the company's proxy statements. Farley's package last year included $15.14 million in stock awards, which also vest over three years with an ultimate value dependent on performance. Where the the comparison gets complicated is at Stellantis, which was formed in 2021 with the merger of Italian-American conglomerate Fiat Chrysler Automobiles and French PSA Group. Because it is a European company, the way Stellantis discloses executive pay differs significantly from GM and Ford. In its annual renumeration report, Stellantis reported CEO Carlos Tavares' 2022 pay was 23.46 million euros. That's a nearly 77% increase over then Fiat Chrysler CEO Mike Manley's 2019 pay of 13.28 million euros. Those are the numbers used by the UAW when it calculated that three automakers have, collectively, increased CEO pay by 40.1% since 2019, according to the methodology the union provided to The AP. But there's a catch: Stellantis' figures reflect “realized pay,” which include the value of previously granted equity that vested during the reporting year. U.S. companies, in contrast, use grant date value of stock packages awarded to executives during the reporting year. In its analysis, Equilar used the “grant date” method to make an equivalent comparison between all three CEOs. By that measure, Tavares' 2022 compensation was in 21.95 million euros in 2022, including 10.9 million in stock awards with a three-year vesting period. That's actually 24% decline from Manley's compensation package in 2019, which was 29.04 million euros, according to Equilar. THE VOLATILITY OF CEO PAY So, is Tavares really making less than Manley was four years ago? Not really. That's because in some years, talking about a CEO's “realized pay” can obscure exorbitant pay packages approved by company boards. Take Tavares' 2021 compensation package, which included special incentive award of 25 million euros in cash as well as stock worth 19.56 million euros — all contingent on long-term performance goals — granted to Tavares in recognition of “his essential role” in leading the company through the merger. That one-time award, which came on top of millions of more in regular compensation, alone pushed Tavares’ 2021 compensation package far above what Manley got in 2019. Stellantis shareholders voted 52.1% to reject the pay proposal in their annual meeting, though the vote was only advisory and the board approved his package anyway. The CEOs of GM and Ford also saw their compensation packages peak in 2021, before declining slightly in 2022. HOW DOES ALL THIS COMPARE TO REGULAR WORKER PAY? However you slice the numbers, the gap between CEO pay and rank-and-file workers at all three companies is gigantic. At GM, the median worker pay was $80,034 in 2022. It would take that worker 362 years to make Barra's annual compensation. At Ford, where the median pay was $74, 691, it would take 281 years. At Stellantis, with a median pay of 64,328 euros, it would take 365 years, although the company noted its annual report that the disparity includes expenses related to Tavares' one-time grant. Excluding that, the pay ratio is 298-1. How extreme that disparity? It depends on the comparison. It's far above the typical pay gap at S&P 500 companies, which was 186-1 according to AP's annual CEO pay survey, which uses data analyzed by Equilar. And it's astronomical by historical standards. According to a study of the 350 largest publicly traded U.S. firms by the left-leaning Economic Policy Institute, the CEO-to-Worker pay ratio was just 15-1 in 1965. The automakers, for their part, emphasize that their foreign competitors pay their workers much less. Including benefits, workers at the Detroit 3 automakers receive around $60 an hour, according to Harry Katz, a labor professor at Cornell University. At foreign-based automakers with U.S. factories, the compensation is about $40 to $45. Then there's Tesla. CEO Elon Musk's 2022 compensation was reported as zero in the company's proxy statement, rendering its official pay ratio meaningless. Of course, that's because Tesla hasn't awarded Musk new packages since a 2018 long-term compensation plan that could potentially be worth more than $50 billion and is facing a legal challenge from shareholders. But the proxy offers glimpse at the mind-boggling wealth disparity between its nonunion workers and one of the world's richest men. The filing reported Musk's total “realized compensation” in 2021 at more than $737 million. A typical Tesla worker earned $40,723 that year. According to the proxy, for that worker to make Musk's “realized compensation” that year, it would take more than 18,000 years. ______ This story has been corrected to reflect Ford’s CEO and his compensation in 2019. The CEO was Jim Hackett, not William Clay Ford, and his compensation was $17.4 million, not $16.76 million. |
UAW strike continues Friday; The Detroit News Three facilities — one from each of the Detroit Three automakers, for the first time in history — remain struck Friday morning after the United Auto Workers contract expired at midnight. The UAW walkouts involve more than 12,900 workers total, split between Ford Motor Co.'s Bronco plant in Wayne, Stellantis NV's Jeep Wrangler plant in Toledo and a General Motor Co. plant in Missouri. There is no bargaining scheduled for Friday. Speaking on CNBC early Friday, GM CEO Mary Barra said that even a single plant going down could have a ripple effect. But she also said that she believed the strike could be resolved "very quickly," noting the "historic offer on the table." "Our GM team members who are representing have told me time and time again that job security is very important to them," Barra said in one of the first hits of what was poised to be a morning-long media blitz. "How you get job security is making sure you have beautifully designed cars, trucks and crossovers that people want to buy. We have those right now for all. All of our vehicles are in strong demand, both our (internal combustion engine) portfolio and our EV portfolios, so we got to get back to work so we don't lose ground." On the line seven hours in, pickets marched at the Michigan Avenue entrances of Ford's Michigan Assembly Plant. Motorists driving by honked their horns as a show of support as TV news trucks filled the median of the street. Striking workers were also getting support from politicians. Democrats in Michigan's legislature signaled their support for the workers, encouraging a quick resolution to the strike. "Michigan’s economy benefits when workers and industry negotiate together, in good faith, to reach consensus," Michigan House Speaker Joe Tate said in a statement released just moments after employees walked out, adding that he wants to see a fair contract for the UAW that "maintains a competitive edge" for the automakers. "The auto industry is Michigan’s legacy and its future, and there is surely a path forward that ensures our workers and our economy can continue to thrive," he continued. President Joe Biden is expected to speak on the strike later today. |
UAW planning targeted strike of Kalea Hall Local United Auto Workers leaders were told in a call with leadership Tuesday night that the union plans a targeted strike of specific plants operated by each of the three Detroit automakers if the sides don't reach tentative agreements by the contract deadline, according to two sources familiar with the matter. The UAW's strategy is slated to unfold if tentative agreements with each of the automakers aren’t reached by 11:59 p.m. Thursday when their current contracts expire. UAW President Shawn Fain is set to have a 5 p.m. Facebook livestream on Wednesday, when he is expected to update members on negotiations and potential strike strategy. He’s already said the union will strike any company that doesn’t have a tentative agreement by the deadline. Fain is slated to appear at a rally with U.S. Sen. Bernie Sanders, an independent from Vermont, in Detroit after the deadline on Friday, according to a flyer obtained by The Detroit News. “The ultimate goal,” said Marick Masters, a management professor at Wayne State University, “is going to be, if they have to use a strike, is to strike in such a way that is going to get them the best deal from one of the companies in the shortest amount of time to take to the other companies as a template.” Choosing to strike a single plant at each automaker at least initially could, as a result, save funds, but it has drawbacks, too. “That’s a weaker form of the strike,” Masters said. “It takes longer to be felt. It depends on what rolls out in terms of affecting other production sites. It risks dividing the membership.” Solidarity and standing united have been frequent phrases echoed by Fain and other UAW leaders at practice pickets, rallies and other events leading up to the deadline. For a strike to be effective against a single plant, “it has got to have product that’s really critical,” Masters said. “There’s no magic number of plants. They would want to strike the plants that are going to maximize the impact on the company so that if they threaten the company with enough losses that they concede.” How much the automakers could weather strikes partly depends on inventories. In a post shared earlier this month, Michelle Krebs, senior analyst at auto information resource Cox Automotive Inc., said Stellantis' inventories were "bloated" and the highest in the industry. At the end of July, Jeep was at 95 days of supply, Ford was at 77, GMC was at 66 and Chevrolet was at 51, below the industry average of 58 days. Oftentimes, the most impactful action is a national strike, Masters said. In 2019, all UAW-represented employees at GM went on strike for 40 days. It cost GM $3.6 billion, the company said. That contract ultimately resulted in two 3% wage gains, a timeline for rolling over temporary workers to full-time positions, a record $11,000 ratification bonus and saving the Detroit-Hamtramck Assembly Plant from closure. But after four more years of major profits, though, UAW leaders say the time is now to recover what was bargained away to save the companies during the Great Recession and bankruptcies. Its initial proposal from more than a month ago sought a 46% wage increase (40% not compounded), though that request since has dropped at least to 36% not compounded. It also has been demanding pensions and retiree health care for all workers, 90 days for full-time workers to get to the top pay and cost-of-living wage adjustments. Fain on Monday on CNN characterized the progress as "slow." GM President Mark Reuss called these labor negotiations "truly historic" at the Automotive News Congress event in Detroit on Tuesday: "We've made a lot of progress over the last few days. "From a GM standpoint, we're here to win, and this is a very intense marketplace. The goal is to reward our team members, our employees, our stakeholders, and we also have to invest in the future, which we're doing in that intense marketplace to win." If the union does strike all three, it’s on the hook to pay about 145,000 members a $500 stipend per week. Although its Strike and Defense Fund sits at more than $825 million, it would cover up to 11 weeks of strike pay — not factoring in additional expenses related to health care for striking workers or other ongoing strikes in which the union is involved. There’s a significant impact on the greater economy, as well: Anderson Economic Group estimates a 10-day strike at all three companies could cost the U.S. economy $5.6 billion. |
The United Auto Workers may September 13, 2023 That morally grotesque and growing inequality is exactly what has been occurring in the automobile industry for decades. This time, however, under new union leadership, the members of the United Auto Workers (UAW) are fighting back. If the big three automakers (General Motors, Ford and Stellantis) do not provide reasonable contracts to address longstanding inequities in the industry, there will be a strike – and all of us should support the strikers. The UAW members will be fighting not only for themselves but against a corporate culture of arrogance, cruelty and selfishness causing massive and unnecessary pain for the majority of working families throughout the country. Their fight against corporate greed is our fight. Their victory will resonate all across the economy, impact millions of workers from coast to coast and help create a more just and equitable economy. What are some of the issues that are pushing UAW members to strike? At the top of the list is the extraordinary level of corporate greed shown by industry leaders. In the first half of 2023 the big three automakers made a combined $21bn in profits – up 80% from the same time period last year. Over the past decade, these same companies made some $250bn in profits in North America alone. Yet last year, the big three spent $9bn – not to improve the lives of their workers, not to make their factories safer, but on stock buybacks and dividends to make their wealthy executives and stockholders even richer. Further, while many of their workers are struggling to survive financially, last year the CEO of General Motors raked in about $29m in total compensation, the CEO of Ford approximately $21m and the CEO of Stellantis over $25m. Incredibly, over the last four years, CEO pay at the big three has increased by more than 40%. While auto industry CEOs and stockholders make out like bandits, the workers who build the vehicles earn totally inadequate wages and, over the last several decades, have fallen further and further behind. There was once a time when a union job in the automobile industry was the gold standard for the working class of this country. Those days are long gone. The average starting wage at the big three today is around $17 an hour – less than a number of non-union auto plants around the country. The top wage is $32.32 an hour. Unbelievably, over the last 20 years, the average wage for American autoworkers has decreased by 30% after adjusting for inflation. The reality is that autoworkers at the big three are earning less today than they did 15 years ago. What the UAW is fighting for is not radical. It is the totally reasonable demand that autoworkers, who have made enormous financial sacrifices over the past 40 years, finally receive a fair share of the record-breaking profits their labor has generated. What does that mean? It means that if the big three can afford to give a pay raise of more than 40% to their CEOs, they should be able to provide the same type of pay raise for the autoworkers who make their products. And let’s be clear. While decent wages are a key demand for the UAW, there are other important contract changes that the union has proposed. The union, quite appropriately, wants to get rid of the two-tier system under which newer workers earn lower wages and receive less generous benefits than others doing the same exact work. They want to end the use of “temporary workers” who are ruthlessly exploited and treated like second-class citizens. They want to make sure that all autoworkers receive a decent pension plan and retiree health benefits so that they can retire with the respect and the dignity they deserve. They want to make sure that autoworkers have the right to strike when the big three announce that they will be shutting down a plant. Over the past 20 years, the big three have shut down 65 factories and shipped tens of thousands of jobs overseas where they can pay workers starvation wages with no benefits. The union also wants to make sure, as the industry proposes to build 10 new electric vehicle battery plants, that the workers in these plants become part of the UAW and receive the same wages and benefits as union members. As we transition away from fossil fuels and move toward electric vehicles in the fight to combat the climate crisis, the UAW wants to make sure that the green jobs of the future are well-paying, union jobs. The CEOs of the big three and their masters on Wall Street must understand they cannot have it all. Decade after decade their greed has decimated the middle class, hollowed out communities throughout our country and caused massive economic suffering for the working class of America. These CEOs have created a destructive race to the bottom in a global quest for cheap labor and lax environmental standards. Enough is enough! Let us stand together to put an end to corporate greed and start rebuilding our struggling middle class. Let us stand in solidarity with the UAW and create an economy that works for all, not just the privileged few.
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UAW president Fain sees Breana Noble United Auto Workers President Shawn Fain said Friday the Detroit Three automakers are showing signs of movement toward the union's demands less than a week from the current contracts' expiration date. His comments came hours after Jeep maker Stellantis NV submitted its first economics counterproposal to the union's demands from last month that included a 14.5% wage increase. Fain also shared that Ford Motor Co. had made updates to its proposal, including offering a cost-of-living wage adjustment, a shorter progression to the top wage and a cap on the use of temporary employees. "I want to be clear: This is movement," Fain said during a Facebook livestream. "We went from 9% to 14.5% at Stellantis. That's happening because we're putting on pressure. "But I want to be clear about something else, too. A 14.5% increase over four years is deeply inadequate. It doesn't make up for inflation, it doesn't make up for decades of falling wages and it doesn't reflect the massive profits we've generated for this company." During his address, Fain shook his head while donning a "Don't want to strike, but I will" button in front of a full office trashcan labeled "Big Three Proposals." Stellantis' counterproposal is above the wage increases offered by its crosstown rivals. Ford Motor Co. last week offered a 9% wage hike that it has since raised to 10%, and General Motors Co. on Thursday proposed a 10% boost. It, however, remains a far cry from the UAW's requested 46% increase (40% without compounding). Unlike the GM and Ford counters, Stellantis doesn't include additional lump-sum payments as part of its wage proposal. There are about 145,000 UAW members at the Detroit Three, including roughly 43,000 at Stellantis. Stellantis' proposal would bring the maximum wage for production operators to about $36.37 per hour by the end of a new agreement, up from the present $31.77. Stellantis declined to provide a breakdown of when the increases would occur. A flyer from the union also said that for UAW-represented salaried workers, the proposal offers only lump sum payments and no wage increases. "This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the U.S.," Mark Stewart, chief operating officer for Stellantis in North America, said in an email to employees on Friday. "It also protects the Company’s future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles." Meanwhile, "COLA is back," said Fain, announcing that Ford's latest offer included a cost-of-living wage adjustment. He, however, also characterized the formula as "deeply inadequate," saying it would provide no increases for 10 of the past 13 years and is projected to add no raises over the next four years. Ford's original proposal featured lump-sum bonuses with an initial first-year payment of $6,000. Another $6,000 would've been spread throughout the contract life. By incorporating an adjustment for inflation in workers' wages instead, the benefit has the potential to compound. Offers from Stellantis and GM looked similar to Ford's first proposal. Stellantis suggested a one-time $6,000 inflation protection payment in year one and $4,500 in inflation protection payments over the final three years of the contract. GM offered an initial $6,000 and another $5,000 over the contract life. Ford also moved on the UAW's request for a shorter progression timeline to the top wage. Its latest proposal suggests five years instead of the current previous years. Its offer before that had stood at six years — the same offered by GM and Stellantis. The union wants workers to be at top wage after just 90 days like it was until the mid-1990s. The companies, meanwhile, have rejected the union's demand for all workers to receive a pension and health care in retirement. All three companies have proposed increasing the starting pay for temporary and supplemental employees to $20 per hour, up from as low as $15.78 per hour at Stellantis. Ford's latest offer includes an 8% cap on temps, but Fain was critical that none of the proposals create a pathway for temps to full-time positions. The union also has requested more paid time off, the right to strike in the event of a plant closure, and for what it calls the Working Family Protection Program that would effectively bring back what was known as the jobs bank where laid-off workers got paid for doing community service. Fain described a proposal from Ford that he says would allow the company "unilaterally" to outsource work at any time. The Dearborn automaker also included a two-week parental leave; the company currently offers only maternity leave to hourly employees. Stellantis and GM have offered to make Juneteenth a paid holiday. Ford spokeswoman Jessica Enoch, in a statement earlier on Friday, said the Blue Oval remains "committed to creating opportunity for every UAW worker to build a great career and become a full-time permanent Ford employee with good middle-class wages and benefits." In a statement, GM spokesperson David Barnas said: “Our offer has been developed considering everything in our environment, including competitor offers and what is important to our team members. It includes well-deserved wage improvements that far exceed the 2019 agreement. We still have work to do, but we will continue to bargain in good faith with the UAW and work towards an outcome that recognizes the vital role of our team members in GM’s success.” The results continue to show the parties have a large gap they must close in the coming days to avoid a work stoppage, said Marick Masters, a management professor at Wayne State University. "They’re still very far apart," he said. "They'll need an unexpected breakthrough to avoid a strike." On the surface, a 14.5% pay increase to get over $37 per hour would be a positive outcome if it was paired with a cost-of-living wage adjustment, said Lynda Jackson, 36, of Detroit, a team leader at Stellantis' Jefferson North Assembly Plant in Detroit and 13-year UAW member. But given that a late-July proposal from her employer suggested workers sharing a larger portion of health care costs, she would want to see a more complete picture. "The 14.5% increase," she said, "doesn’t mean anything if we can't see what it is you're trying to take away." She also wants to see workers like herself receive a pension like the workers before her did and for supplemental workers to have job security. "I kind of feel like they threw something together because of the unfair practice charge the UAW put on them. Like, 'Hey, we offered them something.' There wasn’t a whole lot of substance." With less than a week before the 11:59 p.m. expiration time on Thursday, Stellantis is the final of the Detroit Three automakers to submit its proposal after the UAW provided its demands last month. Last week, the UAW submitted unfair labor practice charges against Stellantis and GM with the National Labor Relations Board, because it still had not received an economic counterproposal from those two companies. Fain this week said the union will strike any of the companies with which it doesn't have a tentative agreement by the time the current contract expires. He confirmed on the livestream that the union could strike all three, if needed. The cost of that could be substantial. Estimates from the East Lansing-based Anderson Economic Group, a consulting firm that also does business with the automakers, suggest a 10-day strike at all three could represent a total loss of $5.6 billion to the economy. CEO Patrick Anderson has called a potential UAW strike of all three Detroit automakers an "extremely risky" proposition for the union. But with less than a week to go before the deadline, he wrote in a note Friday that the group believes a strike against at least one of the companies is likely. "The difference between the automakers and the unions on wages is a gap that could be closed," he wrote. "The differences involving non-wage demands are a gulf, not a gap." Non-wage demands such as restoration of a cost-of-living adjustment and defined benefit pension plans, he believes, "raise the risk of a contract that causes a bankruptcy-level risk for the automakers when a future downturn occurs." |
WD-40 says it will not be banned, September 11, 2023 American-made WD-40 already complies with Canada's new rules limiting volatile organic compounds in household goods The WD-40 Company issued a statement Thursday saying its products would still be available in Canada under a new formulation after Ottawa imposes new restrictions on the compound used in the original formula of the hugely popular penetrating oil spray. In January 2022, details of new regulations in the Canadian Environmental Protection Act were published in the Canada Gazette, aiming to set maximum concentrations for volatile organic compounds (VOCs) — certain chemicals with boiling points low enough to allow them to exist as an atmospheric vapour at room temperature. That led to concerns showing up on social media from fans of the lubricant and rust-prevention spray that the new regulations would effectively ban WD-40 when they come into force in January 2024. “It has recently come to our attention that false information is circulating online that WD-40 brand products are being banned in Canada,” read the company’s statement. “This is not a true statement. Although there are currently regulatory changes taking place in Canada, we have been aware of these regulatory changes and have been preparing for them for some time.” The statement stated that all WD-40 products will comply with the new regulations and will still be available for sale in the new year. While most VOCs found on earth are produced by living organisms, Canada’s new regulations limit manufactured sources, specifically solvents used by many industries. Aside from spray lubricants, the new regulations will also impact health and beauty products such as aerosol deodorant, hair spray and perfumes, household products including air fresheners, dusters, disinfectants and floor and carpet cleaners, and industrial chemicals like brake cleaner, paint remover, cleaners, lubricants and spray paints. VOCs are considered pollutants that contribute to the formation of smog. Under Canada’s new regulations, any aerosol multi-purpose or penetrating non-solid lubricant will be limited to a maximum VOC concentration of 25 per cent. Regulations limiting VOCs in certain U.S. states prompted many manufacturers to reformulate their products. WD-40 sold in the U.S. already complies with Canadian rules. According to Material Safety Data Sheets (MSDS) obtained by the National Post, WD-40 formulations sold in Canada contain between 50 and 70 per cent aliphatic hydrocarbons. Conversely, the MSDS for WD-40 sold in the U.S. specifically lists the product as using between 10 and 20 per cent low-vapour pressure aliphatic hydrocarbons in its formulations, which is well below Canada’s impending statutory limits. National Post |
GM offers UAW workers a David Welch, Bloomberg News An attendee holds a United Auto Workers (UAW) sign during a campaign rally for Randy Bryce, Democratic U.S. Representative candidate from Wisconsin, not pictured, in Racine, Wisconsin, U.S., on Saturday, Feb. 24, 2018. Bryce, a union ironworker, is hoping to defeat Republican U.S. House Speaker Paul Ryan to represent Wisconsin's 1st district. Photographer: Daniel Acker/Bloomberg , Bloomberg General Motors Co. made a counteroffer to the United Auto Workers union, proposing a total 16 per cent pay raise for the top wage earners in its plants and a 56 per cent hike for newer employees who make less, the company said in a statement. UAW President Shawn Fain reacted quickly saying the proposal is “insulting.” The pay raise is slightly higher than what rival Ford Motor Co. offered the union, but is still well short of the 46 per cent raise that would result from the UAW’s opening bid. GM also included US$11,000 in inflation protection payments, a shortened period to the top wage and better pay for temporary staff. GM made the offer with a week to go before the union’s contract with the automaker and rivals Ford and Stellantis NV expires and all companies far apart from Fain’s opening proposal. In addition to a much bigger raise, Fain wants to reinstate guaranteed pensions, cost-of-living allowances and retiree healthcare. “After refusing to bargain in good faith for the past six weeks, only after having federal labour board charges filed against them, GM has come to the table with an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers,” Fain said in a statement. “GM either doesn’t care or isn’t listening when we say we need economic justice. The clock is ticking. Stop wasting our members’ time. Tick tock.” The GM offer is slightly better than Ford’s proposal, which Fain rejected and said, “insults our very worth.” The GM and Ford offers do not include retiree benefits, which went away in 2007 for new hires. Workers hired after 2006 get 401K plans. Fain’s initial proposal brought back retiree benefits, which are a big piece of the added expense for labour that automakers believe would drive up costs by $80 billion over four years. GM’s offered to give inflation protection with a $6,000 one-time payment and another $5,000 over the life of the agreement. That’s $1,000 less in total than Ford offered. Both companies give entry-level workers the top wage of about $32 an hour after six years. GM’s offer would get them to a minimum of $28 after four years. GM also offered to recognize Juneteenth as a paid holiday. GM shares were down 1 per cent at 12:39 p.m. Thursday in New York. |
UAW president says union has Story by Michael Wayland
DETROIT — United Auto Workers has filed unfair labor practice charges against automakers General Motors and Stellantis to the National Labor Relations Board for not bargaining with the union in good faith or a timely manner, UAW President Shawn Fain said Thursday night. The Thursday filings followed the companies not responding to the union's demands in a timely matter, Fain said. The union did not file a complaint against Ford Motor, as Fain said the company responded to the UAW's demands with a counterproposal he heavily criticized. "GM and Stellantis' willful refusal to bargain in good faith is not only insulting and counterproductive, it's also illegal," Fain said during a Facebook Live. "That's why today, our union filed unfair labor practice charges, or ULPs, against both GM and Stellantis with the National Labor Relations Board." Stellantis said it has not yet received the NLRB complaint, "but is shocked by Mr. Fain's claims that we have not bargained in good faith." "This is a claim with no basis in fact, and we are disappointed to learn that Mr. Fain is more focused on filing frivolous legal charges than on actual bargaining," the company said in an emailed statement. "We will vigorously defend this charge when the time comes, but right now we are more focused on continuing to bargain in good faith for a new agreement. We will not allow Mr. Fain's tactics to distract us from that important work to secure the future for our employees." GM's statement echoed Stellantis' regarding the NLRB charges: "We are surprised by and strongly refute the NLRB charge filed by the International UAW. We believe it has no merit and is an insult to the bargaining committees. We have been hyper-focused on negotiating directly and in good faith with the UAW and are making progress," said Gerald Johnson, GM executive vice president of global manufacturing. The NLRB also did not immediately respond regarding additional details of the filings. Regarding Ford's recent proposal, Fain called it "concessionary." He said it included a 9% wage increase over the four-year term of the deal, one-time lump sum bonuses and unlimited use of temporary workers who are paid less and don't have the same benefits. The company also rejected "all of" the union's job security proposals and "quality of life proposals" such as additional paid holidays and a shorter work week, Fain said. "Ford's wage proposals not only failed to meet our needs, it insults our very worth," Fain said. In response to the comments, Ford released a lengthy statement by CEO Jim Farley and additional details of its proposal compared with the prior negotiations four years ago, including 15% guaranteed combined wage increases and lump sum payments. "This would be an important deal for our workers, and it would allow for the continuation of Ford's unique position as the most American automaker — and give us the flexibility we need within our manufacturing footprint to respond to customer demand as the industry transforms," Farley said in the publicly released statement. "This offer would also allow Ford to compete, invest in new products, grow and share that future success with our employees through profit sharing." Ford noted that its proposal includes a six-year grow-in period to top wages compared to eight years; $12,000 "cost-of-living" bonuses over the span of the deal; $5,500 ratification bonuses; 25% increase in base wages for temporary workers; and other improvements over the last contract but not in line with the union's previous demands. The union's demands have included a 46% wage increase, restoration of traditional pensions, cost-of-living increases, reducing the workweek to 32 hours from 40 and increasing retiree benefits. |
Unifor picks Ford for pattern Pensions, wage improvements, investments, supports for EV transition main priorities Dale Molnar · Unifor president Lana Payne says Ford Motor Company of Canada Ltd. has been chosen as the target for negotiations as the union looks to work out new contracts for autoworkers. (CBC News) Unifor has chosen the Ford Motor Company of Canada Ltd. as the target for negotiations as the union looks to work out new contracts for autoworkers. "I was encouraged by Ford Motor Company's transparency with our union on product programs and business plans," Unifor president Lana Payne said during a news conference in Toronto on Tuesday afternoon. Three automakers — Ford, Stellantis and General Motors — engage in pattern bargaining, where a deal with the target company will set the template for agreements with other two. Across the three companies, Unifor represents more than 19,600 autoworkers. Payne suggested on Aug. 10 at the kickoff of talks that Ford would likely be the choice because of co-operation Ford had already shown. She said progress has already been made at the subcommittee levels since talks began in earnest on Aug. 22. Payne repeated four main priorities for the union during these negotiations: pensions, wage improvements, investments and supports for the transition to producing electric vehicles. Bargaining comes this time while the United Auto Workers (UAW) is also negotiating deals in the U.S. and analysts are predicting strikes at all Detroit Three automakers. Tallying the costs of striking Patrick Anderson, chief executive officer of Anderson Economic Group, a consulting firm that does work in the auto industry, predicts a 10-day strike at all three of the Detroit automakers would cost the companies and workers $5.6 billion US. He said it would also affect Canada. "It's a serious interest to people who are in Ontario and Michigan, Ohio, Indiana, and it is something that won't stay on one side of the border," said Anderson. Over the weekend, autoworkers in Ontario voted 99 per cent in favour of striking. Unifor bargaining teams for GM and Stellantis will now go home, while the Ford bargaining team, chaired by Local 200 president John D'Agnolo, will continue talks in Toronto. D'Agnolo was pleased with the announcement and said he will collaborate with Stellantis chair James Stewart and GM chair Jason Gale every day during the negotiations. Both Gale and Stewart offered their support and congratulations to the Ford committee. "I'm looking forward to it. We have a great team led by Lana and the national staff ... and I can't wait to get at it," said D'Agnolo. The strike deadline is Sept.18. |
Canada's Unifor joins UAW in Jordyn Grzelewski Members of Unifor, the union representing autoworkers in Canada, have voted to authorize strikes against Ford Motor Co., General Motors Co. and Stellantis NV if agreements on new contracts aren't reached next month. The union reported that Unifor members voted nearly 99% in favor at Ford, 99% at GM and more than 98% at Stellantis. Unifor's collective bargaining agreements with the automakers expire at 11:59 p.m. Sept. 18. “Canadian autoworkers have sent a strong message to D3 automakers that they are united behind our bargaining committees in an effort to improve pensions, increase wages, and secure good, union jobs in the EV future,” Unifor President Lana Payne said in a statement. “Our bargaining teams are set to resume negotiations with the unwavering support of Unifor members across the auto sector. Make no mistake, our union is fully prepared to take any and all necessary action to achieve our collective bargaining objectives.” The union, which started bargaining with the companies earlier this month, is resuming negotiations after pausing to hold the strike authorization votes over the weekend. Unifor represents about 18,000 autoworkers at the Detroit auto companies. Unifor's strike authorization comes days after members of the United Auto Workers, which represents Detroit Three autoworkers in the United States, also voted overwhelmingly in favor of authorizing strikes against the companies. The UAW's contracts with the companies expire at 11:59 p.m. Sept. 14. Strike authorization votes are formalities and don't necessarily mean a strike will occur, but they give unions leverage in negotiations and authorize leaders to call a walkout if deemed necessary. The two unions are in negotiations with the Detroit automakers at the same time for the first time in a generation. |
Unifor Detroit Three Unifor AutoTalks TORONTO— Unifor members at Ford Motor Company, General Motors and Stellantis have delivered overwhelming strike mandates, authorizing their bargaining committees to take job action, if needed, to achieve fair collective agreements with the Detroit Three (D3). “Canadian autoworkers have sent a strong message to D3 automakers that they are united behind our bargaining committees in an effort to improve pensions, increase wages, and secure good, union jobs in the EV future,” said Unifor National President Lana Payne. “Our bargaining teams are set to resume negotiations with the unwavering support of Unifor members across the auto sector. Make no mistake, our union is fully prepared to take any and all necessary action to achieve our collective bargaining objectives.” Unifor paused negotiations to hold the strike votes over the course of the weekend. The results of the strike votes are tabulated and broken down by company below. Strike vote results Ford Motor Company: 98.9% in favour The current Detroit 3 collective agreements expire at 11:59 p.m. on September 18, 2023. The union opened formal negotiations with the automakers on August 10 in Toronto, representing 18,000 autoworkers covered by collective agreements. Unifor will continue to provide regular updates on the status of negotiations at autotalks.ca Unifor is Canada's largest union in the private sector and represents 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future. |
UAW president threatens Breana Noble Detroit — Dozens of United Auto Workers and supportive community members marched outside a Jeep Grand Cherokee plant here in a practice picket that will become real Sept. 15 if the Detroit Three automakers don't cooperate, the union's president said on Wednesday. "We've got 22 days until the deadline," UAW President Shawn Fain said at the gathering. "These companies better come to the table. The clock is ticking. I can tell you right now, every indication is that if they don't get their s--- together, we're going to be doing what we're going to do here in a little bit." Holding "Record profits, record contracts" signs and chanting, "Tick tock" and other phrases, a sea of red-clad workers gathered in a strip-mall parking lot off Conner Street with a backdrop of Stellanits NV's Mack Assembly Plant on the east side. The group walked in front of a nearby gate entrance to the plant. The picket that was organized by members wasn't a work stoppage, but was meant to bring together autoworkers around a core purpose and raise awareness of the union's demands for a new contract, organizers said. "Have you seen the price of a gallon of milk?" said Nathan Burks, 48, of Detroit, a UAW member of five years who works in skilled trades who says at $27.52 per hour, he's still a few years away from reaching the top of his pay scale. "It's more expensive to buy food that's healthy for you than the cheaper junk food. I can be making the same as an employee at Target. We used to be the powerhouses of the economy. Now we're not." The UAW's demands entail a 46% wage increase over four years for 145,000 employees, a 32-hour work week for 40 hours' pay, rolling over all current temporary/supplemental employees to full-time, and restoring cost-of-living adjustments, pensions and retiree health care for all. The total demands could increase total labor costs, including wages and benefits, to more than $100 per hour per worker. The automakers' current all-in labor costs are around $65 per hour compared to $55 at foreign automakers and $45 at Tesla Inc. "We're not asking to be millionaires," Fain said. "We're just asking for our fair share so we can survive." Fain said he's headed to similar events in the coming days with stops planned at Ford Motor Co.'s Kentucky Truck Plant and Louisville Assembly Plant on Thursday and Friday, respectively. Although the union hasn't declared a lead company, Fain says not to read into the locations of the rallies as they are based on his schedule and invitations from locals. The picket comes as the union is wrapping up strike authorization votes, the results of which are expected on Friday. Local unions that have posted their results show overwhelming support for the procedural vote. "The workers are pissed off and they're fed up," Fain said. "They want their share — not just our workers, workers everywhere, workers that don't have a voice right now, because they don't have a union." Shaheena Allen, 42, of Detroit, a UAW member of almost three years who works at the Mack plant, said she voted to support the strike authorization. "We're doing the same, equal work, and not getting the same equal pay," she said. "It's not right. We actively need better things for a contract, so why not (strike)?" Among the marchers was U.S. Rep. Rashida Tlaib, D-Detroit, who emphasized the sacrifices the UAW has made in previous contracts to keep the companies afloat. "Workers have saved our country over and over again," she said. "I can't understand in 2023, these CEOs are now being stingy. I looked. They're making record profits. Shareholders are getting their payouts. These folks are busting their butts every day, and they're not getting their fair share." In 2022, General Motors Co., Stellantis and Ford reported adjusted operating income in North America, respectively, of $13 billion, $15.2 billion and $9.2 billion. Stellantis' profit-sharing checks were the highest at $14,760, followed by GM workers receiving $12,750 and Ford's, $9,176. Temporary and supplemental workers, however, don't receive profit-sharing checks. Also on workers' minds is product allocation. Dan Steele, 30, of Toledo, Ohio, says he was laid off on Friday for a year from his job in materials delivery at Stellantis' Dundee Engine Plant. The automaker is investing $83 million there to produce a new 1.6-liter, I-4 turbocharged engine with direct fuel injection for two plug-in hybrid models it will sell in North America, but there's space for more after the automaker has ended production of the Tigershark 2.4-liter I-4 engine. "It is nerve-racking," Steele said. "We need (product), because I don't think Stellantis even wants to build anything here." Stellantis in previous statements has said it's committed to working with the UAW to negotiate a new agreement that balances workers' concerns and its vision to compete in the marketplace in the future. Other UAW members say they came out to show their support to leave behind a strong contract for future generations. "Workers fought to lay the foundation for me," said Charles Roberts, 54, of Detroit, who has been a UAW member for 30 years and is a continuous improvement lead at Mack. "I want to pay it forward, and give it back. It could be better for the younger workers." |
Retiree Gary Ellwood Passes
It is with great sadness that we inform you of the passing of Retiree Gary Ellwood. He passed away Thursday August 24, Gary retired October 1, 2004 with 38.2 years of service. Celebration Of Life Gathering Information for Garry Lorne Ellwood (mckersieearly.com) Obituary Loving husband to Mary Ann for 29 years, cherished Father of Terry (Lee Ann), Scott and Stepson Jerry (Lorna). Garry was an animal lover and a Nascar enthusiast. Garry was a proud worker for Ford Canada for 38 years. Family and friends are welcome to gather at the McKersie & Early Funeral Home to celebrate Garry’s life on Donations in honour of Garry can be made to the Heart and Stroke Foundation, Humane Society ( please see donation links below )
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‘No trucks in, no trucks out.’ Some 3,700 workers at 27 Metro stores have been on strike since July 29 after overwhelmingly voting against a tentative deal with company. By Josh Rubin Business Reporter As a strike by 3,700 workers at GTA Metro grocery stores nears the one-month mark, union members are turning up the heat by picketing at two of the grocery chain’s distribution warehouses. The company responded just hours later by filing an unfair labour practice complaint against the union. Picketing began at the two Etobicoke warehouses Wednesday morning, and a leading food industry expert said it could lead to shortages at some Metro stores which are still open. “Logistics could become an issue and we could see some shortages on shelves,” said Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University. “This is all about disrupting the business continuity. The backbone of any grocery company is its distribution centres and warehouses.” Members of Unifor Local 414 have been on strike since July 29, a day after rejecting a tentative agreement. At a rainy picket line Wednesday morning, Unifor national president Lana Payne said the goal was simple: Keep trucks from loading up at the warehouses. “No trucks in, no trucks out. No produce, no meat. This is part of their supply chain,” said Payne to loud cheers from a lively crowd of a few hundred picketers in the driveway of the Metro warehouse in Etobicoke. “In case this employer was not getting the message before today, they’re getting it now.” As Payne spoke, trucks could be seen idling at an underpass across the street from the warehouse. A spokesperson for Metro blasted the picketing at the warehouses which supply 247 still-open Metro and Food Basic stores across Ontario. “They are currently preventing all deliveries of fresh products to our stores which is unacceptable,” said Marie-Claude Bacon. “The distribution centres and the impacted stores are not on strike and their operations, which are critical, should not be interfered with.” Bacon said the company has been asking the union to come back to the bargaining table since Aug. 12, but the union has rejected those requests. Late Wednesday afternoon, the company said it had filed an unfair labour practice complaint against Unifor with the Ontario Labour Relations Board. “The union has refused to return to the bargaining table for the purpose of allowing Metro to present an offer in an effort to resolve the current labour conflict, despite repeated invitations on Metro’s part,” Bacon said in a written statement. “The Union has breached its duty to bargain in good faith and to make every reasonable effort to negotiate a collective agreement.” In an emailed statement, Payne criticized Metro’s complaint to the OLRB, and said the union would be review it with its lawyers. “What’s unfair is Metro’s refusal to provide decent work and pay to its 3,700 frontline grocery workers,” Payne said. It’s clear the two sides have given up hope of reaching an agreement at the bargaining table, and are now resorting to other tools, said Rafael Gomez, director of the Centre for Industrial Relations and Human Resources at the University of Toronto. For the union, it’s turning up the picketing heat. For the company, the legal heat. “This is two parties trying to increase the cost for each other,” he said. “In the modern context, this is getting ugly.” The OLRB, Gomez said, could issue an injunction barring the warehouse picketing, or order the two sides back to the negotiating table. They could even, he added, order binding arbitration, though that would be exceedingly rare. The company also said it’s considering seeking a court injunction to end the warehouse picketing. At one downtown Toronto Metro store Wednesday afternoon, customers were already starting to notice the impact of the warehouse picketing. “No broccoli or escarole?,” one disappointed customers asked a store employee, who shook their head in response. “Nah, we didn’t get the delivery today,” said the employee. “They’re protesting at our warehouse.” There were other missing items: The area usually filled with fresh Ontario corn on the cob was completely empty, and there were a few empty spots in the store’s meat department shelves. Unifor represents 3,700 full- and part-time employees at 27 Metro stores in the GTA. Those 27 stores are closed during the strike, but Metro also has several GTA non-Unifor stores that remain open. Union members had initially limited their picketing to the 27 closed stores, but stepped up their efforts last week and began picketing outside some of the open non-Unifor Metro locations. Last week, the union declined the company’s offer to meet with a provincially-appointed mediator saying Metro had shown no signs it was willing to improve upon a tentative deal rejected by Local 414 members. That rejection, announced July 28, prompted the strike. On the picket line, Payne said there’s no point in coming back to the table, arguing that the company has shown no sign of improving the already-rejected deal. “They haven’t proposed a decent offer yet. We’re not going to waste our time at the bargaining table until they understand how serious we are right now,” said Payne. One of the sticking points, said Local 414 president Gord Currie, is that members wanted an immediate reinstatement of the $2 an hour “hero pay” bonus that they got during the early part of the pandemic. “I said ‘when you take that away, there’s going to be a problem.’ They took it away, and here’s the problem now. We have 27 stores and angry members looking for that money back,” said Currie. “They want that money up front, but Metro isn’t listening. They need to wake up.” Metro has said the tentative agreement, which had been recommended by union leadership, would have given full-time and “senior” part-time workers raises totalling $3.75 an hour over the life of the four-year deal, while other part-timers would have seen raises totalling $2.65 an hour. The rejected deal gave full-time employees a $1.05 an hour raise in the first year of the deal, along with 90 cent raises in the following three years. Full-time employees at the 27 Metro stores in the GTA earn an average of $22.60 an hour, while part-timers get $16.62, according to Unifor. |
Wild horse: 800-hp, $300k Henry Payne Mustang is saddling up to take on Europe’s elite sports cars. Ford Motor Co. took the wraps off Thursday of a track-focused, 800-plus horsepower, estimated-$300,000 supercar version of the seventh-generation Mustang at the Pebble Beach Concours d'Elegance. Badged the Mustang GTD, it will compete with European track weapons like the Porsche 911 GT3 RS, Mercedes AMG GT Black and Aston Martin Vulcan. The carbon-fiber-skinned pony was developed by Ford racing partner Multimatic and contains many of the elements of Ford’s GT3 race car that will debut at IMSA’s Rolex 24 Hours of Daytona next January — including a huge rear swan wing and rear-mounted transmission. The GTD badge is a reference to IMSA’s GTD race class that the race car will compete in. Like the 2019 Multimatic-developed, mid-engine Ford GT Mk II, the 2025 GTD will be available as a limited-edition model late in 2024. “This is something that’s been in my head for five decades,” said Ford CEO Jim Farley, who moonlights as an amateur race driver. “The GTD takes on the best sports cars in the world.” Such track-focused weapons have typically come out of the stables of exotic makers. The winged McLaren Senna, for example, cost $1.1 million and the Aston Martin Vulcan — of which just 24 copies were made — cost $2.3 million. The Mustang sets its sights on the Porsche GT3 RS, a similarly-priced beast that set the Nürburgring track record earlier this year. The Mustang’s sophisticated aerodynamics, suspension and engine are optimized to clock similar, eye-watering, sub-7 minute Nürburgring times. The GTD sports a similar-displacement, supercharged, 5.2-liter engine as Ford’s last-generation, 760-horsepower Shelby Mustang GT500, but the engine is otherwise bespoke to GTD. To attain its 800-plus horsepower (the most by a production ‘Stang ever) the beast is fed with dual air inlets with a 7,500 RPM redline, houses a carbon-fiber driveshaft, and is outfitted with a dry-sump oil system to keep the engine lubricated during sustained high-g-load cornering. Available is a titanium active valve exhaust system for maximum ear-splitting terror. That beastly powerplant is mated to a dual-clutch, 8-speed transmission mounted in the rear of the car for 50-50 weight balance. The rear transaxle transmission is a first for Mustang. Ford draws on the racing experience of Canada’s Multimatic, which builds the Mustang GT3 and GT4 race cars for competition. Multimatic also built the $500,000 mid-engine Ford GT beginning in 2016 and provides the chassis for race teams like Porsche-Penske’s 963 IMSA porotype. “We did some radical things with the GTD,” said Larry Holt, Multimatic executive vice president for special vehicle operations. “Inboard rear suspension, titanium exhaust, magnesium wheels and the gearbox in the rear of the car. The Mustang GTD sets a new benchmark for roadgoing racers.” The GTD will start life at the Ford Flat Rock Assembly Plant and then be transported to Multimatic facilities in Markham, Canada, where the auto supplier's elves will work their magic. Engineered for the street and track, the GTD is outfitted with two suspension settings. In track mode, the Mustang can be lowered by over 1.5 inches to maximize aerodynamic efficiency. For maximum stick through corners, the Mustang boasts Michelin Cup 2 tires. They measure 12.8 inches in the front (the width of the Ford GT’s rear tires) and 13.6 inches in the rear. Unlike the GT3 racer’s wheels, which are limited to 18-inch rims, the GTD’s rubber will be wrapped around 20-inch forged aluminum wheels or available forged magnesium wheels. Special, spool-valve Multimatic shocks at all four corners will help the car read the road. Such engineering sophistication is clearly aimed at the $240k Porsche’ GT3 RS, long considered the segment’s banchmark. The Porsche features similar dry-sump engine and aerodynamic tweaks — though mere 12-inch rear and 10.8-inch front Michelin Cup 2 tires and 518 horsepower. The GT3 RS, in the hands of legendary racer Jorg Bergmeister, conquered the 14-mile Nürburgring course in 6 minutes, 49 seconds last spring — a record for normally-aspirated cars. With another 300 horses thanks to its supercharger, the GTD may well eclipse the Porsche. Aerodynamic tricks include center-mounted front springs to aid front downforce, and active front splitter — the latter illegal in IMSA racing. Also illegal in IMSA racing are the car’s carbon ceramic brakes. For all its racing design, the cockpit is finished in premium materials including Miko suede, leather and carbon fiber. Displays are all-digital and front passengers sit in form-fitting Recaro seats. Only plan on bringing one passenger to the track, though. The GTR will delete its rear seat to save weight. “This is our company, we’re throwing down the gauntlet and saying, ‘Come and get it,’” said Farley. “We’re comfortable putting everybody else on notice. I’ll take track time in a Mustang GTD against any other auto boss in their best road car.” |
Ford makes first Québec Breana Noble Ford Motor Co. and two South Korean battery manufacturers are investing $980 million (1.2 billion Canadian dollars) to build a cathode manufacturing plant in Québec that will supply batteries for Ford electric vehicles. The investment by the Dearborn automaker, SK On Co Ltd and EcoPro BM Co. Ltd. is Ford's first in Québec and part of an effort to localize raw material processing. “Ford has been serving customers in Canada for 119 years," Bev Goodman, president and CEO of Ford of Canada, said in a statement, "longer than any other automaker, and we’re excited to invest in this new facility to create a vertically integrated, closed-loop battery manufacturing supply chain in North America designed to help make electric vehicles more accessible for millions of people over time." Production in Bécancour, a city on the St. Lawrence River that has attracted EV-sector investments, will begin in the first half of 2026 with a capacity to produce up to nearly 50,000 tons (45,000 metric tons) of cathode active materials, supporting production of up to 225,000 electric vehicles annually. The Canadian federal government and the province of Québec are supporting the project with $475 million (644 million Canadian dollars) in incentives with $238 million (322 million Canadian dollars) in conditional loans each. Construction has begun on the more than 3 million-square-foot (280,000 square-meter) site with a six-floor building. The plant will employ 345 jobs, including engineers, sales and service professionals, and co-op positions for students from local universities and colleges. EcoPro CAM Canada LP, which will be a joint venture among the three companies once the deal closes, will manufacture nickel, cobalt and manganese. EcoPro BM expands into North America with the plant and will oversee its daily operations. Its core shell gradient technology, according to a news release, can help yield better performance levels and improved EV range. The company also will conduct research and development to increase battery safety, performance, productivity and sustainability. In addition to this collaboration, General Motors Co. and POSCO Future M last year announced plans for a plant to produce cathode active material in Bécancour. Germany's BASF SE also is constructing a battery materials manufacturing site there. "Today, we are helping to further position Québec as a key hub in the electric vehicle supply chain, as we continue to build our battery ecosystem," François-Philippe Champagne, minister of innovation, science and industry, said in a statement. "This investment is good for the environment and for the economy, and it will ensure well-paying jobs for years to come.” |
'The clock is ticking:' UAW Jordyn Grzelewski With one month to go until the United Auto Workers' contracts with the Big Three expire, the union is preparing to escalate its fight to achieve its demands at the bargaining table. UAW President Shawn Fain, citing what the union described as a "slow pace of negotiations" with Stellantis NV, General Motors Co. and Ford Motor Co., on Tuesday announced that the union will hold strike authorization votes next week ahead of the contracts' expiration at 11:59 p.m. Sept. 14. Strike authorizations are routine actions during labor negotiations that give union leaders the power to call a strike, but don't necessarily mean one will occur. Nearly 150,000 UAW members at the three companies will vote next week; such votes typically receive strong support. Results are expected Aug. 24. "Today marks 30 days until our contract expires, and yet we’re still bargaining over non-economics at all three companies. That’s unacceptable. The Big Three need to get serious, and they need to get down to business," Fain said during a Facebook livestream. “We are 30 days away and the clock is ticking." The UAW president said the union would not agree to extend the current contracts past expiration: "Sept. 14 is a deadline," he said. Meanwhile, Fain used the bargaining update to members to reiterate the union's argument that hefty profits generated by the Detroit automakers over the past decade mean they can afford to offer better wages and benefits to their workers. The UAW has pointed to $250 billion in North American profits the Detroit automakers generated from 2013 to 2022, as well as strong profits through the first half of this year. The union has proposed a 46% wage increase over four years, a 32-hour work week paid at 40 hours, retiree health care coverage to all, restoration of cost-of-living adjustments, expanding pensions, and more. Fain pushed back on responses from the automakers arguing that such increases would raise their labor costs to levels that would make them uncompetitive against foreign companies and electric-vehicle startups like Tesla. “GM’s comment about how our demands threaten their ability to do what is right for the long-term benefit of the team is a thinly-veiled threat to kill jobs because employees have the courage to demand what we are owed," Fain said. "In fact, GM’s led the way over the last 20 years by closing more plants than any other domestic automaker.” In a statement, GM spokesperson David Barnas said: "We've been working hard with the UAW every day to ensure we get this agreement right for all our stakeholders. We know that our U.S. economic impact supports more than 6 jobs for every job created by GM. We take that responsibility very seriously, and we continue to bargain in good faith each day to support our team members, our customers, the community and the business.” But as has been the case since negotiations started, Fain reserved his sharpest remarks for Stellantis executives. Last week, Mark Stewart, chief operating officer in North America for Stellantis, called the UAW's demands a "losing proposition" that could risk jobs and said the company is looking to reach an agreement "based on realism." Stewart's letter came days after Fain threw a copy of a July 27 offer from Stellantis into a trashcan during a Facebook livestream. Stellantis' counteroffer to the UAW emphasized what it described as high rates of absenteeism in plants. “COO Mark Stewart wrote a patronizing letter to our members, saying we need to tone down our demands in the name of ‘economic realism.’ We later learned from media reports that Stewart wrote that letter from his second multimillion-dollar mansion in Acapulco, Mexico, where he spent the last two weeks vacationing rather than bargaining," Fain said. "That’s the economic realism the companies want us to accept. They make billions in profits and millions in executive salaries, while the rest of us live paycheck-to-paycheck.” "The discussions between the Company and the UAW’s bargaining team continue to be constructive and collaborative with a focus on reaching a new agreement that balances the concerns of our 43,000 employees with our vision for the future – one that better positions the business to meet the challenges of the U.S. marketplace and secures the future for all of our employees, their families and our company," Stellantis spokesperson Jodi Tinson said in a statement. In a statement Tuesday, Ford spokesperson Kelli Felker said: “Ford is proud to build more vehicles in America and employ more UAW-represented hourly workers in America than any other automaker. We look forward to working with the UAW on creative solutions during this time when our dramatically changing industry needs a skilled and competitive workforce more than ever.” |
Ford Motor Co. reveals details By Gene Pereira Ford is investing $1.8 billion to transform the Oakville Assembly Complex into a Canadian hub of electric vehicle manufacturing. FORD MOTOR CO. IMAGE Oakville’s Ford Motor Co. released some of the details Monday (Aug. 14) behind its $1.8 billion dollar plan to turn the Oakville Assembly Complex into a high-volume hub of electric vehicle manufacturing in Canada. The newly renamed Oakville Electric Vehicle Complex will begin to retool in the second quarter of 2024 and start producing electric vehicles in 2025. Part of the transformation will also include a new 407,000 sq. on-site foot battery plant that will included parts from Ford’s operations in Kentucky. These components will be assembled by Oakville workers into battery packs and then installed into vehicles at the local plant. Ford is looking to reach a global production run of two million EVs annually by the end of 2026. The company says it will become the first full-line automaker to produce passenger EVs in Canada for the North American market. “Canada and the Oakville complex will play a vital role in our Ford+ transformation,” said Jim Farley, Ford president and CEO, in a statement. “It will be a modern, super efficient, vertically integrated site for battery and vehicle assembly. “I’m most excited for the world to see the incredible next-generation electric and fully digitally connected vehicles produced in Oakville.” To expand EV production, Ford is building new Greenfield sites and also transforming existing manufacturing sites like in Oakville and Cologne, Germany. “Ford’s commitment to invest in OAC retooling and upskilling signals a bright future for Canadian EV production and for Canadian auto sector employment,” said Lana Payne, Unifor National President. “The transformation of the Oakville plant is an important step towards a stronger industry and testament to the hard work, skills and dedication of our Unifor Oakville Assembly Complex members.” The current 487-acre Oakville site produces the Ford Edge and Lincoln Nautilus, but the automaker has yet to release what models it will build when the Oakville Electric Vehicle Complex opens. “Ford of Canada has been a leader in the country’s auto industry since it was founded 119 years ago, driven by hard-working, dedicated employees,” said Bev Goodman, president and CEO, Ford of Canada. “As the top-selling auto brand in Canada for 14 straight years, the successful transition to EV production in Oakville will help deliver stable Canadian employment with the opportunity to build the new skills and expertise to drive Ford and the industry forward.” |
Millions Of Canadians Could Story by Lisa Belmonte Millions Of Canadians Could Get Money From A LifeLabs Class Action & Here's Who Is Eligible© Provided by Narcity Canada There is a LifeLabs class action happening in Canada right now and millions of Canadians could receive money from the settlement. This lawsuit is in relation to a data breach that happened a few years back which compromised personal health information. KPMG Canada shared that if you were a LifeLabs customer on or before December 17, 2019, you belong to a class of people who could get cash benefits from a class action settlement with LifeLabs if it is approved by the court. The security breach was announced in 2019 after a cyberattack on a database of customer personal health information and then a proposed class action was started against LifeLabs Inc. and related LifeLabs companies. It's alleged that LifeLabs was negligent in the protection of customers' and patients' data. LifeLabs has denied all of the allegations. This class action includes about 8.6 million people whose personal information — like provincial health card numbers — was stolen. Also, just over 130,000 class members had their confidential test requisitions or test results taken by hackers in the data breach. A settlement has been negotiated, and the Ontario Superior Court of Justice has certified the action but a hearing to consider approving the proposed settlement still needs to happen. The settlement approval hearing is scheduled to take place on October 25, 2023, so you won't receive money if the settlement is given the green light until after that date. KPMG Canada said you have the right to stay in the class action and participate in the settlement, stay in the class action but object to the settlement, or opt out of the class action and not receive any money from the settlement if approved. With this class action lawsuit against LifeLabs, all Canadian residents who were customers or patients and had their personal Information stored on computer systems in the control of LifeLabs that were compromised or accessed in the security breach are eligible to receive payment. That includes the subclass of all customers or patients of LifeLabs whose test requisitions or test results were accessed as a result of a security breach announced by LifeLabs on December 17, 2019. If the settlement is approved by the court, LifeLabs has agreed to pay compensation to class members who submit a valid claim form within the timeframe set out by the court. LifeLabs will pay a guaranteed amount of $4.9 million and up to an additional $4.9 million depending on the number of claims made if the settlement is approved. As part of this class action lawsuit in Canada, each class member who completes a valid claim form during the claim period will be eligible to receive $50. But it's possible to get up to a maximum of $150 from the settlement if it's approved. Class members could receive more or less than $50 depending on the number of claims filed, the legal fees and the disbursements approved by the court. |
Unifor says it will 'fight and Bianca Bharti Unifor national president Lana Payne says autoworkers are ready to “fight and strike” to have their demands met on higher wages and job security as the union kicked off labour negotiations with the Detroit Three automakers in Toronto. Representatives of Canada’s largest private sector union and Ford Motor Co., General Motors Co. and Stellantis NV, met on Aug. 10 for the launch of the talks that come during a critical moment for the industry as it transitions away from gas-powered cars and with inflation concerns top of mind for employees. Payne handed company delegates a thick binder full of workers’ demands to review for the first time on Thursday. The union is focused on wage increases and job security in this round of bargaining, she said, and won’t hesitate to do battle to secure them. “The aftershock of the pandemic is still being felt, with parts shortages (and) supply bottlenecks resulting in significant downtime at some of our facilities (and) making life more precarious for many of our members,” Payne said at a press conference following individual meetings with each of the three automakers. “This is the moment we are in and no one should underestimate it.” The renegotiations come at a time of heightened organized labour activity in Canada, with unionized workers fighting for higher wages — and going on strike — after a run-up in inflation and higher interest rates over the past two years reduced purchasing power. The auto sector is also undergoing a transition to electric vehicles, requiring companies to retool factories and putting job security at risk. Payne said that makes this year’s round of bargaining especially crucial in ensuring workers are protected during the shift. Economics are one of the “tough” issues that will be discussed at the bargaining table, said Steven Majer, vice-president of human resources at Ford Canada, though he added all parties are going into negotiations with a “positive mindset.” Majer said inflation will weigh more heavily than usual on talks this year. “We typically include general wage increases, lump sum inflation protection bonuses, but what I think is really unique about this round of bargaining is the rate of inflation that nobody foresaw over the course of this past three-year window,” he said. Inflation will also play a factor in negotiating pensions benefits as some employees look to retire in the years ahead. “We have a workforce that’s looking forward to retirement at some point in the future and they want to make sure that the planned retirement benefits keep pace with what’s going on in the economy in years to come,” Majer said. Unionized Canadian autoworkers and the United Auto Workers (UAW) in the United States are simultaneously renegotiating contracts with the Detroit Three this year for the first time since the Great Financial Crisis in 2008. Unifor said it’s collaborating with UAW to ensure both organizations are aligned during the process. The Canadian union is seeking gains on wages and pensions for its 18,000 workers covered under collective agreements and wants commitments from the automakers around electric vehicle transition plans that will protect jobs. This week, UAW president Shawn Fain made a spectacle of angrily tossing Stellantis’s contract proposals in the trash bin after they fell short of the union’s demands. UAW, which represents 150,000 auto employees, is asking for 40-per-cent wage increases, but Payne said she would not reveal what rate Unifor is seeking to protect the bargaining process. Unifor typically opens up introductory talks with automakers for a few weeks before selecting one company, usually around Labour Day, on which to focus its bargaining efforts and then continuing one-by-one until all three deals are renegotiated. Payne said Unifor hasn’t selected which company it will target first, but is considering tapping Ford to lead bargaining since the two have a “good historical working relationship” and the company has demonstrated a “willingness to dialogue.” |
Autoworkers prepared to Kathleen Saylors Unifor National president Lana Payne had strong words for the Detroit Three automakers Thursday afternoon as talks officially opened to negotiate a new collective agreement for workers. "I made it very clear to the companies today that our members' expectations are very high," Payne told reporters at a press conference after delivering open offers to Ford, Stellantis and General Motors in Toronto. "Workers have shown time and time again they are prepared to fight and to strike if necessary to have their demands met. "This is the moment we are in and no one, no one should underestimate it." The union kicked off bargaining with the three companies today with key priorities: pensions, wages, transition security and securing investments. Payne said it was the first time in years the union entered bargaining "without storm clouds hanging over our plants." But, she added, the "once-in-a-century" transition to EVs was causing anxiety among members for their job security, noting as many as a third of Unifor workers could be vulnerable in the move to electric vehicles. Ford a likely target as Unifor seeks three-year agreement Other key issues in bargaining include the recruitment challenges for skilled trades workers, mental health supports, health and safety and contract disparities that exist for workers before and after the 2012 negotiations. The company will be seeking a three year agreement, Payne said. And while the target won't formally be announced until further along in the bargaining process — traditionally around Labour Day — Payne said the union is likely to choose Ford Motor Company. Payne said that's because Ford has been "forthcoming" and willing to work with Unifor in the EV transition process. Ford was the union's target in 2020. Lana Payne, national president for Unifor and Steve Majer, vice president of Ford's human resources, take part in a photo opportunity as Unifor begins formal contract talks with Detroit automakers Ford, General Motors and Stellantis in Toronto on Thursday, August 10, 2023. (The Canadian Press) "I'm stating this only to let you know and our members know where my head is at right now," Payne said. "Of course there is still plenty of time and our thought process might change." In its statement, Ford said it had "important work to do together [with Unifor] as we create a blueprint for the Canadian automotive industry." "We approach the process with a common goal – a vibrant and sustainable future for our employees, our customers, and our communities. Both parties bring an incredible amount of knowledge, creativity, and respect to the table, and we are ready and willing to work together to find innovative solutions." The union will be holding its customary strike votes on Aug. 26 and 27, Payne said, "in the hopes members will give us the mandate we need to take strike action if necessary." As for the question of what kind of wage increases the union will be seeking, Payne said they would be "substantial" but said details would be kept to the bargaining process. Retirees say pensions are top of mind during negotiations At a rally downtown Thursday morning, auto retirees were asking for pension improvements they say are long overdue as inflation climbs and companies make huge profits. Bob Nickerson is a retired labour leader, and former national secretary-treasurer of the Canadian Auto Workers (CAW). "Retirees were, in the early days, fighting for pensions in the plant, the wages and the benefits," said Bob Nickerson, former national secretary-treasurer of the Canadian Auto Workers (CAW). "You guys did all the work for the guys coming behind us … and we took care of the people coming up behind us. We're taking care of ourselves." UAW and Unifor negotiations separate, Payne says Payne drew a contrast to the tactics of the United Auto Workers and her counterpart in the United States, Shawn Fain, who this week literally threw an offer from Stellantis in the trash and has said openly the union will be seeking a whopping 46 per cent wage increase. "For us we have our own job to do, our different collective agreements. We have different things we want to achieve," Payne said, adding that some priorities are similar. "And we wish them well, we want them to do well by their members the same way I'm sure they wish us well here in Canada." Union leadership from both sides of the border met in Windsor last week for a "summit" ahead of the start of bargaining. Employer cites investments at beginning of bargaining The Detroit Three automakers released statements signalling the opening of negotiations. General Motors said their negotiations will cover about 4,200 workers in Oshawa, St. Catharines and Woodstock. "We look forward to working with our Unifor partners to build a competitive future that also recognizes our employees' contributions to our shared success," the company said. In its statement, Stellantis said it had invested more than $8.6 billion in Canada in the last 18 months that would create more than 3,000 jobs. "Collectively, our focus will be on negotiating an agreement that will ensure our future competitiveness in today's rapidly changing global market, with good benefits and wage increases that reward the contributions of our represented workforce now and for generations to come," the statement said. "During negotiations, both parties must continue to work together and find creative solutions that meet the needs of today's workforce while maintaining efficient and productive workplaces." What you need to know as bargaining begins The are more than 19,600 Unifor members unionized at the Detroit Three across Canada. The largest share of those members work for Stellantis, both at the Windsor Assembly plant, which has 4,500 members and at the Brampton Assembly plant with 3,200 members, according to Unifor figures. Bargaining between the Big 3 and the United Auto Workers is off to a testy start. With separate negotiations set to begin for Canadian employees set to kick off today, we talk with an industry analyst about whether there's likely to be an easier path to a new contract here. Unifor's Auto Council, comprised of union leadership from different companies and workplaces, will spearhead negotiations from the union's side. The companies engage in what's known as pattern bargaining: essentially, with a few small exceptions, the deal that one company reaches will be replicated by the other two. "Once we get the pattern set by that by that company then the others need to fall in line," said Unifor Local 444 president Dave Cassidy. For the first time since 1999 (excluding the 2008-09 financial crisis), both Unifor and the United Auto Workers (UAW) will be negotiating with the Detroit Three at the same time. A worker walks towards the gate of the Windsor Assembly Plant on Thursday, Aug. 10, 2023. Bargaining with the Detroit Three automakers got underway on Thursday. (Dax Melmer/CBC) These are separate negotiations — the UAW and the Canadian Auto Workers (CAW, which later became Unifor) parted ways in the 1980s, and have bargained separately ever since. However, Unifor and UAW representatives met as recently as last week in Windsor to advance "each other's' interests throughout the bargaining process", according to a press release. One auto expert said a one example of a difference between UAW and Unifor bargaining is that the UAW seeks performance bonuses, which are not part of Unifor's strategy. Contracts for Unifor members at the Detroit Three expire on September 18 at 11:59 p.m. |
Unifor seeking investments Taylor Campbell Investments in Windsor’s Ford engine plant were among the numerous demands Unifor national president Lana Payne had for the Detroit Three automakers as contract talks kicked off Thursday. During a media conference in Toronto that afternoon, Payne listed investments in Canada as one of the union’s four “core priorities” going into negotiations with Ford, Stellantis, and General Motors. The other key issues were pensions, wages, and support for the transition to electric vehicles. “Obviously there are more investments that can be made around the EV transition we’re looking at,” Payne said. “We have a wonderful engine plant here in Windsor and we’d love to see a map for what else we can add to that facility going forward.” In three consecutive meetings with the companies to open contract talks earlier on Thursday, Payne said she “made it very clear” that the union member expectations are “very high” amid the rising cost of living and a “stunning and staggering” financial performance by the Detroit Three. “Workers have shown time and time again that they are prepared to fight and to strike if necessary to have their demands met,” she said. “This is the moment we are in and no one should underestimate it.” Payne called the last three years a “very challenging period,” and said her members are still feeling the aftershock of the COVID-19 pandemic. Parts shortages and supply bottlenecks have resulted in “significant” downtown at some facilities, “making life more precarious for many of our members.” Unifor is seeking improvements to pensions and retirement security, and “significant” wage increases. Payne declined to share specifics about wage demands and said she was “leaving that for the bargaining table.” While meeting with the companies, she said, she made “special mention” of wages for skilled trades workers to resolve a “chronic recruitment and retention challenge.” The “excitement” among workers around building electric vehicles comes with “uncertainty and anxiety,” she said, calling for job protections during retooling periods. “We are insisting that every EV and EV-related job is a good union job with the same rights and employment terms as auto workers enjoy today,” Payne said. In a Facebook post, the Unifor Local 444 bargaining team said it met with Unifor’s auto council on Wednesday, “going over battle plans” in anticipation of bargaining talks. Payne was present. Sitting at the table during bargaining talks in Toronto on a new three-year contract covering close to 20,000 autoworkers is a heavy Windsor union leader presence. Local 200 president John D’Agnolo is the Ford master bargaining chair, and Local 444 secretary-treasurer James Stewart is the Stellantis master bargaining chair. Payne said she expects “intensive negotiations” in the following weeks. On Aug. 26 and 27, the union will hold customary strike votes. The collective agreements expire on Sept. 18 at 11:59 p.m. Unifor has not yet decided which company it will select as its first “target” to secure a deal, Payne said. However, she said the union is “seriously considering setting the pattern” with Ford Motor Company. That’s because Ford has been “forthcoming” about its plans and the most “transparent” during quarterly review business meetings. “They’ve also demonstrated, quite frankly, a willingness to dialogue, and in fact, they have publicly signalled a desire to draft a blueprint for the future transition through bargaining with Unifor,” Payne said of Ford. In a written statement Thursday, Stellantis said its focus “will be on negotiating an agreement that will ensure our future competitiveness in today’s rapidly changing global market, with good benefits and wage increases that reward the contributions of our represented workforce now and for generations to come. “This is a significant time in the industry as we make the transition to electrification,” the statement continued, “and we must approach negotiations with a vision for the future.” Stellantis, the company said, has announced investments of more than $8.6 billion in Canada over the last 18 months, with more than 3,000 new jobs and an anticipated return of the third shift at its Windsor and Brampton assembly plants. “During negotiations, both parties must continue to work together and find creative solutions that meet the needs of today’s workforce while maintaining efficient and productive workplaces,” Stellantis said. |
Ford posts sales gain in July Jordyn Grzelewski Ford Motor Co.'s U.S. sales rose 5.9% year-over-year in July, according to figures released Wednesday. The Dearborn automaker sold 173,639 vehicles last month. More than 155,000 of those were internal combustion engine vehicles, sales of which were up 5.7%. Sales of hybrid vehicles were up 31.6% to just under 11,500, while sales of battery-electric vehicles were down 18.1% to 6,280. The results underperformed the industry as a whole, which Cox Automotive estimated saw an increase of more than 15% over year-ago levels, to nearly 1.3 million vehicles. "Vastly increased inventory levels and a general improvement in consumer sentiment are helping fuel stronger sales in the U.S.," Cox analysts wrote in a note Wednesday. "Recovering fleet business — notably with rental and government buyers — was also a key driver of volume this month, as it has been through the first half of 2023." New-vehicle inventory levels were up approximately 75% year-over-year in early July, according to Cox. Analysts estimate the seasonally adjusted annual rate of sales came in close to 15.7 million in July, up from 13.3 million a year ago. The large industry gains were primarily driven by performances from brands including Hyundai and Kia, according to Cox. America Honda's sales were up nearly 57% from a year ago. Ford, meanwhile, has pointed to downtime at two of its EV plants in recent months to explain a dip in EV sales, as the automaker works to expand production capacity. On Tuesday, the company said it had restarted production at the Rouge Electric Vehicle Center in Dearborn, where the electric F-150 Lightning is assembled. The plant was down for six weeks to expand and retool to support a tripling of production capacity; executives said they expect Lightning sales to ramp up this fall and that the plant remains on track to hit an annual production rate of 150,000 Lightning trucks by the end of the third quarter. Ford sold 1,552 Lightning trucks in July, down 28.6% from a year ago. In July, Ford's SUV sales were down 2% while trucks were up 15.2%. Sales were up for the Bronco Sport, Escape, Bronco, Edge, F-Series, Ranger, Maverick, E-Series and Transit. They were down for Mustang Mach-E, Explorer, Expedition, Transit Connect, heavy trucks and Mustang. F-Series, the best-selling truck line in the United States and Ford's flagship product, notched 68,536 sales in July, up 8.2% from July 2022. The Bronco family of vehicles, which includes the Bronco and Bronco Sport, saw sales rise 41% in July. And sales of the newly redesigned Ford Escape were up 26%. Lincoln brand sales fell 4.4% year-over-year. Year-to-date, Ford's sales are up 9.4% from the first seven months of 2022. |
UAW president Shawn Breana Noble United Auto Workers President Shawn Fain threw a printed contract proposal from the maker of Jeep SUVs, Ram pickup trucks and other vehicles into the trash Tuesday, accusing the company of reneging on its commitment not to seek a "concessionary agreement" amid national contract talks. Fain in a Facebook livestream discussed points of Stellantis NV's offer to the union that were outlined in a flier circulating on social media this week. The proposal, obtained by The Detroit News, is dated July 27 and includes adding a new employee classification with an alternate, flexible schedule; tying wage increases, profit sharing and supplemental unemployment benefits to absenteeism; increasing employee contribution to health-care and prescription coverage; eliminating the cap on supplemental workers and allowing the company to make bargaining changes in response to the move to electrification without rank-and-file ratification. "Stellantis' proposals are a slap in the face," Fain said. "They're an insult to our members' hard work over the last four years. As I said earlier, our members have worked their a---- off in the best of times and the worst of times, to produce incredible value for this company. During COVID, UAW members were deemed essential. They risked their lives, and some gave up their lives to keep the lines running. So rather than honoring the sacrifices made by the employees, management chooses to spit in our faces." Fain during the livestream picked up his office trash can and threw the proposal into the garbage. "I'll tell you what I want to do with their proposal," he said. "I'm going to file it in its proper place, because that's where it belongs: the trash, because that's what it is." The automaker's proposal as explained by Fain stands distinct from the "members' demands" from the UAW outlined last week. The union's proposals include eliminating wage tiers for full-time employees, expanding profit sharing to supplemental employees, providing pensions and retirement health-care coverage for all workers, reducing the work week to 32 hours while paying workers for 40, and granting a 46% wage hike over four years. Estimates in total say the proposal could increase labor costs to more than $100 per hour per worker at the Detroit Three automakers, roughly double labor costs at foreign automakers assembling vehicles in the United States. In response to the UAW's demands last week, Stellantis spokeswoman Jodi Tinson had said in a statement that the automaker was reviewing the numbers to understand what they would mean for the company and its 43,000 represented employees. "We have been clear from the start that we are not seeking a concessionary agreement," she said in the statement. "As we have done for more than 70 years, we will work constructively and collaboratively with the UAW to find solutions that will result in a contract that is competitive in the global market, responsibly addresses employee concerns and meets the needs of our customers." A request for comment was sent to Stellantis on Tuesday concerning the UAW's fliers, Fain's livestream and the written proposal obtained by The News. The written proposal doesn't detail potential wage increase amounts or how much pay the new tier of flexible-schedule employees would receive, but it emphasizes the need to address high rates of unplanned absenteeism in U.S. plants. Planned and unplanned absenteeism, including tardiness, was approximately 23% in 2022, according to the written proposal, which suggests in 2021 and 2022, more than 16,700 vehicles weren't built because of absenteeism. The estimate included in the write-up states that was $217 million in lost revenue. Stellantis also suggests increasing the number of pay periods required for vacation entitlements. It seeks to eliminate the cap on use of lower-paid supplemental workers and to allow the use of temporarily laid-off workers at other plants. It includes a new quarterly "reward" for 100% shift attendance, as well. Stellantis seeks to expand its ability to use overtime on weekdays and weekends for emergencies, critical plant status, high rates of absenteeism and to make up volume. It also seeks to bank hours to balance the use of periods when overtime is used and during periods of decreased production levels. Stellantis' health-care costs, according to the written proposal, are expected to increase by $613 million to $1.1 billion by 2027. To alleviate that, the automaker suggests employee cost sharing possibly through premiums, copays, deductibles and out-of-pocket maximums. It would incentivize participation in its wellness program and add a surcharge for spouses of employees who don't use their own employer's health insurance. Coverage of certain drugs, such as for erectile dysfunction, would be limited. The company also would enroll in the Blue Elect Plus network. The company suggests some changes to how it contributes to retirement plans, including trading its contribution to a matching plan. Additionally, lump sum payments for employees would be conditioned on the ratification of their local contract agreement. The proposal doesn't mention the idled Jeep Cherokee plant in Belvidere, Illinois, but it requests that the moratorium on closing and selling a plant be deleted. It also would eliminate the relocation allowance plan. Fain said Stellantis can handle the UAW's proposals, which he last week described as "audacious and ambitious." Stellantis posted a record $15.2 billion in adjusted operating income in North America in 2022 and $8.88 billion in the first half of 2023. For 2022, Stellantis workers received $14,760 in profit sharing, the most of the Detroit Three's UAW-represented employees, though supplemental workers aren't eligible to receive the checks. Stellantis CEO Carlos Tavares, however, has emphasized the need for the company to stay competitive since electric vehicles represent 40% more in cost to produce than their internal combustion engine counterparts. Fain criticized Tavares' compensation. His total remuneration package in 2022 was $24.8 million, a 22% increase year-over-year, though that includes stock grants not yet vested and that will depend on the automaker's continued performance. The total was 365 times mores than the average Stellantis employee's compensation. Tavares' "actual compensation" consisting of his salary, bonus, vested stock awards and pension contribution was $15.8 million, a 13% decrease from 2021. Stellantis is the company created in 2021 from Fiat Chrysler Automobiles NV and French rival Groupe PSA. In 2019, FCA employees represented by the UAW ratified a four-year agreement that provided 3% wage increases in two of the years and 4% lump-sum bonuses in the other two, an improved profit-sharing formula and ratification bonuses of $9,000 for full-time employees and $3,500 for supplemental workers. Fain's livestream is reflective of the "more militant" tone the union has taken since the new administration took over in March, said Marick Masters, a business professor at Wayne State University. "The negotiations are taking place increasingly in the public domain," he said. "The union is of the mindset that they will call out the company when it believes it has misrepresented the situation. "It doesn’t necessarily signal anything more than that. I wouldn’t say it means they are going to target Stellantis because of this." This year's demands from the UAW call for an immediate 20% wage raise upon ratification and a 5% raise every September from 2024 through 2027. The UAW also is seeking the reintroduction of a cost-of-living adjustment. "My message," Fain said, "to Stellantis is very simple: Quit with the games, stop with the lies and start bargaining an agreement that actually shows value to the sacrifices made by our members." All three contracts with the Detroit automakers are set to expire on Sept. 14, and Fain said the strike fund is in "healthy" shape. "If things don't pick up, the Big Three companies don't start getting serious and getting down to business and resolving the membership's demands, then, come September 14th, we're gonna have to see what happens, but I don't think they're gonna be happy with it." |
UAW demands 46% pay Breana Noble Kalea Hall The United Auto Workers is seeking a 46% wage increase over four years as a part of its negotiations with the Detroit Three automakers, according to a page of the union's written demands. The proposal would be the largest pay increase in recent memory. The proposal from the Detroit-based union that represents approximately 150,000 workers making Chevrolets, Fords, Jeeps and more calls for a 20% general wage increase upon ratification of a new contract "to offset severe impact of inflation" over the past few years, according to the write-up obtained by The Detroit News. After that, the union demands a 5% wage increase every September through the life of the agreement through 2027. The UAW's top wage is $32.32 per hour after two 3% wage increases since 2019. The union's proposal would bring that to $47.14, nearing the $49 per hour average top rate recently achieved in a tentative agreement by the International Brotherhood of Teamsters with United Parcel Service Inc. Meanwhile, pay would be well above estimated averages of wages for workers at nonunion competitors manufacturing in the United States. UAW President Shawn Fain on Tuesday shared an overview of the "members' demands" that called for "double-digit" wage increases, a cost-of-living allowance, pensions for all, a jobs bank-like Working Families Protection Program and more paid time off. Fain also suggested the union would fight for a 32-hour work week. "Big Three CEOs saw their pay spike 40% on average over the last four years," Fain said on Tuesday during a Facebook livestream. "We know our members are worth the same and more." He had picked out GM CEO Mary Barra specifically, who last year received nearly $29 million in total compensation that includes benefits, which is up roughly 34% from what she received in 2019, though her base salary remains the same at $2.1 million. General Motors Co. posted a statement on its negotiations website on Thursday, saying it expects to increase wages of its workers, but that the UAW's full proposal risks long-term success. "The breadth and scope of the Presidential Demands, at face value, would threaten our ability to do what’s right for the long-term benefit of the team. A fair agreement rewards our employees and also enables GM to maintain our momentum now and into the future," it reads. "We think it’s important to protect U.S. manufacturing and jobs in an industry that is dominated by non-unionized competition." Kelli Felker, spokeswoman for Ford Motor Co., which employs the most UAW members of the Detroit Three, said in a statement that the company will work with the UAW "on creative solutions during this time when our dramatically changing industry needs a skilled and competitive workforce more than ever." Stellantis NV earlier this week said it still was evaluating the demands and reiterated it wasn't looking for a "concessionary agreement." Automakers typically prefer lump-sum bonuses that don't build on top of each other over the years. In the 2019 contract, they committed to 4% bonuses in the other two years when wage increases weren't provided. Other proposals specified on the page seen by The Detroit News are wrapping in current employees without pensions into the existing pension program with credit from their hiring seniority date; expanding profit-sharing bonuses to all represented workers, including temporary employees; COLA for all represented workers; and expanding supplemental unemployment benefits on the same basis to all workers without limitation. Marick Masters, a business professor at Wayne State University, echoed Fain’s remarks earlier in the week, calling the wage proposal “audacious,” but “probably out of line with what the conventional expectations were.” “The UAW has embarked on an ambitious campaign to reclaim what they believe is lost ground and to reinstate prior economic conditions that were considered during the Great Recession and bankruptcy era,” he said. “And this is a part of their new bargain, new philosophy toward a just and fair transition to electrification, and that requires higher wages, more job security and the reinstatement of certain benefits that were made in the past. “This is a new reality, and the question is whether in this new reality they can find a path for a bold agenda of the UAW that enables the companies to remain competitive. That is an extremely difficult task.” |
‘Revenge of the wage earner’: As the strike continues, labour experts said workers are at a tipping point, with retailers reporting record profits while real wages remain stagnant and jobs are precarious. By Megan Ogilvie Health Reporter, Santiago Arias Orozco Staff Reporter As the strike by Metro grocery workers continued for a second day, experts said the job action is part of a larger trend of lower-wage earners pushing back against employers for better pay in industries that have in recent years seen massive gains in profits. On Saturday, more than 3,700 front-line workers walked off the job, hitting the picket lines in front of 27 Metro stores across the GTA after voting against a tentative agreement brought forward by their union. The tentative deal between Unifor Local 414 and Metro Inc. had included gains for employees, but workers voted against the agreement, saying they deserve more from the company. “This is the revenge of the wage earner,” David Macdonald, senior economist at the Canadian Centre for Policy Alternatives, told the Star on Sunday. “The first couple years of big increases in prices flowed into corporate profits, and workers were behind the 8-ball over that entire period. “Now they are trying to claw back their lost real wages because prices are so much higher than they were in 2021.” On Sunday, Lana Payne, Unifor’s national president, told the Star that workers have reached a tipping point with grocery retailers reporting record profits while staff see stagnating salaries and precarious benefits at a time of soaring inflation. Unifor, the country’s largest private-sector union, also represents workers at the Star. “Grocery retailers are creating the conditions for workers to say enough is enough,” she said. “We deserve a share of this pie. We deserve to have decent work. We deserve to have decent pay.” While not all industries that employ lower-wage workers have benefited from the “inflationary period of the pandemic,” the grocery industry has profited from higher prices, said Macdonald, noting the food and beverage industry has seen margins roughly double from what they were before COVID-19. He said Canada’s tight labour market gives workers more confidence to fight for higher wages through collective action because they know they are harder to replace. “Workers have more power than they would have had a couple years ago,” he said. “One of the ways you utilize that power is to try for higher wages. We’re seeing that as an example here.” Grocery chains across the country saw their profits rise during the pandemic, and workers say they deserve a fair share after working on the front lines. In the second quarter of this year, Metro earned $218.8 million, a 10 per cent rise from the same period a year prior. Metro also saw its sales grow to $4.55 billion in the quarter, a 6.6 per cent rise year over year. Payne said Metro staff are standing up for better work conditions at their 27 stores — not just for themselves, but for the grocery sector nationwide. She noted Metro is the first major grocery retailer to negotiate with Unifor during this bargaining cycle, setting a benchmark for other upcoming negotiations. Metro workers are looking for “better wage standards,” she said, as well as improvements in a pension plan and securing a larger quota of full-time employment contracts. “This strike gives us an opportunity to turn the trends in the sector to growth out of precarity in employment, to build better jobs across stores,” said Payne, calling it a “defining moment for grocery store workers in Canada.” The strike by full- and part-time workers at 27 Metro stores in Toronto, Brampton, Brantford, Milton, Mississauga, Newmarket, Oakville and Orangeville is the largest Unifor strike to date. Workers walked off the job shortly after midnight on Friday after rejecting a tentative collective agreement in a series of regional votes. On Saturday, Metro Ontario Inc. said the grocery retailer is “extremely disappointed” with the decision of its unionized employees, adding a “fair and equitable agreement” was struck over the past weeks, meeting the needs of front-line workers while securing the company’s competitiveness. Metro said it “worked constructively with the union and the employees’ bargaining committee” and that the agreement provided “significant increases for our employees over the four years of the collective agreement in addition to improved pension and benefits.” The company said the agreement built on “working conditions that are already among the highest in the industry which were negotiated with this union.” Barry Eidlin, an associate professor of sociology at McGill University and an expert on labour and social movements, said it’s notable that Metro workers rejected a tentative collective agreement brought forward by its union leaders. He points to the rejection as a sign that the current job action is “bottom-up, worker-led organizing,” part of a wider trend in the labour movement. Recent job actions in various professions across Canada and the United States show workers are “starting to fight back” on a range of issues, including higher wages, greater job security, protection from automation and health and safety risks, Eidlin said. Along with Metro workers, Eidlin points to the strike action at B.C. ports and, in the U.S., Hollywood actors and writers on the picket lines, as well as the recent labour fight at United Parcel Service (UPS). “There’s a more militant movement amongst workers that we’re starting to see,” said Eidlin. In a number of industries, Canadian workers have seen seeing hourly wage gains below the rate of inflation, meaning “they were taking real pay cuts month after month for two years,” Macdonald said. “For the last five months, they’ve been above the rate of inflation when it comes to hourly wage gains. They are clawing their way back from the impact that inflation has had on their wages.” Macdonald said the trend of workers fighting for higher wages, better job conditions and greater security will continue. “It’s not just that they’re treading water, right? They’ve been pushed under, and they’re trying to get back to the surface,” he said. “Workers realize that employers are making more, that their wages aren’t keeping pace with costs, and so they are looking to increase those wages, trying to get back to even with respect to where they stood in 2019.” |
Ford to Seek Flexible EV Keith Naughton, Bloomberg News (Bloomberg) -- Ford Motor Co. will ask the United Auto Workers union for flexibility to reduce electric-vehicle production in case the US market for battery-powered cars lags behind expectations. Negotiations open Friday for a new four-year contract for Ford’s more than 57,000 US hourly workers. And talks are expected to be contentious as the union seeks pay raises, a restoration of cost-of-living increases and job guarantees while the industry shifts to less labor intensive electric-vehicle production. New UAW President Shawn Fain has said he is going to “war” against the Detroit automakers and accused them of engaging in a “race to the bottom” in the EV transition with factories that will employ fewer workers earning lower wages. This week, Fain eschewed the ceremonial handshake-across-the-bargaining-table with CEOs that has marked the opening of auto contract talks for decades, saying he’ll do so “when they come to the table with a deal.” Ford will seek leeway in its $50 billion plan to boost EV production 15-fold to 2 million models a year by the end of 2026. The company wants the ability to move workers to factories building the most in-demand models, whether they’re powered by electricity or traditional internal combustion, according to Ford officials who requested anonymity discussing internal matters. The current union contract restricts Ford’s ability to flex production, they said. Ford has reason for caution. The US has been the slowest major market to adopt EVs, lagging behind China and Europe. Electric-vehicle sales growth in the world’s biggest economy slowed to just under 50% in the first half of the year, down from 71% during the same period in 2022, as inventories of battery-powered models ballooned. Ford’s US EV sales fell 2.8% during the second quarter as it overhauled a Mexican factory to boost output of the Mustang Mach-E, while sales of the F-150 Lightning plug-in pickup grew just 4%. Ford is hoping to convince the union to give it more flexibility by noting that it employs as many as 14,000 more US hourly workers than either General Motors Co. or Stellantis NV, parent company of Chrysler and Jeep. Having the biggest US hourly workforce costs Ford an extra $1 billion a year compared to its domestic competitors, the officials said. Ford’s labor costs, including wages and benefits, are $64 an hour, compared to $55 an hour at the non-union assembly plants of international automakers such as Toyota Motor Corp. That creates a labor cost gap of $900 million with the international automakers, the people said. Labor costs at Tesla Inc. are even lower at $45-to-$50-an-hour. Ford also plans to pledge to bring more EV manufacturing in-house to help offset the lower labor requirements, the people said. Chief Executive Officer Jim Farley has said controlling more elements of EV and battery production will give Ford a competitive advantage. Last month, Farley penned a Detroit Free Press opinion piece defending Ford’s hourly compensation, which he wrote comes to $112,000 in annual pay and benefits. That elicited a sharp response from UAW Vice President Chuck Browning, who accused Farley of misleading the public and “utilizing old, musty and ineffective tactics.” Farley is under pressure to reverse $3 billion in projected EV losses this year and achieve an ambitious goal of generating an 8% return, before interest and taxes, on battery-powered models by the end of 2026. Wall Street is skeptical that can be accomplished while boosting EV production to a level one analyst called “crazy high.” Keeping costs in check is key to Farley’s ambitions. Since last summer when Farley said, “we absolutely have too many people,” Ford has cut thousands of salaried workers in the US and Europe. New Factories Meanwhile, the automaker also is adding thousands of production jobs at new battery factories in Tennessee, Kentucky and Michigan. But it is not yet clear if those new workers will be represented by a union or how much they will earn. Ford’s highest paid production worker now makes $32 an hour, which the company says exceeds the pay of 90% of factory workers in America. The UAW blasted Ford for taking a $9.2 billion US government loan to help finance three battery factories it’s building with South Korea’s SK On in Kentucky and Tennessee, calling it a “massive” handout to a venture creating “low-road jobs.” The contract covering Ford’s hourly workers expires in mid-September. |
Jerry Dias commentary: For Promises made but not kept during collective bargaining will be analyzed and criticized by those who are currently your biggest cheerleaders Jerry Dias The automotive industry has long been central to a strong North American middle class. That positioning is about to face a major test as the Detroit Three begin negotiations with the UAW in the U.S. and Unifor in Canada. Negotiations will be led by a variety of personalities — some with little or no bargaining experience and others who will strive to fix decades of inequity in one shot. These negotiations will show the true colours of union leaders. Both the UAW and Unifor have new leadership, with the UAW electing Shawn Fain as president in March and Unifor electing Lana Payne as president in August 2022. Fain was elected as a member of the UAW Members United reform group and has promised a more militant approach to negotiations, definitively declaring that he will end two-tier wages, reintroduce cost of living adjustments, win significant increases for current retirees and eliminate alternative work schedules. Two-tier wages were first bargained by the UAW with Delphi in 2003. Wages and benefits were cut by US$10 an hour, amounting to concessions of 30 to 40 per cent. This trend flowed through the auto parts industry and quickly made its way into Detroit Three bargaining on both sides of the border. The cancer that was caused still exists today. Are we entering an opportunity to correct this wrong or simply listening to populist sloganeering from a newly elected union president? PROMISES MADE, PROMISES KEPT? Populist slogans are nothing new and know no political affiliation, but if you're going to talk that way, you better deliver. Promises made but not kept during collective bargaining will be analyzed and criticized by those who are currently your biggest cheerleaders. While we wait to see how the negotiations unfold and whether the likely strike materializes, here's what I can tell you from experience:
The most seasoned negotiator for the UAW is Chuck Browning, the current vice-president originally from the shop floor at Ford Motor Co. For Unifor, Shane Wark, the assistant to the president and originally from Ford, will be heavily relied on as the senior officer with the most collective bargaining experience and knowledge of the industry. The UAW has staff department heads who will lead bargaining with the respective companies. Unifor has rank-and-file leaders to head up bargaining with their employers with energy and determination that can only be attained through shop floor and bargaining experience.
The Detroit Three have fewer tools in their arsenal than they did in 2003 or even when they last negotiated a deal following a 40-day strike in 2019. Previously, companies used contract negotiations to whipsaw U.S. workers against Canadian workers. There was also always the thinly veiled threat of moving auto jobs to Mexico, where labour standards were much looser. The USMCA began to fix this mess. I was honoured to be a part of the Canadian labour negotiation team and was locked in Ottawa for the critical last 72 hours as the deal was finalized. During those last three days, the sticking point, and the issue I would not back down on, was automotive. When I buried my feet in cement, I purposefully left myself no wiggle room. I am proud that now, under the new free trade agreement, 40 to 45 per cent of auto parts must be made by workers earning at least US$16 an hour, and 75 per cent of the content must be North American, up from 62.5 per cent. These provisions will save Canadian and American jobs and rob the Detroit Three of one of the most powerful levers they had. WHAT SUCCESS LOOKS LIKE So, what does success look like heading into the upcoming negotiations? To me, it looks like the elimination of the two-tiered wage system, the reintroduction of cost-of-living adjustments, significant pension increases for current retirees, and the elimination of alternative work schedules. While this might seem like a lot to ask for, I want to remind readers of two things. First, auto workers deserve it. Second, the Detroit Three can afford it. GM profited almost US$10 billion in 2022 and Stellantis' profits jumped 26 per cent to a staggering US$18 billion. Profits for all of the Detroit Three remained strong through the first six months of 2023 — GM, Ford and Stellantis generated a combined US$20.6 billion in net income over the period, as Automotive News reported here. Shrewd negotiators will often manage expectations, but in this case wiggle room cannot be accepted. In 2020, bargaining in Canada included the reopening of the GM plant in Oshawa and new electric vehicle production for Ford in Oakville to avoid a complete closure. These were hills to die on. The fact is that these companies can afford to properly compensate workers and treat them with respect; now all that's left to do is go out and fight for it. And that is a hill worth dying on. Jerry Dias is the retired president of Unifor, the largest private-sector union in Canada. |
Wave of strikes in Canada could By Uday Rana & Anne Gaviola While a new tentative deal may have been reached between the two sides involved in a labour dispute impacting thousands of B.C. port workers, experts say Canada may not have seen the last of strikes this year. From the B.C. port strike to the recent Greater Toronto Area Metro workers’ strike to the writers’ strike in the U.S., rising costs of living, high corporate profits and dissatisfaction among workers may all be contributing to collective action across sectors. Simon Black, associate professor of labour studies at Brock University, said that while these present-day examples may not be at the same level as the strike waves of the 1970s and the late 1940s, all signs point towards large-scale dissatisfaction. “Workers have seen their real wages, their purchasing power, eroding a great deal under this inflationary period. And yet, large corporations have made record gains, while working class households have struggled. I think there’s good evidence that the corporate profits and not workers’ wages have contributed disproportionately to inflation,” Black said. Moshe Lander, economics professor at Concordia University, said the latest strike waves are driven by a desire to recover some of the lost purchasing power. “You’re having, essentially, a showdown that’s dealing with how we recover the lost money or the redistribution of that money during high inflation.” For 13 days this month beginning July 1, some 7,400 port workers at 30 ports in B.C. walked off the job, stalling billions worth of cargo from moving in or out at some of Canada’s busiest terminals. A tentative deal was reached late Sunday night, which labour minister Seamus O’Regan said would mean “long-term stability”. “We know sometimes labour negotiations can be extremely difficult, but every step of the way, Minister O’Regan has been there to encourage people at the table to make sure that we’re getting towards a solution,” Prime Minister Justin Trudeau said while speaking to reporters on Monday. “And yes, there have been concerns and worries about how things are unfolding over the past days, but we now have a situation where there is another offer, there is another potential deal on the table, and we’re, as always, hopeful that that negotiation at the bargaining table continues to be at the centre of what everyone needs to continue to do.” On Friday, Metro grocery stores across the Greater Toronto Area shut down as thousands of grocery store employees went on strike. Unifor, the largest private-sector union, says some 3,700 front-line store employees walked off the job just after midnight. It says members of Local 414 rejected a tentative labour deal reached last week, but provided few other details. In a statement on Friday, Metro said it was “extremely disappointed that its unionized employees at 27 Metro locations across the Greater Toronto Area (GTA) rejected the agreement reached last week and decided to go on strike effective July 29, even though the union bargaining committee unanimously recommended the agreement to its members.” This recent wave of strikes come as Canadian workers are feeling the pinch of higher costs. A PwC survey released on Monday found 42 per cent of Canadian workers say that while their household can pay its bills, they have nothing left over for savings. Another 14 per cent say their household struggles to pay its bills. “Work pressures are also acute, with only 22% saying their workload was often or usually manageable in the last 12 months. Many of these issues have been ongoing for some time, but an additional force of disruption emerged this year with the very rapid rise of generative artificial intelligence,” the report said. In addition to cost of living concerns, Lander said the Screen Actors Guild strike in the United States is an illustration of how anxieties around the use of artificial intelligence could also be contributing to labour action. Black said workers’ strike action will continue unless economic conditions change. “I think if these conditions persist — tight labour markets and inflation — workers are going to continue to make demands of their employers, unionized workers, and likely exercise their right to strike. Because they are going to have to play catch–up now.” He said purchasing power of the working class has eroded so much that easing inflation may not help, either. “Even if we see a loosening of labour markets, even if we continue to see inflation decline, we’ll continue to see workers willing … to go on strike to push their demands.” The latest reading in Canada showed overall inflation cooled to 2.8 per cent in June, marking a substantial drop from the peak of 8.1 per cent for the same month last year. However, some measures, such as grocery prices, remained high. Black said that while only employees in unionized workplaces are likely to strike, all workers across the Canadian economy are feeling the pinch of rising costs of living. Employers, however, have asked striking unions to not be unreasonable in their demands. In April, during the Public Service Alliance of Canada (PSAC) strike, then-Treasury Board president Mona Fortier had said PSAC should be “prepared to compromise” to reach a deal with the federal government because it can’t “write a blank cheque” to them. According to Black, workers may not respond well to such appeals. “Workers aren’t dumb,” he said. “They know the record profits of the likes of Loblaws and Metro.” Lander said the pandemic only exacerbated this feeling of inequality. “Having come out of COVID, workers are angry because it’s now unacceptable that shareholders who were able to passively sit at home and not have to put themselves on the front line of the years of COVID and what that could do, they’re saying, well, now I want that share for me.” Loblaw, which was accused of profiteering off of high food inflation, defended itself in February. “Retail prices are not growing faster than costs, the company is not taking advantage of inflation to drive profit,” Loblaw CFO Richard Dufresne had said in an earnings call in February. Earlier this month, while reporting its latest quarterly earnings, the grocer blamed high supplier costs for rising food prices. High food inflation had little impact on the profits of Metro Inc., which rose by 10.4 per cent last quarter. Rising cost of living is not the only factor making public anger worse. Lander said that record temperatures this summer aren’t helping. “People tend to be angrier, tend to be more frustrated easily, tend to be more exhausted during periods of extreme heat,” he said. Black and Lander agreed that strikes in one sector could have a domino effect on other sectors. “If a public sector union can negotiate a 12-per cent wage increase over three years and another union goes to their employers and say, I want the 12 per cent over three or I want more than 12 per cent over three, how does the employer turn around and say, no, you can’t have that when another union’s already agreed to it?,” Lander said. Black added: “This is what happens when we see a strike action. We see workers learning from other workers.” “There’s a knock-on effect that other workers see that and learn from that. And so yes, we can see this kind of this kind of activity spread throughout the economy, to different sectors.” |
UAW president reveals Breana Noble A 32-hour work week, the ability to strike when a plant closes and paid volunteer work in the event of a closure were among the negotiating priorities emphasized by United Auto Workers President Shawn Fain on Tuesday during a Facebook livestream. The requests are "the members' demands" to the Detroit Three, he says. Making public to UAW members those demands being brought this week to General Motors Co., Ford Motor Co. and Stellantis NV is another example of the administration's break from tradition in pursuit of greater involvement by the rank-and-file and more transparency following a years-long corruption scandal. Previously, Fain said, priorities were brought forward privately with the companies and dubbed "the president's demands" or "the economic demands." "More often than not, they would be presented to the company by the president behind closed doors," Fain said during the livestream. "Your elected national negotiators would be cut out of the conversation and cut out of the process. That was my experience as a national negotiator twice. I was incredibly frustrated to spend weeks bargaining with the company and subcommittees just to have the president's office come in later and cut a backroom deal without us. "So, those days are gone, and gone with those days is the false belief that union contracts are solely won by the president. They're not. They're won by the members. They are won by all of us, organizing together around the issues that unite us and collectively demanding what we are owed." The list of 10 demands reiterated much of what officials have been saying for months leading up to the talks that kicked off last month ahead of the contracts expiring Sept. 14: eliminate tiers on wages and benefits, restore the cost-of-living allowance and pensions and retiree medical benefits for all workers. Fain emphasized negotiators would call for "double-digit" pay raises in light of the Detroit Three CEOs' total compensation growing 40% over the past four years. He said all temporary workers should be rolled over to full-time, and their use limited in the future. Fain slammed the automakers for the increased and record profits posted in the first half of 2023 on top of the nearly a quarter of a trillion dollars they've made over the previous decade. The companies have emphasized their need for capital to invest the billions of dollars needed for their electrified future. They also do provide tens of thousands in profit-sharing bonuses to full-time employees, though not temporary or supplemental workers, on an annual basis. This spring alone, those bonuses were $14,760 at Stellantis, $12,750 at GM and $9,176 at Ford. "The big question everyone's going to ask is: 'How much is this going to cost?" Fain said. "But if this awful pandemic told us anything it's that there's more to life than just work. It's not enough to just survive. We should all have a right to thrive." To that end, Fain said the union would fight for more paid time off. While responding to questions from the online chat, he even said he would seek a shorter work week of 32 hours instead of 40. "Our members are working 60, 70, even 80 hours a week just to make ends meet — that's not a living," he said. "That's barely surviving, and it needs to stop." Additionally, the demands include the right to strike over plant closures. Fain also proposed a Working Family Protection Program, which would require the companies to pay UAW members for volunteer work if the automaker closes the plant in their community. "The Big Three have closed 65 plants over the last 20 years," Faith said. "That's been as devastating for our own towns, as it has been for us. We have the right to defend our communities from the corporate greed that's killing so many cities and towns." Stellantis in February indefinitely idled the Jeep Cherokee plant in Belvidere, Illinois. Fain said Vice President Rich Boyer and other leaders in the Stellantis Department are "standing strong in that fight." The union introduced the demands on Tuesday to Stellantis, and they will be presented to GM and Ford later this week, Fain said. Stellantis spokeswoman Jodi Tinson in a statement described the meeting as "very productive" with the demands being consistent with priorities previously outlined. "We will continue to review them to understand how they align with our Company proposals and where we can find common ground," Tinson said. "Stellantis and the UAW have a shared interest in these negotiations: securing the future of our 43,000 employees and their families. We have been clear from the start that we are not seeking a concessionary agreement. As we have done for more than 70 years, we will work constructively and collaboratively with the UAW to find solutions that will result in a contract that is competitive in the global market, responsibly addresses employee concerns and meets the needs of our customers." |
Ford recalls 870K F-150 pickups Associated Press Dearborn — Ford is recalling more than 870,000 newer F-150 pickup trucks in the U.S. because the electric parking brakes can turn on unexpectedly. The recall covers certain pickups from the 2021 through 2023 model years with single exhaust systems. Ford's F-Series pickups are the top-selling vehicles in the U.S. The company says in documents posted by government safety regulators Friday that a rear wiring bundle can come in contact with the rear axle housing. That can chafe the wiring and cause a short circuit, which can turn on the parking brake without action from the driver, increasing the risk of a crash. Drivers may see a parking brake warning light and a warning message on the dashboard. Ford says in documents that it has 918 warranty claims and three field reports of wire chafing in North America. Of these, 299 indicated unexpected parking brake activation, and 19 of these happened while the trucks were being driven. The company says it doesn't know of any crashes or injuries caused by the problem. Dealers will inspect the rear wiring harness. If protective tape is worn through, the harness will be replaced. If the tape isn't worn, dealers will install a protective tie strap and tape wrap. Owners will be notified by letter starting Sept. 11. |
Ford increases guidance as Anna Fifelski Ford Motor Co. increased its full-year guidance by $2 billion in adjusted operating income after the Dearborn automaker on Thursday reported $1.9 billion net income in the second quarter of 2023. That profit is nearly triple what it was a year ago. Ford increased its full-year guidance for adjusted operating profits to between $11 billion and $12 billion from $9 billion and $11 billion from improvements in supply chain, higher volumes, new Super Duty trucks and lower commodity costs. Additionally, projections of adjusted free cash flow increased to between $6.5 billion and $7 billion from about $6 billion. "I hope that we can be boringly predictable," CEO Jim Farley said during an earnings call, "when it comes to execution and delivering financials that are extremely ambitious, and dynamic, and creating the Ford of the future." But Ford predicted a greater loss from its EV business than expected. The company says it now expects to lose $4.5 billion from its Ford Model e division in 2023 after previously saying it would lose $3 billion. In the second quarter, the segment posted a $1.08 billion operating loss on revenue of $1.8 billion for the quarter. The automaker now says it expects to reach an EV run rate of 600,000 vehicles in 2024. It previously said it would reach production of 2 million vehicle in 2026, but John Lawler, Ford's chief financial officer, said it no longer is committed to that timeline. "We know that (EV) intention is good, because intention is about 20 to 30% of customers, but the take rate's only about 7%," he said on a call. "And so that tells us that they're too expensive. There's a pricing issue." That tracks with Ford's decision earlier this month to lower the price on its F-150 Lightning pickup truck. It finished plant upgrades at its Rouge Electric Vehicle Center in Dearborn for increased capacity, and battery material has decreased. The lowest-price Pro model's suggested retail price fell to $49,995 from $59,974, though its remains above the $39,974 price at which it launched in April 2022 following a few price hikes. The Lariat 510A model's price declined to $69,995 from $76,974. Ford, though, still is targeting an 8% operating profit margin for its EV business by the end of 2026, and a 10% adjusted operating profit margin for the company as a whole. Adjusted EBIT margins fell to 8.4% from 9.3% in the second quarter. The financial results were on quarterly revenue of $45 billion, up 12% year-over-year. Ford's adjusted earnings before interest and taxes increased to $3.8 billion, up 2.7% from a year ago. Ford's $3.7 billion net income for the first half of the year, up from a loss of $2.4 billion in 2022, puts it below its crosstown rivals. GM on Tuesday reported net income for the first half of 2023 was up 7% year-over-year at $4.9 billion, while it achieved $2.5 billion in the second quarter. Stellantis NV, which only reports earnings semiannually, posted a net profit of $12.1 billion, up 37% year-over-year for the first six months of the year. The financial results come after executives of the Detroit automakers started bargaining earlier this month with the United Auto Workers for a new contract. Their current contracts are set to expire Sept. 14, and UAW leaders are seeking to recoup benefits lost during the Great Recession and bankruptcies such as cost-of-living allowances, eliminate wage tiers and secure jobs in the electrification transition. The automaker listed the negotiations as a potential headwind for its increased guidance. Lawler noted the potential for the cost of a ratification bonus once an agreement is approved. "There will be costs that will be associated with a new contract, and that's about as far as we're going to go," he said. "But I think it would be inappropriate for us not to acknowledge that there will be costs associated with the contract. We know that we have to plan for that as part of our business." Operating profits for Ford Pro, its commercial products and services unit, nearly tripled from a year ago to $2.39 billion on revenue of $15.6 billion. Ford expects its operating profits to be nearly $8 billion in 2023, up from the previously stated $6 billion. The operating profits from Ford Blue, the automaker's hybrid and fossil fuel-powered business, was $2.31 billion on revenue of $25 billion after the segment lost money last year. The company says it will contribute about $8 billion in operating profits this year, up from $7 billion. Ford shares were falling 1.2% to $13.56 after closing at $13.73 on Thursday after it posted its results. |
Profits at Detroit Three Breana Noble Anna Fifelski The Detroit Three's nearly $21 billion combined profits in the first half of 2023, reported this week, are likely to intensify demands by the United Auto Workers in national contract talks this summer. Ford Motor Co. said Thursday it made $3.7 billion in net income in the first six months of the year, up from a loss of $2.4 billion in 2022. That included $1.9 billion in net income in the second quarter, nearly triple the results from the April-to-June quarter last year. As a result, the Dearborn automaker increased its full-year guidance by $2 billion in adjusted operating income, but it increased the timeline on its EV production goals and estimated losses on its EV business for 2023 would be $4.5 billion, up from $3 billion. That came after General Motors Co. posted $4.9 billion in earnings, its best since 2010, prompting it to increase its earnings guidance by $1 billion for the year. Stellantis NV — the maker of Jeep SUVs, Ram pickup trucks and other vehicles — recorded its best first half since its creation in 2021 with a $12.1 billion net profit. Mounting auto profits are quickly becoming a line of attack by UAW President Shawn Fain, who calls the quarter of a trillion dollars in profit made by the three companies between 2013 and 2022 "obscene." More of those dollars, he says, should have gone into the pockets of workers. And now, it's time for the companies to give employees their due in the form of job security, the elimination of years-long grow-in period to the top wage, cost-of-living allowances, pensions for those without them and comparable compensation for workers at joint-venture electric vehicle battery plants. In a statement, Fain said: "Like every Big Three automaker, Ford is thriving. These eye-popping numbers come on top of a decade of massive profits. The Big Three made a quarter-trillion dollars in North American profits over the last decade, but they denied UAW members our fair share." After seeing the financial results, workers say they are willing to take action to get it. "I kind of chuckled because they can’t cry poor with $12 billion for the first half of the year," said John Barbosa, 52, an 18-year UAW member and a millwright apprentice at Stellantis' Toledo Assembly Complex in Ohio. "It makes me a little angry, and definitely, definitely fuels my will to stand and fight for what we have earned. "They've tried to insinuate that our demands may be a little too aggressive and that they need to make sure they’re competitive. Well, I don’t see anybody competing with Stellantis right now when it comes to first-half-of-the-year profits." Automakers say their employees do share in the wealth through annual profit-sharing checks that were $14,760 at Stellantis, $12,750 at GM and $9,176 at Ford from 2022's results. Temporary and supplemental employees, however, aren't eligible for the payouts. "There's a direct connection between their hard work and our success," GM CEO Mary Barra said on an earnings call this week, "and we have a great future ahead of us." 'Herculean' investments Meanwhile, the companies are undergoing their largest transformation since the advent of the moving assembly line more than a century ago, with batteries, EVs and other zero-emission vehicles claiming growing shares of their model lineups. "These numbers indicate that the companies are making a decent profit, but they need to be put in the context of No. 1, they're corporate-wide and the sheer cost of electrification," said Marick Masters, a business professor at Wayne State University. In the United States, automakers "have agreed between now and 2026 to commit $120 billion to electrification. If anything, that number is likely to increase. The investments they still have to make are still Herculean in scope." GM's operating income was $6.77 billion in North America for the first half of 2023, while Stellantis posted a $8.88 billion record adjusted operating income. Ford no longer breaks out earnings by geographic region. Ford is spending $50 billion by 2026 on EVs. By 2025, Stellantis has committed to spend about $35.5 billion on electrification and software. GM has said it will spend between $11 billion and $12 billion in capital expenditures this year alone, which is mostly on EVs. Those investments and having comparable costs are needed in order for workers to keep sharing in profits, Stellantis CEO Carlos Tavares said this week during a roundtable with reporters. Executives have emphasized the need for improvements in efficiency, productivity, quality and absenteeism. "We also want to make sure that two or three years down the road, we'll be able, on a midterm basis, to continue to pay those performance bonuses by protecting the competitiveness of our operations and making sure that our operations continue to be highly profitable," he said, "so that those returns to the employees can be a reality, not only on a short-term basis but also on a midterm basis for that to happen. We need to address a certain number of operational issues that we have right now." In addition to transformation expenses, there are other claimants on the profits, Masters noted, from suppliers under pressure as their costs have increased and to dealers to keep pricing competitive for customers. Plus, the companies will be negotiating with the Canadian autoworkers union simultaneously when talks with Unifor kick off on Aug. 10. The contracts with the UAW expire Sept. 14, and Unifor's expire four days later. Ford noted contract negotiations could represent a headwind for achieving its upped guidance for the year, with John Lawler, its chief financial officer, specifically mentioning the traditional ratification bonuses provided when a new agreement is made. "There will be costs that will be associated with a new contract, and that's about as far as we're going to go," he said. "But I think it would be inappropriate for us not to acknowledge that there will be costs associated with the contract. We know that we have to plan for that as part of our business." Automakers, with their strong guidance, though, did share a positive picture on demand as the U.S. Commerce Department reported the country's economy grew to a 2.4% annual growth rate in the second quarter, despite the Federal Reserve increasing interest rates. Stellantis says it has more than four months of production on order. The automakers also seek to make their investors happy. Stellantis says it expects to complete an already-underway $1.7 billion share buyback program before the end of the year, which Fain criticized as robbery from workers. Non-union competition But car makers with the highest valuations, like EV maker Tesla Inc., don't have unions with which it has to bargain. Neither do the Detroit Three's foreign competitors manufacturing in the United States. Estimates suggest a $9 per hour labor cost difference on average as is. Now, with Ford losing money on EVs — and them representing a 40% increased production cost over the traditional internal combustion engines produced, according to Stellantis — those differences can burden efforts to offer affordable EVs to would-be customers. "It could throw a fly in the ointment," Dan Ives, an analyst at wealth advisory firm Wedbush Securities Inc., said about the negotiations. "It doesn't feel like the UAW is going into this drinking champagne and eating strawberries with whipped cream. They're in for a battle. There’s a massive path to success ahead, but the UAW needs to play ball with the likes of GM, Ford and Stellantis for this to all be a happy ending to the movie." Still, raking in billions of dollars in record profit could buoy public support for the UAW, as unions already experience their highest favorability — 71% — since 1965 amid an increase in union action, according to a Gallup survey. Combine that with a president who says he is the most union-friendly in U.S. history, low unemployment and high inflation, and the UAW may have the ingredients to make its demands. It's worked for others: On Tuesday, the International Brotherhood of Teamsters announced a tentative agreement offering existing full- and part-time employees at United Parcel Service Inc. $2.75 more per hour in 2023, and $7.50 more per hour over the length of the contract. That will make full-time workers' average top rate $49 per hour, and give part-timers a 48% average total wage increase over the next five years. "It's not business as usual. If it's not overwhelmingly a great contract, it might not be ratified," said Art Wheaton, director of Labor Studies at Cornell University. The record profits "make it really difficult for the automakers to cry poverty. You can afford it. It can hurt your competitiveness, but you can't say you can't afford it. You may not want to pay it, but yes, you can." For now, though, Ford says it's losing money on EVs. It's also elongated its timeline for increasing production of all-electric vehicles. F-150 Lightning had been down for five weeks this winter because of a battery issue. The automaker now expects to reach a 600,000 run rate in 2024, and Lawler, the CFO, said the company is no longer committed to 2026 to hit 2 million produced EVs. "We know that (EV) intention is good because intention is about 20 to 30% of customers, but the take rate's only about 7%," he said on a call with reporters. "And so that tells us that they're too expensive. There's a pricing issue." That tracks with Ford's decision earlier this month to lower the price on its F-150 Lightning pickup truck. It finished plant upgrades at its Rouge Electric Vehicle Center in Dearborn for increased capacity to a run rate of 150,000, about double what it does now. The lowest-priced Pro model's suggested retail price fell to $49,995 from $59,974, though its remains above the $39,974 price at which it launched in April 2022 following a few price hikes. The Lariat 510A model's price declined to $69,995 from $76,974. CEO Jim Farley also noted that it will have reduced the cost of building materials for the Mustang Mach-E SUV by $5,000 by the end of the year since its launch in 2020. "It may take a little longer, but we're in really good shape, because we have our first-generation customers out there, and the one thing that we do know is that EVs are loyal to the brands that they join," Lawler said. Added CEO Jim Farley: "We're seeing that the second EV purchase is much more loyal to the brand in these developed EV markets, so we're glad that we have all these customers in our digital-physical ecosystem." 'Boringly predictable' Still, Ford increased its full-year guidance for adjusted operating profits to between $11 billion and $12 billion from $9 billion and $11 billion from improvements in supply chain, higher volumes, new Super Duty trucks and lower commodity costs. Additionally, projections of adjusted free cash flow increased to between $6.5 billion and $7 billion from about $6 billion. Outside of Ford's EV business, operating profits for Ford Pro, its commercial products and services unit, nearly tripled from a year ago to $2.39 billion on revenue of $15.6 billion. Ford expects its operating profits to be nearly $8 billion in 2023, up from the previously stated $6 billion. The operating profits from Ford Blue, the automaker's hybrid and fossil fuel-powered business, was $2.31 billion on revenue of $25 billion after the segment lost money last year. The company says it will contribute about $8 billion in operating profits this year, up from $7 billion. Both segments also were profitable in each region in which they operate, Farley added. "I hope that we can be boringly predictable," CEO Jim Farley said during an earnings call, "when it comes to the execution and delivering financials that are extremely ambitious, and dynamic, and creating the Ford of the future." |
Did the Bank of Canada just push July 21, 2023 Interest rates can’t fix housing costs and they won’t take one bite out of food inflation. So why is the Bank of Canada continuing down this path? It was the news Canadians were dreading. As the Bank of Canada raised the interest rate to 5 per cent, hearts sank and anxiety rose for workers and their families. The hike will prove to be a disaster. It will not solve the affordability crisis and it will not have an influence on inflation. Instead, it will continue to force housing costs even higher and will not address the causes of the rising price of food (ahem, profiteering) at all. But it will cause hardship. Food and shelter alone drove two-thirds of the inflation consumers experienced in May. Food and housing. Essentials for Canadians. Statistics Canada recently reported that mortgage interest costs were the largest single contributor to inflation in June. How does raising the interest rate a 10th time in a year and a half solve this? It doesn’t — it makes it worse. A quarter of homeowners in Canada hold a variable rate mortgage. Thousands more have recently renewed or will renew their mortgage in the next few years, increasing mortgage payments dramatically. Many mortgage holders are landlords, leasing out their properties to renters. They will take the opportunity to raise rents to cover the additional cost. Again, driving up prices even further. Interest rates can’t fix housing costs and they won’t take one bite out of food inflation. So why is the Bank of Canada continuing down this path? The only answer is reliance on old orthodoxy that believes forcing pain on the working class through slow job and wage growth (eventually leading to job loss and a recession) and unemployment is the only way to deliver a healthy exit from this inflationary period. Unfortunately, this orthodoxy is dead wrong. And without a course correction workers are going to pay the price. The aim of interest rate hikes is to slow economic growth. What does that mean? Higher unemployment, slower job growth or, worst case scenario, a recession that causes extensive job loss and leaves permanent scars. The Bank of Canada says the underlying causes of the remaining inflation are low-unemployment and “high” wage growth, households having too much savings (and using it) and population growth (which causes demand for housing to increase). In the same media conference, they say the result of these underlying pressures is that corporations are still raising their prices too often. And yet, the Bank refuses to tackle the big elephant in the room: corporate profiteering. Well, I have news for orthodox thinkers. Each and every time a business raises their prices they are making a decision. And many of those decisions have resulted in higher profit margins. Profits as a share of GDP have averaged 21 per cent since the start of the pandemic and profit margins are higher too. At the same time, workers have lost purchasing power and after adjusting for inflation, wages have just not kept pace. Crises result in opportunities and there were so many opportunities that could have been taken up coming out of lockdowns and getting back to more regular life. They included the opportunity to build a more equitable and resilient world. Instead, policymakers at all levels are allowing corporations to get away with their own opportunism, siphoning more of workers hard earned cash for their own bank accounts. And now the Bank of Canada is diverting that hard earned cash and making life even more unaffordable. If the Bank of Canada continues down this path and federal and provincial governments continue to avoid taking action in their own spheres of responsibility, the ultimate result will be higher income and wealth inequality. Higher profit margins will be normalized and many workers will think they are asking for too much when they demand an income that allows them to survive, much less thrive. What a joke. In the beginning of this rate cycle, the public was led to believe that the Bank was attempting to achieve a soft landing. No one believes that now. Inflation fell to 3.4 per cent in May. Unemployment ticked up to 5.4 per cent. The job vacancy rate is easing and wage growth is slowing. Canada doesn’t need more unemployment or slower wage growth to solve inflation. We need more housing and it needs to be affordable. We need living wages and secure full-time jobs for people to thrive. We need policymakers at every level to address the real causes of excess/persistent inflation — profiteering, financialization, undersupply and supply chain bottlenecks. Without that we’re all left worse off regardless of the level of inflation. Lana Payne is Unifor national president.
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Ford cuts F-150 Lightning prices Alexa St. John) Tesla's first Cybertruck finally rolled off production lines this month.
Ford said Monday morning it would slash the prices of its F-150 Lightning electric pickup trucks by up to nearly $10,000 just days after Tesla's rival Cybertruck finally rolled off the assembly line. The cheapest electric F-150 dropped nearly $10,000, from $59,974 to $49,995, while the most expensive trim option fell about $6,000, from $98,074 to $91,995. Ford said that upon the Lightning launch, material costs, supply constraints, and more contributed to the vehicle's high prices. Ford said that the cheaper prices are the result of "upgrades at the plant, combined with improving battery raw material costs and continued work on scaling production and cost." Ideally, the same will happen for other automakers as the industry looks to lower the prices of EVs overall. The industry's scramble to make EVs more affordable created a dash for supply that cost customers. Ford raised Lightning prices several times over the past year. But Ford could also be looking at an electric vehicle inventory problem. More and more of its Mustang Mach-E EVs are sitting on dealer lots, and it's taking longer for dealers to move both Mach-E and Lightning inventory than it did last year as the automaker ramps up production of both vehicles. Some electric cars are flying off dealer lots, while others have been harder to sell. That's according to data from Cloud Theory, a data analytics firm that tracks dealership inventory across the US. As automakers ramp up production of electric vehicles, some are having a harder time getting them off dealership lots than they did a year ago, Cloud Theory found. For example, while Hyundai has more than doubled the number of Ioniq 5 EVs in dealership inventory from 2022 to 2023, the turn rate (or the number of these cars that leave dealer lots within a 30 day period) has declined. Last year, about 82% of Ioniq 5's left lots within 30 days, but this year, only 37% have, according to Cloud Theory. Volkswagen, which has about four times as much inventory of the ID.4 on average in a given month this year than in 2022, was selling all of its ID.4 inventory within a month last year. This year, about 70% of ID.4's leave dealer lots in that time. The sale pace for Ford's Mustang Mach-E fell from 95% sold within 30 days last year to 64% selling in that period this year. Why this is the case A year ago, car companies were churning out fewer EVs, creating a perception of scarcity and sparking a bit of a supply-and-demand rush. Customers interested in going electric snatched the only Mustang Mach-E or other EVs they saw on the lot. High gas prices had even EV-curious customers taking the plunge. Fast forward to this year, and production is getting closer to full swing, meaning more of these cars are available. At the same time, more automakers are launching product — spreading the wealth in terms of customer purchases. And the broader economic environment, coupled with sky-high interest rates, has a lot of prospective buyers holding off on making a substantial purchase. "Vehicle movement — the way that we capture sales — is growing," Rick Wainschel, industry analyst and Cloud Theory VP of data science and analytics, told Insider. "But it's not nearly keeping pace with the rate of inventory growth. You've got pressure on those manufacturers that are selling those vehicles and introducing new ones and adding production to the existing ones all at the same time, all by the way, while Tesla is the 800-pound gorilla in the space." "A year ago, the overall inventory situation in the marketplace was very challenged," he added. Now, "There's this glut of new models to choose from for consumers, and it got diluted when you look at the turn rates across all of those manufacturers all doing that at the same time." Cloud Theory's numbers indicate which EVs might be easiest to find right now, and which might still be in short supply. To gather the data, Cloud Theory indexes dealership inventory via their websites, as well as collects diagnostic information like how long a vehicle was on their site. Cloud Theory does not get data for Tesla as the company does not sell through a traditional dealership model. "The train is going down the tracks" with electrification collectively, Wainschel said, but for individual automakers with an EV to sell, it's a lot harder. To be sure, deliveries of the Lighting are up this year compared with 2022, but the sales pace appears to be slowing. Ford shares fell more than 4% Monday morning following news of the price cuts. In addition to the price cuts, Ford said it is offering a $1,000 bonus for customers who purchase an XLT, Lariat, or Platinum Lightning model through the month of July. Ford and Tesla have had an interesting dynamic in recent years as Ford looks to catch up to the EV market leader. The news out of both companies signals that the electric pickup truck space is heating up and going to be even more competitive as others like Rivian, GM's Chevrolet, Stellantis' Ram, and more race to snatch market share.
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'Everyone is going to have to Chris Fox, The Bank of Canada has now raised interest rates to their highest level in 22 years but many borrowers still haven’t been hit in the pocketbook. Earlier this week the central bank pushed up its key overnight lending rate to five per cent, marking the 10th increase since March 2022. For some variable rate mortgage holders with floating payments the pain from the latest hike will be immediately felt and will amount to about $14 more a month for every $100,000 owing on their mortgage. But for other homeowners, who may have fixed rates or variable mortgages with fixed-payments, the impact is more likely to be felt at renewal. Approximately half of all mortgages in Canada are set to renew in 2025 or 2026 due in part to the real estate frenzy that transpired over the course of the COVID-19 pandemic. “For the fixed rate people it's going to be much less catastrophic. Many of those people will be able to shop for new mortgage and they will qualify because their mortgages are smaller due to the good payments they've made and they can manage it (the higher payments),” mortgage broker Ron Butler told CP24.com. this week. “The variable situation is somewhat more concerning because there may be no principal being paid down or it (the balance of the loan) might have even grown (due to fixed payments that don’t even cover interest).” If you have a mortgage coming up for renewal here is what you need to know about this higher rate environment. SOME PAYMENTS COULD SKYROCKET Many variable rate mortgage holders – those at four of the six big banks - have what is known as fixed payments. That has meant that as rates have increased more and more of their money has gone to interest rather than principal, even as their total payment has remained the same. The practice has, in turn, created a situation where some homeowners have amortizations that have risen well beyond the ones they agreed to when they first took out their mortgage and that is likely to be a problem come renewal. “Because of these rate hikes some homeowners might have an amortization of 60 years and the current lender will likely not allow them to keep that,” RATESDOTCA mortgage expert Victor Tran told CP24.com. “They will need to bring it down to the contractual amortization and if that happens their payments are going to skyrocket. It is going to be a lot higher than what they are currently paying.” Tran said that he expects lenders to show some flexibility when it comes to homeowners who haven’t been paying off much, if any, principal. But he said that it is not likely that homeowners will be able to keep extended amortization periods forever, an opinion that Butler also holds. Butler told CP24.com that banks “will almost always” offer a chance to go back to a 30 year amortization, which is the maximum allowed. But he said that might not make an enormous amount of difference for a homeowner whose payment is set to double, say from $2,000 to $4,000 a month. “They (the bank) may look at it closely and find out that yeah, you are right, yo |