Autoblog http://www.autoblog.com Autoblog http://www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2008 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[GM offers up to $200 million to end American Axle strike]]>http://www.autoblog.com/2008/05/09/gm-offers-up-to-200-million-to-end-american-axle-strike/http://www.autoblog.com/2008/05/09/gm-offers-up-to-200-million-to-end-american-axle-strike/http://www.autoblog.com/2008/05/09/gm-offers-up-to-200-million-to-end-american-axle-strike/#commentsFiled under: , , ,

General Motors has been hit so hard by the ongoing American Axle strikes that it's stopped production of the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. All the while, the General is still negotiating with the UAW over local contracts at some of its most important plants. To ease some of its supply problems, General Motors has reportedly offered as much as $200 million to American Axle for the funding of employee buyouts, early retirements and for the support of wage buy downs. The offer, however, is conditional on a quick resolution between American Axle and the UAW.

Spokesman Dan Flores says that GM hopes "the offer will help bridge the gap between American Axle and the UAW and that they will be able to reach a mutually satisfactory agreement in the near future." Both the UAW and American Axle sound supportive of the investment; Bill Alford Jr., vice president and incoming president at UAW Local 235 says, "We're happy that General Motors is finally coming to the table and realizing that they have a stake in American Axle's future." For GM's sake and that of the striking workers, we hope the feuding companies find an amicable solution soon, though it seems unfortunate that GM, which is not exactly posting record profits itself, should need to cough up funding to make it happen.

[Source: The Detroit Free Press]

 

Read | Permalink | Email this | Comments

]]>american axleamerican axle strikeamerican-axleamerican-axle-strikeAmericanAxleAmericanAxleStrikegeneral motorsgeneral-motorsGeneralMotorsgmgm strikegm-strikeGmStrikestrike2008-05-09T07:55:00+00:00<![CDATA[Strike forces GM to suspend truck and SUV orders]]>http://www.autoblog.com/2008/05/07/strike-forces-gm-to-suspend-truck-and-suv-orders/http://www.autoblog.com/2008/05/07/strike-forces-gm-to-suspend-truck-and-suv-orders/http://www.autoblog.com/2008/05/07/strike-forces-gm-to-suspend-truck-and-suv-orders/#commentsFiled under: , , , , , ,



General Motors has informed its dealers that production of some of its 2008 full-size trucks and SUVs has been halted due to the ongoing American Axle strike. The affected vehicles include the GMC Yukon, Denali, Sierra heavy-duty regular and extended cab, its commercial-duty pickup and variants of Chevrolet trucks and Tahoes. According to the General, a basic lack of parts is the reason for the stoppage and dealer orders for the week of May 8th and May 15th have been cancelled. While a lack of production is bad news for any automaker, we can't help but think that it couldn't have come at a better time for the General as SUV and truck sales are down overall.

[Source: Automotive News - sub. req'd]

 

Read | Permalink | Email this | Comments

]]>25003500chevrolet tahoeChevroletTahoedenaligm halts truck productiongmcgmc yukonGmcYukonGmHaltsTruckProductionsierrasuv2008-05-07T09:29:00+00:00<![CDATA[UAW strikes GM Malibu plant]]>http://www.autoblog.com/2008/05/05/uaw-strikes-gm-malibu-plant/http://www.autoblog.com/2008/05/05/uaw-strikes-gm-malibu-plant/http://www.autoblog.com/2008/05/05/uaw-strikes-gm-malibu-plant/#commentsFiled under: , , ,

Local UAW contract negotiations aren't going well for General Motors, and today they took a turn for the worst as union members at the automaker's Fairfax assembly plant in Kansas walked off the job at 10AM EST. The bulk of GM's hot-selling Chevy Malibu are produced at the Fairfax plant, with a lesser number of the four-door sedan being built at the automaker's Orion plant in suburban Detroit. Last month GM sold 17,050 Malibus, a 39.5% increase in volume over April 2007. The local union in Fairfax had given GM a number of ultimatums, extending them since the first was established for April 22nd. We're not exactly sure what issue is at the heart of these contract negotiations, but The Detroit News reports that at least one bone of contention is the plant requesting seniority to snag transfer jobs, while the other issues remain undisclosed.

General Motors has been able to weather a 10-week strike by union members against American Axle, one of its main suppliers, as only production of large trucks and SUVs have been affected. Another strike at its Lansing Delta Township plant where the large Lambda CUVs are built has also only served to reduce inventories of vehicles that are seeing a slow down in sales. While the General can withstand a reduction of inventory for vehicles that currently aren't selling as well as they were before because of high gas prices and a slump in the housing market, the Malibu is gaining popularity with consumers month over month. The Fairfax and Orion plants were already producing at capacity to keep up with demand, so today's strike will assuredly hurt the automaker where it matters most: the bottom line. We'd expect GM to act quickly to end the strike, as money is being lost by the hour while Malibus aren't being built.

[Source: The Detroit News]

 

Read | Permalink | Email this | Comments

]]>fairfax assembly plantfairfax strikeFairfaxAssemblyPlantFairfaxStrikegm strikeGmStrikemalibu plant strikemalibu strikeMalibuPlantStrikeMalibuStrikestrikeUAW fairfax strikeUAW malibu strikeUAW stirkeUAW strikeUawFairfaxStrikeUawMalibuStrikeUawStirkeUawStrike2008-05-05T11:27:00+00:00<![CDATA[CAW reaches deal with Ford five months early]]>http://www.autoblog.com/2008/04/30/caw-reaches-deal-with-ford-five-months-early/http://www.autoblog.com/2008/04/30/caw-reaches-deal-with-ford-five-months-early/http://www.autoblog.com/2008/04/30/caw-reaches-deal-with-ford-five-months-early/#commentsFiled under: , ,



We've been hearing for some time now that Buzz Hargrove and the CAW didn't want to have anything to do with the two-tier wage structure or health car plans that the UAW agreed to. Before the landmark labor contracts were ratified in the States, American auto manufacturers enjoyed the cheaper cost of building cars in Canada, and because that difference in manufacturing cost was no longer a factor, it appeared that the CAW and Detroit could be in for a long and messy fight. That may not be the case, though, as word comes from our unionized-friends up north that the CAW and Ford have already agreed in principle to the major points of their upcoming contract, a whopping five months ahead of schedule.

According to Automotive News, the union is expecting a deal to be done by the end of the week. We can surmise that the deal does not include a multi-tiered wage structure, though. "We were not going to do a tier-two and if Ford had insisted it would have resulted in a fight," says Hargrove. The CAW did, however, agree to give up 40 hours of vacation time per year, a supplemental health care fund and a reduced entry-wage for new-hires. Ford will compensate CAW workers with a single payment of $3,500 for the lost vacation time and a $2,200 bonus if the contract is ratified at the plant-level. Ford also promises to keep the St. Thomas plant open until at least 2011 as opposed to the current plan of 2010. See the press release after the break for all the juicy details.

[Source: Automotive News - Sub. Req., CAW]

Continue reading CAW reaches deal with Ford five months early

 

Read | Permalink | Email this | Comments

]]>buzz hargrovebuzz-hargroveBuzzHargrovecanadian auto workerscanadian unioncanadian-auto-workerscanadian-unionCanadianAutoWorkersCanadianUnioncawford2008-04-30T07:03:00+00:00<![CDATA[GM to reduce full-size truck production beginning in July]]>http://www.autoblog.com/2008/04/28/gm-to-reduce-full-size-truck-production-beginning-in-july/http://www.autoblog.com/2008/04/28/gm-to-reduce-full-size-truck-production-beginning-in-july/http://www.autoblog.com/2008/04/28/gm-to-reduce-full-size-truck-production-beginning-in-july/#commentsFiled under: , , ,



Word just came in from General Motors that the automaker will be reducing shifts at four different plants that produce its full-size trucks and SUVs in an effort to bring production "in line with market demand". The output slowdown will begin on July 14th at GM's Flint, Janesville and Pontiac assembly plants, which produce the Chevy Heavy-Duty Silverado, Tahoe, Suburban, Silverado and GMC Yukon, Yukon XL and Sierra. The Oshawa truck plant will also be affected starting Sept. 8th. All told, the shift reductions will nix 80,000 full-size pickups and 50,000 full-size SUVs from GM's North American production capacity.

According to GM, both vehicles have lost ground in the market across the industry, with sales of full-size pickups dropping 15-percent and SUVs down 26-percent for the first quarter of 2008. This isn't surprising considering the cost of fuel right now and the subsequent reduced demand for larger vehicles. GM didn't provide specifics about how this would affect workers, only saying that it will "result in lower staffing requirements at all four plants," and that the details "would be worked out over the next several weeks with the UAW and CAW."

Naturally, GM felt the need to brighten up the lackluster announcement by highlighting that car and CUV sales are up. However, it hasn't made a decision to boost output of either type of vehicle in lieu of said increased demand. Check out GM's full press release after the jump.

[Source: GM, Photo by Scott Olson/Getty]

Continue reading GM to reduce full-size truck production beginning in July

 

Permalink | Email this | Comments

]]>full size pickup trucksfull-size pickup trucksFull-sizePickupTrucksFullSizePickupTrucksgeneral motorsgeneral motors production pickupsGeneralMotorsGeneralMotorsProductionPickupsgmgm cutting productiongm trucksGmCuttingProductionGmTruckssuvsuvs2008-04-28T17:02:00+00:00<![CDATA[Strike at Malibu plant averted for now, Lucerne and DTS production to resume]]>http://www.autoblog.com/2008/04/24/strike-at-malibu-plant-averted-for-now-lucerne-and-dts-producti/http://www.autoblog.com/2008/04/24/strike-at-malibu-plant-averted-for-now-lucerne-and-dts-producti/http://www.autoblog.com/2008/04/24/strike-at-malibu-plant-averted-for-now-lucerne-and-dts-producti/#commentsFiled under: , , ,

GM is still dancing with the UAW over contract issues, now its doing it with local plants regarding items that weren't in the national agreement. However, The General has managed to wring two more days to negotiate before workers at its Fairfax assembly plant in Kansas City, KS, walk out. The 2,600 workers of UAW Local 31 churn out 3,100 Malibus every week.

Local contracts -- as opposed to the national agreement -- concern work-rule, seniority and other non-economic issues. The UAW Local says that GM isn't following the blueprint of the national agreement and is pushing for too much. GM says it is negotiating in good faith.

And Fairfax isn't the only plant affected. Strikes and idling due to rejected contracts have taken place at GM plants in Parma, Ohio, Lansing, Michigan, and Detroit-Hamtramck. Those interruptions have halted production of the Buick Lucerne and Enclave, Cadillac CTS, Saturn Outlook, and GMC Acadia. The Hamtramck plant is calling workers back, which will get the Lucerne and CTS in production again, but now the Malibu is on the block. GM has a 37-day supply of the hot commodity, and it also has another plant that builds Malibus. If GM and UAW Local 31 can't come to an agreement, Malibu production at the Fairfax plant will cease tomorrow.

[Source: Automotive News - Sub. Req.]

 

Read | Permalink | Email this | Comments

]]>chevy malibuchevy malibu strikeChevyMalibuChevyMalibuStrikefairfaxfairfax plantFairfaxPlantgeneral motorsGeneralMotorsgmmalibu2008-04-24T07:02:00+00:00<![CDATA[UAW threatens to walk out on Chevy Malibu production]]>http://www.autoblog.com/2008/04/18/uaw-threatens-to-walk-out-on-chevy-malibu-production/http://www.autoblog.com/2008/04/18/uaw-threatens-to-walk-out-on-chevy-malibu-production/http://www.autoblog.com/2008/04/18/uaw-threatens-to-walk-out-on-chevy-malibu-production/#commentsFiled under: , , ,



General Motors has been dealing with a lot of strikes lately. The United Auto Worker union's strike against one of its main suppliers, American Axle, has been reducing the General's inventory of trucks and SUVs for about a month now, and also threatened production of the Chevy Malibu before the automaker found more parts to keep production going. Just yesterday the UAW walked out of GM's Lansing Delta Township plant where the Buick Enclave, GMC Acadia and Saturn are built. The latter strike is over what the UAW has only referred to as "local contract issues". Whatever those are, they are important enough to come back today and threaten GM with a walk out at its Fairfax plant, one of the two facilities that builds the hot-selling Chevy Malibu. The union has set a five-day ultimatum, and says it will walk out on Malibu production next Tuesday, April 22 if an agreement isn't reached. The other plant building Malibus is in the Detroit suburb of Orion, but it only builds 2,100 Malibus per week compared to the 3,100 units per week built at the Fairfax plant. Clearly the UAW knows exactly where GM is most vulnerable, and its aiming a strike right at it.

Gallery: First Drive: 2008 Chevrolet Malibu


[Source: Automotive News, subs. req'd]

 

Permalink | Email this | Comments

]]>chevy malibuchevy malibu strikeChevyMalibuChevyMalibuStrikegeneral motorsGeneralMotorsgmuawunionunion strikeunion strike fairfaxunion strike malibuUnionStrikeUnionStrikeFairfaxUnionStrikeMalibu2008-04-18T16:25:00+00:00<![CDATA[UAW strike halts GM's CUV production]]>http://www.autoblog.com/2008/04/17/uaw-strike-halts-gms-cuv-production/http://www.autoblog.com/2008/04/17/uaw-strike-halts-gms-cuv-production/http://www.autoblog.com/2008/04/17/uaw-strike-halts-gms-cuv-production/#commentsFiled under: , ,

This morning, UAW workers at General Motor's Lansing Delta Township plant in Michigan have began a work stoppage, halting production of the Saturn Outlook, Buick Enclave and GMC Acadia. Both GM and the UAW are remaining mum on why the strike began, but it's likely due to an unsigned contract that covers work rules. However, according to the Lansing State Journal, 2,300 workers are employed at the plant, and while hourly workers are walking the picket line, salaried employees reported for duty.

[Source: Autoweek]

 

Read | Permalink | Email this | Comments

]]>general motorsGeneralMotorsgmlansinglansing delta townshipLansingDeltaTownshipstrikeuaw2008-04-17T12:31:00+00:00<![CDATA[Good news for Detroit: Big 3 gearing up for hiring binge]]>http://www.autoblog.com/2008/04/16/good-news-for-detroit-big-3-gearing-up-for-hiring-binge/http://www.autoblog.com/2008/04/16/good-news-for-detroit-big-3-gearing-up-for-hiring-binge/http://www.autoblog.com/2008/04/16/good-news-for-detroit-big-3-gearing-up-for-hiring-binge/#commentsFiled under: , , , ,

Over the last few years, huge numbers of union workers have accepted buyout packages to leave their high-paying jobs at automotive factories and office buildings. Many of those retired workers will be replaced by new hires at much lower salaries in the coming years. In fact, there could be as many as 46,000 new workers hired in Michigan alone, according to a recent 95-page report (PDF link here) released by the Center for Automotive Research (CAR). This report could mean good things for the troubled economy surrounding Detroit -- but it's not all roses, as the report indicates that more workers will leave through attrition than the estimated 46,000 that could be hired. Also, all of those new workers will require lots of training before they can be counted on as worthy replacements. Still, as Kristin Dziczek, an analyst from CAR says, "The bleeding will stop."

[Source: CAR via The Car Connection]

 

Read | Permalink | Email this | Comments

]]>auto jobsauto-jobsAutoJobsautomakers hiringAutomakersHiringautomotive jobsautomotive-jobsAutomotiveJobsdetroitdetroit hiringdetroit jobsdetroit-hiringdetroit-jobsDetroitHiringDetroitJobshiringunion workersunion-workersUnionWorkers2008-04-16T14:59:00+00:00<![CDATA[American Axle Strike: Two GM factories up, one GM factory down]]>http://www.autoblog.com/2008/04/07/american-axle-strike-two-gm-factories-up-one-gm-factory-down/http://www.autoblog.com/2008/04/07/american-axle-strike-two-gm-factories-up-one-gm-factory-down/http://www.autoblog.com/2008/04/07/american-axle-strike-two-gm-factories-up-one-gm-factory-down/#commentsFiled under: , , , , ,

The American Axle strike, now in its second month, is causing General Motors more than a few headaches. The parts shortage caused the General to nearly cease production of its highly profitable large trucks and SUVs, and shut down production in Oshawa, Ontario and Fort Wayne, Indiana.

As of this past weekend, it appears that GM has found enough parts to re-open those two plants to start building the Chevrolet Silverado and GMC Sierra again. While that's good news for those workers, the SUV plant in Arlington, Texas, all but untouched by the strike, will now find itself shutting down. Arlington will go on a four-week layoff starting April 14.

To get the Ontario and Indiana plants up and running, GM is reportedly getting parts from an American Axle plant in Mexico (as Chrysler has been doing). Although GM won't officially specify from where the parts are coming, if they are being supplied from Mexico, as many suspect, it will offer the automaker additional leverage in its dispute against the UAW. Union officials are currently losing negotiation power as the slumping U.S. auto market has reduced the demand for vehicles with American Axle components. In a move to shift the balance of power back to its favor, the UAW has threatened additional strikes if local contracts aren't soon reached.

[Source: Detroit News]

 

Permalink | Email this | Comments

]]>American AxleAmericanAxleGMStrikeUAWuaw strikeUawStrike2008-04-07T14:41:00+00:00<![CDATA[That was easy: UAW and GM agree on lower wages after six months of bargaining]]>http://www.autoblog.com/2008/04/05/that-was-easy-uaw-and-gm-agree-on-lower-wages-after-six-months/http://www.autoblog.com/2008/04/05/that-was-easy-uaw-and-gm-agree-on-lower-wages-after-six-months/http://www.autoblog.com/2008/04/05/that-was-easy-uaw-and-gm-agree-on-lower-wages-after-six-months/#commentsFiled under: ,

UAW / GM Logos

Just hours after threatening to strike at one or more GM plants, the UAW and the General have agreed on two-tier wages for certain job types. The move to clarify which jobs were "non-core" at the national level came as local UAWs were threatening to strike because they felt GM was asking for too many lower-paid positions at their plants. The more regimented deal identifies 16,000 positions that will soon be paid $14 per hour, which will save GM up to a half-billion dollars per year. It will take years to fill all of those positions because GM has to entice existing workers to retire before they can be replaced.

[Source: Detroit News]

 

Read | Permalink | Email this | Comments

]]>GMStriketwo-tier wagesTwo-tierWagesUAWUnion2008-04-05T15:33:00+00:00<![CDATA[UAW threatening GM strike over unresolved issues]]>http://www.autoblog.com/2008/04/04/uaw-threatening-gm-strike-over-unresolved-issues/http://www.autoblog.com/2008/04/04/uaw-threatening-gm-strike-over-unresolved-issues/http://www.autoblog.com/2008/04/04/uaw-threatening-gm-strike-over-unresolved-issues/#commentsFiled under: , ,

The United Auto Workers (UAW) are gearing up to strike against General Motors if progress isn't made on local negotiations affecting three factories in the U.S. The workers at the Arlington, Texas; Parma, Ohio; and Delta Township, Michigan plants are required to give the General a five day notice before the stoppage occurs, and they've told GM's negotiators that if progress isn't made in five days on the local contracts, they'll be laying down their tools. The dispute is primarily over which factory workers will be forced into a lower wage rate. If the work stoppage occurs, it will further compound issues GM is already facing with the American Axle strike, which has forced the automaker to slow or stop production at 30 factories across the U.S and Canada.

[Source: Detroit News]

 

Read | Permalink | Email this | Comments

]]>general motorsGeneralMotorsgmstrikeuawunited auto workersUnitedAutoWorkerswork stoppageWorkStoppage2008-04-04T19:02:00+00:00<![CDATA[GM finds short-term solution to American Axle strike]]>http://www.autoblog.com/2008/04/01/gm-finds-short-term-solution-to-american-axle-strike/http://www.autoblog.com/2008/04/01/gm-finds-short-term-solution-to-american-axle-strike/http://www.autoblog.com/2008/04/01/gm-finds-short-term-solution-to-american-axle-strike/#commentsFiled under: , , ,

The five week-old strike at American Axle is finally starting to wear on GM, and the General has decided to move a small but crucial parts contract over to rival supplier Dana to help get its truck plants moving again. The 30,000-unit prop shaft contract for light pickups is considered a small deal, but the fact that GM is beginning to move on shows that the strike, which began on February 26, is beginning to take its toll on the giant automaker. The move is going to anger the striking workers, but it will also likely help get American Axle management back at the bargaining table.

Recent events show that still more GM plants are being hurt by the strike, as the plant that builds the Buick Lucerne and Cadillac DTS was shut down last Friday, and Automotive News reports the Chevy Cobalt plant could idle this week. Perhaps the biggest news of all is that GM is running out of rear suspension knuckles for the hot-selling Chevy Malibu. Since the General is in the middle of a mega-million dollar ad push for the North American Car of the Year, we're guessing a work stoppage at the Orion, MI plant won't be taken lightly. This ever-lengthening strike may have started out as a non-story, but lost production on a grand scale of some of GM's most profitable products will hurt GM, American Axle, and its 3,600 workers in the long run.

[Source: Automotive News - subs. req'd]

 

Read | Permalink | Email this | Comments

]]>American AxleAmericanAxleChevy MalibuChevyMalibuDanaGeneral MotorsGeneralMotorsGMUAW StrikeUawStrike2008-04-01T10:01:00+00:00<![CDATA[American Axle strike idles first GM passenger car plant]]>http://www.autoblog.com/2008/03/29/american-axle-strike-idles-first-gm-passenger-car-plant/http://www.autoblog.com/2008/03/29/american-axle-strike-idles-first-gm-passenger-car-plant/http://www.autoblog.com/2008/03/29/american-axle-strike-idles-first-gm-passenger-car-plant/#commentsFiled under: , , ,

When the American Axle strike began, GM had a 106-day supply of pickup trucks on dealer lots, and even a month-long strike likely wouldn't have hurt the Detroit automaker. It has now been more than a month, the strike isn't any closer to ending, and now GM's car plants are joining its truck plants in the unemployment line. Friday marked the last shift at the General's Hamtramck, MI plant, which builds the Buick Lucerne and Cadillac DTS, due to a lack of parts coming from American Axle. According to Automotive News the pain may not stop there, either, as the Lordstown, Ohio plant may have to shut down production of the Chevy Cobalt and Pontiac G5 due to a lack of brake components. GM may not have been all that concerned about the American Axle strike when it began in February, but now after a month with barely any talks and a quickly growing list of shuttered plants, we're guessing things are getting a bit tight over at the Ren Cen.

[Source: Auto News (subs. req'd)]

 

Read | Permalink | Email this | Comments

]]>American AxleAmericanAxleBuick LucerneBuickLucerneCadillac DTSCadillacDtsCobaltGMPontiac G5PontiacG5StrikeUAW2008-03-29T08:01:00+00:00<![CDATA[UAW having issues with GM's landmark labor contract]]>http://www.autoblog.com/2008/03/18/uaw-having-issues-with-gms-landmark-labor-contract/http://www.autoblog.com/2008/03/18/uaw-having-issues-with-gms-landmark-labor-contract/http://www.autoblog.com/2008/03/18/uaw-having-issues-with-gms-landmark-labor-contract/#commentsFiled under: , ,

A key part of the labor contract signed between GM and the UAW last year was a second tier of wages for non-crucial, i.e. not involved with building a car, job roles. As higher-paid workers take buyouts and retirement packages over the next few months, the General is allowed replace up to 16,000 roles with lower wages that are half what current workers make at around $14he contract stipulates the total number of second tier jobs, but some union officials say GM has raised the per-plant number at all locations.

While some locals feel they have been fairly represented, at least three feel that GM is trying to allocate too much of their labor as "non-core." The Orion, Michigan plant that produces the Malibu and G6, for example, is being tasked with 580 tier two jobs, while union locals feel the number is actually closer to 300. Union leaders say the solution will need to come from additional bargaining, as if we aren't still burned out on union talk as it is. The good news is that any problems the two sides may have will likely be solved by the end of summer, as July 1 is when buyouts start to take effect and GM will have to start hiring new workers to replace them.

[Source: Detroit News]

 

Read | Permalink | Email this | Comments

]]>contract talksContractTalksGMOrion plantOrionPlantstriketwo-tier wagesTwo-tierWagesUAWUnion2008-03-18T08:01:00+00:00<![CDATA[Chrysler likely to miss goal of 10,000 buyouts]]>http://www.autoblog.com/2008/03/13/chrysler-likely-to-miss-goal-of-10-000-buyouts/http://www.autoblog.com/2008/03/13/chrysler-likely-to-miss-goal-of-10-000-buyouts/http://www.autoblog.com/2008/03/13/chrysler-likely-to-miss-goal-of-10-000-buyouts/#commentsFiled under: , , ,

A key part of Chrysler LLC's agreement last year with the UAW gave the automaker the ability to hire new employees at a fraction of wages and health care of current workers. Since the deal was signed, Chrysler has been trying to show high-cost workers the door. The privately-owned automaker had a goal of 10,000 overall buyouts to cut labor costs, but it doesn't look like the Pentastar is going to get its wish. UAW Vice President General Holiefield told the Detroit Free Press that he didn't think Chrysler would hit its goal.

Holiefield cited a shaky economy as the main reason workers haven't been pulling the trigger on deals that can range from $70,000 to $100,000 just for not working. The issue is once workers leave, there are few jobs available to provide new income. Although the deadline has passed for workers to accept packages, Chrysler isn't divulging the number of workers who have grabbed the deal. Chrysler is working with the UAW to offer more buyouts in the near future.

[Source: Detroit Free Press]

 

Read | Permalink | Email this | Comments

]]>buyoutCerberusChrysler LLCChryslerLlcUAW2008-03-13T19:32:00+00:00<![CDATA[GM: American Axle strike to slow down or stop 20 plants]]>http://www.autoblog.com/2008/03/07/gm-american-axle-strike-to-slow-down-or-stop-20-plants/http://www.autoblog.com/2008/03/07/gm-american-axle-strike-to-slow-down-or-stop-20-plants/http://www.autoblog.com/2008/03/07/gm-american-axle-strike-to-slow-down-or-stop-20-plants/#commentsFiled under: , , , ,

The 10-day strike between American Axle & Manufacturing Holdings Inc. and the United Auto Workers union is now threatening to idle or partially shut down 13 more GM plants as early as Monday. Although talks are underway again, even a resolution over the weekend may mean closures as it takes time to deliver inventory and ramp up production. As of now, seven assembly plants at GM have already been idled after the AA workers walked off their jobs on February 26th.

American Axle supplies components to many different automakers, meaning the strike is being felt industry-wide. The strike is hitting GM particularly hard, however, as it does represent some 80% of the supplier's business. GM idled four truck plants within days. By yesterday, five GM plants, and seven suppliers were down. Chrysler may also have to idle plants in Delaware and Mexico by mid-next week if both sides don't come to an agreement.

There is light at the end of the tunnel. Reportedly, both sides already agree on the principles of a concession, leaving just the issue of hourly wages on the table. And, as most negotiation experts point out, money differences are often the easiest to solve.

[Source: Detroit News, Photo by Bill Pugliano/Getty]

 

Permalink | Email this | Comments

]]>American AxleAmericanAxleClosureGeneral MotorsGeneralMotorsShutdownStrikeUAWWalkoff2008-03-07T13:32:00+00:00<![CDATA[Chrysler ups police presence at plant ahead of third shift elimination]]>http://www.autoblog.com/2008/03/06/chrysler-ups-police-presence-at-plant-ahead-of-third-shift-elimi/http://www.autoblog.com/2008/03/06/chrysler-ups-police-presence-at-plant-ahead-of-third-shift-elimi/http://www.autoblog.com/2008/03/06/chrysler-ups-police-presence-at-plant-ahead-of-third-shift-elimi/#commentsFiled under: , , ,



The elimination of shifts is an increasingly common occurrence at assembly plants. Automakers will usually cut a shift to reduce its growing inventory of slow-selling vehicles, and Chrysler's got a few of those right now. In the days leading up to its third shift elimination, however, Chrysler's assembly plant in Belvidere, IL has become an increasingly hostile environment. Rumors of vandalism and even threats of violence have occurred, which has prompted Chrysler to call in police officers. The boys and girls in blue are patrolling the parking lots and checking workers' bags on their way into the factory.

The Belvidere plant produces the Dodge Caliber, Jeep Patriot and Jeep Compass, and the shift elimination that will end the assembly careers of some 1,069 UAW workers, has reportedly been planned for some time. Still, that apparently doesn't dull the sting of watching your buddies walk out the door for the last time. What's particularly worrisome for car buyers is the possibility that disgruntled workers on their way out could sabotage the quality of a car headed to a dealer lot somewhere. Hopefully Chrysler puts some extra checks and balances in place to ensure every Caliber, Patriot and Compass that leaves the line is free of any mechanical retribution.

[Source: The Detroit News, Photo by Scott Olson/Getty]

 

Permalink | Email this | Comments

]]>belvidere uawBelvidereUawchrysler belviderechrysler policechrysler threatsChryslerBelvidereChryslerPoliceChryslerThreats2008-03-06T15:29:00+00:00<![CDATA[Ford workers to get cash bonuses on March 13]]>http://www.autoblog.com/2008/03/06/ford-workers-to-get-cash-bonuses-on-march-13/http://www.autoblog.com/2008/03/06/ford-workers-to-get-cash-bonuses-on-march-13/http://www.autoblog.com/2008/03/06/ford-workers-to-get-cash-bonuses-on-march-13/#commentsFiled under: , , ,

Barely over a year ago, Ford paid out cash bonuses to its employees and recently hinted that they'd do the same this year. Today, an email sent to Ford employees confirmed the bonuses, which will be $1,000 for hourly UAW workers, with significantly larger bonuses based on pay grade going to salaried employees. Before Alan Mulally came to Dearborn, workers at Ford would not have been eligible for any extra income, as the old bonus plan was based on a profit-sharing system. Profit is not something that Ford has seen in a while, losing some $2.7 billion last year.

According to Mulally, the number three automaker in the U.S. "made significant progress on our plan transform Ford Motor Co. into a lean global enterprise poised to become profitable again in 2009." To recognize the efforts of each employee towards the larger goal of regaining profitability, Ford workers should expect their bonuses on March 13.

Not all news was good for Blue Oval employees, though, as salaried workers were informed that their merit pay increases would be delayed from the first of April to the first of June due to the poor overall economy. Considering the state in which Ford is currently operating, we wouldn't expect too many hurt feelings by the slight delay.

[Source: Detroit News]

 

Read | Permalink | Email this | Comments

]]>bonusemployee bonusemployee-bonusEmployeeBonusfordford bonusford bonusesford-bonusford-bonusesFordBonusFordBonuses2008-03-06T08:28:00+00:00<![CDATA[Striking UAW and American Axle will sit down and talk today]]>http://www.autoblog.com/2008/03/06/striking-uaw-and-american-axle-will-sit-down-and-talk-today/http://www.autoblog.com/2008/03/06/striking-uaw-and-american-axle-will-sit-down-and-talk-today/http://www.autoblog.com/2008/03/06/striking-uaw-and-american-axle-will-sit-down-and-talk-today/#commentsFiled under: , ,



The nine-day-old UAW strike on American Axle has already halted production at five GM plants and seven suppliers, and the two sides have yet to hit the bargaining table. That will change today, as both sides at least agree that they should be trying to reach an accord. The two sides are still far from agreeing on anything else, however, as American Axle wants to cut wage and benefit costs in half, even though the parts supplier is currently profitable.

Following the pattern of wage cuts at other suppliers, American Axle is prepared to offer buyout packages of $80,000 to $110,000. American Axle may also offer buy-down deals that will give workers a bonus for a number of years to cushion the blow of wage cuts. So far the strike has done little to hurt GM, as the automaker has been able to pare-down SUV and truck inventories while its plants are idled, but it's only a matter of time until the best available vehicles are gone. The 20,000 workers at GM and several suppliers that aren't working because of the strike are likely a bit more worried, but at least the two sides are talking.

[Source: Detroit News]

 

Read | Permalink | Email this | Comments

]]>American AxleAmericanAxleGMstrikeSuppliersUAWUnion2008-03-06T07:01:00+00:00