Autoblog

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Whenever you walk into an automaker's factory or engineering facility, there are signs prominently displayed letting everyone know that cameras and camera phones are prohibited. Unfortunately for an electrician at the General Motors Assembly plant in Oshawa, Ontario where the Camaro is due to begin production late this year he ignored the warning. Worse yet, he took some shots inside the body shop where pilot production units were making their way down the line and then showed them to his kids. The youngsters evidently extracted said photos and shared them with the world.

The electrician with 28 years of seniority has apparently now learned that those signs were not an empty threat. Even though there is nothing particularly secret about how car bodies are welded together or about how the new Camaro looks, GM and other manufacturers are serious about those policies. This employee who apparently just wanted show off a bit for his kids is now unemployed. Was it worth it? If you're going to whip out the camera phone, you might want to be a little more discreet about how you share the pics.


[Source: LeftLane News]

Perhaps 'fired' is the wrong word, as that does imply that these white collar workers did something wrong. The only thing some 12% of Ford's salaried workforce did wrong is get hired by a company that dug itself into a hole relying on strong truck and SUV sales during the 1990s. Now, with consumers avoiding gas-hungry vehicles, the restructuring effort faltering amidst high gas prices, and news that the company has abandoned its goal of returning to profitability in 2009... cutting more salaried workers was inevitable.

Ford CEO Alan Mulally told reporters last week that sales of big trucks and SUVs crashed once gas hit $3.50 per gallon. In April, full-sized pickups accounted for 11 percent of sales. By the second week of May, the number had fallen to just 9 percent. "I don't think we've ever seen a decline week over week like this," Mulally said. "It was clear to us it was time to act." And act they did. While details have not been finalized, Ford expects to eliminate up to 12 percent of its salaried work force (with about 24,300 white-collar workers in the States, this means more than 2,000 positions will be gone). Ford Vice President Jim Farley couldn't sugar-coat the news, but he did try to spread the doom around when he spoke to his employees on Friday, saying "I would expect other car companies to make similar announcements... they have the same issues that we do -- even Toyota."

[Source: The Detroit News]

Blame the plunging greenback. Less than a week after BMW announced the expansion of their U.S. Spartanburg plant, we are getting news from Germany that the weak dollar is making it increasingly difficult for the German automaker to keep production on their soil and that layoffs are imminent. Ernst Baumann, BMW's head of personnel, said 5,600 jobs in Germany will be cut by the end of the year. When you add that to the 2,500 positions already eliminated, the total represents about 7.6-percent of BMW's workforce.

While the layoffs are bad news for German factory workers, the flip side of the coin may benefit their American counterparts. With the value of the Euro sitting at more than $1.50 at current exchange rates, European automakers are finding manufacturing on U.S. soil more attractive (read that "cost effective") than ever. BMW manufactured about 155,000 vehicle on U.S. soil last year. By 2012, that number is planned to approach 240,000 cars. BMW sales worldwide reached 198,628 in January and February, up from 191,357 the same period last year. With the new BMW 1 Series and BMW X6 models hitting showrooms in 2008, BMW is forecasting yet another year of increased sales.

[Source: Detroit News]

This afternoon the Chrysler Group and the UAW released a statement revealing details of the early retirement and separation programs that will help the automaker reach its goal of shedding 13,000 jobs. Two-thousand jobs being eliminated are salaried positions, and we brought you details on those early retirement and buyout packages last week. Today's announcement affects the 11,000 hourly workers who the Chrysler Group hopes will choose to leave the company on a voluntary basis.

There are two plans available to hourly workers, which include an Incentive Program for Retirement (IPR) and an Enhanced Voluntary Termination of Employment Program (VTEP). The IPR allows hourly workers with 30 or more years of service with the company to accept early retirement in exchance for a lump sum of $70,000. It is presumed these retirees would keep all the benefits that are granted to a normal retiree. The VTEP, however, is available to any hourly employee with at least one year of credited service with the company. In exchance for leaving the company, the Chrysler Group is offering a lump sum payment of $100,000.

Any employees eligible for these programs were notified of their options via a letter today .

[Source: the Chrysler Group]