Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[NYT: U.S. reportedly preparing Chrysler for bankruptcy... as early as next week]]>http://www.autoblog.com/2009/04/23/nyt-u-s-preparing-chrysler-for-bankruptcy-as-early-as-next/http://www.autoblog.com/2009/04/23/nyt-u-s-preparing-chrysler-for-bankruptcy-as-early-as-next/http://www.autoblog.com/2009/04/23/nyt-u-s-preparing-chrysler-for-bankruptcy-as-early-as-next/#commentsFiled under: , , ,



According to a story from The New York Times, the Treasury Department and Chrysler are readying Chapter 11 bankruptcy documents for filing as early as next week.

The report goes on to say that the filing carries with it an "agreement in principle" with the United Auto Workers that would protect members' benefits packages, including pension and retiree health care obligations.

Whither Fiat? Apparently, the Italian automaker is still very much in the picture, although under this arrangement, it would not reach its stake-holding deal until after Chrysler is already in bankruptcy court. The big outstanding question is where this leaves Chrysler's lenders, who are owed nearly $7 billion.

Some industry watchers are apparently wondering aloud if the bankruptcy filling preparation work is merely a ploy to turn the screws on lenders, who have balked at previous proposals designed to reduce Chrysler debt. More details at the link below.

UPDATE: Chrysler's response to the NYT article is posted below the fold.

[The New York Times | Image: Bill Pugliano/Getty]

Continue reading NYT: U.S. reportedly preparing Chrysler for bankruptcy... as early as next week

NYT: U.S. reportedly preparing Chrysler for bankruptcy... as early as next week originally appeared on Autoblog on Thu, 23 Apr 2009 16:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>breakingBREAKINGnewsChryslerFiathealth careHealthCarepensionUAWUnited Auto WorkersUnitedAutoWorkersThu, 23 Apr 2009 16:27:00 EST http://www.autoblog.com/feed/1526310/article-comments.xml http://www.autoblog.com/feed/2009/04/23/nyt-u-s-preparing-chrysler-for-bankruptcy-as-early-as-next/1526310/article-detail.xml 1526310 http://www.blogcdn.com/www.autoblog.com/media/2009/04/chrysler-auburn-hills-hq-sign-pugliano-getty-580_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/04/chrysler-auburn-hills-hq-sign-pugliano-getty-580.jpg <![CDATA[Ford's new deal with UAW gets wages down to $55/hour]]>http://www.autoblog.com/2009/03/12/fords-new-deal-with-uaw-gets-wages-down-to-55-hour/http://www.autoblog.com/2009/03/12/fords-new-deal-with-uaw-gets-wages-down-to-55-hour/http://www.autoblog.com/2009/03/12/fords-new-deal-with-uaw-gets-wages-down-to-55-hour/#commentsFiled under: , , ,



Two years ago when Ford was negotiating a new contract with the UAW, the automaker was paying its union workers the oft-bandied amount of $70 per hour. That amount wasn't the actual hourly wage of each employee, though, but rather the employee's hourly wage plus the cost of contributions to current and future benefits for retirees and workers still with the company. Now, due to a newly signed agreement with the United Auto Workers union, Ford projects that total cost per worker will go down to $55 per hour.

That puts The Blue Oval only about $5 away from the total hourly compensation paid by transplanted automakers like Toyota and Honda to their non-union workers. Among measures such as cutting overtime, bonuses, cost-of-living increases, and one paid holiday, Ford reworked its contribution to the VEBA account that will fund retiree healthcare so that it can pay into it with stock instead of cash, the total savings of which could add up to $500 million per year.

Intriguingly, it was remarked that "Ford's deal with the UAW appeared to meet the cost savings targets set out by the Treasury Department for its aid to GM and Chrysler," yet Ford is the one that didn't take government money and so, technically, is the one automaker not compelled to meet those targets. General Motors and Chrysler have also made new agreements with the UAW, but details have yet to be released.

[Source: Reuters, Photo by Larry W. Smith/Getty]

Ford's new deal with UAW gets wages down to $55/hour originally appeared on Autoblog on Thu, 12 Mar 2009 11:29:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>earningsfinancialsfordhealth carehealthcaremanufacturingplantsuawunionvebaThu, 12 Mar 2009 11:29:00 EST http://www.autoblog.com/feed/1485599/article-comments.xml http://www.autoblog.com/feed/2009/03/12/fords-new-deal-with-uaw-gets-wages-down-to-55-hour/1485599/article-detail.xml 1485599 http://www.blogcdn.com/www.autoblog.com/media/2009/03/83090914_opt_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/03/83090914_opt.jpg <![CDATA[Ford, UAW reach tentative retiree health care trust fund deal ]]>http://www.autoblog.com/2009/02/23/ford-uaw-reach-tentative-retiree-health-care-trust-fund-deal/http://www.autoblog.com/2009/02/23/ford-uaw-reach-tentative-retiree-health-care-trust-fund-deal/http://www.autoblog.com/2009/02/23/ford-uaw-reach-tentative-retiree-health-care-trust-fund-deal/#commentsFiled under: , ,



Ford Motor Company says it has reached a tentative deal with the UAW regarding modifications to the Voluntary Employees' Beneficiary Association (VEGA) pact, the union's retiree health care trust. While specifics are not yet being divulged, the Blue Oval says that it has agreed to make up to half of its future payments into the fund with Ford common stock, although it may continue to use cash depending on the automaker's needs.

Before this and other changes can take effect, the UAW will review the agreement later this week, and any alterations must be signed off on by UAW-represented Blue Oval workers as well as the court system. Ford says that the VEBA agreement, combined with the labor deal reached on February 15, will help the automaker be more competitive during the economic recession without federal loans. Be sure to check out Ford's press release after the jump.

[Source: Ford | Image: Bill Pugliano/Getty]

Continue reading Ford, UAW reach tentative retiree health care trust fund deal

Ford, UAW reach tentative retiree health care trust fund deal originally appeared on Autoblog on Mon, 23 Feb 2009 17:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Blue OvalBlueOvalFord MotorFordMotorHealth CareHealthCareretireeretirementretirement benefitsRetirementBenefitsUAWVEBAMon, 23 Feb 2009 17:29:00 EST http://www.autoblog.com/feed/1468951/article-comments.xml http://www.autoblog.com/feed/2009/02/23/ford-uaw-reach-tentative-retiree-health-care-trust-fund-deal/1468951/article-detail.xml 1468951 http://www.blogcdn.com/www.autoblog.com/media/2009/02/80160566-580op_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2009/02/80160566-580op.jpg <![CDATA[Signing bonuses may get GM and UAW over hump]]>http://www.autoblog.com/2007/09/18/signing-bonuses-may-get-gm-and-uaw-over-hump/http://www.autoblog.com/2007/09/18/signing-bonuses-may-get-gm-and-uaw-over-hump/http://www.autoblog.com/2007/09/18/signing-bonuses-may-get-gm-and-uaw-over-hump/#commentsFiled under: ,

Although labor talks between GM and the UAW have been going on since the union's contract expired last Friday at 11:59 PM EST, we've been following the late-night negotiations from afar, waiting for something that amounted to more than the mainstream media's perpetually boring status updates. That finally came today in an article in the Detroit News, which reports GM may be considering signing bonuses for current works in an effort to win the hearts and minds of the proletariat if the automaker drops billions of dollars in retiree health care costs.

It's estimated that of the 270,000 retired workers and their 70,000 surviving spouses, GM will need to pay over $50 billion in health care costs - but it doesn't have the funds. The move to offer signing bonuses to current workers was devised so that GM could lose the insurmountable health care costs that will likely go up in the coming years, and replace them with lump sums now, when the General can afford it.

The plan is to set up union-controlled trust funds that would receive stocks and cash, and would negate the need for GM to foot the bill. However, negotiations, which have been in constant turmoil, have broken down again, with the two parties conflicted on how much money to throw into the assets and what happens if health care costs exceed the amount of money stored up by the UAW.

[Source: Detroit News]

Signing bonuses may get GM and UAW over hump originally appeared on Autoblog on Tue, 18 Sep 2007 17:54:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>general motorsGeneralMotorsgmhealth careHealthCaresigning bonussigning bonusesSigningBonusSigningBonusesuawTue, 18 Sep 2007 17:54:00 EST http://www.autoblog.com/feed/992496/article-comments.xml http://www.autoblog.com/feed/2007/09/18/signing-bonuses-may-get-gm-and-uaw-over-hump/992496/article-detail.xml 992496 http://www.blogcdn.com/www.autoblog.com/media/2007/09/uaw_gm_250_op_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2007/09/uaw_gm_250_op.jpg <![CDATA[Place your bids: Chrysler's worth explained... briefly]]>http://www.autoblog.com/2007/02/27/place-your-bids-chryslers-worth-explained-briefly/http://www.autoblog.com/2007/02/27/place-your-bids-chryslers-worth-explained-briefly/http://www.autoblog.com/2007/02/27/place-your-bids-chryslers-worth-explained-briefly/#commentsFiled under: , , , ,



Can this be the buy of the century? As the rumors of Chrysler's sale increase analysts are starting to talk about just how much it might cost a prospective bidder to secure the rights from Daimler. The numbers they are throwing around seem amazingly cheap. Some are going so far as to say that DCX might have to pay a potential suitor to take Chrysler off its hands. The huge $16.7 billion health care funding is one of the big reasons for that, but the values the analysts are putting on the various Chrysler holdings might come as a shock to many readers. Adam Jonas of Morgan Stanley Research in London lists the values thusly:
  • Dodge: $6.6 billion.
  • Jeep: $5.3 billion.
  • Chrysler brand: $3.2 billion.
  • Global operations, such as Chrysler's stake in Magna Steyr: $1.4 billion.
  • Joint ventures, such as Beijing Jeep: $682 million.
  • Real estate, including the company headquarters, technical center and proving grounds: $1.4 billion.
  • Deferred taxes and overfunded pension assets: $7.1 billion.
Not included in those estimates is Chrysler Financial which is said to be worth around $7.6 billion on its own. The weird thing about any sale of Chrysler is that buyers will be wanting to know that things are looking up with the company, but it's hard for employees to focus on the future of the company when they are so uncertain of the very existence of Chrysler. GM is still the biggest name being bandied as a potential buyer after several prominent automakers have said they are not interested.

[Source: Automotive News, sub req]

Place your bids: Chrysler's worth explained... briefly originally appeared on Autoblog on Tue, 27 Feb 2007 08:04:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Adam JonasAdamJonasDaimlerChryslerhealth careHealthCareMorgan Stanley ResearchMorganStanleyResearchTue, 27 Feb 2007 08:04:00 EST http://www.autoblog.com/feed/840478/article-comments.xml http://www.autoblog.com/feed/2007/02/27/place-your-bids-chryslers-worth-explained-briefly/840478/article-detail.xml 840478 http://www.blogcdn.com/www.autoblog.com/media/2007/02/dc_100_blue__mid_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2007/02/dc_100_blue__mid.jpg <![CDATA[UAW blinks first: Reconsidering health concessions for Chrysler]]>http://www.autoblog.com/2006/12/18/uaw-blinks-first-reconsidering-health-concessions-for-chrysler/http://www.autoblog.com/2006/12/18/uaw-blinks-first-reconsidering-health-concessions-for-chrysler/http://www.autoblog.com/2006/12/18/uaw-blinks-first-reconsidering-health-concessions-for-chrysler/#commentsFiled under: ,

Chrysler no doubt felt a little burned by the United Auto Workers Union after being told it would receive no concessions for health care like the ones offered to both General Motors and Ford. At the time, the UAW cited the Chrysler Group's better financial health as the reason for the snubbing, but apparently the automaker's $1.5 billion loss last quarter and its expected loss of $1.2 billion for the year is enough to convince UAW president Ron Gettelfinger (shown at right with then Chrysler Group CEO Dieter Zetsche in 2003) that Chrysler's not doing as well as he first thought. Therefore, the UAW is conducting an independent financial study of DaimlerChrysler, just like it did for GM and Ford, to assess the company's actual fiscal standing before a decision to offer concessions is made. Since DCX is an German-American hybrid, however, they're finding it more difficult to gain access to the financial info they need. DCX, however, should be as forthcoming with that data as possible if it hopes to convince the UAW that health concessions would be in both their interests.

[Source: The Detroit News]

UAW blinks first: Reconsidering health concessions for Chrysler originally appeared on Autoblog on Mon, 18 Dec 2006 16:33:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>concessionsgettelfingerhealth careHealthCareron gettelfingerRonGettelfingeruawunited auto workersUnitedAutoWorkersMon, 18 Dec 2006 16:33:00 EST http://www.autoblog.com/feed/720954/article-comments.xml http://www.autoblog.com/feed/2006/12/18/uaw-blinks-first-reconsidering-health-concessions-for-chrysler/720954/article-detail.xml 720954 http://www.blogcdn.com/www.autoblog.com/media/2006/12/2550255_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2006/12/2550255.jpg <![CDATA[Guess who's coming to Washington? White House to meet with the Big Two Point Five]]>http://www.autoblog.com/2006/10/26/guess-whos-coming-to-washington-white-house-to-meet-with-the-b/http://www.autoblog.com/2006/10/26/guess-whos-coming-to-washington-white-house-to-meet-with-the-b/http://www.autoblog.com/2006/10/26/guess-whos-coming-to-washington-white-house-to-meet-with-the-b/#commentsFiled under: , , ,



In the never-ending saga between the Bush administration and Detroit's automakers, a tentative date has finally been set for a meeting.

During a radio interview, President Bush's political advisor Karl Rove confirmed that a discussion between GM, Ford and DaimlerChrysler would take place in mid-November. A specific date was not mentioned, mainly to allow the White House flexibility in it's scheduling.

A sit-down was originally planned in June of this year, with the conversation to center around health-care costs and alternative fuels. GM's Rick Wagoner and others in the industry have made it clear that a 'bailout' is not in the cards.

Related Posts:

[Source: Automotive News (Sub. Req.) and Detroit Free Press]

Guess who's coming to Washington? White House to meet with the Big Two Point Five originally appeared on Autoblog on Thu, 26 Oct 2006 08:08:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>big two point fiveBigTwoPointFivecarl roveCarlRoveDaimlerChryslerfordgeneral motorsGeneralMotorsgeorge bushGeorgeBushgmhealth careHealthCarepresident bushPresidentBushThu, 26 Oct 2006 08:08:00 EST http://www.autoblog.com/feed/691178/article-comments.xml http://www.autoblog.com/feed/2006/10/26/guess-whos-coming-to-washington-white-house-to-meet-with-the-b/691178/article-detail.xml 691178 http://www.blogcdn.com/www.autoblog.com/media/2006/10/bush_v_2-5_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2006/10/bush_v_2-5.jpg <![CDATA[UAW denies health care talks with Chrysler]]>http://www.autoblog.com/2006/10/12/uaw-denies-health-care-talks-with-chrysler/http://www.autoblog.com/2006/10/12/uaw-denies-health-care-talks-with-chrysler/http://www.autoblog.com/2006/10/12/uaw-denies-health-care-talks-with-chrysler/#commentsFiled under: , ,

The UAW on Wednesday jumped on rumors that it had reopened talks with Chrysler. According to a piece in The Detroit News, UAW spokesman Roger Kerson said there was no meeting over one of the biggest sticking points, health care, as was rumored elsewhere. Although the UAW has reached health care agreements with GM and Ford this year, they broke off talks with Chrysler over this issue in September, likely because Chrysler wasn't in as dire of straights as Ford and GM. Chrysler spokesman Mike Aberlich said they are still communicating with the UAW on this issue but stated "we're not in negotiations."

Just prior to halting talks, Chrysler was set to announce a $600 million third quarter loss. Chrysler has since refigured the loss at $1.5 billion. The automaker has about 50,000 active UAW employees and spends about $2.3 billion on health care for them and another 100,000 hourly retirees. That cost rose about 10% from last year's $2.1 billion. Although Chrysler claims it could save about $340 million a year by renegotiating along the same lines as GM and Ford did, the issue is still officially off the table.

UAW President Ron Gettelfinger, who also sits on DaimlerChrysler's supervisory board, upheld his decision in an interview with The Detroit News this week. "People say, 'Well, Chrysler has projected a loss,' " Gettelfinger said. "But this is one quarter, and we're going to work our way through the situation there no different than we did at Ford and General Motors." Even after 12 straight profitable quarters, DaimlerChrysler CEO Dieter Zetsche has criticized the union for its hard-line stance on this issue. "It's a very strange position that we should lose $10 billion before we can have the same as Ford and GM," he said.

[Source: The Detroit News]

UAW denies health care talks with Chrysler originally appeared on Autoblog on Thu, 12 Oct 2006 16:02:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Dieter ZetscheDieterZetscheFordGeneral MotorsGeneralMotorshealth careHealthCareMike AberlichMikeAberlichRoger KersonRogerKersonRon GettelfingerRonGettelfingerThe Detroit NewsTheDetroitNewsUAWunionThu, 12 Oct 2006 16:02:00 EST http://www.autoblog.com/feed/683597/article-comments.xml http://www.autoblog.com/feed/2006/10/12/uaw-denies-health-care-talks-with-chrysler/683597/article-detail.xml 683597 http://www.blogcdn.com/www.autoblog.com/media/2006/10/uaw_logo_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2006/10/uaw_logo.jpg <![CDATA[Explaining the burden of "legacy costs"]]>http://www.autoblog.com/2006/09/20/explaining-the-burden-of-legacy-costs/http://www.autoblog.com/2006/09/20/explaining-the-burden-of-legacy-costs/http://www.autoblog.com/2006/09/20/explaining-the-burden-of-legacy-costs/#commentsFiled under: , ,

With all the discussion about the domestic automakers' future lately, a few of our readers have left comments requesting some additional background on the situation; primarily, the history of the oft-touted "legacy costs" and how they affect the Big 3's survival.

The legacy costs have their roots in the concept of "cradle-to-grave" care provided to industrial workers by their lifelong employers. Such a system utilized employer-funded pensions to provide retirement income and catastrophic injury coverage for employees, and also ensured workers that they would receive a high level of health care coverage upon retirement. This arrangement minimized the burden on government-funded social security programs and provided significant incentive for loyalty on behalf of the employee, but also depended on steady growth within the manufacturing sector - an assumption that, as we now see all too clearly, turned out to be wrong.

Follow the jump for a breakdown on what automakers could do to address the burden of legacy costs and what they actually are doing.

Continue reading Explaining the burden of "legacy costs"

Explaining the burden of "legacy costs" originally appeared on Autoblog on Wed, 20 Sep 2006 15:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ask autoblogAskAutoblogcommentarycostsfixed costshealth carelegacypensionsWed, 20 Sep 2006 15:00:00 EST http://www.autoblog.com/feed/671289/article-comments.xml http://www.autoblog.com/feed/2006/09/20/explaining-the-burden-of-legacy-costs/671289/article-detail.xml 671289 http://www.blogcdn.com/www.autoblog.com/media/2006/09/money_exchange_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2006/09/money_exchange.jpg <![CDATA[Chrysler gets no sympathy from UAW on health care costs]]>http://www.autoblog.com/2006/09/07/chrysler-gets-no-sympathy-from-uaw-on-health-care-cost/http://www.autoblog.com/2006/09/07/chrysler-gets-no-sympathy-from-uaw-on-health-care-cost/http://www.autoblog.com/2006/09/07/chrysler-gets-no-sympathy-from-uaw-on-health-care-cost/#commentsFiled under:

UAW President Ron Gettelfinger is apparently done being pushed around by the domestic auto industry. Despite having given landmark cost-saving concessions on health care to both General Motors and Ford, Gettelfinger indicated to Reuters the same offer would not be extended to The Chrysler Group. The UAW considers Chrysler to be in a better financial state than GM and Ford, and therefore has disregarded the time honored tradition of pattern bargaining and not accepted Chrysler's latest concession proposal.

While the UAW may see Chrysler standing on a littler firmer ground than GM and Ford, the German-American hybrid automaker doesn't exactly have a rock solid foundation at the moment. The Chrysler Group still has a decent-sized inventory of unsold 2006 models despite the most aggressive incentive campaign of any automaker during the summer. As a matter of fact, Chrysler has already admitted that it will lose money this quarter for the first time in four years. Sorry Chrysler, you'll get no sympathy from the UAW.

[Source: Reuters]

Chrysler gets no sympathy from UAW on health care costs originally appeared on Autoblog on Thu, 07 Sep 2006 18:04:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>concessionscostsgettelfingerhealth careHealthCareronuawunionunited auto workersUnitedAutoWorkersThu, 07 Sep 2006 18:04:00 EST http://www.autoblog.com/feed/665485/article-comments.xml http://www.autoblog.com/feed/2006/09/07/chrysler-gets-no-sympathy-from-uaw-on-health-care-cost/665485/article-detail.xml 665485 http://www.blogcdn.com/www.autoblog.com/media/2006/09/a013-gettelfinger_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2006/09/a013-gettelfinger.jpg <![CDATA[Ford, GM, Chrysler drop ineligible workers from healthcare roster]]>http://www.autoblog.com/2006/09/01/ford-gm-chrysler-drop-ineligible-workers-from-healthcare-roste/http://www.autoblog.com/2006/09/01/ford-gm-chrysler-drop-ineligible-workers-from-healthcare-roste/http://www.autoblog.com/2006/09/01/ford-gm-chrysler-drop-ineligible-workers-from-healthcare-roste/#commentsFiled under: , , , ,

The Big 3 have been trying to shave their health care costs by cutting eligibility and the percentage of benefits for both retirees and current employees, but as it turns out, the three companies have found tens of thousands of people still receiving benefits despite their ineligibility. As a result, General Motors, Ford Motor Company and the Chrysler Group are purging their health care rosters and even forcing reimbursement from some of those on the lists.

As a result, the three companies have dropped over 86,000 people from their health care benefits plans, finding millions of dollars they would have otherwise lost.

Harsh? Maybe, but the companies don't want to be perceived as punishing false beneficiaries, but rather protecting the benefits of those who are actually eligible for them. Though the terms were worked out with the UAW, employees are still seething that the automakers have the right to dock their pay, even in cases where they feel that the HR red tape is to blame for the issues.

[Source: Detroit News]

Ford, GM, Chrysler drop ineligible workers from healthcare roster originally appeared on Autoblog on Fri, 01 Sep 2006 16:24:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>benefitsbig 3Big3chryslerfordgmhealth careHealthCareFri, 01 Sep 2006 16:24:00 EST http://www.autoblog.com/feed/662316/article-comments.xml http://www.autoblog.com/feed/2006/09/01/ford-gm-chrysler-drop-ineligible-workers-from-healthcare-roste/662316/article-detail.xml 662316 http://www.blogcdn.com/www.autoblog.com/media/2006/08/benefits_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2006/08/benefits.jpg <![CDATA[The political winds may be shifting in Detroit]]>http://www.autoblog.com/2006/06/23/the-political-winds-may-be-shifting-in-detroit/http://www.autoblog.com/2006/06/23/the-political-winds-may-be-shifting-in-detroit/http://www.autoblog.com/2006/06/23/the-political-winds-may-be-shifting-in-detroit/#commentsFiled under: , , , , , ,

The political alliances in the Motor City have historically been rather black-and-white, with the UAW lining up alongside Democrats and management favoring the Republicans. Yes, one can find exception to these stereotypes, but the above comes as close as one can to describing 40-some years of voting behavior in one sentence. But the times are changing, and traditional alliances between the political parties and their supporters in the auto industry are increasingly stressed.

Most recently, the heads of the Big Three are said to be getting a bit miffed with the White House after receiving a third postponement of a scheduled meeting with President Bush. Additionally, we've heard recent requests from Ford's Mark Fields for "cooperation" between the automakers and government on health care, which can been seen as a position contrary to that of most conservatives. Bob Lutz has gone so far as to claim that he may vote for Hillary Clinton in 2008 as a means to protest the lack of support from Bush.

Keep in mind that the union isn't exactly getting a lot of support from those who have traditionally been in its corner, either. Dick Gephardt was said to be labor's favorite candidate in 2004, and we all know how far his campaign went.

It would seem as if the auto industry is no longer a priority for most politicians from both parties.

[Source: BusinessWeek]

The political winds may be shifting in Detroit originally appeared on Autoblog on Fri, 23 Jun 2006 12:56:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>cafedemocratsemissionsfuel economygovernmenthealth carehouselaborpresidentrepresentativesrepublicanssenateunionsus governmentFri, 23 Jun 2006 12:56:00 EST http://www.autoblog.com/feed/635420/article-comments.xml http://www.autoblog.com/feed/2006/06/23/the-political-winds-may-be-shifting-in-detroit/635420/article-detail.xml 635420 http://www.autoblog.com/media/2006/06/us-capital-(resized-250)_thumbnail.jpg http://www.autoblog.com/media/2006/06/us-capital-(resized-250).jpg <![CDATA[Big Three executives meet with Washington lawmakers]]>http://www.autoblog.com/2006/05/19/big-three-executives-meet-with-washington-lawmakers/http://www.autoblog.com/2006/05/19/big-three-executives-meet-with-washington-lawmakers/http://www.autoblog.com/2006/05/19/big-three-executives-meet-with-washington-lawmakers/#commentsFiled under: , , ,

The much ballyhooed meeting between domestic auto industry leaders and U.S. lawmakers came and went today, with the net-net being that the Capitol gang has pledged to work with the manufacturers 'as partners.'

Rick Wagoner (General Motors Chair and CEO), Tom LaSorda (DaimlerChrysler President and CEO) and Bill Ford (Ford Chairman and CEO) met with a pool of congressmen to discuss such issues as expanding ethanol's availability, pension policy restructuring, trade imbalances, and health care costs, but if any specific initiatives or resolutions from Thursday's meetings were reached, none have been made public.

[Source: The Associated Press]

Big Three executives meet with Washington lawmakers originally appeared on Autoblog on Fri, 19 May 2006 06:52:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Bill FordBillFordBlue OvalBlueOvalBushCapitol HillCapitolHillhealth careHealthCareLawmakerspensionpension reformPensionReformRick WagonerRickWagonerTom LasordaTomLasordatrade imbalanceTradeImbalanceFri, 19 May 2006 06:52:00 EST http://www.autoblog.com/feed/619735/article-comments.xml http://www.autoblog.com/feed/2006/05/19/big-three-executives-meet-with-washington-lawmakers/619735/article-detail.xml 619735 http://www.autoblog.com/media/2006/05/Big-3-bigwigs-resized_thumbnail.jpg http://www.autoblog.com/media/2006/05/Big-3-bigwigs-resized.JPG <![CDATA[GM changes its mind, posts Q1 profit]]>http://www.autoblog.com/2006/05/09/gm-changes-its-mind-posts-q1-profit/http://www.autoblog.com/2006/05/09/gm-changes-its-mind-posts-q1-profit/http://www.autoblog.com/2006/05/09/gm-changes-its-mind-posts-q1-profit/#commentsFiled under: ,

General Motors has revised its first quarter earnings statement to show a profit of $445 million, rather than the $323 million reported earlier this month. GM says the change is based on conversations the company had with SEC regulators regarding whether or not it could write off the settlement it made with blue collar retirees over health care. The charges will instead be broken out over seven years starting third quarter, when the changes take effect.

[Source: Reuters]

GM changes its mind, posts Q1 profit originally appeared on Autoblog on Tue, 09 May 2006 07:57:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>financialsGMhealth careHealthCareSECUAWTue, 09 May 2006 07:57:00 EST http://www.autoblog.com/feed/616274/article-comments.xml http://www.autoblog.com/feed/2006/05/09/gm-changes-its-mind-posts-q1-profit/616274/article-detail.xml 616274 http://www.autoblog.com/media/2005/12/GM-LOGO_thumbnail.gif http://www.autoblog.com/media/2005/12/GM-LOGO.gif <![CDATA[Second judge recuses self in UAW/Ford health care case]]>http://www.autoblog.com/2006/05/05/second-judge-recuses-self-in-uaw-ford-health-care-case/http://www.autoblog.com/2006/05/05/second-judge-recuses-self-in-uaw-ford-health-care-case/http://www.autoblog.com/2006/05/05/second-judge-recuses-self-in-uaw-ford-health-care-case/#commentsFiled under: ,

The district court case between the United Auto Workers and the Ford Motor Co. will have to go without Judge Anna Diggs Taylor. The judge has excused herself from the health care paring case, citing the fact that's on the Henry Ford Health System's board. The case has been handed over to Judge Paul Borman, who will be the third magistrate assigned to the matter. The move comes after Mark Baumkel, who is a lawyer for the plaintiffs opposed to the deal had called for Taylor to remove herself from the case.

The lawsuit centers upon a December vote by the UAW that culls some $850 million from Ford's yearly health care outlay, as well as a whopping $5 billion from retiree long-term health care... the latter of which evidently upset more than a few of the UAW's retired workers.

[Source: Associated Press via Miami Herald]

Second judge recuses self in UAW/Ford health care case originally appeared on Autoblog on Fri, 05 May 2006 16:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Blue OvalBlueOvalDistrict CourtDistrictCourtHealth CareHealthCareHenry Ford Health SystemHenryFordHealthSystemJudge Paul BormanJudgePaulBormanLawsuitMark BaumkelMarkBaumkelRetireRetireeUAWFri, 05 May 2006 16:31:00 EST http://www.autoblog.com/feed/615228/article-comments.xml http://www.autoblog.com/feed/2006/05/05/second-judge-recuses-self-in-uaw-ford-health-care-case/615228/article-detail.xml 615228 http://www.autoblog.com/media/2006/01/colorLogo-resized_thumbnail.jpg http://www.autoblog.com/media/2006/01/colorLogo-resized.jpg <![CDATA[A UAW-free General Motors: the consequences]]>http://www.autoblog.com/2006/04/21/a-uaw-free-general-motors-the-consequences/http://www.autoblog.com/2006/04/21/a-uaw-free-general-motors-the-consequences/http://www.autoblog.com/2006/04/21/a-uaw-free-general-motors-the-consequences/#commentsFiled under: ,

George Reisman, professor of Economics at Pepperdine University and author of the book Capitalism: A Treatise on Economics, attempts to answer the question of where would General Motors* be today without the United Auto Workers. Some of his ten conclusions include:

#1. GM management could fire inefficient employees without worrying about a strike, resulting in higher quality vehicles.

#2. GM would be able to use more efficient, lower-cost methods in building their products instead of negotiating it with the union to the point of creating 'phony' jobs to placate the membership.

#6. GM would not be paying $140,000 per employee to leave.

#10. GM workers, without the union benefits, would be motivated to consider saving for the future instead of threatening for more money from an already financially-strapped company.

Hmmm. A bit harsh but perhaps there are some grains of truth in there. Opinions? Shout out in comments.

*Reisman does state his analysis also applies to Ford Motor Co. and Chrysler. He chose GM for his example since it's the largest automaker.

[Source: Ludwig von Mises Institute]

A UAW-free General Motors: the consequences originally appeared on Autoblog on Fri, 21 Apr 2006 10:31:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Auto UnionAutoUnioncontracthealth carehealth care costHealthCareHealthCareCostlaborlabor disputeLaborDisputestrikeUAWUnionsFri, 21 Apr 2006 10:31:00 EST http://www.autoblog.com/feed/610536/article-comments.xml http://www.autoblog.com/feed/2006/04/21/a-uaw-free-general-motors-the-consequences/610536/article-detail.xml 610536 http://www.autoblog.com/media/2006/04/uaw-gm_thumbnail.jpg http://www.autoblog.com/media/2006/04/uaw-gm.jpg <![CDATA[More workers going under the knife before benefits cut]]>http://www.autoblog.com/2006/04/19/gm-employees-rushing-to-get-operations-before-losing-health-bene/http://www.autoblog.com/2006/04/19/gm-employees-rushing-to-get-operations-before-losing-health-bene/http://www.autoblog.com/2006/04/19/gm-employees-rushing-to-get-operations-before-losing-health-bene/#commentsFiled under: , ,

According to the International Herald Tribune, Michigan physicians, hospitals and medical insurers have noted an increase in the number of elective surgery requests since last year. Replacements for knees, hips and shoulders were up by 20 percent at the Henry Ford Health System alone.

A little super sleuthing revealed that UAW workers and their families are rushing to have procedures performed before the possible cuts in their health care benefits take effect. A knee operation, for example, would cost $28,000 sans the insurance.

A spokesperson for GM stated the automaker has noticed no increase in elective procedures.

[Source: International Herald Tribune]

More workers going under the knife before benefits cut originally appeared on Autoblog on Wed, 19 Apr 2006 10:38:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>benefitscutselective surgeryElectiveSurgeryhealth careHealthCarehospitalsurgeryUAWunionWed, 19 Apr 2006 10:38:00 EST http://www.autoblog.com/feed/609813/article-comments.xml http://www.autoblog.com/feed/2006/04/19/gm-employees-rushing-to-get-operations-before-losing-health-bene/609813/article-detail.xml 609813 http://www.autoblog.com/media/2006/04/operating-room_thumbnail.jpg http://www.autoblog.com/media/2006/04/operating-room.jpg <![CDATA[General Motors helps employees get it up]]>http://www.autoblog.com/2006/04/18/general-motors-helps-employees-get-it-up/http://www.autoblog.com/2006/04/18/general-motors-helps-employees-get-it-up/http://www.autoblog.com/2006/04/18/general-motors-helps-employees-get-it-up/#commentsFiled under: ,

OK, the headline is crass, but it's true -- General Motors says it spends $17 million on erectile dysfunction drugs like Viagra and Cialis.  While it's a small chunk of the $5 billion the company spends on health care for 1.1-million salaried and retired employees plus their dependents every year, execs are using it as a prime example of how screwed up the current health care system is.


P.S. - Is that Michael Jordan on the front of the box?

[Source: Inside Line]

General Motors helps employees get it up originally appeared on Autoblog on Tue, 18 Apr 2006 09:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Cialishealth careHealthCarepremiumsViagraTue, 18 Apr 2006 09:58:00 EST http://www.autoblog.com/feed/609340/article-comments.xml http://www.autoblog.com/feed/2006/04/18/general-motors-helps-employees-get-it-up/609340/article-detail.xml 609340 http://www.autoblog.com/media/2006/04/starterPack_thumbnail.gif http://www.autoblog.com/media/2006/04/starterPack.gif <![CDATA[Ford charging fee to insure better halves]]>http://www.autoblog.com/2006/03/16/ford-charging-fee-to-insure-better-halves/http://www.autoblog.com/2006/03/16/ford-charging-fee-to-insure-better-halves/http://www.autoblog.com/2006/03/16/ford-charging-fee-to-insure-better-halves/#commentsFiled under:

Following hot on the heels of Chrysler's health care cost restructuring, Ford has announced that it will begin charging an extra fee to employees who choose to cover their spouses on their own policy if they are able to be covered elsewhere. The extra cost will be $110/month for medical coverage and $11/month for dental.

The Detroit Free Press states this practice is not uncommon and it does make sense from Ford's point of view. We're sure many couples have chosen Ford's coverage over available alternatives because it likely offers more in terms of choice, quality of care and breadth of coverage, but that's a big bill for the Blue Oval to foot.

Ford charging fee to insure better halves originally appeared on Autoblog on Thu, 16 Mar 2006 15:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>blue ovalBlueOvalfordhealth careHealthCareThu, 16 Mar 2006 15:30:00 EST http://www.autoblog.com/feed/599932/article-comments.xml http://www.autoblog.com/feed/2006/03/16/ford-charging-fee-to-insure-better-halves/599932/article-detail.xml 599932 http://www.autoblog.com/media/2006/03/ford_1_thumbnail.jpg http://www.autoblog.com/media/2006/03/ford_1.jpg <![CDATA[Chrysler execs bear brunt of health care cost increase]]>http://www.autoblog.com/2006/03/16/chrysler-execs-bear-the-brunt-of-health-care-cost-increase/http://www.autoblog.com/2006/03/16/chrysler-execs-bear-the-brunt-of-health-care-cost-increase/http://www.autoblog.com/2006/03/16/chrysler-execs-bear-the-brunt-of-health-care-cost-increase/#commentsFiled under:

As Chrysler spends nearly $2.3bil on health care costs per year, about $8K per worker, it was evident at the top level that changes to the system would have to be made. Those changes were announced yesterday and involve a sliding scale of out-of-pocket premium increases that's based on each salaried employees pay level.

"The more you make, the more you will be asked to contribute," says CEO Tom LaSorda. This means that premiums paid by a "professional-administrative employee" (read: garden variety white collar worker) will on average not go up, while the top brass, presumably LaSorda himself, will now be responsible for up to 100 percent of their health care premiums. Mid-managers will see a premium increase of around $450 and the average exec's out-of-pocket will inch up by $1,500.

The overall effect of these changes will be a rise in the average amount of health care costs paid by employees per year from 27 to 31 percent. Kudos to Chrysler for not having the least compensated among its ranks bear the brunt of this increase.

Follow the jump for Chrysler's official press release.

[Source: Chrysler]

Continue reading Chrysler execs bear brunt of health care cost increase

Chrysler execs bear brunt of health care cost increase originally appeared on Autoblog on Thu, 16 Mar 2006 08:30:00 EST. Please see our terms for use of feeds.

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