Autoblog

New contract between Ford and UAW voted down over weekend

Noah Joseph — Mon, 02 Nov 2009 13:30:00 EST

What's good for the goose may be good for the gander, but what works for one country or automaker doesn't necessarily work for another. So while the Canadian Auto Workers union may have approved a new agreement with Ford, below the 49th parallel their compatriots apparently feel otherwise.

Up for ratification over the past week and into the weekend was a proposal that would essentially grant Ford the same measures that unionized auto workers extended to Chrysler and General Motors in the midst of their bankruptcy proceedings. The measures include limitations placed on the unionized workers' rights to strike for increased wages and benefits, as well as a reduction in paid vacation time, a broad wage freeze as well as one on cost-of-living adjustments and increased employee contributions towards insurance and pensions. The agreement would also allow the automaker more flexibility in shifting jobs around, and in exchange the workers expected more jobs to be created - or at least fewer to be lost.

Some union leaders pleaded with their constituents that ratification of the deal was essential to keeping all three of the Detroit automakers on an even keel, thereby maintaining a common ground on which to build negotiations for the future. However as voting drew to a close across the country this weekend, UAW members at three of Ford's largest U.S. plants - the Dearborn Truck Plant, Romeo Engine Plant and UAW Local 862 representing the Louisville Assembly Plant and Kentucky Truck Plant - all voted against the new contract, making its passage now virtually impossible.

[Source: The Detroit News | Image: Scott Olson/Getty]

New contract between Ford and UAW voted down over weekend originally appeared on Autoblog on Mon, 02 Nov 2009 13:30:00 EST. Please see our terms for use of feeds.

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Officially Official: Fisker buys GM's Wilmington Delaware plant

Sam Abuelsamid — Tue, 27 Oct 2009 13:00:00 EST

Filed under: Hybrid, Sedan, Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Fisker

In Wilmington, Delaware this morning, Governor Jack Markell was joined by Vice President Joe Biden and Henrik Fisker (seen at right) for the official announcement about the purchase of General Motors' closed plant there. Fisker will re-tool the plant to build a new, more affordable plug-in hybrid sedan to slot in below its more luxurious Karma. The goal is to have the model sell for under $40,000 after federal tax credits.

The current schedule is to have the car in production by the end of 2012 with volumes getting up to 75,000-100,000 units annually by 2014. Fisker has moved up its development schedule for what they are calling Project Nina thanks to the $528 million low cost loan it recently received courtesy of the Department of Energy. During the announcement, Fisker stated that he wants to export half of the production from the plant while creating 5,000 jobs in the U.S. (2,000 at the plant and 3,000 at suppliers). The local UAW president was also on hand, so it looks like the plant will remain unionized, which is very unusual for a startup auto plant.

Fisker is paying $18 million for the factory from Motors Liquidation which is the remainder of "Old GM" which is selling off assets from bankruptcy court. The plant most recently produced the Pontiac Solstice and Saturn Sky, both of which ended production last spring.

Gallery: Fisker Karma

[Source: Fisker Automotive | Photo by Jeff Fusco/Getty]

Continue reading Officially Official: Fisker buys GM's Wilmington Delaware plant

Officially Official: Fisker buys GM's Wilmington Delaware plant originally appeared on Autoblog on Tue, 27 Oct 2009 13:00:00 EST. Please see our terms for use of feeds.

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REPORT: Three Ford plants vote down new contract with UAW

Dan Roth — Tue, 27 Oct 2009 11:39:00 EST

Filed under: Plants/Manufacturing, Ford, UAW/Unions

Pattern bargaining is how things tend to be done in Detroit, a strategy which ensures that one automaker doesn't tend to get a plum deal at the expense of the other car builders in town. General Motors and Chrysler negotiated pretty hard with the United Auto Workers as part of the bailouts, and Ford's now in the process of securing new agreements with its labor force. While the Blue Oval didn't need government money to stay afloat (well, aside from those low interest technology loans, anyway), it wants parity with its rivals workforce deals.

Several Ford plants have approved the new deal, in which Dearborn has asked for the same concessions that its rivals have already secured. Most recently, however, three Ford facilities have voted down the plan to hold firm entry-level pay and benefits, limits on the union's right to strike over wages and benefits, and consolidates skilled trades. Those opposed to Ford's new agreement argue that the true spirit of pattern agreements would lift Chrysler and GM up to where Ford's current agreements are. Kansas City's F-150 plant slapped down the proposed contract by 92%, but Ford will await the final tally before conceding defeat - or celebrating successful negotiations. Contentious labor dealings are certainly not something Ford wants to deal with at this precarious moment. Even while business has been trending up lately, there's still a long way to go, and if labor puts a skip in the get along, it could be a nail in the coffin of a successful recovery.

[Source: Automotive News - sub req. | Image: Bill Pugliano/Getty]

REPORT: Three Ford plants vote down new contract with UAW originally appeared on Autoblog on Tue, 27 Oct 2009 11:39:00 EST. Please see our terms for use of feeds.

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Shreveport, LA mayor lobbies D.C. to close the HUMMER deal, already

Jonathon Ramsey — Sat, 24 Oct 2009 14:16:00 EST

Filed under: SUV, Truck, China, Government/Legal, Plants/Manufacturing, GM, Hummer, UAW/Unions

Cedric Glover, the mayor of Shreveport, Louisiana, went to Washington, D.C. to plead his case for the sale of Hummer to Tengzhong. The only thing is, we're not sure why he went. To be more precise, we do know that he wants to protect jobs at GM's Shreveport plant that builds Hummers. The plant has about 800 workers who build some of The General's pickup trucks and Hummer models, and the loss of The Big H would undoubtedly put people out of work.

What we're not sure of is what he thinks Washington has to do with it. He did ask that a couple of D.C. muckety-mucks "consider reaching out to the Chinese government to urge immediate approval of the Hummer deal," but Washington hasn't expressed any opposition to the deal and probably couldn't get the deal concluded on the Chinese side any sooner -- never mind the fact that Hummer is the least of Washington's concerns as far as China goes.

We've been told by one source at Hummer that although nothing is final until it's signed, they feel good about the deal, and Tengzhong must have known what it was doing when it made the bid in the first place. Yet beyond all that, as it stands today the Shreveport plant has three years to live at most: the facility wasn't part of the Hummer sale, and GM said it would shutter the place by 2012 at the latest. Mayor Glover wants to save jobs in his town, which is great, but unless GM starts going gangbusters (and soon) then Glover could be playing the Deck Chair and Sinking Ship game.

[Source: HummerGuy]

Shreveport, LA mayor lobbies D.C. to close the HUMMER deal, already originally appeared on Autoblog on Sat, 24 Oct 2009 14:16:00 EST. Please see our terms for use of feeds.

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U-S-A! Ford reportedly moving production of Kuga to America

Chris Shunk — Fri, 23 Oct 2009 11:29:00 EST

Filed under: Plants/Manufacturing, Crossover, Ford, UAW/Unions

2009 Ford Kuga (Euro Spec) - Click above for high-res image gallery

The Ford Kuga is currently made in Europe and isn't available for sale here in the States, but if a report from Bloomberg is to be believed, the next Kuga could be produced in Louisville, Kentucky for sale both here and abroad. Bloomberg's sources claim that Ford plans to build as many as 80,000 Kuga crossovers here for export overseas by October 2011, which would undoubtedly make members of the United Auto Workers union very happy.

Ford is currently awaiting the ratification of a new labor deal that would put labor costs of the Dearborn, MI-based automaker on a nearly equal footing with General Motors and Chrysler. A major tenet of the negotiations is the guarantee of new product to build in U.S. assembly plants, effectively giving 41,000 blue collar Ford employees some much needed job security. A summary of the tentative agreement between the UAW and Ford reportedly states that the Louisville facility will receive a new product with "considerable export volume," so it's not a far leap to surmise that the Kuga will become Kentucky born and bred.

At this point, Ford has only announced that the Louisville plant will receive a more fuel efficient product based on Ford's global C platform. The Kuga certainly fits that bill, and building the small crossover in the good ol' US of A makes financial sense right now since the dollar is worth less than the euro or British pound, and labor costs in the U.S. could be $10 per hour cheaper than they are in Germany, for instance.

Gallery: First Drive: 2008 Ford Kuga

[Source: Bloomberg]

U-S-A! Ford reportedly moving production of Kuga to America originally appeared on Autoblog on Fri, 23 Oct 2009 11:29:00 EST. Please see our terms for use of feeds.

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REPORT: Ford and UAW contract changes begin to leak out

Chris Shunk — Fri, 16 Oct 2009 16:58:00 EST

Filed under: Ford, UAW/Unions

Even before General Motors and Chrysler entered bankruptcy, the two automakers were wheeling and dealing with the United Auto Workers, reworking their contracts signed in 2007. Since Ford wasn't partaking in the billions of dollars handed to the other two automakers by the federal government, the Dearborn, MI-based automaker was seemingly left out in the cold. Those contract changes helped GM and Chrysler emerge as stronger companies, but Ford was left hanging.

Ford and the UAW have finally gotten together to level the all-important labor playing field, as the two agreed to a tentative contract on Monday. While the terms of the deal are always sealed until the rank and file vote on them, they are also seemingly always leaked before ratification takes place. Automotive News is reporting on several of the concessions made by both the UAW and Ford, and if the updates to the 2007 contract hold they should go a long way toward giving Ford parity with its cross-town rivals.

The UAW has reportedly agreed to freeze the wages of entry level workers making $14 per hour until the agreement ends in 2011. The UAW also lifted a cap that limits the amount of low-cost workers in the plants until 2015, when those jobs are limited to 20% of the workforce. Any workers above 20% will be given traditional union wages in order of seniority. The union will also limit the amount of jobs that are classified as a skilled trade and submit the 2007 contract to binding arbitration when the contract expires in 2011. The UAW has also reportedly agreed to not strike over wage and benefit-related issues, a big win for Ford that virtually guarantees that production stoppages won't be labor-related.

The Blue Oval also had to do some bending of its own. If its 41,000 UAW workers approve the contract changes, every worker will receive a $1,000 bonus for their troubles. Perhaps even more importantly, Ford made production guarantees of facilities in Ohio, Kansas, Michigan, Illinois and Kentucky. Ford is also reportedly guaranteeing to build hybrid batteries in its Rawsonville, MI facility, adding a new vehicle to its Michigan Assembly plant and adding a vehicle at Louisville Assembly that could be exported to other markets. Ford has also promised to build the Transit Connect in the U.S. if Ford decides to move production to North America to supplement production in Turkey. Ratification of the contract is expected later today or early next week, so we'll soon find out if these contract changes are the real deal.

[Source: Automotive News, sub. req'd | Photo by Scott Olson/Getty]

REPORT: Ford and UAW contract changes begin to leak out originally appeared on Autoblog on Fri, 16 Oct 2009 16:58:00 EST. Please see our terms for use of feeds.

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Ford and UAW reach tentative agreement on contract changes

John Neff — Tue, 13 Oct 2009 16:31:00 EST

Filed under: Ford, UAW/Unions

In the interest of remaining competitive with transplants (non-union automotive plants in the U.S. owned and operated by import automakers), Ford and the United Auto Workers union have tentatively agreed on modifications to their current contract that affects some 41,000 hour workers. The exact modifications won't be officially revealed until the UAW and its members have a chance to ratify the contract changes later this week, but Automotive News is reporting that they include additional product commitments by Ford for UAW plants in the U.S., as well as bringing some parts work back in-house. Also reported are reported are concessions by the UAW for more work rule changes and a reduction in the number of skilled-trades classifications, both aimed at increasing productivity and saving money.

Ford is in a tough spot since its cross-town rivals, General Motors and Chrysler LLC, were able to renegotiate their contracts with the UAW under the umbrella of Chapter 11 bankruptcy this past summer. Ford, having avoided accepting any loans from the government and filing Ch. 11, has enjoyed better-than-expected sales the past few months, and so asking its hourly work force for concessions without the pressure of reorganization and while it's doing relatively well is a tough case to make. Nevertheless, it appears that UAW leaders were willing to see Ford's side of things. We'll let you know later this week when the official contract changes are revealed, so stay tuned.

[Source: Ford, Automotive News - sub. req'd | Photo by Bill Pugliano/Getty]

Continue reading Ford and UAW reach tentative agreement on contract changes

Ford and UAW reach tentative agreement on contract changes originally appeared on Autoblog on Tue, 13 Oct 2009 16:31:00 EST. Please see our terms for use of feeds.

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(Black and) Blue Oval: Ford of Canada labor costs reportedly world's highest

Chris Shunk — Sat, 03 Oct 2009 13:02:00 EST

Filed under: Ford, UAW/Unions

it wasn't long ago that U.S. automakers were producing a high percentage of their new products in Canada because labor costs were lower up north than are here in the States. The cost paradigm changed considerably after GM and Chrysler went into Chapter 11 reorganization, as the ailing automakers secured better labor deals with both U.S. and Canadian unions, making the UAW and CAW more competitive versus Japanese automakers.

The United Auto Workers renegotiated with Ford, giving Dearborn terms similar to those it gave GM and Chrysler. Ford reportedly told The Globe and Mail that it now pays about $52 per hour for U.S. labor after benefits. Unfortunately for Ford, the CAW hasn't extended the same helping hand labor-wise, and the Blue Oval isn't very happy. Ford says it is paying $16 more per hour for its Canadian workforce than it is for U.S. workers. In fact, Ford says its labor situation in Canada is so bad that the Blue Oval alleges its labor costs there are now higher than in any other region on earth.

The Canadian Auto Workers union appears willing to negotiate, but The Globe and Mail reports that it wants job security in return. Ford's St. Thomas plant, which currently builds the Panther-platformed Lincoln Town Car, Ford Crown Victoria and Mercury Grand Marquis, is scheduled for closure at some point in the next two years, and the CAW would like Ford to instead guarantee a new product for the facility. The CAW says it wants to continue to account for 13% of Ford's North American production, but closing the plant and laying off its 1,600 workers would shrink that number to 9%. So far, neither party seems to be budging, but we have a feeling Ford won't be paying the highest labor rates anywhere for very much longer.

[Source: The Globe and Mail]

(Black and) Blue Oval: Ford of Canada labor costs reportedly world's highest originally appeared on Autoblog on Sat, 03 Oct 2009 13:02:00 EST. Please see our terms for use of feeds.

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FYI: UAW releases list of 2010 cars and trucks made in union shops

Jonathon Ramsey — Thu, 24 Sep 2009 17:02:00 EST

Filed under: Plants/Manufacturing, UAW/Unions, Canada

There's "Buy American!" and then there's "Buy Union!" If you're among the most serious about keeping your red-white-and-blue money in the ~~U.S. of A~~ North America and organized labor is close to your ticker, then you'll want to check out this list put together by the United Auto Workers. It lists all of the vehicles made in America and Canada by union labor -- either UAW or CAW.

Naturally, it's heavy on domestic offerings, but if you're devoted to imports you can still avail yourself of a few Toyotas, Mazdas, Mitsubishis, and a VW Routan, and support "workers who enjoy the benefits and protections of a union contract." Nevertheless, knowing how some feel about unions all we ask is please stay on topic and please be kind to your virtual neighbor. Let the comments begin...

[Source: UAW]

FYI: UAW releases list of 2010 cars and trucks made in union shops originally appeared on Autoblog on Thu, 24 Sep 2009 17:02:00 EST. Please see our terms for use of feeds.

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REPORT: NUMMI workers demonstrate over plant's potential closing

Chris Shunk — Mon, 24 Aug 2009 10:31:00 EST

Filed under: GM, Toyota, UAW/Unions

Toyota has never closed a U.S. assembly plant, but the suddenly struggling Japanese automaker has said that it would shudder the NUMMI factory in California, the only auto plant in the state, by next March. The upcoming closure isn't a big surprise since General Motors was allowed to bow out of its half of the joint venture project with Toyota during bankruptcy, giving Toyota full responsibility for the California plant. And since the Pontiac Vibe is no longer being made at the facility, capacity has dropped to a reported 60%, making the facility unprofitable at a time when Toyota is losing money.

The closure of the plant means, of course, that its 5,300 employees will soon be without a job. To protest the closure of NUMMI, an estimated 1,000 workers turned out to demonstrate in front of the facility last week. The union-organized workers are in a tough position, too, since their UAW contract expired last week. The contract was indefinitely extended, but either party can cancel it with five days notice. And with unemployment at 11% in California, finding a new job will be no easy task.

[Source: The Detroit Bureau | Image: Justin Sullivan/Getty]

REPORT: NUMMI workers demonstrate over plant's potential closing originally appeared on Autoblog on Mon, 24 Aug 2009 10:31:00 EST. Please see our terms for use of feeds.

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REPORT: New GM entitled to $16 billion in federal tax breaks courtesy of Old GM

Jonathon Ramsey — Tue, 04 Aug 2009 08:27:00 EST

Filed under: Government/Legal, GM, Earnings/Financials

Due to what appears to be a slight (additional) bending of the rules, the "new," post-bankruptcy General Motors has been allowed to carry the $16 billion net operating loss that was created by the "old" GM. That means that New GM will not have to pay taxes on its profits for a while, because the profits can be written off by the losses.

The issue is that the move, called a "tax-loss carry forward," isn't supposed to be available to the automaker. The tax code contains provisions that prohibit a profitable company from buying an unprofitable company for the sole purpose of claiming the unprofitable company's tax losses - and the type of bankruptcy GM went through should have precluded The General's ability to use the tax loss practice.

Except for the fact that GM was bought by the government, and since the government writes the tax code and collects said taxes, it can decide how it wants to handle the companies it owns. General Motors says the move will bolster its "cash position to the benefit of all parties." Critics, on the other hand, say that GM got a $16 billion unfair head start on Ford. Hat tip to Adrian.

[Source: The Wall Street Journal | Image: Jim Watson/AFP/Getty]

REPORT: New GM entitled to $16 billion in federal tax breaks courtesy of Old GM originally appeared on Autoblog on Tue, 04 Aug 2009 08:27:00 EST. Please see our terms for use of feeds.

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Only in California: UAW reportedly fighting to save Toyota plant

Jonny Lieberman — Tue, 28 Jul 2009 14:00:00 EST

Filed under: Plants/Manufacturing, GM, Toyota, UAW/Unions

New United Motor Manufacturing, Inc, better known as NUMMI, has been operating in Fremont, California since 1984. The plant started as a joint venture between General Motors and Toyota. The idea was that Toyota could cut out the expense of boating cars all the way across the Pacific and The General could learn about Japanese managerial techniques and lean manufacturing processes. And this is how the world got the gift of the Geo Prizm. Last month, GM pulled out of NUMMI, leaving it all to Toyota. And now Toyota's not so sure it wants the plant.

Enter the United Auto Workers. NUMMI is unique in that it's the only Toyota manufacturing facility in the U.S. where the workers are unionized. It's also the only auto plant in California with some 4,500 union jobs. This prompted the UAW to send an email to its members, asking them to contact members of Congress so as to keep the plant (and jobs) alive. Quote the email, "We believe that Toyotas sold in the United States should be made in the United States. California is by far Toyota's single biggest market for car sales in the United States." The ironic part is that many Toyotas sold here are made here, but the jobs (typically in Southern states) are certainly not unionized. Much to the UAW's chagrin.

[Source: Automotive News - Sub. Req. | Image: Justin Sullivan/Getty]

Only in California: UAW reportedly fighting to save Toyota plant originally appeared on Autoblog on Tue, 28 Jul 2009 14:00:00 EST. Please see our terms for use of feeds.

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REPORT: Ford Transit Connect to be built Stateside in 2012

Jonathon Ramsey — Mon, 20 Jul 2009 09:58:00 EST

Filed under: Truck, Wagon, Plants/Manufacturing, Work, Ford

2010 Ford Transit Connect - Click above for a high-res image gallery

A welcome splash of news for the UAW and the U.S. economy: Ford will commence production of the Transit Connect at a U.S. assembly plant by mid-year 2012. Currently built in Turkey on a version of the Euro Focus platform, the next generation Transit will also migrate to the FWD compact platform that will underpin the next Focus both hear and abroad. Ford plants in Wayne, Michigan and Louisville, Kentucky will be retooled to build cars on that architecture, meaning the that Transit could join them.

With an electric version joining the 2.0-liter four-cylinder in 2010, an outside analyst predicted 60,000 units would be reasonable by 2013. Ford isn't quoting any production numbers yet, preferring to see how the current version -- that just went on sale this month -- fares.

Gallery: 2010 Ford Transit Connect

[Source: Automotive News - Sub. Req.]

REPORT: Ford Transit Connect to be built Stateside in 2012 originally appeared on Autoblog on Mon, 20 Jul 2009 09:58:00 EST. Please see our terms for use of feeds.

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REPORT: Workers with union desk jobs being sent back to factory floor

Michael Harley — Sat, 18 Jul 2009 09:07:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Chrysler, GM, GMC, UAW/Unions

In an action that is symbolic of the changes America's auto industry is undergoing, the cushy "union desk job" is reportedly about to disappear for many. According to The Detroit Free Press, UAW bosses at post-bankrupt Chrysler and General Motors plants are informing hundreds of elected and appointed colleagues that their desk jobs are being sent back to the factory floor.

The Detroit 3 have always paid for union workers at each plant to support labor-management initiatives, conduct union elections, and handle grievances. Most of these "desk jobs" were not at the plant, and they were reportedly enved by those required to do labor-intensive work in the factories. As such, the news is welcomed by those on the assembly line. "These people had cushy jobs," said Zeigler Johnson, a worker at Chrysler's Warren Truck plant. "Some of them could use a taste of life on the floor to remind them we still make trucks around here."

All told, the UAW is eliminating about 300 positions at Chrysler, while GM expects the change to impact less than 500 workers. The new positions are expected to take effect within the next 60 days.

[Source: The Detroit Free Press | Image: Bill Pugliano/Getty]

REPORT: Workers with union desk jobs being sent back to factory floor originally appeared on Autoblog on Sat, 18 Jul 2009 09:07:00 EST. Please see our terms for use of feeds.

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GM narrows new small car plant search down to three locations

Chris Paukert — Wed, 10 Jun 2009 16:00:00 EST

Filed under: Budget, Plants/Manufacturing, GM

2010 Chevrolet Spark - Click above for high-res image gallery

Orion, Michigan... Spring Hill, Tennessee... Janesville, Wisconsin... Come on down! You're the ~~next contestants on The Price Is Righ~~t three finalists for the future home of General Motors' planned small car plant.

In a brief press release issued today, GM confirmed that it has short-listed these three existing UAW-GM facilities as the contenders to build the as-yet-unnamed fuel miser first announced on May 29. Could it be a version of the 2010 Chevrolet Spark shown above? Or the so-called "Viva" hatchback that was recently spotted testing at the Nürburgring?

The automaker says it has begun holding discussions with federal and state government representatives, and it hopes to announce the winner within the next few weeks. Official press release after the jump.

Gallery: 2010 Chevy Spark

[Source: General Motors]

Continue reading GM narrows new small car plant search down to three locations

GM narrows new small car plant search down to three locations originally appeared on Autoblog on Wed, 10 Jun 2009 16:00:00 EST. Please see our terms for use of feeds.

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REPORT: Two plants saved from closing under new GM/UAW agreement

Jonathon Ramsey — Sat, 30 May 2009 14:05:00 EST

Filed under: China, Plants/Manufacturing, GM, UAW/Unions, Canada

According to the Detroit Free Press, the 14 plants that General Motors is expected to announce for closure on Monday was going to be 16 plants until the UAW got its way on Capitol Hill. The union charged GM with closing factories, but instead of a commensurate reduction in production, GM was moving some of the manufacturing elsewhere, specifically China and Mexico.

GM said it will produce 1.83 million cars in the U.S. 2014 as opposed to 2 million today, and it would get one-third of its production that year from overseas. That one-third would notably be small cars, so much in play lately for every reason. The UAW suggested it would be amenable to "innovative labor agreement provisions" in order to make small car production work for GM domestically.

In that case it isn't Mexico or China that will suffer, but Canada. Our northern neighbor is expected to lose 23% of its GM export production (has anyone told CAW head Ken Lewenza yet?) while Asian importation climbs 98%.

For now, an assembly plant and a stamping plant have been spared from the initial list of U.S. closures. Another four plants have been designated "stand-by locations" that will come on line in case of a steep rebound in auto sales.

[Source: Detroit Free Press]

REPORT: Two plants saved from closing under new GM/UAW agreement originally appeared on Autoblog on Sat, 30 May 2009 14:05:00 EST. Please see our terms for use of feeds.

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AP says General Motors to announce 14 plant closures on Monday

Chris Paukert — Thu, 28 May 2009 10:55:00 EST

Filed under: Trends, Plants/Manufacturing, GM, Earnings/Financials

According to a source at The Associated Press, General Motors will announce the closure of 14 factories on Monday morning. The shutterings will reportedly occur by the end of 2010, and are being viewed as part of GM's widely anticipated plans to file for Chapter 11 bankruptcy.

The move would not be completely unexpected, as GM had previously announced that it expects to have to close 16 plans by the end of next year, resulting in some 21,000 pink slipped workers. As GM has already announced that an engine plant in Massena, New York and a stamping plant in the Grand Rapids, Michigan area will be shutting down, this would bring the full tally to 16.

According to the AP report, factory-level union leaders are unaware of which plants will be axed, but the plan is said to include four assembly facilities, along with stamping, engine, and transmission operations.

[Source: Associated Press (via Chron) | Image: Dan Kitwood/Getty]

AP says General Motors to announce 14 plant closures on Monday originally appeared on Autoblog on Thu, 28 May 2009 10:55:00 EST. Please see our terms for use of feeds.

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UAW reportedly agrees to 17.5% stake in GM

Michael Harley — Wed, 27 May 2009 09:30:00 EST

Filed under: Government/Legal, GM, UAW/Unions

Facing a looming June 1 deadline to reach agreements with the bondholders and union, General Motors may have failed to come to terms with the former, but it has reportedly arrived at a tentative concessions agreement with latter. The deal puts the United Auto Workers' trust fund in charge of future health care costs in exchange for a 17.5% stake in the reorganized General Motors. The U.S. Treasury is still expected to take the controlling stake in the reorganized company.

In addition, the agreement calls for GM to put $10 billion in assets in the UAW's Voluntary Employee Beneficiary Association (VEBA) and to issue the union a $2.5 billion note to be payed in three installations in 2013, 2015, and 2017. With less than one week to go before a likely Chapter 11 bankruptcy, GM remains in survival mode.

[Source: Automotive News - Sub. Req.]

UAW reportedly agrees to 17.5% stake in GM originally appeared on Autoblog on Wed, 27 May 2009 09:30:00 EST. Please see our terms for use of feeds.

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REPORT: GM reaches deal with Canadian Auto Workers union

Frank Filipponio — Fri, 22 May 2009 15:58:00 EST

Filed under: GM, Earnings/Financials, UAW/Unions

After two weeks of intense negotiations, General Motors Canada and the Canadian Auto Workers (CAW) union have reached a deal that will help the automaker cut costs, allowing it to meet the terms for additional government loans. Ken Lewenza, head of the CAW, said it was "a struggle" to reach a deal with GM, but he added that the union had done the best it could under the circumstances, saying: "we have protected most of our core benefits."

Wages, pensions and most benefits were preserved, although restructured in some instances. The union's pension rates will be frozen until 2015, for instance. The deal also keeps GM's plants in Oshawa, St. Catharines and Woodstock open for the foreseeable future. In total, it is believed that the new deal will result in $15 to $16 hourly wage savings on average. The announcement comes a day after the UAW reached a deal of its own with GM.

Although a different agreement was signed with the CAW in March, it had been rejected by the provincial and federal governments who wanted more cost-cutting to avoid bankruptcy. Although GM now appears to be heading in the same direction as Chrysler, hopefully there will be enough progress before the June 1 deadline to keep Chapter 11 a viable option. All told, the recent deals mean that 16 GM factories will close and an additional 21,000 hourly workers will be out of a job.

[Source: CTV]

REPORT: GM reaches deal with Canadian Auto Workers union originally appeared on Autoblog on Fri, 22 May 2009 15:58:00 EST. Please see our terms for use of feeds.

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FOLLOWUP: Alec Baldwin clarifies his auto industry ramblings... sort of

Chris Shunk — Fri, 22 May 2009 15:27:00 EST

Filed under: Government/Legal, Chrysler, Ford, GM, Earnings/Financials, UAW/Unions, Celebrities

To pull the plug means to stop, give up, lay off, discontinue, cease. It's clear, concise language that leaves little room for misinterpretation. That is, apparently, unless you're Alec Baldwin. In a recent blog entry on Huffington Post, the actor had harsh words regarding the Detroit auto industry, blaming Motown for everything from global warming to wars over oil. He ended his diatribe with a simple message: pull the plug.

After a wave of controversy and, we can only assume, plenty of hate mail, Mr. Baldwin has issued a clarification of sorts. The 30 Rock star now says that he never said that he wants union workers to lose their jobs. You're probably wondering what a couple hundred thousand blue collar workers will do if they're not producing cars and trucks, right? Well, it turns out Alec doesn't want D3 automakers to go quietly into the night, either. Baldwin writes:

"I state, by using the phrase "pull the plug," that taxpayer funds should no longer be made available to bail out U.S. automotive corporations. They should file for bankruptcy, reorganize and emerge as wholly reconfigured entities, perhaps with labor owning significant positions in those companies."

In his first op-ed, Baldwin stated "I'd like to buy an American car, but I'd feel like a fool doing that now." He then went on to say that he was likely going to purchase a Japanese hybrid built in the American South. Just what the United Auto Workers union wants to hear.

Click through to the jump for more of Baldwin's best.

[Source: Huffington Post]

Continue reading FOLLOWUP: Alec Baldwin clarifies his auto industry ramblings... sort of

FOLLOWUP: Alec Baldwin clarifies his auto industry ramblings... sort of originally appeared on Autoblog on Fri, 22 May 2009 15:27:00 EST. Please see our terms for use of feeds.

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