Autoblog

Ford talks tough on quality, promises best-built small cars

Michael Harley — 2008-08-11T12:31:00+00:00

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

Click above for high-res gallery of the 2009 Ford Fiesta

Not wanting to take second place to anyone, especially Toyota, Ford is vowing that its new line of Euro small cars, including the new Fiesta and next-gen Focus, will launch in the U.S. with the best quality in the industry. That's the official word from Bennie Fowler, Ford's VP of Global Quality. To accomplish this goal for the 2010 model year, Ford will send a handful of UAW workers to Wayne State University where they will become certified "Six Sigma Black Belts" (a.k.a. quality experts with the coolest certification ever) and take their learned expertise back to the assembly plants. The industry average right now is about 1,300 problems per 1,000 vehicles. Ford is promising that its new line of small cars from Europe will have just 800 things gone wrong per 1,000 vehicles. It is a target that bests their Japanese rival, but it still leaves us wondering why they wouldn't just aim for zero problems?

Gallery: 2009 Ford Fiesta

[Source: The Detroit News]

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VW, Porsche talks stumbling over labor issues?

Jeremy Korzeniewski — 2008-08-06T08:32:00+00:00

Filed under: Government/Legal, Porsche, Volkswagen, UAW/Unions

Porsche wants to purchase Volkswagen, this much we know. But before that happens, the huge labor union at VW needs to agree on terms with Porsche management. This, as you may imagine, is proving a bit more difficult than Porsche had hoped, prompting the automaker's senior labor leader Uwe Hueck to lash out at the heads at VW. Not surprisingly, his initial attack received a response from Bernd Osterloh, the head of VW's labor union. It seems that some major sticking points exist that the organized Volkswagen employees are not too keen on, causing them to believe that they would be relegated to second-class status. Whether or not these negotiations will keep Porsche from purchasing a controlling stake in Volkswagen seems up in the air at the moment, though we wouldn't be surprised if some sort of deal were made sooner rather than later.

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

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GM and CAW reach deal over truck plant closure

Jeremy Korzeniewski — 2008-07-28T16:59:00+00:00

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

In a deal designed to assuage the tensions between General Motors and the Canadian Auto Workers union, GM's new car plant in Oshawa, Ontario will gain two additional models to build. The old truck plant in the same city, though, will still close sometime in 2009. Until then, the truck plant will continue to assemble hybrid versions of GM's full-size pickup trucks. The new Oshawa plant will begin building GM's long-anticipated Camaro revival and will also get some Chevrolet Impala production and an unnamed Buick model at some point in the future.

In addition to the extra work at the brand new Oshawa plant, displaced workers with at least 26 years of GM employment will get a percentage of their yearly salary, even after the plant has closed, until they have reached the necessary 30-year mark for retirement. Other qualifying ex-employees will get buyout packages of some sort. Thanks for the tip, Ryan!

[Source: CBC News]

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Buzz Hargrove will step down early

Dan Roth — 2008-07-08T16:33:00+00:00

Filed under: Etc., UAW/Unions, Canada

Buzz Hargrove, president of the Canadian Auto Workers, Canada's largest in the private sector, will step down earlier than anticipated. Hargrove wasn't expected to retire until he reached the CAW's mandatory age of 65 next year. It's tough to resist the allure of cuddling with Yorkies, Bingo every Monday night, and shuffleboard to fill in those long, wistful hours recalling the glory days of torquing valve covers in Windsor, so Hargrove has accelerated his departure to mid-September. No replacement candidate has been named yet, though an endorsee will be announced later today. Come this fall, keep an eye out on the golf courses of Florida for a relaxed looking guy drinking a Molson, eh?

[Source: Automotive News - Sub Req, Photo: media.canada.com]

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Buy a brick from a fallen Flint assembly plant

Dan Roth — 2008-06-20T09:58:00+00:00

Filed under: Time Warp, Etc., Plants/Manufacturing, UAW/Unions

Our first thought was "Boy, retirement plans sure ain't what they used to be." Reality, of course, is more banal, it's just UAW Local 651 going all nostalgic while demolition of the Flint East plant continues. The plant's last occupant was Delphi, but the plant has a history nearly as long as the automotive industry itself. With that much provenance, Local 651 is most likely right in assuming that some former workers might want to have a brick from the plant to put on their mantle. Michiganders looking for a memento will need to sign up on next Tuesday so the union can get a bead on how many people are interested. We'd like to sign up for the return of industry and good blue collar jobs, nevermind the old bricks.

[Source: Detroit Free Press, Photo: Getty/Jim Pugliano]

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GM says 17,398 workers took buyout

Jonathon Ramsey — 2008-06-20T08:01:00+00:00

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

More than one-fourth of GM's 74,000 hourly employees are going to grab the loot and skedaddle. Earlier this year, UAW President Ron Gettlefinger estimated that 15,000 would put their hands out, but another couple thousand decided to hop on the General's money train. The workers are expected to finish their employment by July 1. GM's most recent deal with the UAW means it can replace those folks with lower wage workers and save itself a bundle on payroll. And that will make the job of saving itself that much easier.

[Source: Automotive News, sub req'd]

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Toyota gets attacked for worker rights abuses

Jeremy Korzeniewski — 2008-06-18T14:25:00+00:00

Filed under: Government/Legal, Japan, Plants/Manufacturing, Safety, Toyota, UAW/Unions, Celebrities, Carsumer Advocacy

The top is a tough place to be. Just ask Toyota, which is now facing charges of worker right abuses, including the use of sweat shops and human trafficking. As we've reported before, Japan even has a word for being overworked to death: karoshi. Toyota plants are not immune to this stress-related disease, as workers at its plants have indeed suffered death due to working too hard. These facts have caught the attention of The National Labor Committee, which has an entire report worked up that alleges Toyota over-works and under-pays its Japanese employees and has ties to various unsavory Dictators. It's also been well established that Toyota does not want its American workforce unionized.

The report is being directly targeted at Prius-driving celebrities who see Toyota as the shining green beacon in a world of pollution-spewing car companies. Whether or not this report has all its facts straight, if famous Toyota supporters in Hollywood react to these allegations, Toyota could indeed have a public relations disaster on its hands.

[Source: The National Labor Committee via World Car Fans]

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Strike against No. 2 car hauler puts it out of business

Michael Harley — 2008-06-16T17:32:00+00:00

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

The strike last week by the International Brotherhood of Teamsters (IBT) against Performance Transportation Services (PTS) was the straw that broke the camel's back. The second largest car hauler in the United States was unable to survive the wage-related dispute, especially after filing for bankruptcy protection in 2006 and 2007. On Friday, PTS announced that it's stopping all operations and going out of business.

The effect on the industry overall will be minor. Automakers began rescheduled their deliveries last week when the strike was announced. As domestic vehicle production has slowed, excess transport capacity has been able to take up the slack and no major interruptions have been seen. It seems the striking workers have also been accommodated as the Teamsters are reporting that the "vast majority" of their 1,250 drivers have found work at other unionized locations. Still, any organized union thinking of striking in this economic climate should consider the possibility that such a move may result in pink slips for everyone.

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

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CAW ends blockade of GM Canada headquarters

Chris Shunk — 2008-06-16T10:28:00+00:00

Filed under: Trucks/Pickups, GM, UAW/Unions

The Canadian Auto Workers union and General Motors have been less than friendly with one another since the automaker announced it would be closing its Oshawa Truck plant, and the union promises to "fight on" despite ending a 13-day protest/blockade that prevented some 900 GM employees from going to work at the company's Canadian headquarters. It took a court injunction to end the blockade, but union representatives say they are planning their next move to stop GM from closing Oshawa Truck, which employs around 2,600 workers. But with truck sales tanking on account of high gas prices and less new home construction in the U.S., it seems unlikely the General will change its mind to scuttle the plant. There is talk of converting it to produce passenger cars in the near future, but even if the decision were made to do so today, the plant would still be closed for one to two years before it reopened. For now, however, GM's white collar workers in Canada can get back to work without enduring the rank and file gauntlet.

[Source: Automotive News - sub. req'd, Photo by Simon Hayter/Getty]

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GM may add car line to closing Canadian truck plant

Jeremy Korzeniewski — 2008-06-11T18:59:00+00:00

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

Despite rising tensions (and a lawsuit) between General Motors and the Canadian Auto Workers union, the automaker may be interested in adding a new car line at its soon-to-closed truck plant in Oshawa, Ontario. Though that plant was originally scheduled to stay open a few more years, slumping sales of full-size trucks built there have forced GM to announce its early closure along with three other pickup and SUV plants. Since that announcement, union workers have barricaded GM Canada's headquarters for the last eight days in protest, which we'd imagine might make it difficult for GM management to negotiate with union officials... but what do we know?

According to The Detroit News, however, GM has been talking with Ontario's Economic Development and Trade Minister, Sandra Pupatello, who says that the government is very interested in securing the new vehicle line as quickly as possible. Even if a decision is made in short order, it is likely the plant's 2,600 workers would be out of work for up to two years after the closes and before its ready again with new tooling for a passenger car line.

[Source: The Detroit News]

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GM Canada suing CAW for C$1.5 million

Jeremy Korzeniewski — 2008-06-11T17:30:00+00:00

Filed under: Trucks/Pickups, Government/Legal, Plants/Manufacturing, GM, UAW/Unions, Canada

Hold on to your britches folks. General Motors dealings with the Canadian Auto Workers union just took another turn for the worse. GM, like every other full-line automaker selling vehicles in the United States, has been unable to move as many pickup trucks as it had hoped since the price of gas has spiked. In response to the shifting tide of vehicle sales and to slow the huge financial hemorrhaging, GM announced about eight days ago that it would be closing four plants that build trucks and SUVs, including one in Oshawa, Ontario. Unfortunately, the General had recently promised to keep that particular plant open for a few more years, so the announcement more than irked the Union officials from up north.

Here's where things get real ugly. In retaliation, the CAW has blockaded the entrance to the GM headquarters in Canada for the last eight days. As you might imagine, GM has a slight problem with this and has taken the matter to court, where documents reveal that the automaker wants C$250,000 from the local union and five of its members for a total of $1.5 million in damages. We're not sure if this impending lawsuit will impact the Union's plans for a rally this Thursday in the parking lot of the Oshawa headquarters, but it's probably safe to say that this situation won't have a happy ending.

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

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Teamsters strike against nation's No. 2 car hauler over wages

Michael Harley — 2008-06-09T15:29:00+00:00

Filed under: UAW/Unions

Performance Transportation Services (PTS), the second largest car hauler in the United States, is being hit by a strike from the International Brotherhood of Teamsters. The walkout began this morning after a bankruptcy court granted PTS permission for a 15-percent emergency pay cut to the workers.

The Michigan-based transport company has been in trouble for years. Once hired to move upwards of 2.7 million vehicles per year, including 10,400 vehicles per day for General Motors, PTS filed for bankruptcy protection in 2006 and in 2007. Now, with the automotive industry in a slowdown and diesel fuel prices skyrocketing, it needs wage concessions to remain afloat. Without any proposal on the table, the Teamsters walked off their jobs at 24 different facilities this morning. Both Ford and General Motors, who count themselves as clients of PTS, have said publicly that the strike won't immediately affect their shipments of vehicles across the country. PTS also handles some shipments for Toyota and other automakers, all of whom are working on contingency plans in case the strike goes on indefinitely.

[Source: The Detroit News]

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CAW form blockade in front of GM Canada to protest plant closings

Chris Shunk — 2008-06-04T15:31:00+00:00

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

The dust hasn't settled yet on General Motors' announcement that it will be closing an additional four plants, but the Canadian Auto Workers union is already foaming at the mouth. The CAW organized 30 trucks to block GM Canada's headquarters in response to the company's decision to close its Oshawa truck plant. The Oshawa plant produces the Chevy Silverado and GMC Sierra full-size pickups, production of which the General has reduced sharply in response to slow sales. The Canadian union says it won't move the trucks, which is blocking all vehicular traffic, until it meets with GM officials. While the CAW is letting pedestrians on foot through the blockade, we wouldn't be surprised if bipedal passage comes accompanied by a few colorful words that would make a sailor blush.

While the CAW would never want to lose a plant under any circumstances, the rank and file are particularly angry this time because the news came only two weeks after GM promised to keep the plant open through most of 2009. GM also promised that the plant would build its next generation light-duty pickup. In the automaker's defense, GM needs to make tough decisions quickly because of this rapidly changing market, and unions don't really react as the wind blows.

Other unions affected by the four plant closings are also miffed, but none went so far as those crazy Canadians. The union at GM's Moraine, Ohio plant, for instance, expressed its displeasure with being closed and has stated publicly that it plans to fight the closings, but considering that it builds the Chevy Trailblazer, GMC Envoy and Saab 9-7x, we'd say there isn't much hope for union workers in Moraine, OH.

[Source: CBC]

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Nearly 19,000 hourly workers take buyout from GM

Damon Lavrinc — 2008-05-29T14:31:00+00:00

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

General Motors announced today that approximately 19,000 hourly employees have opted to leave the automaker's ranks in exchange for a buyout offer and retirement incentives. The offer was extended to 74,000 UAW workers in an attempt to swap out highly paid long-termers with lower-paid new employees as the General realigns its financial situation. Workers have had months to make the decision, but GM is giving them another week to rethink their choice. Employees that have made the final decision will leave no later than July 1, 2008. The effect of nearly 19,000 hourly employees taking buyouts apparently wasn't enough to right the S.S. General Motors as the massive automaker just announced that a new restructuring plan with more buyouts and layoffs is on its way.

[Source: GM]

Continue reading Nearly 19,000 hourly workers take buyout from GM

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GM to follow Ford and restructure its restructuring

Michael Harley — 2008-05-29T13:59:00+00:00

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

Following a slew of labor problems including the American Axle strike that cost an estimated $2 billion, General Motors is restructuring to accommodate the declining U.S. auto market. Following the lead of Ford and Chrysler, the move will likely include further cost cutting and layoffs, as production of thirsty truck and sport-utility vehicles is wound down to make room for more fuel efficient vehicles. Information is sketchy at this stage, but plan on learning the details when the restructuring is officially announced at the company's annual meeting on June 3. With its stock closing Tuesday at its lowest level in more than two decades and thousands of jobs at stake, GM had better get this next move right.

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

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Confirmed: FWD Impala around through 2012

Jeremy Korzeniewski — 2008-05-23T17:27:00+00:00

Filed under: Sedans/Saloons, Plants/Manufacturing, Chevrolet, GM, UAW/Unions, Rumormill

It has been rumored for the last few months that Chevrolet would be soldiering on with a front-wheel-drive Impala for at least the next few years. The recent contract agreement between the Canadian Auto Workers union and General Motors appears to cement this rumor as fact. According to the signed pact, GM promised to keep the Oshawa Assembly plant, where the current-generation Impala is made, open until 2012 -- two years longer than first planned. The Impala is a pretty good seller for the General, so we're not too surprised that upper-level management would want to leave it alone, but that doesn't stop us from wanting to see Chevy's bread-and-butter full-size sedan return to its roots by going rear-wheel-drive.

One thing is for certain: by the year 2012, the W-Body platform of the current Impala will be absolutely ancient. On the other hand, we've had nothing but good things to say about the new Zeta platform which underpins such enthusiast-friendly vehicles as the new Pontiac G8. Therefore, we can at least hold out some hope that GM will find a way to offer as many vehicles as possible using the new chassis architecture, whether they are named Impala or not. Anybody want to see a new Nova?

[Source: The GM Source]

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GM lost 285,000 units to American Axle strike

Michael Harley — 2008-05-21T19:02:00+00:00

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

With closure to the American Axle & Manufacturing Holdings strike in sight, General Motors is pushing forward to resume production at the idled and slowed plants -- assuming UAW members approve a tentative contract later this week. As of Monday, the following plants were back in operation:

Bay City, Mich. (engines, transmissions, components)
Flint, Mich., North and South (engines, components)
Livonia, Mich. (engines, components)
Parma, Ohio (components)
Romulus, Mich. (engines)
Saginaw, Mich. (metal casting)
Silao, Mexico (engines)
St. Catharines, Ontario (engines, components)
Tonawanda, N.Y. (engines)
Willow Run, Mich. (transmissions)

Each week the strike has dragged out, GM has lost significant production (29,925 vehicles were lost in the week ending April 26 alone). If GM cannot boost additional manufacturing output, by the end of this week the total number of lost units could be as high as 285,503. Even if the American Axle strike is settled, the UAW is still striking at GM's Fairfax assembly plant over the role of seniority in job placement. That labor dispute alone is costing the company 4,627 units each week.

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

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End of axle strike costs GM $218m

Dan Roth — 2008-05-19T08:28:00+00:00

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

The UAW strike at American Axle has ground on for three months, but an agreement with the union was reached on Friday. General Motors had pledged $200 million dollars to help get things rolling again after being forced to idle plants. The action has reportedly cost GM $800 million, so what's a few more on top of that to get plants back online? With that logic, the automaker's managed to shake loose another $18 million to pay for supplemental unemployment benefits, bringing its total commitment to $218 million in hopes of wrapping up the spat with its axle supplier.

[Source: Automotive News - Sub. Req.]

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Another Ferrari spontaneously combusts

Chris Shunk — 2008-05-18T20:02:00+00:00

Filed under: Supercars, Ferrari, UAW/Unions

Ferraris are best known for their looks, performance, and exclusivity, but lately, it seems one could add flammability to that list of attributes. The latest case of Ferrari flambé involves a beautiful black 599 GTB Fiorano, which self-ignited at a stop light while being driven by someone who wasn't even the car's owner. Martin Bullen, who works at supercar garage Romans International in Banstead, UK, was at the wheel when he heard a strange sound followed by a brilliant display of smoke and fire. The £250,000 exotic was a total loss, and the 28-year-veteran of the high-end garage had to inform his boss of the Ferrari's fate.

Luckily for Bullen, his employer is a forgiving and understanding man. Garage owner Paul Jaconelli said he wouldn't hold the destroyed 599 against his employee, and that the vehicle was still covered under warranty. That's good news for Bullen, but Ferrari owners the world over must be wondering if their expensive toys will be the next to join the ranks of the carbequed. This isn't exactly what they bargained for when they decided to get a hot car. Head to The Sun for more pics of the latest Fire-ari. Thanks for the tip, Chris!

Gallery: 599 GTB Fiorano in flames

[Source: The Sun]

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American Axle proposes cuts and buyouts to end 11-week strike

Michael Harley — 2008-05-18T17:16:00+00:00

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

When the UAW went on strike against American Axle & Manufacturing in late February, analysts expected a settlement within days. The supplier of axles, driveshafts, and other related components to General Motors and other automakers had a stockpile of inventory on hand, and few expected the strike to affect production. However, as talks failed to bring workers back, the situation quickly went downhill. By early March, nearly GM 20 GM truck plants were threatening to idle or shut down. By late March, GM's car plants were feeling the effects. Earlier this month, it was GM who offered up to $200 million to help bring the strike to an end -- the automaker has suffered production stops or cut backs at 30 plants in North America as of last week.

Today, American Axle made an offer to the union to bring the 11-week strike to an end. It includes buyouts to workers who have been on the job for more than 10 years, retirement packages to senior workers, and payouts to ease salary adjustments as American Axle makes pay cuts to keep their U.S. operations competitive. The latest agreement will be voted on by union members in New York and Michigan tomorrow. Let's hope they come to terms, as the strike has already cost GM an estimated $800 million.

[Source: Bloomberg]

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