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The Janesville, Wisconsin, General Motors assembly plant that was shuttered six years ago will likely officially close, according to letters in a proposed agreement between United Auto Workers and the automaker, Automotive News reported.
The plant, which was opened in 1919 and once produced large SUVs such as the Chevrolet Suburban/GMC Yukon XL, employed as many as 7,000 workers in the 1970s. Hundreds of workers were sent to other plants when the plant suspended operation in 2009, six months before GM’s announced bankruptcy.
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A proposed contract between the United Auto Workers and General Motors will eventually end a tiered pay system divided between veteran auto workers and employees hired after 2008, and provide annual bonuses and substantial raises for the first time in a decade. The automaker has offered an $8,000 signing bonus to approve the deal.
The proposed deal outlines the automaker’s $8.3 billion investment in American plants — above its $6.4 billion improvements already announced — over the life of the contract. The deal was posted on the UAW website Thursday.
The deal for GM workers, which is sweeter than the deal hammered out between the UAW and Fiat Chrysler Automobiles, will be reviewed and voted on in coming weeks.
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Speaking for the first time as Volkswagen chief, newly hired CEO Matthias Müller outlined his plan for the automaker’s future in the wake of a growing scandal for its illegally polluting cars.
Müller’s five-point plan includes a significant overhaul of the automaker’s plan to be the world’s largest automaker by 2018. According to Volkswagen, its Strategy 2025 plan — which replaces the Strategy 2018 outline — will be unveiled next year. In its earlier plan, Volkswagen had prioritized 10 million sales by 2018, 8-percent profitability and to position the automaker as “a global economic and environmental leader,” according to the automaker’s plan.
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Volkswagen could significantly overhaul its U.S. operations — including not selling diesel models in the country — after it has dealt with federal and civil claims stemming from its massive diesel cheating scandal, Reuters reported.
The report, which quoted two sources familiar with the automaker’s plans, said replacing North American chief Winfried Vahland, who quit after three weeks, would happen after the automaker has reached an agreement over its illegally polluting cars. Read More >
Volkswagen will post Wednesday its first quarterly loss in 15 years after the automaker was rocked this summer with a scandal that affected 11 million vehicles and cost the company tens of billions of dollars in lost value already.
Bloomberg (via Automotive News) reported that 10 analysts estimated that the company would post a $3.6 billion loss for the quarter ending Sept. 30.
Although the company said it reserved more than $7 billion to help pay for the scandal, many agree that the loss will be far greater — from $16 billion to $86 billion.
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Ford Motor Company said Tuesday that the company posted its most profitable third quarter driven by pickup sales in North America.
According to Ford CEO Mark Fields, F-150 transaction prices were up $2,800 for the third quarter in 2015 compared to the same period last year and dealers were reporting full stocks of trucks, up from this year’s shortage.
Fields stopped short of saying the new F-150 was more profitable than the outgoing generation, but said the truck was contributing — not taking away from — the company’s record profit. Representatives said high-margin cars such as the Edge, Mustang and Explorer also contributed to pre-tax profit of $2.7 billion last quarter. Read More >
Japanese tire giant Bridgestone agreed Monday to buy Pep Boys for $835 million and potentially create the largest chain of U.S. automotive service centers, the companies announced.
The deal would create a chain of more than 3,000 auto care stores — 2,200 Bridgestone-owned centers including Tires Plus, Firestone Complete Auto Care, Hibdon Tires Plus and Wheel Works, and more than 800 company-owned Pep Boys stores.
According to the companies the deal will finalize in early 2016. Read More >
United Auto Workers at Fiat Chrysler Automobiles plants voted to overwhelmingly approve a contract with the automaker three weeks after turning back its first proposal, the union reported.
According to a statement posted on the UAW’s website, 77 percent of hourly production, 72 percent of skilled trades and 87 percent of salaried bargaining unit workers approved the contract.
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General Motors announced Wednesday that third quarter, adjusted profit for the company was $3.1 billion, led by truck sales in North America and car sales in China. The net revenue was down $500 million from the same period last year, which GM says is due to currency fluctuations, but the automaker’s profits were decidedly higher.
Automotive News reported that the profit margin was the largest for GM since its 2009 bankruptcy, even after its $1.5 billion charge to settle claims related to its defective ignition switch that resulted in 124 deaths.
The automaker posted an 11.8 percent profit margin — also its largest since 2009 — and said it would end the year above 10 percent. Read More >
Fiat Chrysler Automobiles chief Sergio Marchionne rang the opening bell Wednesday for Ferrari’s first day of trading on the New York Stock Exchange and shares of the supercar maker soared.
The stock, which was up as high as $60 per share, leveled off around $57 in mid-day trading.
“This is not really a car, it’s a unique expression of art and technology,” Marchionne told Bloomberg.
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