By on September 3, 2015

UAW Member Assembling Corvette in Bowling Green Circa 2015

Automakers may try to negotiate a massive health care co-op with the United Auto Workers — similar to the one it has with its retirees — and potentially change private health care in the U.S., Bloomberg is reporting.

At issue are the roughly 300,000 workers and beneficiaries, and 750,000 retirees and their families who rely on the UAW for health care.

The pool of more than one million workers and their families could give the Big Three unprecedented negotiating power with U.S. hospitals and clinics.

(Read More…)

By on September 3, 2015

In the opening moments of the above scene from the flick “Fargo,” Oldsmobile dealership sales manager Jerry Lundegaard is working up some bogus paperwork to cover his tracks with General Motors Acceptance Corporation (GMAC). We can infer that he sold some floor-planned cars and did not pay back GMAC, which was the impetus for the movie’s storyline of his bumbling attempt to extort money from his father-in-law.

Jerry’s store may have been “out of trust” with GMAC on a few dozen 1987 Cutlasses, but that pales in comparison to the scheme concocted by New York car dealer John McNamara.

Between 1980 and 1991, McNamara convinced GMAC to advance him $6.2 billion to pay for 248,000 conversion vans that did not exist. It was one of the largest Ponzi schemes in history and ended up costing GMAC $436 million, equal to $725 million in today’s dollars.

We would like to show you a photo of McNamara but none are to be found. That may be because it is believed he went into the Witness Protection Program a few years after his conviction for fraud in 1992. Just picture Lundegaard with a really big brain.

McNamara’s brilliant swindle was deliciously simple. It was based on one undeniable truth he learned from his years of owning a Buick-Pontiac-GMC dealership on Long Island: General Motors and GMAC were too incompetent and too bureaucratic to figure out that they were being scammed.

(Read More…)

By on September 1, 2015

sergio-marchionne

Farmers are the ultimate craftsman when it comes to small-scale production. The level of management needed to stay competitive and above the high water line is, simply put, astounding. Consolidation in certain areas of agriculture has lead to factory farming, the widespread adoption of automation and genetically modified seeds that keep seed producers competitive. Private farmers are constantly at war with the market and their own budgets.

The agriculture industry has wholly transformed itself over the last 100 years. The automotive industry, which has only really existed for that same period of time, has seen similar levels of change. We are now building more cars, trucks, SUVs, crossovers, trikes and quadracycles than ever before, just like we are growing more food than we’ve ever seen in human history.

But, there’s one major stumbling block ahead — and Sergio Marchionne sees it.

(Read More…)

By on August 30, 2015

Sergio and 1.4L Turbo MultiAir in better times at Dundee. Chrysler Photo

We have to hand it to Larry P. Vellequette at Automotive News for getting FCA’s Don Marchionne riled up. In addition to getting Sergio talking yesterday about automakers having a history of bending the unions over, the outspoken executive has now called for a General Motors takeover via a series of hugs increasing in their intensity each time.

“There are varying degrees of hugs. I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you,” said Marchionne to Vellequette. “Everything starts with physical contact. Then it can degrade, but it starts with physical contact.”

And no, that’s not even the best part.

(Read More…)

By on August 24, 2015

Cadillac-XTS-with-Brad-Pitt

You’re car shopping for your dream car. You test drive it. It’s perfect. Everything in its place. The power … breathtaking. You look at the window sticker and there are a few numbers after a dollar sign. You can afford it — just.

Next year, your dream car will have no discernible differences from the one you are driving today. Everything will still be perfect, in its place, and the power will be just as intoxicating. Except next year the price will go down $5,000 thanks to a “Made in China” stamp on the doorjamb.

(Read More…)

By on August 24, 2015

GM Arlington Plant

As talks with the United Auto Workers continue, domestic automakers may be using global production strategies to leverage lower wages from the massive union, Automotive News is reporting.

News that Buick may import most of its lineup from outside North America, or Ford shifting production from Michigan to Mexico, could be weighing on conversations to keep production in the U.S. and Canada at union plants.

“It’s a veiled threat to the workers,” Gary Chaison, a professor of labor relations at Clark University told Automotive News.

The automakers may be saying: “If you ask for too much, we can take the work out of the U.S. So, give us a reason not to shift more production overseas,” he added.

(Read More…)

By on August 20, 2015

buick-verano-china-is-6-660x488

Reuters is reporting that Buick will import most of its new models to North America from China and Europe by 2016. Only the mid-size that will eventually replace the LaCrosse and the large Enclave crossover will be built in America, both in Michigan.

Other Buick models, including the coming Cascada convertible and the small crossover Envision would come from Europe and China respectively. Production of the Verano would shift from Michigan to China, the next-generation Regal would come from Germany instead of Canada, and the Encore would continue to be assembled in Korea, but would eventually shift to China, Reuters reported from an unidentified source.

(Read More…)

By on August 19, 2015

GM Oshawa Plant Closure

GM Canada announced Wednesday it will make a small investment in Oshawa Assembly’s Consolidated Line thanks to increased demand of the Chevrolet Equinox.

“It’s a modest investment in terms of its size, but it increases the volume of stamping we do at CAMI to increase the run. (The increased stamping) will then boost Equinox production in Oshawa,” GM Canada’s VP of Corporate and Environmental Affairs David Paterson said in an interview with TTAC.

More body panels are stamped at CAMI than that plant’s assembly line can use, which required GM to utilize its “shuttle program” to transport excess Equinox bodies to Oshawa’s Consolidated Line for final assembly, according to GM.

The majority of the $12 million CAD investment will go to CAMI, though the detailed amount was not disclosed. Additional labor will not be needed to produce the additional Equinoxes.

While the success of an 11-year-old model (the Equinox went into its second generation as an enhanced refresh) is newsworthy, there is a larger issue at play.

“That investment has the effect of extending further the Consolidated Line until at least 2017,” said Paterson.

(Read More…)

By on August 18, 2015

TTAC COTD GM full-size SUV sales chart July 2015

There were six new full-size SUVs from General Motors. Ford refreshed the Expedition. Lincoln did the same with their upmarket Expedition, the Navigator.

The year was 2014, and U.S. sales of Detroit’s biggest, baddest, full-size SUVs were booming, relative to the recent past. (Read More…)

By on August 13, 2015

opelrussia-autoworld.com_General Motors dealers in Russia are unhappy at the compensation the automaker is offering as it pulls out of the country, Wards Auto is reporting.

Russian dealers want more than it cost to start their dealerships, the report details. Negotiations stalled on how much GM would discount service contracts for thousands of GM cars currently on the road, and how much GM would offer dealers who need to change their businesses after GM leaves the country. The latest round of negotiations stalled in July.

GM sold more than 247,000 Chevrolet, Daewoo, Opel and Cadillac cars in Russia in 2014, which was down more than 24 percent from the prior year. This week, Cadillac CEO Johan de Nysschen said the luxury automaker would focus on sales in Russia — and also China and the Middle East — even after GM announced it would be leaving that country.

(Read More…)

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