The fact that GM creates 6,000 jobs in China and will invest $11 billion in China until 2016 (and $16 billion in America) gets all the headlines. What falls under the table is the fact that someone else invests $76 billion each year straight into more than a million Americans. It’s the Japanese auto industry. (Read More…)
Is the next Jeep Wrangler getting a diesel? What about an air suspension? It’s looking that way, at least according to Automotive News.
A sad day for both Ford and Australia. The Blue Oval has officially announced an end to building cars in Australia, which Ford has done since the 1920s.
Hyundai’s top man shot down rumors of his company building a new factory in the U.S. ”We have no plan for a new U.S. factory for now,” Hyundai’s Chairman Chung Mong-koo told Reuters at Seoul’s Gimpo airport before leaving for the United States.
Rumors started flying when South Korea’s Financial News said that Kia is talking to Georgia state officials about constructing a new plant. These rumors were denied. Last week, Chung rekindled the flames by saying that Hyundai “will look into whether there are opportunities” to expand production overseas.
Chung is expected to visit Hyundai and Kia’s U.S. plants in Alabama and Georgia during his visit, which coincides with South Korean President Park Geun-hye’s U.S. trip.
The mantra before, during, and after the bailout was (and still is) that without the bailout, gadzillions of jobs would have vanished, the American car industry would have been wiped out, wheels would have come off the arsenal of democracy, and the sky would have fallen into Lake St. Clair. Of course, that’s nonsense. There are more than enough other carmakers in America. They would have received the sales, and added the jobs. They would have been mostly non-union jobs though.
The truth is, without the bailout, the UAW would have vanished, and with it millions of Democratic votes. (Read More…)
Lower gas prices and a turn-around in the housing market rekindled America’s love for the pickup, resulting in 2,000 new jobs at Ford’s Kansas City Assembly Plant. (Read More…)
Bob King’s attempts to ingratiate himself with German unions, and to make Opel’s Bochum workers reconsider their decision to turn down Opel’s restructuring plan, are being ignored. Actually, it appears as if they had the opposite effect. Days after King’s comment, Bochum plant manager Manfred Gellrich rejected new discussions, saying Opel does not want to “waste precious time,” Reuters says. Over the weekend, Opel dropped another bomb: Bochum will be closed completely. A parts depot that was supposed to stay open, will also close its doors. (Read More…)
UAW boss Bob King told Opel’s Bochum workers to vote again, and to this time accept a deal that had been worked out between the German metal worker union IG Metall and GM. (Read More…)
Messy, messy, messy: Can’t even close a proper deal with the unions. GM and the unions have an agreement. It is basically as reported this morning. The deal has the signatures of management and unions. One signature is missing, reports Die Welt: That of Bochum works council chief Rainer Einenkel. (Read More…)
If you think that GM will get a handle on its abundant capacity problems in Europe – abandon all hope. Or rather: Postpone hope for until after 2016, or maybe later. Also, write off any expectations that Steve Girksy would successfully play hardball with German Metalworker Unions. Deadball is more likely. With the decision to move the production of Opel’s Astra volume model from Rüsselsheim to Ellesmere Port, and to shift production from Bochum to Rüsselsheim, the fate of the Bochum plant appeared to be sealed.
German unions declared war. Minutes ago, Opel works council chief Wolfgang Schäfer-Klug announced “an armistice” (Das Handelsblatt) and told German media that Opel will continue making cars in Bochum through 2016. Nobody can be fired, no plants can be closed at Opel until January 1, 2017. Even then, Bochum will remain open. (Read More…)
Germany’s metal worker union IG Metall proposed a new plan yesterday to solve the overcapacity at Opel without undue grief on its members: The union will agree to the closure of Opel’s Bochum plant, if Opel guarantees that no hobs will be lost until 2018. Reuters takes that as a tacit warming up to the inevitable, while demanding the seemingly impossible. (Read More…)
So far, Steve Girsky, dispatched on a mission impossible to Deutschland to clean up Opel, has been dancing like a butterfly, no stinging involved. Apart from targeted leaks, and an announcement to stop making cars in Opel’s Bochum plant after 2016, which really did not surprise anyone, there were no big dispatches about the heroics of Steve the hatchet man, who was sent to the Old Country to stick it to the socialist metalworker Nazis. Today, and most likely after increasingly impatient prodding from Detroit, Steve took his gloves off, and a swing at some 20,000 unionized workers in Germany.
We did not believe that EU regulators would let France’s government bailout of GM’s alliance partner PSA skate through unchallenged. State aid to companies is against EU rules, and refinancing of Banque PSA Finance is state aid EU Competition Commissioner Joaquin Almunia wrote in a letter to the French government. This according to a report in the French daily Les Echos. (Read More…)