#IndustryNews

Unifor members overwhelmingly ratified a new three-year contract with General Motors, effectively ending the union’s 2020 auto bargaining with Detroit automakers. Members backed the contract with 85 percent approval and secured meaningful investments into Canada’s automotive industry, including the $1 billion (USD) investment that saves Oshawa Assembly. It’s an important victory for the union and the Canadian auto workers it represents.

“This contract solidifies and boldly builds on GM’s Canadian footprint, with a $1.3 billion dollar investment that brings 1,700 jobs to Oshawa plus more than $109 million to in-source new transmission work for the Corvette and support continued V8 engine production in St. Catharines,” said Unifor National President Jerry Dias. “Jobs at all three Canadian sites are secure for the life of this agreement, including at the Woodstock Parts Distribution Centre, which will also see upgrades.”

The closed General Motors plant in Oshawa, Ontario, will be reopening after the automaker reached a deal with Canadian workers. GM says that it will invest up to $1.3 billion in its facility and hire up to 2,000 workers. It’s an impressive outcome for a region that looked fated to struggle at maintaining automotive jobs for years to come. While the tentative three-year deal with Unifor has yet to be approved by workers, we’re doubtful they’ll be anything but supportive.

Despite being the victim of GM’s restructuring program and closing shop in 2019, the historic Oshawa Car Assembly (est. 1907) appears poised to once again begin churning out Chevrolet Silverado and GMC Sierra pickups for the masses.

Independent repair shops and aftermarket parts retailers have been pitted against major automakers and their dealer networks in Massachusetts for years. The state has served as the primary battleground for right-to-repair legislation that would permit/prohibit customers and independent entities from working on or modifying vehicles. However, a major victory came on Tuesday after voters overwhelmingly approved a ballot measure updating existing right-to-repair laws to give vehicle owners and small shops better access to vehicle data typically reserved for industry giants.

The resulting decision gives consumers substantially more control over what’s done with the data being harvested by the industry (often without their knowledge) and frees up their options on who to go to when their vehicle needs fixing.

As the U.S. election devolves into deciding which political party committed the most fraud, Volkswagen CEO Herbert Diess said a victory by Democrat Joe Biden would be the ideal outcome for any German automakers seeking to mass-produce electric cars. Hardly surprising, considering the Biden-Harris campaign website says it would regulate the dickens out of fossil fuels, moving aggressively toward alternative energy sources and electrification while pressing other nations to do the same.

“A Democratic program probably would be more aligned with our worldwide strategy, which is really to fight climate change, to become electric,” the CEO told Bloomberg on Thursday.

If you hadn’t already heard, Europe began taking actions to prepare itself for another pandemic-related lockdown. Last month, leadership in Germany and France noted that existing restrictions were “not enough anymore” and began issuing specific citizens “certificates” allowing them to move freely within the country. As you might have imagined, this didn’t exactly bolster automotive sales.

While most of the new restrictions were implemented at the tail end of October, they’ve foreshadowed additional measures introduced as more countries climbed aboard ( like the UK’s second banning of sex with people from outside of the household) and began signaling that automotive sales were about to be routed. Gains made in September look to be completely undone, with Germany’s Federal Motor Transport Authority stating new-car registrations fell by 3.6 percent in October (vs 2019) on Wednesday. But that’s only the beginning of the bad news.

Toyota is reportedly seeking to supercharge vehicle production to record levels in the latter half of 2020 as a way to help offset how lousy the rest of the year has been. Its previous six-month record was achieved in 2015 and resulted in 4.53 million sparkling new automobiles. But Toyota would like to eclipse that this year and is targeting 4.6 new vehicles between July and December, with the biggest assembly push coming in the final quarter.

Fiat Chrysler and PSA Group are reportedly in the homestretch of their $38 billion merger deal and on the cusp of becoming Stellantis — the planet’s fourth largest automaker by volume. The plan is to join forces to help absorb the monumental cost of developing alternative energy vehicles (like EVs) without losing any brands or shuttering any facilities that weren’t previously marked for death. We’re inclined to believe it when we see it, however, as the duo are also targeting an annual cost reduction of 5 billion euros (about $5.91 billion USD).

It also hasn’t been a smoothest of regulatory rides. After spending years hunting for the perfect partner, FCA and PSA had to adjust the terms of their existing deal to contend with losses incurred as a result of the pandemic response. But it all seems to be fine now and the European Commission has given approval and that’s what matters in finally getting this deal done.

Seen by some as a moral imperative, electrification is swiftly changing the dynamics of the automotive industry. While automakers spend billions of dollars developing EVs and securing the necessary partners, many are becoming dependent on a handful of companies in Asia for the all-important battery cells needed to power the damn things. It’s gotten so serious that the U.S. government has taken an interest following a December 2019 report from the Institute for Defense Analyses that claimed battery manufacturers had taken on an “outsized importance” in the automotive sector.

It also said the United States would be at a distinct disadvantage if there are supply shortages — which is something that has already happened and is presumed to worsen as more electric vehicles flood into the market over the next few years. The automotive industry is pushing hard into electrification as governments around the world attempt to plot out an elaborate plan to supplant the internal combustion vehicle with EVs. But there are concerns that this has stacked the deck for a small number of suppliers from China, South Korea, and Japan.

Tesla continued to prove itself as the electric automaker par excellence by posting its fifth profitable quarter in a row on Wednesday. The California-based (for now) automaker reported a net income of $331 million and a 39 percent improvement in revenue to $8.8 billion.

Of course, a huge amount of that money came via regulatory credits Tesla sold to its rivals. By nature of being an EV manufacturer, the company was able to sell $397 million in environmental absolution while helping its own bottom line. Though third-quarter deliveries were quite strong as automotive revenue jumped 42 percent to $7.6 billion.

It hasn’t been what we would call a tranquil year for Continental. The German parts supplier spent the summer preparing for one of the worst financial periods in its 149-year history and apologizing for its involvement with the National Socialist German Workers’ Party (Nazis) by hiring an independent researcher to chronicle their forced-labor practices in detail. The dark trip down memory lane served as a strange interlude from the company’s financial concerns, which re-manifested in September when Continental announced it would have to eliminate around 13 percent of its existing staff — or about 30,000 employees.

News has broken that the supplier’s 2020 troubles didn’t end there. German prosecutors also made their rounds on September 22nd, stopping at Continental facilities in Hanover and Regensburg as part of an ongoing investigation into Volkswagen’s Dieselgate fiasco from 2015.

Politics have corrupted just about everything under the sun over the last few years. Practically everything is political in 2020 and if you have an opinion about that, it had better be the correct one and sanctioned by your preferred party. After all, having an approved take is far more important that an accurate one. But what of the automotive industry? Where do the carmakers fall on the supposedly important spectrum?

Well, we know that the UAW predictably endorsed Joe Biden for president way back in spring. But those heading the companies distributing union members’ paychecks quite literally came to Donald Trump in 2017 to ask that he take it easy on them. Obama-era regulations had made efficiency mandates so strict, that automakers had become convinced they’d be unable to meet them in the years ahead. While Trump’s relationship with the industry often runs hot and cold, he pushed for a fueling rollback that placed federal authorities at odds with California and kicked off a regulatory conflict of epic proportions.

Assuming Biden wins the election, those stringent emissions mandates will undoubtedly come back into play — surrounded on all sides by his climate and environmental justice proposal, which makes a federal investment of $1.7 trillion over the next 10 years. While automotive exclusives are hesitant to share their regulatory fears with the general public, especially as they attempt to put on the greenest face possible for marketing purposes, there are real concerns that the U.S. could embrace policies similar to Europe. That could force a change of course for a few companies and complicate the overall trajectory for the U.S. market.

After numerous postponements led up to a cancellation in 2020, the New York International Auto Show (NYIAS) is coming back for 2021 — four months later than planned. On Tuesday, organizers announced that the event would be delayed until August to take advantage of planned expansions at the Javits Center providing additional room for vendors and guests.

Scheduling during the summer also gives it the best possible chance of existing for 2021. Many are worried New York City will reenact strict health protocols over the winter that could easily stretch into April, when NYIAS normally takes place. Depending upon how strict those mandates are, any sizable indoor event could be dubbed illegal by city officials.

Canada’s preferred choice in unions, Unifor, warned that contract negotiations with Fiat Chrysler Automobiles were progressing slower than anticipated over the weekend. By Wednesday, news of a strike had begun brewing over social media. Local 444 was issuing FCA-WAP bargaining updates on Twitter and Facebook that included marching orders in the event that the day’s discussions didn’t end in a handshake.

“To ensure we are prepared for a strike, or strike coordinators have been working to finalize the details needed in order to begin, if and when necessary,” the union wrote to members. “If a tentative agreement is reached by 11:59pm October 14th, without an extension in place, then Local 444 along with brothers and sisters across the country at all FCA facilities will be on strike. As the talks continue late into the night, any updates will be posted to our social media pages and web page.”

That scenario is looking increasingly likely, especially as Unifor has explained there was little progress to report all afternoon. It also opened this week suggesting contract talks were “not quite where we feel [they] should be with this limited amount of time left on the clock.”

With global economies suffering from pandemic-related lockdowns, there’s been just one question burning in the minds of economists: ‘When will Chinese automotive sales finally rebound so that the industry can once again feel comfortable enough to keep pouring resources into Central Asia?’

Now, apparently.

China’s car market just recorded its first quarter of year-over-year sales growth in two years, with last month’s volume rising 12.8 percent (vs 2019) to 2.57 million units, according to the China Passenger Car Association (CPCA). While its always wise to keep in mind that the nation has a history of obfuscating figures that might paint it in a bad light, CPCA has been slightly more consistent in its reporting than the China Association of Automobile Manufacturers (CAAM). Both outlets also have a tenancy to showcase blind optimism for the local economy, but there appears to have been good reason for that over the last five months.

After enduring a series of rough years resulting in some unsettling financial reports, Nissan is doing its utmost to turn things around. Following its first annual loss in 11 years, the company announced a plan that would include cutting 20 percent of its global lineup to make way for newer models, eliminating unnecessary production capacity, and cutting corners (and jobs) just about everywhere in order to save $2.8 billion off of fixed costs. This is also being done to make way for a leaner, meaner Nissan, and make room for newer vehicles it believes will be essential to remain competitive.

It’s also hoping to spruce up dealerships to make them more desirable locales for customers ready to do their business. That includes an increased number of factory audits moving into 2021 — partly as a way to make up for the limited number that were conducted this year thanks to the pandemic and partly as a way to make sure nobody is doing anything financially untoward. But there are some concerns among owners that Nissan may end up bullying shops unnecessarily.