With less than two weeks left before contracts with Detroit Three autoworkers expire, the United Automobile Workers has chosen General Motors as the first company to enter bargaining talks. What occurs between the UAW and GM will set the stage for subsequent contracts with Ford and Fiat Chrysler.

Going into the talks, which UAW does under a dark cloud born of its bribery and kickback scandal, the union comes armed with a strike authorization approved by its members.  (Read More…)

The closure of Flint, Michigan’s sprawling Buick City complex was emblematic of the destructive transformative forces at work in the American auto industry in the late 20th century and early 21st. The 264-acre facility was once the largest automotive plant in the world, a status that did nothing to ensure its continued survival. It closed for good in 2010.

Now comes word that the birthplace of so many LeSabres could sprout manufacturing jobs in the near future — 2,000 of them. Great news for Michigan’s automotive workforce and Flint’s coffers, but the plan won’t get off the ground without the Postal Service’s approval. (Read More…)

As you read last week, Nissan is busy sharpening its axe, ready to chop the company back to sunnier balance sheets. Some 12,500 positions, or more than 9 percent of the automaker’s global workforce, are poised to disappear as Nissan attempts to recover from a serious slump.

News of the cull came on the heels of a dismal first-quarter earnings report in which the company revealed a net income loss of 94.5 percent. Its operating margin? A prosciutto-thin 0.1 percent, down from 4 percent a year earlier. Something needs to give.

What will give are jobs, a lot of them, and numerous car models — roughly 10 percent of the brand’s global lineup by 2022, the automaker said. Most of those models will be el-cheapo offerings in developing markets. As for sales, the automaker finds itself sliding in a major market where bright points of light are hard to find.

Let’s search for those stars. (Read More…)

On Wednesday, we reported Nissan was preparing a financial report that was presumed to involve quarterly profit falling by around 90 percent — necessitating roughly 10,000 job cuts. At the time, Nissan gave some vague confirmation that the estimates were accurate while halfheartedly attempting to refute them.

However, when the official numbers came out on Thursday, the reality was worse than initially assumed. Nissan reported an almost 99-percent drop in operating profit in the latest quarter, citing falling sales in every major market except China. Rather than 10,000 job cuts, it’ll require 12,500.  (Read More…)

Ford Motor Company’s Oakville, Ontario assembly plant will soon see a reduction in manpower, according to the union representing Canadian Detroit Three autoworkers. The looming changes represent the latest blow to that country’s fragile car building presence.

For Ford, the cuts outlined by Unifor Local 7070 president Dave Thomas in a web post this week are an inevitable consequence of evolving lineups and consumer tastes. The company can’t build the Ford Flex forever. (Read More…)

Back in January, Ford provided the preliminary details for its European restructuring plan. The company had been losing money there for years and didn’t want it to be remain a liability as it dumped cash into autonomous research and electric vehicle development. With aims to achieve a 6-percent operating margin within the region, the automaker’s plan to tidy up the business was put into motion.

Thus far, Ford has ceased production at three plants in Russia, cut shifts in Germany and Span (rest in peace, C-Max), and has earmarked additional facilities in France and the United Kingdom for closure. By the end of next year, the automaker expects to have cut 12,000 jobs related to its European operations.  (Read More…)

As Ford Motor Company attempts to turn around its money-losing overseas business, its manufacturing footprint — and workforce — continues to shrink. In the UK, the automaker plans to end operations at its Bridgend, Wales engine plant by September 2020, citing “significant underutilisation” of the facility.

The Bridgend plant builds Ford’s 1.5-liter EcoBoost four-cylinder and unfamiliar-to-Americans 1.5-liter three-pot, but demand is drying up. (Read More…)

With pickups and crossover vehicles serving as the lifeblood of domestic manufacturers, General Motors is setting aside $24 million for its Fort Wayne truck assembly plant. While the investment isn’t expected to result in any job creation, it does aim to boost production volume of the new Chevrolet Silverado and GMC Sierra in Allen County, Indiana.

According to GM, combined sales of the Chevrolet Silverado 1500 and GMC Sierra 1500 crew cab pickups, which launched last year, were up 20 percent in the first quarter of 2019 versus the year prior. This isn’t surprising, considering new versions of popular models typically see an uptick in sales, but General Motors says it anticipates another sizable increase in demand over the second quarter and wants the facility to be ready.  (Read More…)

The steep white-collar job cuts that simmered on Ford’s back burner for a year have come into clear focus. In a letter to employees on Monday, CEO Jim Hackett announced the elimination of 7,000 salaried positions — some 10 percent of the automaker’s global workforce.

The move, part of Ford’s $11 billion restructuring plan, also calls for a 20-percent reduction in the company’s upper tier management. In the U.S., much of the pain will start being felt this week. (Read More…)

Americans love their Ford F-150s, but buyers are increasingly opting for a powerplant boasting fewer than eight cylinders. As such, the automaker is cutting the third shift at the Windsor, Ontario engine plant tasked with building the 5.0-liter Coyote V8.

Ford V8s and Windsor have a long association, but the extraneous employees needn’t worry about hitting the job boards. There’s a much larger V8 in need of assembly. (Read More…)

Volkswagen’s singular U.S. plant has toyed with the idea of unionizing for the past five years. Chattanooga Operations, in Tennessee, initially seemed fine with the establishment of a German-style works council. However, while the United Auto Workers’ first attempt to seal the deal with votes failed in 2014, the union has since managed to rally more staff under its banner.

The UAW is now calling for another vote (its fifth), claiming a majority of the facility’s hourly workers are on its side. Meanwhile, Tennessee Gov. Bill Lee spent the first part of this week pleading with plant staff not to unionize. (Read More…)

The promising partnership that kicked off at the tail end of the last decade might end before this one is over. Compounding rumors about the troubled relationship, a report in a German business publication claims incoming Daimler CEO Ola Kaellenius will pull the plug on the automaker’s tie-up with the Renault-Nissan-Mitsubishi Alliance.

Cost savings are at the core of the unconfirmed plan, and a peek at the recent past makes it seem all the more likely that the two will go their separate ways. (Read More…)

The torturous wait to learn if Tesla’s job cuts would come to their doorstep ended in April for dozens of members of the automaker’s sales team. As it embarks on a cost-saving plan, Tesla has let go numerous staff members and sought to close the bulk of its storefronts after moving the company’s buying process online. Last quarter’s grim deliveries report didn’t paint a rosy picture for the company, suggesting more cost-cutting to come.

According to Bloomberg, the axe fell in three U.S. cities last week. (Read More…)

Opioid addiction is on the rise in America and the United Auto Workers wants to confront the problem in its next round of collective bargaining. While the issue is most visible in parts of the Western United States, large pockets of the Midwest, South, and Northeast have cited an influx of drug overdoses since 2002.

The UAW, knowing that prescription medications are being increasingly abused by factory workers (as heroin simultaneously makes a comeback), wants to nip the issue in the bud. In addition to promoting job security, higher wages, and healthcare, union officials have identified combating opioids as an important element of future contract negotiations.  (Read More…)

President Donald Trump weighed in on General Motors again this week. This time, the issue at hand was the fate of Lordstown Assembly — which was shuttered earlier this month as part of the automaker’s ongoing restructuring program.

“Just spoke to Mary Barra, CEO of General Motors about the Lordstown Ohio plant,” Trump tweeted on Sunday. “I am not happy that it is closed when everything else in our Country is BOOMING. I asked her to sell it or do something quickly. She blamed the UAW Union — I don’t care, I just want it open!”

Barra’s take on just how much the United Automobile Workers are to blame is questionable, but the president’s position is not.  (Read More…)