By on August 24, 2020

AutoNation’s collision parts division is scheduled to be eliminated by the end of 2020, freeing up some cash after the two-year endeavor proved less than profitable.

Former CEO Cheryl Miller had made it clear that one of her main goals for the company was to ramp up services in an attempt to enhance revenue and diversify the business. But this tactic has proven perilous for the automotive industry at large, often offsetting opportunities to make money with sizable financial risks.

Mobility is probably the best example of this, as its broad enough to encompass everything from self-driving vehicles to subscription models and relies on the market maturing into something that will presumably see returns on investment years down the line. However, AutoNation’s diversification was far more traditional. It seemed like a sure thing, since the collision parts business was forecast to grow over the next five years. In fact, despite being the the largest automotive retailer in the United States, the company actually owes 46 percent of its gross profit to parts and service. Selling cars (both new and used) only accounts for 24 percent — with the rest coming from finance and insurance. (Read More…)

By on January 13, 2019

Jerry Dias, Unifor President, Image: OFL Communications Department (Flickr) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

Things are starting to get truly ugly between Canada’s Unifor and General Motors. On Friday, the union held a rally in Windsor, Ontario, with that automaker’s headquarters just a river away. During the event, Unifor President Jerry Dias expressed his annoyance with the automaker’s restructuring plan and promised to bring the noise to GM’s front door during the North American International Auto Show this week.

Friday’s gathering, which Unifor and the Windsor and District Labour Council claimed drew around 2,000 people despite its brevity, focused primarily on the company’s decision to shift more of its North American production to Mexico and the shuttering of Oshawa Assembly and the end of this year. Dias said he wants the union to work with the automaker to keep Canadian jobs and avoid a potential boycott. Though that might be just around the corner, as the UAW has already issued a boycott of its own within the United States. (Read More…)

By on January 6, 2019

 

Ren Cen. GM

Last week a lawsuit was filed with the U.S. District Court in Youngstown claiming that General Motors is in violation of a “memorandum of understanding” with the United Automobile Workers by allowing temporary employees to support the launch of some new product from Fort Wayne Assembly Plant. The facility, which is responsible for manufacturing the Chevrolet Silverado and GMC Sierra pickups, is alleged to have brought on temporary workers from May to August of 2018 instead of using its laid-off full-time workers. The UAW claims this is decision represents a breach of contract.

The union says there are nearly 700 workers laid off from the “nearby” Lordstown, Ohio Assembly Plant — many of whom have applied to transfer to the Fort Wayne as is their right under the current contract with GM. (Read More…)

By on March 17, 2014

Peugeot Display in China Circa 2013

In light of fears regarding the three-way deal between Dongfeng, PSA Peugeot Citroen and the French government leading toward a time where Dongfeng would take the reins of the ailing automaker, CEO Zhu Fushou assured his company would not do so.

(Read More…)

By on January 26, 2010

Opel finally has a restructuring plan. Opel CEO Nick Reilly announced the good news this morning, says Automobilwoche [sub]. “All we need to do is to come to a final agreement with the unions and the works council. I hope, this will happen within the next two or three weeks,” said Reilly. I there a doctor in the house? We have a serious case of relentless optimism. (Read More…)

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