GM

Auto/Economy
10:57 am
Tue September 20, 2011

Auto Talks: Far From Over

There’s a great deal of celebration going on over the fact that General Motors and the United Auto Workers union have reached tentative agreement on a new, four-year contract.

In the old days, what this would have meant was speedy ratification, followed by a similar settlement with Chrysler within perhaps two weeks, and then Ford maybe a month later.

That was the era of pretty much one-size-fits all pattern bargaining agreements. But that was before the near-death and the resurrection of Chrysler and GM, and it’s now a different world.

I spent some time yesterday with one of the best industry analysts around -- Kristin Dziczek, who heads the labor and industry group at CAR, the non-profit Center for Automotive Research based in Ann Arbor. Dziczek knows the management spokesmen and the economists, and has friends and relatives who are in the UAW. She eats, breathes, and sleeps this stuff.

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GM, UAW reach tentative contract
12:21 pm
Mon September 19, 2011

GM, UAW to announce details of tentative contract on Tuesday

GM CEO Dan Akerson and UAW President Bob King kicking off this year's talks with a ceremonial handshake.
General Motors

Contract talks between the United Auto Workers and Chrysler and Ford continue this week, after GM became the first to settle on the terms of a tentative agreement with the union, late Friday.

Officials with the union and the automaker will release details of the contract on Tuesday at an 11:00 a.m. press conference.

The Detroit News and Detroit Free Press report that the GM contract probably includes a signing bonus for workers if they agree to the deal, and a pay increase for entry-level workers.

Plus, GM is expected to agree to add more jobs in the U.S.

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Auto/Economy
8:47 am
Sat September 17, 2011

GM, UAW agree to new contract

General Motors headquarters in Detroit
Andrea_44 Flickr

General Motors Co. and the United Auto Workers, sobered by the government bailout and bankruptcy at the automaker just two years ago, reached a tentative agreement on a new four-year contract without the public acrimony or strikes that have plagued the talks in the past.

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AUTO
6:21 pm
Tue August 9, 2011

GM is less complicated and less wasteful, investors told

General Motors executives says the company is becoming less complicated, and less wasteful, than it was in the past.   

GM CEO Dan Akerson says that simplicity -- along with a "fortress" balance sheet, and a lower cost structure will help GM break even in bad times, and make money in good times. 

Akerson and other top executives gave investors an in-depth briefing of the company's post-bankruptcy progress and plans for the long-term future.

GM has reduced its brands in the U.S to four, will focus on Chevrolet and Cadillac as its primary global brands, and will use regional brands such as Opel to help the company compete in specific markets like Germany.

GM's drastically reduced debt load also frees the company to follow through with product plans.  In the past, the company had to abandon car programs during recessions because of the pressing need to make debt payments.

"We think, just on cancelled product programs, we’ve probably blown a billion dollars a year in the last few years, as a result of having to pull back from things we’d already started," said Chief Financial Officer Dan Ammann.

GM regained its number one global sales position in the first six months of this year.  But Akerson says being number one is not the goal.

He says GM must make the customer the first priority.  And GM will focus on profitability, not market share.

GM's head of global marketing Joel Ewanick said GM will also set its sights on a new "stretch" challenge: being the first automaker to get one of its brands on the list of the top twenty-five most recognized global brands. 

That list includes a number of U.S. brands, including Apple and Coca-Cola.  But no car company's brand has yet made it onto the list.

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UAW negotiations
12:02 am
Fri August 5, 2011

GM may ask for (and get) pay-for-performance clause in UAW contract

GM CEO Dan Akerson and UAW President Bob King shake hands at opening of 2011 contract talks
General Motors

A top GM executive said Thursday that the automaker wants to peg United Auto workers' pay to their job performance. Workers who turn out quality vehicles would benefit financially.

"We want to pay for the performance," GM North American President Mark Reuss told reporters at an industry conference.   “All of those things that I get measured on, I want everybody else measured on, too.”

That would be a big change at GM, where the current UAW contract expires Sept. 14.

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Auto Earnings
1:41 pm
Thu August 4, 2011

GM makes 2.5 billion in profit in the second quarter

James Marvin Phelps / Wikimedia Commons

General Motors made $2.5 billion in the second quarter. 

That’s slightly more than GM’s cross-town rival, Ford Motor Company made in the same period.    Ford made $2.4 billion.

But both companies are forecasting a dip in profitability in the second half of this year. 

Most of GM’s second quarter profit came from North America, as truck and Chevrolet brand car sales rebounded.  North American President Mark Reuss says the strong performance came despite the slow economy and some unexpected events.

“I didn’t think the debt ceiling crisis was going to happen, " Reuss told reporters at an annual auto industry conference in Traverse City.  "I didn’t think the tsunami was going to happen, all those things you don’t know what’s going to happen.  But if you’ve got a business and an operational model that can handle it and adapt quickly, then I think that’s the key."

General Motors may have beaten analysts’ expectations, but the company is not yet meeting investors’ expectations.

This is GM’s sixth quarterly profit in a row, a dramatic improvement compared to the years leading up to the bankruptcy.

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Auto/Economy
12:43 pm
Wed July 27, 2011

GM CEO says European division Opel is not for sale

GM sells the Opel Corsa GSi in Europe. General Motors CEO Daniel Akerson says the company's European car business is not for sale.
GM Europe Flickr

Reports have swirled that GM plans to sell its European division, Opel, for more than a month:

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Auto/Economy
3:11 pm
Mon July 25, 2011

UAW begins new contract negotiations with automakers

From left - UAW President Bob King, UAW Vice President Chrysler Department General Holiefield, Chrysler Senior Vice President of Manufacturing Scott Garberding and Chrysler Vice President of Employee Relations Al Iacobelli.
UAW

The United Auto Workers formally kicked off negotiations today with Detroit automakers.

Current UAW contracts with Chrysler, GM, and Ford expire in mid-September.

Michigan Radio's Sarah Cwiek reports that Chrysler Group LLC management and the UAW emphasized unity at the press event today:

Scott Garberding is a Senior Vice President for Chrysler. He says the company and the UAW worked together to get Chrysler through bankruptcy. Garberding says it’s important for the new contract to recognize the sacrifices Chrysler workers have made.

"And at the same time, establishing a legacy for our organization to ensure that we remain competitive long-term. And I can’t think of a better team that could collectively come together and craft that type of arrangement. "

Last week, UAW President Bob King said he wanted workers to see the benefits of increased profit sharing. The UAW is also expected to seek wage increases for entry-level workers, and job guarantees. After huge layoffs, King said remaining workers want to count on their jobs:

“They want stability,” he said. “They want to know they’ll be working next week and next year, and that they will be able to send their kids to college.”

Talks are expected to take at least a month, and if things don't go well in negotiations with Chrysler and GM, the UAW is compelled to enter into binding arbitration. The UAW cannot strike under the terms of the government bailouts:

This year, for the first time, the UAW is bound by an agreement that it reached with Chrysler and General Motors in 2009 that requires the two sides to enter into binding arbitration if they reach an impasse.

King said Chrysler and the UAW have formed a committee to set up the ground rules for arbitration, even though he said that is a last resort.

“If arbitration happens … then I would say we haven’t done our job,” King said.

The UAW can, however, strike against Ford Motor Company. Analysts are curious to see if UAW negotiators are able to secure better terms with Ford.

Auto/Economy
2:47 pm
Mon July 18, 2011

GM to invest $328 Million in Flint Assembly Plant

media.gm.com staff

General Motors will invest $328 million in its Flint Assembly Plant, to prepare the facility to build the next generation of Chevy and GMC full-size pickup trucks.

The plant just added a third shift earlier this year.

Joe Ashton is the UAW's GM Vice President.

He says the profitable trucks made at the Flint Assembly Plant are an important source of revenue for GM.

The UAW heads into contract negotiations next week with Ford, Chrysler and GM. 

Ashton says workers want a lot of different things from their new contract. 

Auto/Economy
4:00 pm
Tue June 14, 2011

GM, other companies get Michigan state tax credits

The GM Headquarters at the Renaissance Center in Detroit
Brandon C Flickr

A state board has approved tax incentives for projects connected to General Motors and other companies in Michigan.

The Michigan Economic Growth Authority on Tuesday approved an amended brownfield tax credit valued at $10 million for GM's Van Slyke complex in Flint. The new project is expected to retain up to 185 jobs.

HP Enterprise Services is a subsidiary of Hewlett-Packard and was awarded a tax credit valued at $3.5 million over the next seven years. The credit will support a project in Pontiac expected to create up to 250 jobs.

Magna Exteriors and Interiors USA will receive a $1.5 million tax credit over the next three years connected to facilities in Howell, Benzonia and St. Clair County's China Township. More than 300 new jobs are connected to the projects.

GM War Room
1:30 pm
Tue June 14, 2011

Saving GM - inside the company's "War Room."

When a massive quake struck Japan on Friday, March 11th, Bill Hurles was up north with his sons on a snowmobiling trip.  Hurles is head of supply chain for General Motors. 

After he saw the first footage of the tsunami slamming into the northern coast, Hurles cut his trip short and returned to Warren.   By early Sunday morning, he and his team were in the War Room, desperately trying to get information.

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Ford, GM future bright
5:19 pm
Tue June 7, 2011

GM, Ford tell stakeholders that future is bright

Both Ford and General Motors today predicted they will expand their global presence, despite rising energy and commodity prices. 

GM held its first public stockholders meeting in Detroit – and Ford held its annual Investors Meeting in New York. 

GM CEO Dan Akerson told stockholders to consider the company a long-term investment, not short-term.  GM stock has lost a fair bit of value since the IPO in November.    

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General Motors Invest in Warren
10:45 am
Tue June 7, 2011

GM to build high-tech computer command center in Warren

General Motors will invest 130-million dollars in a new high-tech computer command center in Warren. 

The announcement follows a string of other investments by GM in North America. 

GM says the high performance computers at the new command center in Warren will help the company keep pace with the increasingly complex computer simulations required to build cars. 

It will also allow the company to keep its own data and customer data more securely.   

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Mackinac 2011
11:46 am
Fri June 3, 2011

GM can't tell U.S. Treasury when to sell its stock, says top exec

Reuss says the government’s part-ownership of GM matters to American taxpayers and customers.
media.gm.com

President Obama will visit a Chrysler plant in Ohio today, a day after the U.S. Treasury reached a deal to sell its remaining 6.6% stake in Chrysler to Fiat. 

Meanwhile, the Treasury still owns 26% of General Motors.  But GM North American President Mark Reuss says it’s up to the U.S. Treasury to decide when to get out of the car business completely. 

Reuss says the government’s part-ownership of GM matters to American taxpayers and customers.   It also matters to GM executives and workers.

But it's not up to GM when the Treasury sells its stock.

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Auto/Economy
11:18 pm
Sun May 22, 2011

Suppliers like working with Toyota best but Ford becoming more popular

Ford, GM and Chrysler are getting along with their suppliers better than they used to.  

But an annual study says the companies have a ways to go to catch up with their Japanese counterparts. 

John Henke is President of Planning Perspectives, which studies the working relationship between parts suppliers and their customers, the car companies. 

He says that relationship has long been adversarial for the Detroit Three, which means suppliers often don’t give them the best prices for parts, or the first crack at new technologies.

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Auto/Economy
12:53 pm
Wed May 18, 2011

State incentives lead to GM's investment in Warren Tech Center

State tax breaks worth $10 million are leading to an investment in GM's Warren Tech Center.

Warren Mayor Jim Fouts indicated an announcement like this would be coming last month.

From the Detroit News:

General Motors Co. won $10 million in tax incentives from the state today to build a new information technology facility at its Warren Tech Center.

The $130 million project — expected to create about 25 permanent jobs — will add on to the Cadillac Building on the campus and occupy about 30-acres of land located along Van Dyke Avenue. The new jobs will pay an average of $44 an hour, according to the Michigan Economic Development Corporation.

The brownfield tax credits valued at $10 million were approved this morning by the Michigan Economic Growth Authority board.

The state brownfield tax credits involved in this deal won't be around for long. In Governor Snyder tax overhaul plan, approved by state legislators, the tax credits will be replaced with a system that will grant redevelopment money up front.

Auto/Economy
3:50 pm
Tue May 3, 2011

Automakers release sales numbers today

The Chrysler 200 helped lead the "best month for Chrysler Group mid-size sedans since March 2008."
IFCAR wikimedia commons

Sales numbers for April are coming in today, and there are more signs that the American public has pent up energy to buy new cars. As they did in 2008, higher gas prices are driving demand for smaller, fuel efficient cars. U.S. Automakers are more prepared for that demand this time around.

Update 3:50 p.m.

Chrysler announced the "best April sales since 2008" - a 22% increase compared with sales in April 2010. The company sold 95,703 cars in April.

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Auto/Economy
11:58 am
Tue April 26, 2011

Electric cars score big in safety tests

A Chevy Volt being crash tested. The big batteries in the car make them safter according to the Insurance Institute for Highway Safety.
Insurance Institute for Highway Safety

The Insurance Institute for Highway Safety gives the Chevy Volt and the Nissan Leaf top ratings for safety in crash tests.  The results could ease any lingering concerns people might have about the safety of electric cars.

Russ Rader, a spokesman for the Insurance Institute for Highway Safety, says the results show that customers don't have to trade safety for environmentally friendly electric cars.  And the heavy batteries in the cars actually make them safer.

"We can have environmentally friendly, green vehicles and not give up the safety advances that we've made in the bargain… Even though they are small cars in their dimensions, they are considerably heavier than other small cars weighing as much as some midsize or even large cars.  And that is a safety advantage."

Car companies say the huge batteries inside electric cars shut down in the event of a crash to greatly reduce the risk of an electrical fire.

Both the Leaf and the Volt cost more than most similar sized small cars. But Rader says as the price of gas goes up, and the cost of producing the cars goes down, electric cars will become more economical.

Auto/Economy
12:37 pm
Fri April 22, 2011

Warren Mayor says GM likely to add more jobs in city

Warren Mayor Jim Fouts says GM will invest in its Powertrain facility and Tech Center in Warren, Michigan
Manoli Katakis creative commons

A final decision has not been made, but Warren Mayor Jim Fouts released a statement saying GM is considering two investments in its Technical Center and Powertrain Facility in Warren.

Fouts says the investments add up to $450 million and would create 426 new jobs.

From Fouts' statement:

"These possible projects are the result of several meetings between city representatives, including me, and GM officials. I cannot stress too much how important these new investments would be to our city. They mean more jobs and ultimately more tax revenues for Warren. I am confident GM will choose these locations for new investments because the corporation realizes Warren is a business-friendly community that will go the extra mile to encourage businesses to expand or relocate here."

The mayor said Warren became a city in 1957 because of the construction of GM's Tech Center in the city. And he encouraged other business to move there.

Auto/Economy
10:57 am
Tue April 19, 2011

General Motors hiking car and truck prices

Prices of new cars will be going up.
Emilio Labrador Flickr

Higher commodity prices are translating into higher prices for cars and trucks.

GM announced their prices will go up - joining Ford and Toyota.

From the Associated Press:

General Motors says it will raise car and truck prices by an average of $123 per vehicle to make up for its increased oil and metal costs.

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