Chrysler

Auto
12:04 pm
Fri September 28, 2012

GM workers in Canada approve deal; Chrysler workers will vote this weekend

A 2011 Chrysler Town & Country rolls off the final inspection line at Chrysler Group LLC’s Windsor Assembly Plant.
Chrysler

21,000 unionized auto workers in Canada are another step closer to job stability until at least 2016.

Last night, union workers at General Motors plants in Canada approved a collective bargaining agreement between the Canadian Auto Workers and the auto company.

Ford workers in Canada approved their deal earlier this week. And Chrysler workers will vote this weekend.

CBC News in Windsor reports on what these deals mean:

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11:16 pm
Wed September 26, 2012

Canadian Auto Workers and Chrysler reach tentative deal

Lead in text: 
The CAW union and Chrysler have reached a tentative deal similar to the agreements reached with GM and Ford. Ford workers in Canada ratified their agreement earlier this week. GM workers are expected to do so sometime tomorrow. More from CBC Windsor.
The Canadian Auto Workers union Wednesday night announced a tentative deal with Chrysler. Ken Lewenza, the union's president, said the deal is similar to the ones struck with Ford and General Motors on Sept. 14 and 20, respectively.
Auto
5:06 pm
Wed September 26, 2012

Canadian Auto Workers getting closer to a deal with Chrysler

Ken Lewenza and the CAW are now working on a deal with Chrysler workers in Canada.
Canadian Auto Workers union

One more agreement, and the Canadian Auto Workers will be on the road to deals with all three U.S. automakers.

The CAW and Chrysler are working on finalizing a labor contract this week.

Ross Marowits of the Montreal Gazette reports the two sides are close to reaching an agreement.

The chairman of the CAW master bargaining committee for Chrysler said the two sides made significant progress over the last 24 hours.

“I think we’re closer and closer by every minute and every hour and again we’re just working at this closing up those loose ends,” Dino Chiodo said Wednesday in an interview from Toronto.

“Unless things completely fall off the rails, which I don’t see happening at this point, I think we’re moving along very well and I’m confident that sometime today or tomorrow we’ll be able to achieve the final task of wrapping this up.”

The bargaining teams are expected to meet tonight after 7 p.m. The CAW and General Motors have reached a tentative agreement. Unionized GM workers in Canada are expected to vote on the proposed agreement today and tomorrow. Ford workers in Canada approved their agreement this past Monday. Altogether, the CAW represents around 21,000 auto workers from the "Big Three."

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Auto
10:23 am
Mon September 24, 2012

Canadian Auto Workers: Deal done with Ford, GM close, now it's Chrysler's turn

Canadian Auto Workers union at a rally.
CAW Facebook

Ford's union workers in Canada have approved a four-year contract with the company.

And the Canadian Auto Workers union have a tentative agreement with GM.

Now, talks with Chrysler continue this week.

CBC Windsor has the latest on the talks:

The CAW's president, Ken Lewenza, knows it's not going to be easy with Chrysler. Company executives have made it clear they want an agreement that lowers labour costs to match those in the United States.

Lewenza said it could be days before there is a tentative agreement between the two sides.

"We can get a deal. I've a great deal of respect for [Chrysler CEO Sergio] Marchionne and his management team," Lewenza said. "I don't hide that and I think he's got respect for our union. But at the end of the day, you can only respect each other when you dot the I's and cross the T's."

If talks stall, the CAW can strike.

But with a deal signed with Ford, and a final deal with GM expected to be approved by GM union workers in Canada  this week, a strike at Chrysler plants in Canada doesn't seem likely.

Auto
12:35 pm
Fri September 21, 2012

Canadian Auto Workers and GM announce tentative contract

Ken Lewenza and the CAW reached a tentative agreement with GM Thursday.
Canadian Auto Workers union

The Canadian Auto Workers and GM announced a tentative contract Thursday night reports The Globe and Mail:

The deal extends by one year the life of a car-assembly plant in Oshawa, Ont., that was scheduled to close next year and adds a new shift of workers at a neighbouring plant. That means GM’s employment level in Canada should be roughly the same as it is today – or about 7,000 people – in 2016.

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Politics & Government
8:36 am
Fri September 21, 2012

Commentary: Chrysler and Canada

We’ve got a lot going on in Michigan, to put it mildly, and I would guess that you haven’t been paying much attention to the union negotiations that have been going on in Canada.

That’s understandable -- but they could have a significant impact on the economy in this part of the world. The Canadian Auto Workers union used to be part of the UAW, before breaking off and becoming independent in the 1980s.

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Auto
12:06 pm
Wed September 19, 2012

Canadian Auto Workers inch closer to deal with GM, Chrysler

Chrysler's Windsor Assembly Plant.
Chrysler

The head of the Canadian Auto Workers union says General Motors is waiting for a counter proposal from the union, and he says there has been significant progress toward a new labor deal.

CAW President Ken Lewenza says the union will make the offer today. He also says progress has been made with Chrysler.

The union reached a tentative deal with Ford earlier this week.

From CBC News Windsor:

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1:40 pm
Tue September 18, 2012

Canadian Auto Workers extend negotiations with Chrysler and GM

Lead in text: 
After reaching a tentative four-year deal with Ford on Monday, CAW officials have agreed on an indefinite extension of negotiations with Chrysler and GM.
Toronto - After agreeing to an extension of negotiations, members of the Canadian Auto Workers, Chrysler Group LLC and General Motors Co. worked into early Tuesday morning hammering out details of a new contract. Parties had already met for a caucus Tuesday morning and will likely caucus again later in the afternoon.
CAW talks
10:02 am
Wed September 12, 2012

Will Canadian Auto Workers union strike? We may know in 5 days

Canadian Auto Workers union

Just five days remain before an existing contract between the Canadian Auto Workers and Ford, GM, and Chrysler  expires. 

Members of the union previously authorized their leaders to call a strike - but it's a double edged sword for the union.

Ken Lewenza is National President of the Canadian Auto Workers.

He says the union is willing to come up with a deal that preserves the Detroit Three's Canadian labor costs as they are now.

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Auto
2:36 pm
Mon September 10, 2012

Big 3 U.S. automakers facing strikes in Canada?

Jeff Smith Flickr

There's one week left in contract negotiations with the Canadian Auto Workers union, and it appears there are still some major sticking points in negotiations.

We posted last week that the union voted to authorize a strike if they determined one was needed.

Reuters reports plans for a potential strike are moving forward.

Strike captains at the union, which represents about 20,000 members at the three companies, were to meet in Toronto on Monday to advance plans for a triple strike.

"All three bargaining committees are determined to reject these demands and reach a fair deal," the CAW said in a leaflet distributed to members on Monday.

"The union recognizes the fragility of the industry and the need to stabilize fixed costs, while finding a solution rewards members' work. Unfortunately, our efforts have not been met with equal willingness by the companies to negotiate fair terms," the leaflet said.

The last time the Canadian Auto Workers went on strike was in 1996.

Auto
10:37 am
Tue September 4, 2012

U.S. automakers report strong sales numbers for August

August was a good month for U.S. automakers
Lester Graham Michigan Radio

August was a good month for U.S. automakers compared to a year ago. In total, the big three sold more than 585,700 vehicles last month.

Chrysler had its best month since August 2007, according to the AP, and had sales of more than 148,000 vehicles. They say their sales were led by demand for the Dodge Ram pickup truck.

Ford sold 197,249 vehicles in August, and in a press release said high gas prices led more people to their lineup of vehicles.

“As fuel prices rose again during August, we saw growing numbers of people gravitate toward our fuel-efficient vehicles – cars, utilities and trucks,” said Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service.

And General Motors sold 240,520 vehicles in August. More than Ford or Chrysler.

In their press release, GM said it's ready for gradual improvements in the economy.

“The single message Chevrolet communicated this summer was ‘confidence’ and it rang true with customers when they saw how our product lineup is being transformed,” said Kurt McNeil, vice president of U.S. sales operations. “All four of our brands are building momentum behind new products so we’re very well positioned as the economy continues to slowly improve.”

2:02 pm
Wed August 29, 2012

400 to 500 jobs at American Axle in southwest Michigan

Lead in text: 
American Axle told the Detroit Free Press this morning it plans to "add 400 to 500 jobs in the next couple years" at its Three Rivers driveline plant in southwest Michigan. The company builds drivetrains and driveline systems and components for auto and truck manufacturers. Its biggest customers are Chrysler and GM.
Richard (Dick) Dauch, the combative and sometimes controversial cofounder and CEO of American Axle & Manufacturing since its creation in 1994, is handing over the reins as chief executive to his son David Dauch, effective Saturday. Dick Dauch, 70, will stay on as executive chairman of Detroit-based AAM.
Auto
10:57 am
Mon August 27, 2012

Canadian Auto Workers authorize strike against Ford, Chrysler, GM

User: dmealiffe flickr.com

The Canadian Auto Workers union said today its members have voted to strike against Chrysler, Ford, and GM, if necessary.

The Detroit News reports the CAW is negotiating new contracts with the automakers. Current contracts are set to expire on September 17:

The CAW is expected to meet with the automakers Monday and Tuesday in downtown Toronto.

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morning news roundup
8:21 am
Tue July 31, 2012

In this morning's state news headlines. . .

User: Brother O'Mara Flickr

Brewer wants IRS to investigate Durant

The Michigan Democratic Party wants the International Revenue Service to investigate Clark Durant. Durant one of the Republicans vying to run against Michigan Senator Debbie Stabenow this November. Democratic Party Chairman Mark Brewer says Durant's salary - and his daughter's salary - use up 95-percent of the money in a charity meant to help children attend private religious schools in Detroit. Brewer says an outside attorney believes that's illegal. Durant says the claim is nothing but political theatre.   

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Auto
1:09 pm
Mon July 30, 2012

Chrysler's second quarter profit up from last year

Michigan Radio

Chrysler continues to mend.

The company's revenues increased 23 percent in the second quarter of 2012.

The company said its net income rose from $181 million to $436 million.

Last year, Chrysler's profit took a hit because the company had to pay a $551 million dollar charge to pay off its government loans early.

The good Chrysler news is expected to be followed on Tuesday by much worse news from the company's majority owner, Fiat.

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Auto
1:31 pm
Tue July 17, 2012

Chrysler will idle Mack Avenue Engine II plant

The the 3.7-liter, V6 engine built at the Mack Avenue Engine II is used in Jeep Liberty vehicles, seen here.
Jeep Liberty Facebook.com

The Detroit Free Press' Brent Snavely reported today that Chrysler plans to close its Mack Avenue Engine II plant in Detroit this September. The company plans to replace the engine built there with a different one made in Chrysler plants in Trenton, Mich. and in Saltillo, Mexico, reports the Detroit News.

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Auto sales
5:32 pm
Tue July 3, 2012

No surprise, June auto sales were good. Surprise, they were better than we thought

Robust U.S. auto sales have been helping to keep a floor on the U.S. economy for months, and they kept up the good work in June.

Car sales surpassed the expectations of many analysts.   

The good news included Detroit car companies.  Ford sales rose 7% and Chrysler sales jumped 20% compared to June a year ago.

General Motors sales increased nearly 16%.

GM's Kurt McNeil says he expects a good second half of the year, too.

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Auto
10:42 am
Fri June 1, 2012

Toyota sales recover strongly in May as overall U.S. sales rise

Chrysler Media

Toyota reported a sales increase in May of 87% compared to the same month a year ago - when the company's vehicle production had plummeted due to the tsunami hitting Japan in March.  

There were more selling days this month than last May, but it is still a robust recovery from the disaster, which reduced inventories on Toyota dealer lots and sent some customers to other car companies.

Toyota remains number three in overall sales in the U.S., however, just behind Ford, which saw its sales increase 13% in May.

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Auto
10:47 pm
Tue May 22, 2012

Chrysler boosts sales with subprime borrowers

Chrysler-Group flickr

Chrysler's new car sales have been improving faster than almost any other car company in the U.S. in recent months.

But the company has also been relying on subprime borrowers more than almost any other car company.

That's according to Edmunds.com.

People with good credit can usually find a car loan with a four percent interest rate.

But a growing number of Chrysler's customers have poor credit - and their loans have 10 percent interest rates.

Edmunds analyst Jessica Caldwell says it's definitely boosting Chrysler's sales, but there are risks.

"I think subprime can tarnish your image in a way," she says.  "If you have a high percentage of subprime borrowers, people start to catch on or think that perhaps your brand isn't as prestigious as you would want to think it is."

Even though subprime car loans are riskier, there is still a relatively low rate of default.

People are much more likely to default on a subprime house loan than a subprime car loan. 

Commentary
11:51 am
Tue May 1, 2012

Commentary: More companies betting on Detroit

There’s an old Russian saying that, even, if you covered the world with asphalt, eventually a crack would form.

And in that crack, grass would grow. I was reminded of that yesterday by an Italian businessman my age, a man who is betting on green shoots coming through a town caked with many layers of asphalt. His name is Sergio Marchionne, and he is the CEO of a company called Fiat. Three years ago, he did something many at the time thought stupid. He took over a dying bankrupt company.

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