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General Motors

GMC SUVs in a car lot
user ep_jhu / Creative Commons

GM, Ford, and Chrysler all say November sales were the best they've seen in a long time.

More from the Detroit News:

General Motors Co. said Monday it had its best November sales month since 2007, as its 186,505 sales rose 3.4 percent over the same month in 2011...

Ford Motor Co. posted November sales of 177,673, an increase 6 percent, with retail sales jumping 12 percent...

Chrysler Group LLC earlier reported its best November sales since 2007, as it sold 122,565 vehicles in the month, up 14.4 percent from the same month in 2011.

Michigan Radio's Tracy Samilton will have more for us on these numbers later today.

General Motors was a deeply troubled company in 2008.

Eh.  Make that deeply, deeply, deeply troubled.

So was its finance arm, GMAC, which had plunged head-first into subprime mortgage lending, in addition to automotive lending.  That left the company awash in billions of dollars worth of bad mortgages.

The federal government had to figure out a way to bail out both companies - because GM wouldn't survive if it didn't have a place to send customers for car loans, and if its dealers didn't have a place to get financing to buy the inventory.

User: Brother O'Mara / flickr

Democrats want to revamp voting procedures and make Secretary of State an appointed position

"There's a move in the Michigan Senate to change the Secretary of State's office to a non-political position and to revamp the state's voting procedures. Gretchen Whitmer is the Senate minority leader. She says many Michigan voters waited for hours to cast their ballots while Secretary of State Ruth Johnson was campaigning for Mitt Romney. A spokeswoman for Ruth Johnson says the Secretary of State was not campaigning for Romney on Election Day, but was working with local election officials. Whitmer says Senate Democrats are working on legislation that would allow early voting and no-reason absentee voting to help reduce long lines at the polls. She says they're also drafting a bill that would make the Secretary of State an appointed position, rather than an elected post," Rina Miller reports.
 

Bill would help horse racing industry

"A bill to help Michigan’s struggling horse racing industry is on its way to the state Senate. The legislation would allow people to bet on races dating back years. Players would place bets on a machine, and a randomly selected race would be shown on a video screen. The state House passed the bill last week with bi-partisan support," Jake Neher reports.

Competition for GM in China

"Two domestic Chinese car companies are teaming up.  The move could help them compete against General Motors in China - and perhaps even hasten the day when Americans can buy Chinese-made cars. Gwanjoe and Chery plan to collaborate to cut costs. That should help them compete against GM and Volkswagen - the two biggest car companies operating in China. Michael Dunne is the author of "American Wheels, Chinese Roads." He says the collaboration could help the two inside China, and boost exports to developing countries. But he figures a Chinese car company won't try to enter the tough U.S. market for at least five years," Tracy Samilton reports.

GM share price up on better-than-expected earnings report

Oct 31, 2012
President-elect Donald Trump tweeted: "General Motors is sending Mexican made model of Chevy Cruze to US car dealers-tax free across border. Make in U.S.A or pay big border tax!"
Andrea_44 / Flickr - http://j.mp/1SPGCl0

GM shares were up Wednesday on the back of a stronger-than-expected third-quarter earnings report.

The automaker reported a net income of $1.48 billion, down just 14.5 percent from last year despite major losses in Europe.

As a result, GM stock had increased by 9.66 percent to $25.53 a share by 2:20 p.m.

Melissa Burden with the Detroit News has more:

Both Ford and General Motors announced steps this week to reduce their losses in Europe.

The region is experiencing a disabling recession that's expected to last at least through 2015.

Car sales are abysmal in Europe, down more than 30-percent from normal demand.

Ford says it may lose a total of one billion dollars in the region for the entire year.

General Motors' losses might be more than that.

The announcement is expected later today.

GM Renaissance Center in Detroit.
John F. Martin / Creative Commons

General Motors says it will close its hydrogen fuel-cell research operation near Rochester, N.Y., and move it to Michigan, along with most of the 220 salaried jobs currently in New York.

The company says most of the 220 salaried workers in Honeoye Falls, N.Y., will be offered the chance to move to GM's engine and transmission research unit in Pontiac.

Spokeswoman Kimberly Carpenter says the move will pull together all of its experts on ways to move vehicles. The company will save some money by not renewing a building lease in New York.

She says GM will continue to focus on electric vehicles and fuel cell development. GM has been testing fuel-cell vehicles that run on hydrogen with no harmful emissions.

General Motors says its U.S. sales rose about one and a half percent last month, as a big jump in car sales was offset by falling truck sales.

Ford says its U.S. sales were flat in September, like GM, Ford was weighed down by lower truck sales even as sales of its cars rose.

But Chrysler had the best September of the Detroit Three, with a 12 percent increase in sales.

More from the Detroit News:

Ken Lewenza, president of the Canadian Auto Workers.
Canadian Auto Workers union

Yesterday, the Canadian Auto Workers union said that 90 percent of unionized Chrysler workers voted to approve a new deal with the company.

Ford and GM workers in Canada approved their deals last week.

So what did they get?

Here's a good write-up on the negotiations between the Canadian Auto Workers and Detroit's Big Three automakers from the Detroit Free Press' Brent Snavely.

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:

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.

Ken Lewenza, president of the Canadian Auto Workers.
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."

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.

Steve Carmody/Michigan Radio

DETROIT (AP) - General Motors is offering big discounts to boost sales of the Chevrolet Volt, an electric car that struggled to attract buyers until its price began dropping early this year.

Discounts run as high as $10,000 per Volt, according to figures from TrueCar DOT com, an auto pricing website. They include low-interest financing and subsidized leases.

Ken Lewenza, president of the Canadian Auto Workers.
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.

A 2008-2010 Chevy Malibu. One of the models being recalled by GM.
IFCAR / wikimedia commons

The Detroit News reports GM is issuing two recall campaigns.

The smaller recall affects bulb indicators on 2013 Chevrolet Sonics.

The larger recall has to do with four-speed automatic transmissions on 2007-10 Chevrolet Malibu, Saturn Aura and Pontiac G6 models.

More from the Detroit News:

The Detroit automaker said Friday it is recalling 426,240 Chevrolet, Pontiac and Saturn sedans in the United States to repair a condition in which the transmission gear position may not match the gear on the shifter. That could lead to the vehicles rolling when drivers think they are in park.

"The driver would be able to remove the key from the ignition, but the door locks may not unlock automatically and the PARK indicator lamp would not be illuminated. The driver may not be able to restart the vehicle and the vehicle could roll away," GM said.

An investigation by the National Highway Traffic Safety Administration sparked the discovery of the transmission problem.

Michigan Radio's Tracy Samilton reports the problem has caused four accidents that GM knows about, but no injuries have been reported.

Dealers will either replace the transmission cable or put reinforcement on it.

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.

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:

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.

Here is a quiz:

The Obama Administration is responsible for:

a) The financial rescue of General Motors;

b) The future financial failure of General Motors;

c) Both a) and b);

d) None of the above.

You won’t find the correct answer in upside-down small print at the bottom of this blog.  I am not quite sure myself what the right answer might be.  But answer (b) might not be such an incredible response.

Ken Lewenza, president of the Canadian Auto Workers.
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.

Reuters reports on the numbers behind the Volt - "There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce."

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.

General Motors

General Motors says sales rose 10-percent in August, compared to the same month a year ago.

The Detroit car company also broke several sales records.

GM says it got a noticeable bump from advertising aired during the Olympics.

Sales of the Chevy Cruze, Volt, Spark and Sonic hit an all-time high.

Those are all small cars.  

The Chevy Cruze, a compact car, even beat Honda's perennial top-performer, the Civic, in August.

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.”

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.

User IFCAR / Wikimedia Commons

In mid-September, General Motors will temporarily close the Detroit-Hamtramck plant that makes the Chevrolet Volt for about a month.

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.

Dutch car company Spyker is suing General Motors for three billion dollars over the bankruptcy of GM's former brand, Saab.

Spyker says GM illegally interfered with a sale of part of Saab, and claims it was that interference which caused Saab's bankruptcy. 

GM sold Saab to Spyker in 2010, with a stipulation that Spyker would have to obtain GM's permission to sell Saab to anyone else.

Spyker almost immediately ran into financial problems trying to keep Saab afloat.  

General Motors / GM

GM's second quarter profit dropped from a year ago. The company made $1.5 billion, down from $2.5 billion, largely due to losses in Europe.  

The company also took an unusual step related to damage control, after a high-profile firing at the company on Sunday.

GM departed from the industry norm and only allowed analysts, not media, to ask questions during its earnings conference call.

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