“Ford, UAW reach concessions deal - Cincinnati.com” plus 4 more

Ford, UAW reach concessions deal - Cincinnati.com
General Motors finalizes Hummer deal - Bloggingstocks.com
Auto dealer seeks ordinances to allow mini trucks on local roads - West Central Tribune
New and (Mostly) Improved - Barron's Online
Area dealers say clunkers program was mild success - Derrick

Ford, UAW reach concessions deal - Cincinnati.com

Posted: 10 Oct 2009 08:33 AM PDT

Ford Motor Co., seeking concessions granted to U.S. rivals, reached a tentative United Auto Workers accord that includes a six-year ban on some strikes and a wage freeze for new hires, two people familiar with the matter said.

UAW leaders will present the plan Oct. 13 in Detroit to the Ford National Council, which consists of factory-level union chiefs, said the people, who asked not to be identified because the terms aren't public. Ford offered pledges for new production and a $1,000 bonus tied to quality goals, the people said.

New savings would help Ford build on a $500 million cut in labor costs under a UAW agreement in March, while the sweeteners are aimed at damping resistance to fresh concessions. General Motors Co. and Chrysler Group LLC won union givebacks to help them with their U.S.-backed bankruptcies.

"There's a lot of sentiment against concessions inside the plant," said Gary Walkowicz, a union official at a Ford truck factory in Dearborn, Michigan, who isn't directly involved in the national contract talks.

Ford, the only U.S. automaker to avoid bankruptcy, is seeking parity in labor expenses with GM and Chrysler, which received UAW approval for a six-year pay freeze for entry-level employees, a no-strike accord until 2015 and fewer union job classifications.

The March accord with the UAW calls for Dearborn-based Ford's 41,000 U.S. hourly workers to cede annual bonuses and cost-of-living increases and accept reduced layoff benefits.

Ford declined to comment Friday on whether an accord had been reached on new concessions. "We don't have an announcement to make," said Marcey Evans, a spokeswoman. "We continue to work with the union and we are making progress."

A UAW spokesman, Roger Kerson, didn't immediately respond to a phone call and e-mail requesting comment.

Strikes over wages and benefits would be prohibited for six years under the new agreement, while walkouts over issues such as plant safety would still be permitted, the people said. The plan doesn't include cuts to retiree benefits, such as vision coverage, that were granted to GM and Chrysler, the people said. The $1,000 bonus payment will be made to Ford workers in March based on meeting 2009 product-quality targets, one person said.

In exchange, Ford is promising to put new work into two plants in Sterling Heights, Michigan, that make transmissions, axles and steel body panels for cars, the people said.

The automaker's 7.45 percent bonds due in July 2031 rose 0.25 cent to 82 cents on the dollar, according to Trace, the bond-pricing service of the Financial Industry Regulatory Authority. The yield declined to 9.4 percent.

Without additional givebacks, Ford may be at a "longer- term" disadvantage in manufacturing costs, the automaker's labor chief, Joe Hinrichs, said Sept. 30.

Hinrichs, group vice president of global manufacturing and labor affairs, met last month with workers at plants across the U.S. to review Ford's competitive position. Ford has lost $30 billion in the last three years and Chief Executive Alan Mulally has said he expects to break even or be profitable in 2011.

The Canadian Auto Workers union said yesterday that talks with Ford will resume on Oct. 26. Ford, which employs about 7,000 hourly workers in Canada, is seeking concessions the CAW granted GM and Chrysler to help close a 15 percent productivity gap between its Canadian and U.S. plants.

General Motors finalizes Hummer deal - Bloggingstocks.com

Posted: 10 Oct 2009 07:14 AM PDT

General Motors Sells Hummer Truck Brand China has taken its first major step into the U.S. car market as General Motors announced it had finalized a deal to sell off its Hummer truck brand to Chinese auto manufacturer Sichuan Tengzhong Heavy Industrial Machinery.

Under the deal, GM will continue to make the trucks no later than 2010. While a deal has been reached, it is still going to be up to Chinese regulators to approve the deal and decide if the brand can be profitable and fit into the country's overall national strategy to improve energy efficiency.

General Motors first announced that they were in discussion to sell off its Hummer brand back in June, and marks another big step in the company's downsizing as it comes out of its recent bankruptcy.

GM stated that it hopes to have the deal finalized by the end of the year, and while no official details have been released, The New York Times reported that sources close to the deal reported it to be worth an estimated $150 million.

The Hummer is just one of the brands that General Motors is in the process of eliminating. It has announced plans to terminate its Saturn division by next year, eliminate its Pontiac brand, and sell off Saab to Swedish company Koenigsegg Automotive.

According to the Hummer deal, the current management team will stay in place, including its chief executive, James Taylor. Taylor stated that they plan to prove to Chinese regulators that the Hummer "will not stay as it is," and that it can become a much more fuel efficient vehicle.

It will definitely prove a tough job to rejuvenate Hummer's popularity, especially in America, where SUV sales have plummeted over the past several years, and Hummer sales were down 64% last month. Just how bad are sales? In September the company only sold 426 Hummers nationwide.

This posting includes an audio/video/photo media file: Download Now

Auto dealer seeks ordinances to allow mini trucks on local roads - West Central Tribune

Posted: 10 Oct 2009 07:00 AM PDT

BENSON — Kentt Habben is hoping his new line of mini trucks is a big seller in Swift County.

But first he's trying to get an ordinance passed to allow the vehicles to be driven on local roads.

At Habben's request, the Benson City Council approved an ordinance two weeks ago to allow the small, Japanese-made trucks to be driven on Benson city streets, starting Jan. 1.

The Swift County Board of Commissioners is expected to take action on a similar ordinance later this month.

Because mini trucks don't meet federal vehicle safety standards, they are not approved for road travel here. They are usually marketed as off-road vehicles and popular in the U.S. for farm use.

But Habben, managing partner at Swenson Motor Company of Benson, said mini trucks are allowed on public roads in some states, like North Dakota.

In Minnesota, municipalities and counties are given the option of allowing mini trucks on streets and roads by adopting ordinances.

Habben said the city has been "very supportive" of his request and hopes the county will be too.

The issue was discussed Tuesday by Swift County Commissioners, who had a few unanswered questions, said Auditor Byron Giese. The commissioners are "keeping an open mind" and will take up the issue again later in the month.

Habben said he'll see how the process goes in Swift County before deciding whether to make a similar request in Willmar and Kandiyohi County.

As the name suggests, the two-seat mini truck is a scaled down version of a full-sized truck. It has a 4-by-6-foot bed that can be used for hauling everything from furniture to farm tools, with a load capacity of 1,400 pounds.

Equipped with four-cycle engines, the fully enclosed vehicles go 50 to 60 miles per hour, have heaters, air conditioners, turn signals and horns.

"They're a little stub-nosed truck," said Habben. "It's a full-function vehicle."

The big difference is that the steering wheel is on the right side.

Regarding safety concerns, Habben said they're "no different than a 1960 Volkswagen."

They're a far cry from a golf cart, which some cities allow on streets, he said.

Owners in Benson will need to purchase an annual permit to drive the mini trucks. The Benson City Council has not set that price yet.

The vehicles Habben has for sale are used and range in price from $6,000 to $7,000. He purchased a container of the mini trucks that were shipped from Japan, where they are commonly driven on highways.

Habben's decision to sell the mini trucks came after news this spring that General Motors financial difficulty was resulting in the elimination of Benson as a GM auto dealership.

The mini trucks won't fill the void of the GM vehicles, but Habben said he's hoping the unique vehicles will give people "another reason to come to Benson."

New and (Mostly) Improved - Barron's Online

Posted: 10 Oct 2009 04:58 AM PDT

THE AUTOMOTIVE MARKET is a desolate place these days, but it isn't bereft of hope, even for makers of luxury vehicles, which have been particularly battered by the global economic downturn. While 2010 won't be a banner year, it should be better than 2009. And, ultimately, consumers will have to replace their old cars, trucks and SUVs.

So European, Japanese and American car makers are still pouring innovation and new models into the U.S. marketplace. Indeed, competition is heating up, with new players on the way and new types of vehicles vying for car shoppers' attention and dollars.

The coming ...

This posting includes an audio/video/photo media file: Download Now

Area dealers say clunkers program was mild success - Derrick

Posted: 10 Oct 2009 04:08 AM PDT

Area dealers say clunkers program was mild success

By John Spangler Many Venango County residents look to trucks and sport utility vehicles to get them through the area's harsh winters. These Chevrolet truck models are sitting in the lot of a dealership in Seneca. It's been about six weeks since the Cash for Clunkers program ended, and many local dealerships have reported they received their rebates from the government.

Some managers from the local dealerships said that although the program was a great idea to stimulate the economy, the execution was poor and seemingly unorganized.

Car sales did spike during the program, and Congress approved an additional $2 billion after the initial $1 billion was exhausted in the program's first week.

Local dealers saw the program as a way to sells cars and turn a profit.

"The deal was too good to pass up", said a manager at Northpointe Auto in Seneca. "People were getting as much as a $4,500 rebate from the government, but were also getting rebates the manufacturers were offering."

In some cases, people were getting $6,000 or $7,000 off a new vehicle, which translates into an offer that couldn't be refused by many, the manager said.

Most people who traded in a clunker were originally not in the market for purchasing a new vehicle, but they saw the rebates offered by manufacturers and the government and decided a new vehicle was within their grasp, some of the local dealers said.

Bob Hinch of A. Crivelli Ford in Franklin said trucks were the biggest sellers at his dealership during the program.

"We sell trucks, that's what we do here," Hinch said.

The dealers said a problem they may now face is the fact that 2010 models that have already hit showrooms have been sold during the clunkers program. So dealers are stuck with 2009 models, which can be harder to sell despite their lower prices. They were also in a bind during much of September with little inventory on their lots.

Most of the dealerships are expected to rebound slightly over the next six months, but some do see slow sales during that time.

The Department of Transportation reported that 690,000 transactions took place during the clunkers program. California led the way by requesting $326 million in rebates, while Pennsylvania requested $138 million.

The Ford Explorer was the most traded in clunker, while the Toyota Corolla was the vehicle most purchased. The average miles per gallon rating for all clunkers traded in was 15.8 and the average mpg rating for all newly purchased vehicles skyrocketed to 24.9, a 58 percent improvement.

In the end, the local car dealers felt the clunkers program was fairly successful, and estimates indicated that about 200 clunkers around the Venango County area were traded.