No GM-Delphi Settlement Yet, UAW Says
The United Auto Workers nixed reports indicating that it has reached an agreement with Delphi and General Motors Corp. that would allow both companies to move forward with a sweeping restructuring that would eliminate thousands of union jobs. The UAW, which has had stormy relations with the media for years, also took the unusual step of expressly repudiating stories suggesting the parties were closing in on some kind of deal.
"There are several newspapers and at least one radio
station reporting today that the three parties-Delphi, GM and the UAW-are close
to consummating an agreement to the issues in the
The erroneous reports apparently arose with the confirmation that officers
from UAW locals representing Delphi workers had asked to attend a meeting in
Paul Krell, a union spokesman, said the meeting had been planned for a while and the agenda was designed to bring union officials up to date on discussions. "The suggestion that we have an outline of an agreement to review with you is unfortunately, just not true," he added.
Last month,
Dana
Plunges Into Bankruptcy by Joseph Szczesny (3/6/2006)
Quick filing
for major supplier adds to
Former Ford Exec Petrauskas Dies
Helen Petrauskas, former Ford executive and one of the people responsible for making airbags standard equipment in the company's cars, died on Wednesday after a long battle with cancer. Petrauskas had joined Ford in 1971 as an attorney, then moved to environmental and safety engineering. As one of Ford's first female vice presidents, Petrauskas was a leading champion of installing airbags into vehicles. She retired in 2001.
Chrysler Invests $1B in
The Chrysler Group is planning to spend $1 billion on upgrades at its
assembly plant in
Eric Ridenour, Chrysler Group chief operating officer, said "Our Mexican Manufacturing Operations have earned this investment by embracing flexible work force processes," he added. "The Chrysler PT Cruiser set new world standards with its unique styling and interior roominess. The bottom line is that consumers are demanding more of our remarkable products, and our Toluca Assembly Plant employees played a key role in the success of this vehicle," he said. -Joe Szczesny
2005:
The Sales Year in Review by Mike Davis (1/11/2006)
Some surprises
when you dig behind the brand names.
GM Cutting Suzuki Stake
General Motors Corp. says it will reduce its stake in Suzuki Motor Corp. from
20.4 percent to 3.0 percent by selling 92.36 million shares of the Japanese
automaker through an open-market buyback program. GM expects to net between $550
million and $750 million from the sale. Rick Wagoner, GM chairman and CEO, said
in a statement that the deal will allow GM to preserve its business relationship
with Suzuki while further building up GM's liquidity position during the
company's turnaround. The companies also are partners in CAMI Automotive, Inc.,
in
2006
Suzuki Grand Vitara by Bengt Halvorson (12/12/2005)
Short of an
all-out transformation - but a lot prettier.
GM Shifting Pension Plans
General Motors will be changing the way it allocates money to employee retirement benefits, away from defined-benefit plans to plans that depend on bigger employee contributions. The AP reports that GM's new plan will freeze accrued pension benefits for about 40,000 current employees on January 1, leaving currently retired employee benefits intact. After Jan. 1, employees hired before 2001 will retain pension plans that will pay out a reduced amount from today's levels. Those hired after Jan. 1, 2001, will be moved to a defined contribution plan that will allow employees to cash out when they reach retirement age. GM also will change its matching plan to half of employee contributions up to four percent. The changes could reduce GM's pension liabilities at the end of the year by about $1.6 billion.
Wagoner
Rumors Start to Swirl by Joseph Szczesny (3/6/2006)
Will GM lose its
CEO to financial churn?
DaimlerChrysler Spells Out Risks
DaimlerChrysler has listed a
number of risks to global business in the company's new annual report. One
notable threat, the report noted, is that the
Spy
Shots: '08 Chrysler Minivans by KGP Photography (3/6/2006)
More
upright and more international, by design.
Dana Bankruptcy Underscores Auto Weakness
The bankruptcy of Dana Corp. is the fourth major failure in the auto industry in the past 13 months, and it has sent more shockwaves through a sector that is in "chronic crisis," according to industry analysis from Euler Hermes ACI, which specializes in insuring credit lines. Dana's bankruptcy follows the bankruptcies of Tower Inc., Collins & Aikman and Delphi Corp. With $9 billion in annual revenue, Dana Corp.'s bankruptcy took a lot of investors by surprise, said Tony Clary, Euler Hermes vice president and automotive Risk Industry Manager.
The Dana insolvency again confirms that the auto industry is one of the most
challenged in the
Dan North, Euler Hermes chief economist, said the automotive industry continues to be hurt by the sector's weakened pricing power. "A key issue with the automotive industry is that unit labor costs are continuing to rise, but automakers cannot raise prices because of increased competition," said North. "That means profit margins are being squeezed even tighter than in the past, which is hurting everyone down the supply chain." -Joe Szczesny
Dana
Plunges Into Bankruptcy by Joseph Szczesny (3/6/2006)
Quick filing
for major supplier adds to
Nissan's Connelly Retiring; Bradshaw Taking Company to
Confirming a report that first appeared on TheCarConnection.com last month,
Nissan's top American executive, Jed Connelly, has confirmed he will leave the
automaker's
Last year, Carlos Ghosn, CEO of both Nissan Motor Co., and its French partner
Renault, ordered the company to pull up stakes from the Los Angeles and move to
Nashville, not far from Nissan's Smyrna, Tenn., assembly plant. The decision is
expected to yield significant cost savings, though many observers believe it
could also result in some disruption for Nissan. During the Wednesday call,
company officials reported that 47 of 60 senior executives have agreed to
relocate, but only about half of the rest of NNA's 1300-member workforce have
accepted transfers. The impact will be especially hard-felt by the financial
side of the company, noted Connelly. Even so, he insisted, "I think we've got
everything we could think of smoothly in place…(and) that'll ride us through the
rough water." The relocation is expected to take until August 1. Meanwhile,
Nissan officials reported that so far, they've been unable to line up a buyer
for the
Ghosn
Puts His Stamp on Renault by Joseph Szczesny (2/20/2006)
New plan
includes major move upmarket.
Nissan Picks HQ Design Team
Yesterday TCC told you about the exec changes at Nissan in advance of the company's move to Tennessee. Now, Nissan has chosen the architects that will build its new headquarters in suburban Nashville. Gresham, Smith and Partners (GS&P) will be the firm to pen the company's new offices, which will take about two years to complete and are expected to be occupied in 2008. Until then, the company will use an office building in downtown Nashville for its workers, of which Nissan expects more than 50 percent to make the pilgrimage from Los Angeles to Tennessee.
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