Daily Edition: Mar. 30, 2006

March 28, 2006

Delphi, UAW Brace For Collision

Delphi Corp. and the United Auto Workers appeared to be on collision course as the union flatly rejected the company's latest contract proposal, which would have reduced by 18 percent the compensation of Delphi's workers to $22 per hour, starting July 1. Under terms of the deal, wages would have continued to drop, falling to $16.50 per hour in September 2007. 

The proposal, blasted by the union, also had not been approved by GM. Under the terms of the deal, GM would have had to underwrite a one-time $50,000 payment to Delphi workers to make up for lost wages. Union officials said privately they wouldn't even bother to present it to the Delphi workers for an up or down ratification vote. 

It is very likely now that Delphi will ask a bankruptcy judge to cancel its union contracts. Delphi's chairman and chief executive has threatened to petition the bankruptcy court before, but this week's deadline is final, Delphi officials have insisted. Lindsey Williams, Delphi spokesman, said the union is continuing its discussions with the UAW but the deadline is firm.

Meanwhile, the UAW is looking at its options, which include withdrawing from the talks and holding a strike authorization vote among Delphi workers so they will be prepared in the event a walkout becomes necessary, a union spokesman said. Delphi's other major union, the International Union of Electrical Workers-Communication Workers of America, has already gotten strike authorization from its members. Union leaders have warned they will strike Delphi, regardless of the consequences, if the judge voids the current contract and lets Delphi CEO Steve Miller cut the wages of their members.

Analysts have warned that a strike could force GM, Delphi's largest customer, into bankruptcy. As a practical matter, another round of discussions is in the offing even if the Delphi files it motion. Judge Robert Drain isn't scheduled to hold a hearing on the motion to void Delphi's labor contracts until May 8. -Joe Szczesny

Delphi Deadline Draws Near (3/26/2006)
Will March 30 bring strikes or settlements?

GM To Sell Isuzu Stake

GM and Isuzu are in discussions to figure out how the world's biggest automaker can dispose of its stake in the Japanese truckmaker. GM says it wants to sell its interest in Isuzu Motors Ltd., which now equals about 7.9 percent of the Japanese company's shares. GM has approached two Japanese financial institutions about taking on its share of the company, which has all but disappeared from the U.S. light-truck market. GM's stake could be worth $320 million. GM and Isuzu share interests in diesel engines and in pickup trucks and SUVs; Isuzu sells rebadged versions of GM's mid-size SUVs and pickups in the U.S.

GM: Turnaround Is Working (3/26/2006)
Company says new pricing plan, cuts are righting the ship despite looming engineering cuts.

New Fuel-Econ Rules to Boost Truck Mileage

After months of evaluating new mileage proposals, the Department of Transportation has set higher fuel-economy levels for light trucks and SUVs beginning in 2008. The new rules will raise the Corporate Average Fuel Economy (CAFE) for trucks from 21.6 mpg today to 24 mpg by 2011. By then the CAFE rules will also include SUVs weighing up to 10,000 pounds, which will add vehicles like the HUMMER H2 and the biggest Chevy Suburbans to the fuel-economy rules for the first time. The new rules could save up to 10.7 billion gallons of fuel over the lifetime of the affected vehicles, and could cost up to $200 per vehicle in technology needed to boost fuel economy in those vehicles. Passenger cars will continue to be held to a 27.5-mpg fleet average.

Suzuki Brings XL7, SX4 to New York

Suzuki confirms that the new XL7 sport-ute is coming to April's New York auto show. The Japanese automaker - in which GM recently sold its 20-percent stake - says the new XL7 will share the New York stage with the SX4 crossover, an Aerio replacement seen most recently at the Geneva motor show. Along with the Suzukis, the New York show will premiere the new Benz E-Class, Saturn Outlook and Aura, and Nissan Altima. Find out more about the upcoming show in our New York preview:

2006 New York Auto Show Preview (3/26/2006)
For the capital of the world, some global introductions.

<[email protected]@[email protected]@>


FROM THE SOURCE headlines from the latest press releases


Mitsubishi Motors to Reveal the All-New 2007 Outlander SUV at the 2006 New York International Auto Show  

Ford Names Nick Smither, VP & CIO

<[email protected]@[email protected]@>


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Autobytel, Inc. ABTL 4.84 +0.12 (+2.54%)
Autoliv Inc. ALV 57.00 +0.61 (+1.08%)
AutoNation Inc. AN 21.40 +0.08 (+0.38%)
ArvinMeritor Inc. ARM 15.22 +0.30 (+2.01%)
American Axle & Mfr. Holdings Inc. AXL 17.76 -0.31 (-1.72%)
Ballard Power Systems Inc. BLDP 6.85 -0.20 (-2.84%)
BorgWarner Inc. BWA 60.81 +0.40 (+0.66%)
Cummins Inc. CMI 105.15 +0.50 (+0.48%)
Dana Corporation DCN 0.66 0.00 (0.00%)
DaimlerChrysler AG (ADR) DCX 56.98 +1.51 (+2.72%)
Dura Automotive Systems DRRA 2.20 -0.03 (-1.35%)
Eaton Corporation ETN 71.86 +0.65 (+0.91%)
Ford Motor Company F 8.26 +0.13 (+1.60%)
General Motors Corporation GM 22.15 -0.60 (-2.64%)
Gentex Corporation GNTX 17.29 +0.20 (+1.17%)
Goodyear Tire & Rubber GT 14.20 +0.22 (+1.57%)
Honda Motor Co. Ltd. (ADR) HMC 31.63 +0.54 (+1.74%)
Johnson Controls Inc. JCI 76.64 +0.32 (+0.42%)
Lear Corporation LEA 18.49 +1.54 (+9.09%)
Magna International Inc. MGA 76.00 +1.59 (+2.14%)
Motorola Inc. MOT 22.78 +0.83 (+3.78%)
Nissan Motor Co. Ltd. (ADR) NSANY 23.85 +0.14 (+0.59%)
Sonic Automotive Inc. SAH 27.87 +0.15 (+0.54%)
Siemens AG SI 91.90 +1.84 (+2.04%)
Sirius Satellite Radio SIRI 4.99 +0.05 (+1.01%)
Toyota Motor Corporation (ADR) TM 109.26 +1.74 (+1.62%)
TRW Automotive Holdings TRW 23.72 +0.70 (+3.04%)
Tower Automotive Inc. TWRAQ.PK 0.105 0.00 (0.00%)
United Auto Group Inc. UAG 42.57 -0.13 (-0.30%)
Visteon Corporation VC 4.71 +0.20 (+4.43%)
XM Satellite Radio Hold. XMSR 21.80 +0.77 (+3.66%)
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