UAW Strike - Tentative Deal Reached - Pending Vote

[Fuzzy1975]

Do the modern Rav 4s not suck?

The Rav4 Prime and Rav 4 Hybrid are the #1 rated ones right now. 2024 is the next generation, so I can't speak to them ( though I suspect my Prime will be a fifth generation) For the Hybrid, I like it, lots of power, decent interior, good visibility, and 55 mpg in the summer.

The last time I was in one was like 2007 or 8 and it was the company car.

Well with the exception of the good old Volkswagen Bug, most models change out every three or four years, and you're going back a decade...

 

[BabyBoomer50s]

Their manufacturing has been behind since before COVID due to microchip shortages. Finally acquiring them to sell to people who have been on a wait-list for years has nothing to do with the strike.

Yes, demand and pricing has held up well despite higher car loan interest rates.

 

[ll74]

Yes, demand and pricing has held up well despite higher car loan interest rates.

That happens when you lock in a car loan in 2022 while you wait for the dealer to supply the product.

 

[BabyBoomer50s]

So the reason Q3 sales and prices held up on gas powered vehicles is because customers were able to lock into prices and interest rates a year or more ago? Haven’t seen that in any of the coverage of GMs earnings. I’d be interested in understanding the impact of interest rate lock in better if you have a moment to share a link.

 

[butters]

https://abcnews.go.com/US/wireStory/uaw-strikes-general-motors-suv-plant-union-begins-104250138

DETROIT -- The United Auto Workers union turned up the heat on General Motors as 5,000 workers walked off their jobs Tuesday at a highly profitable SUV factory in Arlington, Texas.

The move comes just a day after the union went on strike at a Stellantis pickup truck factory in Sterling Heights, Michigan, north of Detroit.

The additional plants further escalate a labor dispute that's in its sixth week and now has about 46,000 union workers off the job. And rhetoric from both sides shows that they remain far apart on what they believe are fair wage and benefits offers, with the company and the union hold firmly to their positions.

 

[butters]

https://www.msn.com/en-us/news/mone...p&cvid=36af94d6cd9e4276906cc19b221d4b4a&ei=22

tentative deal reached with Ford

no details yet, just this:

The agreement will need to be ratified by UAW members, thousands of whom have walked off the job at Ford factories throughout the U.S., including its Kentucky Truck Plant, the company's largest factory worldwide.

The automaker and the union participated in intense bargaining Tuesday and Wednesday in an attempt to finalize a record deal, according to the sources.

 

[BabyBoomer50s]

Ford estimates new agreement could add between $850 and $900 in cost per vehicle. Company plans to scale back production of unprofitable EVs.

Ford’s per-hour labor cost, including benefits, would be around $67 this year and rise to about $88 by the final full year of the contract, in 2027, according to Wells Fargo. That is significantly higher than the labor costs of the foreign automakers, estimated in the mid-$50s an hour, and Tesla at $45 to $50.
WSJ

 

[Dribble]

MAGATS sure do bitch about unions. But it was the strength of unions that built the world they consider great.

 

[Fuzzy1975]

MAGATS sure do bitch about unions. But it was the strength of unions that built the world they consider great.

Sucks that a $1000.00 bucks will make or break a new car purchase.....lol

 

[RandyRebecca]

MAGATS sure do bitch about unions. But it was the strength of unions that built the world they consider great.

Trade unions are the reason that we have any rights at all. There isn't even the weekend without unions.

 

[JohnEngelman]

GM Reports $3.1 Billion Profit, Despite UAW Strike Hit

“General Motors posted a strong third-quarter profit despite a hit from the United Auto Workers strike, which now is draining about $200 million a week from its bottom line.

https://www.wsj.com/business/autos/...jgr0j2ok13z8q0b&reflink=article_copyURL_share

Strong profits should be shared with the workers.

 

[butters]

GM and Stellantis Agree to Match Ford's Monumental Offer In Huge Win For Workers​

In a massive and historic win for American workers, GM and Stellantis on Friday agreed to match the tentative offer struck between the United Auto Workers (UAW) and Ford earlier this week.

GM and Stellantis will offer the same 25% raise over four years that Ford offered, which is more than the 23% raises auto workers have received in the last 21 years. The GM proposal also matches the cost of living raises offered by Ford.

The contract with Ford Workers offers a 25% general wage increase, plus cost of living raises that will put the pay increase over 30%, to above $40 per hour for top-scale assembly plant workers by the end of the contract.

https://www.msn.com/en-us/money/com...1&cvid=9a56aa61051c48d18a0efe61229475ee&ei=23

 

[ll74]

GM and Stellantis Agree to Match Ford's Monumental Offer In Huge Win For Workers​

https://www.msn.com/en-us/money/com...1&cvid=9a56aa61051c48d18a0efe61229475ee&ei=23

This is awesome.

Thanks again, @butters

 

[butters]

This is awesome.

Thanks again, @butters

you're welcome

 

[LLCox]

GM and Stellantis Agree to Match Ford's Monumental Offer In Huge Win For Workers​

https://www.msn.com/en-us/money/com...1&cvid=9a56aa61051c48d18a0efe61229475ee&ei=23

Amazingly even that doesn't keep up with honest inflation.

 

[ishtat]

This is a bit sad. GM and Ford have now sunk to the 6th and 7th of the worlds auto makers by numbers produced. The three at the top are Toyota VW and BYD. Not much will happen until the beginning of 2025 but you can safely predict that the numbers of employed UAW workers in America will fall by at least 80% over the next 5 years. The legacy manufacturing centres will almost all close. New systems of car manufacturing introduced by BYD and Tesla will be copied everywhere. Cars and their power units (largely batteries) are made in largely robot controlled barely occupied plants. The Bosses the Union Leaders and the Politicians all know this will happen but are praying, 'please not yet.' This deal is the death warrant for the legacy industry in the USA, particularly for employees.

Watch the trend in industry stock prices over the next 2 years, the best way to make money will be to run a book on which of the traditional firms goes broke first. It's no kind of victory, the workers will get one well paid Christmas, possibly two, and then unemployment. Most likely your next car will be assembled at a non - Union plant in Central America from parts originating in South and East Asia.

 

[butters]

In Muskville, an abysmal Q3 earnings report knocked its icon off his ever-slipping tower. After earnings revealed margins of a distinctly Detroit-flavored variety, Tesla shares dropped from $255 per earnings to $196, trimming the worth of Musk’s 715 million shares from the ridiculous $182 billion to the merely absurd $140 billion.

The new contract with the UAW will likely cost Ford up to $2 billion per year in wages, per analysis from Barclays. While that’s just 1% of its revenue figure, it’s a major chunk of profits, which came at $1.2 billion last quarter. And Ford would have been more profitable if not for its EV efforts. Even so, it’s not a struggling company, as they were able to pay CEO Jim Farley $20 million just last year.

Still, EV is a straggler. This past spring, Ford revealed that it lost $722 million while wading into the business, losing $60,000 for each car sold. This October, after Ford became the first of the Big Three to reach a deal with the UAW, it kicked the can down the road on its EV dreams, indefinitely postponing a $12 billion investment on electric vehicles.

Finding less green in the (environmentally) green cars than anticipated, General Motors is also scaling back and giving up its plan to build 400,000 EVs from 2022 to 2024. Even with President Biden’s backing of the sector and the widespread hype that EVs would replace most gas guzzlers by the 2030s, the math isn’t working for Detroit right now—or Elon Musk.

https://www.msn.com/en-us/money/com...1&cvid=de46f90830624e52831c31b6d556d4ea&ei=86

 

[Dribble]

Weird...the workers got way more than people said they would. Maybe....they (workers) know more about how their company works than those sitting outside?

What I don't understand...is why the companies never gave back what the workers sacrificed for them once the economy turned better? Seems to me all this could have been prevented with a leadership that thought things through

 

[Fuzzy1975]

https://www.msn.com/en-us/money/com...1&cvid=de46f90830624e52831c31b6d556d4ea&ei=86

I should mention,part of the EV loss on Fords part was jumping in with the Mustang Mach E. The first generation had approximately 1 mile of extra wire,that was discovered to not be needed. So to put it mildly,Ford over engineered the car. Fords CEO even appoligized to the shareholders on this problem.

The Second version is substantially less dollars to make, time will tell if they will recapture the loses through market penetration.

 

[Dribble]

When the horse less carriage first came to be...people said they would never ever replace horses. Weird...here we are 140 yrs later...hearing the same thing about electric vehicles.

 

[ll74]

I should mention,part of the EV loss on Fords part was jumping in with the Mustang Mach E. The first generation had approximately 1 mile of extra wire,that was discovered to not be needed. So to put it mildly,Ford over engineered the car. Fords CEO even appoligized to the shareholders on this problem.

The Second version is substantially less dollars to make, time will tell if they will recapture the loses through market penetration.

Based on the demand, it won't be losing money for long.

 

[jaF0]

This is a bit sad. GM and Ford have now sunk to the 6th and 7th of the worlds auto makers by numbers produced. The three at the top are Toyota VW and BYD. Not much will happen until the beginning of 2025 but you can safely predict that the numbers of employed UAW workers in America will fall by at least 80% over the next 5 years. The legacy manufacturing centres will almost all close. New systems of car manufacturing introduced by BYD and Tesla will be copied everywhere. Cars and their power units (largely batteries) are made in largely robot controlled barely occupied plants. The Bosses the Union Leaders and the Politicians all know this will happen but are praying, 'please not yet.' This deal is the death warrant for the legacy industry in the USA, particularly for employees.

Watch the trend in industry stock prices over the next 2 years, the best way to make money will be to run a book on which of the traditional firms goes broke first. It's no kind of victory, the workers will get one well paid Christmas, possibly two, and then unemployment. Most likely your next car will be assembled at a non - Union plant in Central America from parts originating in South and East Asia.

This is what most people miss with celebrating union 'wins' They are almost always short term wins followed by mass labor cuts overall. Workers get a few more dollars now followed by no dollars at all in a few years. The Suits win.

Personally, I don't think vehicles made outside should be allowed to be shipped in without massive add-on taxes designed to punish the companies for moving production off shore. If the numbers show a $10,000 per vehicle savings over what it would cost to build here, impose a $20,000 per vehicle import fee.

 

[Dribble]

Personally, I don't think vehicles made outside should be allowed to be shipped in without massive add-on taxes designed to punish the companies for moving production off shore. If the numbers show a $10,000 per vehicle savings over what it would cost to build here, impose a $20,000 per vehicle import fee.

I agree. But the problem is that the companies still pay taxes here. And are on our markets. And those aspects outweigh offloading in the minds of many

It is the same with immigration...punish those that hire them...the problem goes away.

 

[jaF0]

And I haven't seen anything in any of the articles that does anything about the C-Suite salaries and compensation.

 

[Dribble]

https://www.cnn.com/2023/10/30/business/nightcap-uaw-strike-car-prices/index.html

The summary...listed under TLDR...gives the short of it.