AD #3648 – U.S. BEV Sales Soar 67%; Tesla Develops Gigacasting Breakthrough; UAW Lays Out Strike Strategy
September 14th, 2023 at 11:58am
Listen to “AD #3648 – U.S. BEV Sales Soar 67%; Tesla Develops Gigacasting Breakthrough; UAW Lays Out Strike Strategy” on Spreaker.
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Runtime: 10:24
0:00 UAW Lays Out Stand Up Strike Strategy
1:41 Ford Fumes After UAW Rejects Counter Offer
3:12 Tesla Develops Gigacasting Breakthrough
5:23 China Upset Over EU EV Investigation
6:06 U.S. BEV Sales Soar 67% Through July
6:41 GMC Unveils All-New Acadia
7:39 Cadillac Updates CT5 Sedan
8:16 Jeep Gladiator Gets Slight Refresh
8:42 Volvo Adds Video Streaming to Its Cars
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UAW LAYS OUT STAND UP STRIKE STRATEGY
Well, this is it. Today is D-Day for the contract negotiations with the UAW. The current contract expires at 11:59 tonight, and by all indications there’s going to be a strike. Last night UAW president Shawn Fain laid out the union’s strike strategy. Here’s what he said.
“We will strike all three companies, a historic first, initially at a limited number of targeted facilities that we will be announcing. Then, based on what’s happening in bargaining, we’re going to announce more locals that are going to be called on to stand up and strike. These locals will join those that are already on strike so that our strike at each company will continue to grow over time.”
Fain is calling this strategy the Stand Up strike, which harkens back to the historical 1936 Sit Down strike when the union shut down General Motors and got its first contract. The Stand Up strike could be a very effective strategy. Striking at key component plants, like stamping and powertrain plants that ship to multiple assembly plants, will quickly cripple production. And the people at the plants which are not on strike will get 80% of their take home pay, which will help the union preserve its strike fund.
FORD FUMES AFTER UAW REJECTS COUNTER OFFER
Meanwhile, the Ford Motor Company is fuming. It put out a release right after Fain’’s Facebook livestream pointing out that it gave the union four different proposals and never got a serious counter offer. Worse, when Chairman Bill Ford and CEO Jim Farley met with union officials to present their fourth offer, Fain was not at the meeting, even though they expected him to be there. That’s something Fain has accused the Detroit Three executives of doing during these negotiations. Ford also gave the union a number of concessions, including eliminating all tiers, which Fain disputes, adding COLA or a cost of living adjustment, sweetening up retirement benefits and providing 5 weeks of vacation as well as 17 paid holidays. There’s an air of exasperation in Ford’s release. The last sentence reads “The future of our industry is at stake. Let’s do everything we can to avert a disastrous outcome.”
By the way, on Autoline After Hours later today, the first half of the show will be about the likely outcome of these contract negotiations. The second half of the show will cover the IAA auto show in Munich last week and the best new products and technology that were on display there. So join John and Gary when the show goes live at 3 pm eastern.
TESLA DEVELOPS GIGACASTING BREAKTHROUGH
OK, back to the news. While the UAW is fighting to save the jobs of its members, Tesla is pioneering a process that will eliminate more line workers. It’s developing a way to cast not only the front and rear sections of a car like it does now, but also the middle section and all in one piece. Instead of using metal molds as prototypes, which are really expensive and held back the testing of massive castings like this, it’s using 3D printing. Thin layers of sand are topped with a binder over and over to build the mold, which also allows for the addition of hollow sections and internal structures. Doing it this way is 97% less expensive than making metal molds and makes testing for such big casting possible. Validation also takes 2-3 months, instead of 6 months to a year, and then the final production mold can be made out of metal. And it’s not just validation. The number of parts and pieces to build a car goes way down. Tesla wants to build big sub-assemblies, then bolt those to casting. And vehicle development time goes down to 18 to 24 months. Reuters reports Tesla could decide on using the one-piece casting as early as this month and it would likely be developed for its $25,000 EV that’s expected to be made at its new plant in Mexico, which is projected to be up and running around 2025 or 2026.
CHINA UPSET OVER EU EV INVESTIGATION
Yesterday the EU said it was launching an investigation into Chinese EVs to see if state subsidies are helping Chinese automakers keep prices low. And if it determines these subsidies are negatively impacting the EU auto industries, it could impose tariffs. This sent the share of several Chinese EV makers down and today China called the move “protectionist,” saying it will disrupt the global automotive industry and have a negative impact on trade relations. In other words, if the EU slaps tariffs on Chinese cars we fully expect some sort of retaliation in China on European cars.
U.S. BEV SALES SOAR 67% THROUGH JULY
EVs hit a milestone in the U.S. For the first time ever BEV registrations topped 100,000 units in a month. Automotive News estimates nearly 110,000 electrics were registered in July and for the full year about 656,000 EVs have been sold, an increase of 67% compared to last year. Not surprisingly, Tesla is the #1 brand with a nearly 60% share of the total EV market in the U.S.
GMC UNVEILS ALL-NEW ACADIA
We’ve got a few new reveals from the Detroit auto show to talk about. GMC unveiled the new Acadia, which gets a styling update both inside and out. It’s 10.6 inches longer and 3.2 inches taller than the outgoing model. Thanks to the larger size, interior space is up. There’s now 80% more cargo room behind the third-row seats and 36% more behind the second row. All trims are powered by a 2.5L turbo engine that’s mated to an 8-speed automatic transmission and all-wheel-drive is available. GM’s SuperCruise hands-free driving system is also now available. GMC made the off-road AT4 trim more capable with a lifted ride height, off-road suspension and an active torque control all-wheel-drive system. The new Acadia goes on sale next year and pricing will be revealed closer to the start of production.
CADILLAC UPDATES CT5 SEDAN
GM also revealed an updated version of the Cadillac CT5 sedan. The front fascia has been refreshed with a lower and wider front grille and a new lighting signature. It features safety and technology upgrades, including a new 33-inch screen with 9K resolution. A 2.0L turbo engine is standard and a more powerful 3.0L twin-turbo is also available. Both engines are mated to a 10-speed automatic transmission. Production of the new CT5 kicks off in the spring of 2024 and pricing will be announced in the future.
JEEP GLADIATOR GETS SLIGHT REFRESH
The Jeep Gladiator is also getting a slight refresh for 2024. The truck features the brand’s new seven slot grille and seven new wheel designs. The interior gets new features, including available power seats, a new instrument panel and a 12.3-inch display is now standard. The new Gladiator is available to order now and deliveries will start by the end of the year.
VOLVO ADDS VIDEO STREAMING TO ITS CARS
You’ll soon be able to stream videos in your Volvo. Prime Video will be available to download from Google Play. It will also be available to Polestar 2 owners. And YouTube will come pre-installed as part of an over-the-air update that starts on September 18th. Both apps will be available globally in models with Google built-in except for China, South Korea and Vietnam.
But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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Comments (23)
September 14th, 2023 at 12:25 pm
Bill and Jim need to recognize Fain does NOT want to negotiate. He wants everything and to use those gains to energize efforts to unionize the transplants.
The Detroit Three need to adopt a scorched Earth response. If Fain strikes one, he must strike all. With no contract (using Fain’s own words), then no UAW worker should be working. Shut it all down. And like GM or Stellantis did before, discontinue health care to anyone on strike (no contract, no benefits). Then see how long the UAW’s strike fund lasts.
Crazy… it’s Fain who should be charged with failing to negotiate.
September 14th, 2023 at 1:09 pm
“…An example of the aforementioned advanced casting can be seen in a ribbed aluminum casting, which begins at the shock tower and runs to the rear of the CT6. Hester explains normally this structural component would take some 35 pieces to assemble, but with the new casting technology, it’s one single piece. He also noted that there are no less than 13 high-pressure die-cast aluminum pieces in the structure of the CT6. Including the transmission tunnel… GMAuthority 2015
September 14th, 2023 at 1:31 pm
@1 – I had the same thought. Fain’s concept of striking at rotating plants minimizes the pain for all members. Since Fain has been pushing for a strike since his campaign speeches, I think the Big 3 should just lock them out of all plants starting tomorrow. Perhaps the members need to see the downside of Fain’s extreme list of demands and strongman tactics. They have been drinking his Kool Aid and need a dose of reality.
September 14th, 2023 at 1:39 pm
Does Fain have dictatorial power over negotiations, or lack thereof? If so, the UAW bylaws need to change.
3 If the companies shut down everything, wouldn’t it mostly be “layoffs,” where the companies would have to pay the non-strikers 80% of regular wages?
September 14th, 2023 at 1:43 pm
4 Or maybe they could completely shut down and pay nothing, since the contract has expired.
September 14th, 2023 at 1:50 pm
EU tariffs would apply to Teslas exported from Shanghai. All Models 3 currently sold in Europe come from there, I think.
Incidentally, is BMW still the US’s #1 car exporter?
September 14th, 2023 at 2:09 pm
@1, 3, 4 Five weeks of vacation as well as 17 paid holidays? What is their objective? To make GM, Ford and Stellantis even less competitive?
Removing the layers would make them return to the pre-bankruptcy situation. IMHO the cost of the benefits was one of the important factors to lead GM and Chrysler Group to bankruptcy.
While the Detroit 3 are essential for the Michigan economy it seems like the unions have not yet understood that on a global basis all are marginal players and that TESLA is the powerhouse in the American automotive industry.
September 14th, 2023 at 2:12 pm
UAW poster child for biting the hand that feeds. If I read that right ford is offering 42 PTO days 25 vacation +17 paid holidays . Some of these guys need to live in same world as the rest of us that don’t get 2 months off with pay. Detroit 3 should just lock them out .
September 14th, 2023 at 2:15 pm
6 Yep
https://www.bmwusanews.com/newsrelease.do?id=4107&mid=#:~:text=Nearly%2060%20percent%20of%20its,States%20for%20nine%20consecutive%20years.
September 14th, 2023 at 2:21 pm
20 years ago, UAW people got at least 20, and maybe 25 days vacation, but after 15-20 years seniority. Are they wanting 25 days for new hires? Crazy.
September 14th, 2023 at 2:27 pm
Keep it up Fain… China is on the door step and can’t wait for auto prices to rise so they can move in. Europe is seeing this now and when I was in South America, I could not believe the number of Chinese cars.
September 14th, 2023 at 2:27 pm
Keep it up Fain… China is on the door step and can’t wait for auto prices to rise so they can move in. Europe is seeing this now and when I was in South America, I could not believe the number of Chinese cars.
September 14th, 2023 at 2:27 pm
Will GM’s new 4 cylinder 2.5L engine that’s going into the updated Acadia also go into the Cadillac XT5?
It appears EV’s are starting to catch on big time for Tesla. When will the industry start using Tesla’s charging system.? Will the charging posts have a price on them to indicate how much each kw costs and at what rate does it charges? I’m not anywhere up to date on EV’s but will embrace the concept when the range starts to exceed 500 miles and hopefully that happens before I update my ride in 2028.
September 14th, 2023 at 2:40 pm
7 Thats what they would like everyone to believe. However the cost of labor had little to do with the failures in 2008. Remember that labor only accounts for 10-15% of the cost of a vehicle. The bankruptcy’s back in 2008 were a combination of poor product diversity in that the domestics had placed all their eggs in the truck and SUV market. The spike in fuel prices softened those sales and then with the collapse of the banks and mortgages lack of financing they tanked. Surprisingly (or not) they didnt learn anything as I believe they are even less diversified today. The workers gave up a lot like pensions and pay which was presented as a temporary concession to get back on their feet.
I would like to see them get their pensions back and a decent raise. Everyone thought raising the minimum wage to $15-20 an hour was a good thing. Well this is the result. All it does is push everyone else for their big increase to try and keep up with the inflation.
As for vacation time I believe they can negotiate a fair amount based on years of service like most all other companies do. Put in 15 years and you get 5 weeks. Not starting out the year you’re hired.
September 14th, 2023 at 2:43 pm
I keep hearing what the UAW wants from the auto makers but nothing about what the auto makers want from the UAW. Are the auto makers asking for less absenteeism? Greater productivity? Higher quality? Or is this all one sided with the UAW getting and not giving? Hardly a negotiation then.
September 14th, 2023 at 3:07 pm
I see no mention of collision repair ramifications with megacastings. Some Teslas have been totaled after collisions that would have been repairable with conventionally built vehicles.
https://www.repairerdrivennews.com/2022/06/06/ducker-oems-show-interest-in-mega-castings-despite-many-doubts-about-their-performance/
September 14th, 2023 at 3:25 pm
@14. You are only citing the variable cost effect of labor… not the full cost including legacy benefits.
And UAW members still have a retirement plan. It’s not a defined benefit plan, but is a defined contribution plan… meaning the companies are paying into the union’s 401k. And the companies handed over all the assets of the prior defined benefit (a.k.a. Pension) plan to the union to manage.
The facts have never stopped a union egomaniac. So, again, if I was negotiating on the behalf of the OEMs, I’d tell them
1. They have received our best offer.
2. Each day of a strike will reduce the pay increase by 1% and reduce the vacation time by 1 day.
3. The clock is ticking. Get real now.
September 14th, 2023 at 3:31 pm
16 Does anyone here know what percentage of cars are ever crashed severely enough during a normal lifetime that these repairability issues are a factor? I’d think the percentage would be low.
If there are other issues, like fatigue cracking of the castings, corrosion because of aluminum/steel interfaces, etc., that might be more of an issue.
September 14th, 2023 at 4:13 pm
13 I hope the 2.5 is less of a gas hog than the 2.7. From what I’ve read, the biggest complaint about the 2.7 is gas mileage. I searched around, and couldn’t find if the 2.5 would be used in the cars and/or pickups, or just crossovers.
September 15th, 2023 at 12:27 am
Although clever to 3d print the sand mould, I wonder if prototype parts could be 3d printed in an inert gas chamber?
We know SpaceX is already 3d printing their rocket engines. Other than volume and dimension range, it would a natural thing to 3d print the part and do away with the sand casting. This would further accelerate development to final part.
Once the part passes testing, the mould fabrication and validation would be the last pass..
September 15th, 2023 at 5:37 am
Wait a minute and correct me if I’m wrong (and I’m sure someone will! LOL), but was Ford also supposed to introduce the next generation Lightning, on a new dedicated new EV platform, in concert with the refresh of the F-150 this year?! I thought at least they would have shown a concept at this year Detroit Auto Show? Maybe they will do so later this year ate the Chicago Auto Show, if they can work through this strike with the UAW.
September 15th, 2023 at 10:25 am
Interesting strike targets. GM Wentzville, Ford Wayne, and Jeep Toledo.
September 15th, 2023 at 11:45 am
21 It will arrive in 2025.
https://www.caranddriver.com/news/a43409549/fords-next-electric-pickup-truck-confirmed-2025/