AD #3649 – OEMs Likely to Retaliate Against UAW; Tesla Makes It Harder for Legacies to Compete; Mercedes Faces Defeat Devices Accusation

September 15th, 2023 at 12:05pm

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Listen to “AD #3649 – OEMs Likely to Retaliate Against UAW; Tesla Makes It Harder for Legacies to Compete; Mercedes Faces Defeat Devices Accusation” on Spreaker.

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Runtime: 11:34

0:00 UAW Shuts Down Three D3 Assembly Plants
1:00 OEMs Likely to Retaliate Against the UAW
2:34 Biden Admin Could Prep SBA Loans for Suppliers
3:40 Tesla Makes It Harder for Legacies to Compete
4:53 Bosch Signs Fuel Cell Buy-Back Plan
5:36 Hyundai Takes Elantra to the Nth Degree
6:40 Rivian Outshines Other EV Startups
7:54 Mercedes Faces Defeat Devices Accusation
8:47 Renault Has Electric Van in All Size Segments

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15 Comments to “AD #3649 – OEMs Likely to Retaliate Against UAW; Tesla Makes It Harder for Legacies to Compete; Mercedes Faces Defeat Devices Accusation”

  1. Kit Gerhart Says:

    I’m surprised about which plants the UAW targeted with GM and Chrysler. As far as I know, Bronco is still a hot item, so striking Ford Wayne seems logical, but aren’t there big inventories of the products from GM Wentzville and Jeep Toledo? Will the strike hurt the companies much?

  2. MJB Says:

    I’ll admit I am coming at this UAW strike issue from the outside looking in, but it just seems to me they were asking for a bit too much to begin with. So let me get this straight…You want your people to work 8hrs less but get paid for 40hrs, and then get a 46% pay hike to boot? Sorry, but that just sounds completely asinine to me.

    I must be missing something here. There must be more to this – something that makes sense. Someone please educate me, because at first glance the UAW’s proposal appears awfully lop-sided.

  3. Drew Says:

    MJB – You aren’t missing anything on the pay increase side. On top of that, he wants elimination of tiers, which at least one OEM conceded (yet all other professions have tiers wherein new pros are paid less in their 1st 2-4 years while they learn on the job). And he wants pensions, but don’t know if he is willing to give back defined contributions (a.k.a. 401k).

  4. GM Veteran Says:

    And, all of that while not touching their healthcare plan, which is only equaled by the plan Congress created for themselves. Who has company provided healthcare coverage for health, vision and dental with NO deductible? The UAW. Also, please note that the white collar coverage is not nearly as good. A friend that works at Ford HQ told me just last night that his plan has a $3,000 annual deductible.

    Think of the savings if the companies could implement just a $1,000 deductible. That could fund a lot of the other items they are asking for.

    By the way, they are also the highest paid auto assembly workers in this country. Their current pay level is significantly higher than Tesla or any of the import plants pay. They are also near or at the top of the pack of similar jobs in similar industries. Don’t listen to the UAW hype, get the facts. They already make a very nice living and have justification for only a couple of modest pay and benefit increases. Going back to the pay and benefits packages they had before the Great Recession will only make the chances of success much lower for the Big 3.

  5. Lambo2015 Says:

    Marek Masters made some good points and depending on how the negotiations go I will be a bit reluctant to buy any vehicles assembled during this time. Could be a lot of angry or disgruntled employees on the floor. Not to mention the havoc created by assembly lines stopped mid production for who knows how long. If this strike lasts a couple months, you could have a vehicle and components that sat on the factory floor for months. Sheet metal bodies tend to rust if they don’t make it to paint in a week or so.

  6. Lambo2015 Says:

    Sean I would almost bet that the Mercedes cheat device will affect performance. Why else would they do it? In order to meet emissions, you have to sacrifice something, and that something is always performance. So when the lawsuits start flying what’s a few HP worth?

  7. MJB Says:

    #3, #4 – I thought so. Thanks for confirming.

    Last I checked, you still don’t need a college education to work in a plant, yet the potential is there to earn a 6-figure salary with benefits similar to what City of Detroit employees get (pretty darn nice. I know because my brother’s been a bus mechanic with the city for 25 years).

  8. Kit Gerhart Says:

    The 32 hour work week thing is almost definitely something to “bargain away,” and even Fain knows that there is no way they will get it.

    It would seem that the tiered wage structure should have room for “middle ground.” It is now 8 years before workers get full pay. Maybe they could shorten that, but still start at less than full pay.

    5 I always felt that way about buying vehicles built during a strike, or during the time leading up to the end of a contract. I always order cars, so I’d delay ordering until things settled out, if I was getting a car during a contract year.

  9. Danny Turnpaugh Says:

    I used to work at the Kokomo Transmission plant for about 10 years and think taking 8 years is to long to get to top pay, most jobs can be learned in a week or just 2-3 days. Maybe 6 months to 1 year would OK to get top pay. no comment on rest of the contract, I can see both sides of the issue.

  10. Merv Says:

    Another great week of autoline,thanks

  11. Kit Gerhart Says:

    Good AAH yesterday.

  12. Kit Gerhart Says:

    Do any companies have defined pensions any more? I understand the UAW wanting them, but I doubt if any companies have them, unless maybe some of the big military contractors or something like that.

    Many, or most government employees have pension plans, and the US military still has a very good one, unless it has changed recently.

  13. joe Says:

    As a retired GM employee, I have to say, this is the most callous negogtiations I’ve ever seen. Nobody will win on this one and permanent damage will probably ensue from this. The foreign car company will say thank you. Now, we can probably even make you weaker and someday wipe you out completely.

  14. Kit Gerhart Says:

    13 Exactly. This strike to end quickly, or the companies will be in deep trouble. The only thing they have going for them now, is that they dominate the big pickup market, but that could change. If the companies go bankrupt, would the UAW contract still apply if, say, BYD bought a bankrupt GM or Ford, just for the truck business?

  15. David Foley Says:

    Fwiw, I hope the OEM’s have to concede here, and end up signing a big fat contract with the UAW.

    The OEM’s have milked the heck out of the ‘we’re struggling’ trope, for far too long. The union gave HUGE concessions during the bailouts, and have gotten very little back since then. It’s time to level it out.

    I think it’s also bizarre that people say they shouldn’t get a raise, because other manufacturers pay less. I’m kind of like, so what? You can always find people who will work for less when there is no option to work for more. With the companies as profitable as they are, they CAN afford to pay people extremely well.

    And as for workers getting hosed at those other plants, if they get representation, and see that the union will work FOR them, maybe more plants in the so-called “Right to work” states will agree to be organized.

    The final line I call BS is, OEM’s claiming that they need to keep wages low, because the energy transition is coming, so they need the cash to go EV. Sorry folks, the worker is NOT here to finance the growth and development of the corporations new products. That’s not how this works. BANKS finance growth. Not workers.

    But that’s the view from my part of the beachball