Listen to “AD #3665 – UAW Declares Something Of A Ceasefire; Tesla Signs Major Deal with Hilton; Audi Slashes e-tron GT Price By $20,000” on Spreaker.
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Runtime: 9:54
0:00 UAW Declares a Ceasefire
1:35 UAW Mack Workers Reject Contract
2:19 Unifor Ready to Strike GM Tonight
2:55 Tesla Signs Major Deal with Hilton
3:56 IRS Just Made Buying EVs Easier
5:13 Hyundai Can’t Find Buyers for China Assembly Plant
6:00 Audi Slashes e-tron GT Price By $20,000
6:54 Ford Expands Blue Cruise in EU
7:29 Ford Launches All-New Transit in EU
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UAW DECLARES A CEASEFIRE
The UAW’s president Shawn Fain declared something of a ceasefire with GM, Ford and Stellantis on Friday. Instead of calling more plants to go on strike, Fain told UAW workers that they’re making significant progress in negotiations. He noted that with the strike only three weeks old, the automakers more than doubled the raises they originally offered. He also cited progress on COLA, or cost of living, faster transition to top wages, better pay for temporary workers, enhanced profit sharing, and retirement security. But he also told them, “we’re not there yet.” One reason why Fain did not expand the strike is that the union got a major last minute concession from General Motors. It will bring workers at its joint-venture battery plants into the master contract agreement, which will likely get them the full wages earned by workers in assembly plants. All three automakers had opposed that move, but with GM conceding, Ford and Stellantis will probably have to do the same. The fact that the strike did not expand may signal that the worst is over. Shawn Fain certainly believes the union has the upper hand. “Here’s my bottom line,” he told his members, “we’re winning.”
UAW MACK WORKERS REJECT CONTRACT
But even if the UAW reaches an agreement with the automakers, that doesn’t mean the workers will approve it. In a surprise development, 73% of the UAW workers at Mack Truck rejected a new contract that included a 19% raise and a host of other increases to their compensation. Maybe those workers want the 21% increase that Ford is offering, and the COLA that Ford and Stellantis agreed to. Fain has raised the expectations of UAW members and they want him to deliver. And when the workers reject a contract, that actually gives the union more bargaining leverage.
UNIFOR READY TO STRIKE GM TONIGHT
And now all eyes turn to Canada, where Unifor, the Canadian union, has a strike deadline of midnight tonight with General Motors. Unifor told workers at GM’s engine plant in St. Catharine’s to get ready to strike. That plant makes V8 and V6 engines, as well as 6-speed and 8-speed transmissions that go to multiple GM assembly plants in the US, Mexico and Canada. So a strike there would be a crippling blow to GM’s most profitable products across North America.
TESLA SIGNS MAJOR DEAL WITH HILTON
Tesla just made a major deal with Hilton to install chargers at its hotels in the U.S., Canada and Mexico. 20,000 chargers will be installed at 2,000 locations starting next year. Right now, only one Hilton hotel in the U.S. has on-site EV charging. Going forward, each hotel will have at least 6 chargers. With so many car companies adopting Tesla’s NACS, and with it installing so many chargers, Wedbush Securities says that Tesla’s Supercharger network could be a $10 billion to $20 billion business by the end of the decade.
IRS JUST MADE BUYING EVs EASIER
The IRS just made a couple of big changes to how the federal tax credit for EVs is applied in the U.S. First, starting at the beginning of next year the credit can be deducted from the price of the vehicle right at the time of purchase. Buyers can now transfer the credit to an “eligible entity,” which essentially means that the buyer gives their tax credit to the dealer and then the dealer gives them the discount. Because the wording says “eligible entity,” companies like Tesla, Lucid and Rivian, that don’t use franchise dealers can also make the point-of-sale price cut. Unfortunately, this will require even more information when buying an EV, but even more people will qualify for the full credit. Previously, to get the full $7,500 you had to owe at least that much in federal taxes. But the IRS is removing the rule so lower income buyers can qualify for the EV credit. Yet, the income cap of $150,000 for single filers, $225,000 for heads of household and $300,000 for married buyers is still in place.
HYUNDAI CAN’T FIND BUYERS FOR CHINA ASSEMBLY PLANT
Hyundai is having a tough time selling one of its plants in China, so it slashed the asking price by 30%. Hyundai put the plant up for sale in August and is now asking just over $350 million for it, which is dirt cheap. The factory in Chongqing is jointly operated with BAIC and it opened in 2017 with a capacity of 300,000 vehicles. Hyundai had five plants in China at its peak but it already sold one of them in 2021 and it wants to cut it down to two. We think Hyundai is having a hard time selling because there is so much overcapacity in China that no one really needs another plant.
AUDI SLASHES E-TRON GT PRICE BY $20,000
Even though Audi’s EV sales shot up 93% in the 3rd quarter in the US, it’s offering some serious discounts for the e-tron GT. It cut the price of the high-performance RS version of the EV by $20,000, which drops the MSRP to just over $125,000. That’s for a 2023 model year vehicle, the 2024 model gets a $10,000 price cut. This car has 637 horsepower, moves from 0 to 60 MPH in 3.1 seconds and is meant to compete with EVs like the Tesla Model S Plaid and Lucid Air. Audi also dropped the price of the standard 2023 e-tron GT by $12,500 and by $5,000 for the 2024 model year.
FORD EXPANDS BLUE CRUISE IN EU
Ford is expanding BlueCruise in Europe. It already operates in Great Britain and Germany and was the first to get approval for a hands-free system in Spain. Ford says 95% of these country’s motorways could be made to work with BlueCruise and it will update vehicles with more roads over time. The technology is also available in vehicles sold in the U.S. and Canada. Ford charges about $22 a month for Blue Cruise in the UK and is counting on subscription services to grow its top line.
FORD LAUNCHES ALL-NEW TRANSIT IN EU
Speaking of Ford, it just opened the order books for the all-new Transit Custom and Tourneo Custom in Europe. These are the same van, but the Transit is the commercial version and the Tourneo is the passenger version. They’re available with a range of diesel engines or as a plug-in hybrid or pure electric model. The diesels can be paired with a manual or automatic transmission as well as AWD for the first time. The PHEV uses a 2.5L gas engine with a nearly 12 kWh battery pack, which provides about 56 kilometers or 35 miles of range. And the all-electric version has two motor outputs with a 64-kWh battery that provides up to 325 kilometers or about 200 miles of range. The all-new vans will also take advantage of a new electronic architecture, which supports an updated infotainment system and OTA updates. While orders for versions with an IC engine are open now, the BEV version will follow soon, but deliveries won’t start until the summer of next year.
But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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The prices of the Big 3 automakers vehicles will be going up with a new contract, and while its good for the workers, the other automakers that aren’t union, I’m sure there employees will be wanting a big pay raise also. Now if my retirement would go up accordingly. And the suppliers are in there somewhere. If a down turn in the economy forces these companies into a bankruptcy will the Government bail them out? So these Union workers can’t lose.
I don’t care about a cease fire. Go back to work! Why haven’t we heard anything about significant reductions in absenteeism or major consequences for repeated absenteeism ?
Now with the settlement at the Big 3 the UAW members don’t have to worry about a thing since the companies will all be “Bankwupt” in 5 years unless they start negotiating and thinking to make the Big 3 products and services more competitive not what is owed them. What can I say “the competition is coming” and they will eat your lunch
With Hilton Hotels getting Tesla chargers, long distant traveling for EV’s will be much better.
Getting a room with a “Guarantied” charger should entice more EV sales. especially with a 100 mile bath room member in the family. Ahem.
Tesla has another $$$$$ winner.
Did not Know that Previously, to get the full $7,500 you had to owe at least that much in federal taxes.
“To get the full $7,500 you had to owe at least that much in federal taxes” Gross, net Other ?
Maybe retirees like myself could qualify now
“Hyundai is having a tough time selling one of its plants in China”
Just step in China’s plan for world domination.
Shawn Fain, with his “Eat The Rich” t-shirt, seems to be under the same virtue-signaling, cannibalistic delusion as the likes of AOC with her “Tax The Rich” designer gown worn to the 2021 MET Gala. Who do these people think they are fooling. Shawn Fain is one of “The Rich”.
All of the “big three” are way too dependent on big trucks and SUVs. They have a range of CUVs, but various of the Asian brand CUVs are generally better, overall, and sell better. I guess Fain and his gang just want to get what they can now, if if the companies are bankrupt at the end of the contract…
I assume that the Tesla chargers at Hiltons will be “destination” chargers. I’d want to be guaranteed that I’d have access to a charger before I’d want to make a reservation, expecting to arrive with not much battery left.
As great as the the Tesla chargers at Hiltons sound, my question is: Will there be a Hilton surcharge to use them? My wife and I went out of town for our anniversary and stayed a premier hotel similar to the Hilton, in a major city, 6+ hours from home. It wasn’t until after the long drive, that we learned that parking was limited, but the hotel had a parking garage it customers. When we went to park, it was then that we learned that using the garage came a a $40 a day additional cost to hotel stay! So I would not be surprised it the Hilton Tesla chargers, come with a surcharge for use! While they may have six chargers, the rule of supply and demand may govern their use!
On a different note, let us be careful with placing the Detroit 3’s possible future financial worries on the UAW and a successful contract for them. Early on it was pointed out that if the Detroit 3 gave in to ALL their demands, it would add less then 5% on the hood of there vehicles, on average. A report on NPR discussing the current UAW strike with two industry authorities, pointed out that battery and BEV plants that may OEM’s have started construction on, are backed by tax payer fund, provided by the IRA! While I am not fan of Mr. Fain, we have to be careful too, with the talk about the Detroit 3 wanting to remain competitive with non union OEMs, as if to say work force pay is the ‘only’ that the Detroit 3 compete! As have been said before, no UAW worker decides what type of material is used for a vehicles interior. No UAW worker green let the Pontiac Aztek! No UAW worker decided to give up market share on GM pickups, by selling fewer entry-level vehicles and focus more on high in ones because they bring in more profit! No UAW worker decided to put ‘sideburns’ on the Chevy Silverado and design the Camaro to be difficult to see out of, with styling that divided if loyal fans! UAW workers aren’t the ones that decided to leave the sedan market to imported brands and focus on CUVs, SUVs and pickup trucks, with higher emissions and, though efficient, burn more fossil fuel then smaller vehicles. It might be argued that employees wages and benefits have, to a degree, encouraged these moves, but movers and shakers at the top, executives and middle managers have benefited more, or as the least, just as much as the rank and file! While I applaud Fain’s approach in negotiating with all of the Detroit 3 at the same time and the way they have implemented the strike, his rhetoric and grand standing, putting so much of negotiating out in the public, seems to have been so unnecessary, especially so early on. That said, if he had not, I do not think that they would have been at this point in their negotiations, had he not! Rest assured, after this contract is eventually ratified, four years from now when it’s time for the next one, these OEMs will not be caught so flat footed. I am sure they will remember these contract talks and will be looking for some reservation!
I guess I got a little off track, but when it comes to competitiveness, when is it ALWAYS laid a the feet of the worker and there pay, but hardly ever at the decision made by the company leaders?! I’m not saying that leaders have not been ousted, due to poor performance. During good times you always hear how the wages of leadership and upper management goes up and up, but the wages of rank and file stay the same. Yet, during lean times, those of the highest earners retained and those who impact the companies bottom line, are let go in big numbers to balance the books! If the Detroit 3 want to be and stay competitive, they have to make products that do. That was the hope that they had/have with the switch to BEVs, from ICE vehicles. To change the narrative and show that they can compete. Yet, in a recent article of Motor Trend, while they gave kudos to Cadillac/GM on the Lyriq AWD, they went on about how the charging door kept sticking or jamming and visible larger gap between the passenger side doors, verse that on the driver side! To be honest, IMHO, they were knit-picking one might find worst QC issues on a Tesla, which is constantly given a pass. Yet, for and OEM that has built vehicles for over a hundred years and has a $300K+ Celestiq in the pipeline, one would think that they would have banished should misgivings! The question is: does these things reflect poor assembly and of its parts, or poor engineering and design? My point is competitiveness is the responsibility of both parties! Not just on how much is paid to their employees as compared to other OEMs, but also the styling, design, engineering, cost of the product and it’s marketing. Putting that responsibility solely on the shoulders of assembly workers is just not fair, what so ever!
wmb, 9:10 pm
It is standard for hotels to charge for parking in “downtowns” of big cities. As far as the charging, it will be interesting. Maybe it will be whatever Tesla’s rates would be, or maybe free.
I went by a Tesla Super Charger installation this afternoon. There was a 12 post charger and everyone occupied and 3 waiting. Nearby was another charterer set up that had 4 posts and not one in use. It’s apparent that Tesla is the industry leader in the EV world with vehicles and it’s support system and it’s going to be 2 years before the rest of the Company’s can use their chargers.
WMB I agree with you, that the assembly workers can really only affect good or poor build quality. They are not responsible for the direction of the company the engineering and designs that they are handed. Even poor build quality can be controlled with proper quality gates and a robust process. So, they have the ability to affect first time through put. Are vehicles being reworked, rejected fixed or repaired even before leaving the plant? Thats where they can really affect the bottom line. Those numbers are easily tracked and recorded and plant /dept managers are accountable for those results. So, assembly workers performance is monitored on a daily basis. On the flip side managers are typically monitored on a quarterly or yearly basis. Not to mention their numbers can be skewed or hidden due to many things out of their control. Parts shortages, dips in the economy, change in interest rates, exchange rates and so on. I do hope that the union workers get a good contract, but I also hope that the manufacturers negotiate something in return like a certain level of FTT and OEE. I would think the union would want to offer something for their premium pay. It’s not just getting their cut of the pie they should be offering something in return. What does the manufacturer get by having union labor? In construction it was always very much promoted that a union job means the workers were trained in the hall and have skills and are not just some random guys off the street that needed work. By hiring union members, they need to be promoting the advantage of union labor. I’m just not sure what that is.
As for the Hotel chargers. Thats a step in the right direction but I also wonder, are you going to get a call in the middle of the night to go move your car because another guest needs the charger, and your car was fully charged at 2am. Or worse you’re the guest that showed up late and the charger is being used. Do you have to wait until that guest has checked out so you can use the charger. Hopefully the hotel will have the valet take care of the swapping if needed. So rather than pay for parking you might be required to use the valet.
Regarding the hotel EV chargers, there was a segment on here once that showed a robot charger serving all the different vehicles that needed charging; while a robot may be overkill (or the future), a hotel employee could probably wheel a mobile charger to all the parked cars easier than shuffling the cars around.
One more note for your new format IT staff: I used to be able to click on the photos in your transcripts to see much larger detail, now when I click the little thumbnail pics it either does nothing or gives me a 404 error screen (then I have to click “back” and then reopen the transcript).