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Runtime: 10:31
0:00 UAW Wins Major Contract Offer from Ford
1:09 Details of Proposed UAW Contract
1:44 Next Steps in Ratification Process
3:00 Renault Rolling Out New ICE Portfolio
4:55 Dealers Refuse to Sell Used EVs
5:57 Stellantis Buys a Chunk of Leapmotor
6:36 BMW Making Its Own Cylindrical Cells
7:36 BMW Tests Electric Powered Semi Trailer
8:40 Fiat Becoming a Landlord
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
UAW WINS MAJOR CONTRACT WITH FORD
In a surprising development, the UAW tentatively agreed yesterday to a new labor contract with Ford. In a sign that union leadership is confident the contract will be ratified, Shawn Fain told all striking workers at Ford to go back to work. That also keeps pressure on GM and Stellantis who will not want to see Ford back in full production while they’re still on strike.
UAW president Shawn Fain credited striking workers with getting a historic contract:
“UAW family, I’m excited and honored to be joined by UAW vice president Chuck Browning as we announce a major victory in the Stand Up strike. Today, we reached a tentative agreement with Ford. For months, we said that record profits mean record contracts. And UAW family, our Stand Up strike has delivered.”
CONTRACT DETAILS
The union got a lot with this contract. Workers will get a bigger raise than they did with all the raises they got over the last 22 years. Full time workers will get a 25% raise over the four-and-a-half year life of the contract, and when COLA is added in, they will earn over $40 an hour. New hires will transition to full wages in 3 years instead of 8. Temporary workers will get a 150% increase in their starting wage. Those with pensions will get a boost, and so will those with a 401K savings plan.
NEXT STEPS IN THE PROCESS
So here are the next steps in the process. And there’s five of them. Step 1 was reaching the agreement. Step 2 will happen this Sunday, when the UAW Ford Council meets to vote on whether the contract should be ratified. If they think it should, then in Step 3 the union will hold an unprecedented live meeting on Facebook to go over the details of the contract with members. Step 4 there will be regional meetings with local leaders. And then for Step 5 the locals will hold meetings to review and discuss the contract, then hold a vote to ratify it or not. We think it will take at least a week to go through that process.
So what will GM and Stellantis do? They will probably pretty much match what Ford agreed to, and then the union will agree to settle with them too. But it could take a few more weeks for that to happen.
RENAULT ROLLS OUT NEW ICE PORTFOLIO
Renault is trying to build the brand up outside of Europe. So, it’s investing 3 billion euros to introduce 8 new models that are built on two platforms, which only support ICE setups, including full hybrids. But no PHEVs or BEVs. It will be up to existing Renault vehicles to fill out those segments in international markets. Five of the new models will fit into the C- and D-segments and will be made on a modular Renault platform in Latin America, North Africa, Turkey and India. The other models will be made in South Korea on a modular architecture that comes from Chinese automaker Geely. They will fit into the high-end D- and E-segments and most are expected to be hybrids. The first of its models with a more international focus is a new small crossover, called the Kardian. It debuts a new lighting style that will be picked up by other models. Power comes from a turbocharged 1.0L 3 cylinder engine that makes 125 horsepower and is paired with a dual-clutch transmission. The Kardian will first be sold in Latin America before going to other non-European markets. And if you want an idea of what the other models could look like, Renault revealed the Niagara Concept, a small off-road pickup that it says is a preview of its future styling. It’s based on the same platform as the Kardian, but it features an IC engine at the front with 48-volt technology and an electric motor at the rear to provide four-wheel drive. Renault hopes to launch its new lineup of international vehicles by 2027. It wants one out of three of the vehicles to be electric or hybrid by the same time and hopes to double the amount of revenue it earns per vehicle it sells outside of Europe. (Pictured: Kardian – Top; Niagara – Bottom)
CAR DEALERS REFUSE TO RETAIL USED EVS
The value of used EVs in the United States is dropping fast, down 22% in the last year. Part of that is due to price cuts for new EVs , which was triggered by Tesla. But another reason could be that car dealers don’t want to sell used EVs, because they’re worried about potential battery problems. An article in Wards says that many dealers will not sell used EVs to retail customers. When they get one as a trade-in, they wholesale it at auction. There are about 17,000 car dealerships in the US, but the article says that only 8,000 will retail used EVs, meaning that most will not sell them. And now unsold, used EVs are starting to pile up in parking lots, which is driving down the value of those cars. That’s also going to drive down the residual value of new EVs, which will drive up monthly lease payments.
STELLANTIS BUYS A CHUNK OF LEAPMOTOR
Last year, Stellantis ended its joint venture partnership with GAC in China. But now the automaker is jumping back into the market and announced it’s investing 1.5 billion euros to take a nearly 20% stake in EV maker Leapmotor. Stellantis will gain access to Leapmotor’s EV technology to help it meet EV targets in China. The two companies will also establish a joint venture called Leapmotor International, that will give Stellantis exclusive rights to export, sell and manufacture Leapmotor vehicles outside of China, starting with Europe.
BMW GOING WITH CYLINDRICAL CELLS
BMW is already doing a good job of selling electric vehicles and here’s another reason it could keep that going. It started producing some of the first battery samples of its new cylindrical cell at a new plant in Germany. These are still only test versions, but they’re helping to ramp up to scale production. The cells will launch in BMW’s Neue Klasse EVs that start coming out in 2025. They’re 46-series cells, which is the same size around as Tesla’s new batteries, but they’re taller at 95 and 120 millimeters, compared to 80 mm for Tesla. BMW says compared to its current prismatic cells, the 46-series batteries have more nickel, but less cobalt on the cathode side and more silicon on the anode side, which improves energy density by 20%. With other efficiency improvements it believes its Neue Klasse EVs will get about 30% more range.
BMW TESTS POWERED SEMI TRAILER
Speaking of BMW, it’s testing how semi trailers fitted with their own battery packs and electric motors can help out both diesel and all-electric heavy-duty trucks. The trailers come from a company, called Trailer Dynamics and offer an 800-volt electronic architecture, either 400 or 600 kWh battery packs and an eMotor setup with peak power of 580 kW or 777 horsepower. When hooked up to a diesel truck it used 46% less fuel over short and medium distances and 48% on long trips. With an all-electric tractor the setups were able to combine to travel 600 kilometers or 372 miles with a normal load on board. It’s not a new idea to use a trailer with its own power to augment the powertrain of the tractor, but new factors like a reduction in battery prices, politics and environmental standards could make setups like this possible.
FIAT BECOMES A LANDLORD
Fiat is expanding into…real estate? That’s right, the automaker partnered with UNLMTD Real Estate, to open an apartment complex in New Jersey near the Hudson River just across from Manhattan. Called Fiat House, it will have 300 residences and offer amenities like an onsite car sharing service with Fiat 500e electric vehicles. The automaker says it’s part of its vision of future urban living that combines “connectivity, community, sustainability and style.” The complex will open next year and interested residents can put their name on a waiting list.
But that brings us to the end of today’s show. Thanks for tuning in.
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Wim van Acker says
Great analysis of the development of values of used EVs and the consequences for lease rates of new EVs, Sean!
Danny Turnpaugh says
The price of UAW built vehicles will be going up, I hope when the automakers use more robots and find a way to use less workers they will be happy with this contract.
Lew says
Semi trailers fitted with their own battery packs and electric motors added to Tesla’s truck could match or exceed Diesel Semi Trucks.
Buzzerd says
I doubt the price of UAW vehicles will be going up as they have to compete with non UAW brands, profits will be slightly less. I don’t know why you would be happy that someone losses their job other than jealousy which would be very petty.
JWH says
Having heard “Record profits mean record contracts” so often recently I wonder if Shawn Fain or his successor will remember the converse (Terrible profits mean terrible contracts) in the future.
GM Veteran says
Congrats to the UAW. Now I will start shopping used vehicles for my next ride.
Seems like Maserati House would have been a better choice than Fiat House.
Or for that matter, why isn’t it called Stellantis House?
Kit Gerhart says
You’d need good co-ordination between the diesel tractor and electric trailor. A big RWD vehicle with a hinge in the middle could have funny handling characteristics if the tractor isn’t pulling much.
wmb says
Buzzerd 100+ thumbs up
It was said that if the UAW had gotten 100% of what the were asking, it would only add less then 5% to the price of each vehicle, on average. So, on a $30k vehicle it would be about $1500 dollars, or about $30 dollars on a monthly car note. When I order fast food for my family of three, I easily spend that and some. I do think the Detroit Three will look to reduce the staff through attrition over the next 10-to-15 years, but that was due to happen anyway with the move to EVs. So this new labor contract, will no doubt help expedite those initiatives.
Wim van Acker says
@GM Veteran, Fiat House, Maserati House, it is confusing:
A co-worker told me today that he drives a Maserati. I was like “dang that is cool, those are so nice.” He replied “yeah, but they are so over-rated”. Since it caught me off-guard I looked out of the window when he left the office. It left me wondering whether he knows he drives a Mazda.
🙂
wmb says
The thing about the UAW deal with Ford, is not that GM and Stellantis will need to agree to something similar, but the transplant OEMs will do something similar too. If not, the may open the door to their employees wanting to unionize. So, while agreeing to this may put a sour taste in the mouth of the Detroit Three, to stay competitive and keep their employees happy, OEMs doing business in the US may find themselves following suite in most respects. One of the biggest challenges they may have, is in retiree care. Right now, most of the transplant automakers, as i understand, only provide limited coverage and only for a few years after their assembly works retire. It looking after employees after they retire, is where a lot of the cost comes for UAW contracts (that being pensions and 401K). If they transplants were forced to copy the Detroit Three’s retirement programs AND meet them on pay, THAT could be a big pill to swallow!
Drew says
Buzzers and WMB… you are underestimating the ripple effect of the UAW contract. Although UAW labor only represents 5% of a vehicle’s cost, non-UAW content will rise similarly. Simply, the contract fuels inflation for all the parts being shipped to the OEMs… and the white collar employees will want a slice of the UAW largess. Overall, I anticipate the total cost effect will be over a 5% increase… perhaps 10%.
wmb says
Drew, so your saying that the assembly workers should not benefit more from the record earnings the company has taken in and members of leadership are enjoying, for that means other white collar workers and middle management are going to want a biggest piece of that pie too? I’m not saying that they are not entitled to it or that they don’t deserve more, but the surprising thing is that leadership will not fight as hard not to give it to them, as they did members of the UAW! The same argument they used to hold out on the UAW, they could just as easily use on them, right?! Yet, I’m sure they will not, but how is that the UAW and union work forces fault? Seems to me that they Benefit Because of the new contract!
Kit Gerhart says
I may be missing something, but in “right to work” states, can’t people free load and not pay dues, even as they benefit from a union contract? Under those conditions, why would a union even try to organize a factory?
Drew says
wmb…. I’m just forecasting the cost effect… not engaging in class warfare. Two “greeds” don’t make it right. At the end of it all, the Koreans and Chinese will benefit… and hundreds of American communities will suffer due to the UAW and D3 failure to fully understand who the real enemies are in a global economy. BTW, most of our politicians share the blame, too.
Nate says
If Fiat ends up with 300 residents at their apartment complex, that’s got to be a massive increase in the number of customers they have in the US.
JWH says
Having heard refrain of “Record profits mean record contract” over the last couple of months, I wonder if in the future we may hear from the management side of big three “Minimal profit means minimal contract” & what the UAW position will be to that?