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Industry Watch for April 18th, 2007

04/18/2007, 10:40 PM

By ndhapple

Today: the UAW President ratcheted up the pressure against Delphi, said DCX shouldn’t sell Chrysler as the troubled automaker announced a $3 billion investment to build new plants and modernize existing ones. GM continues to apply pressure to UAW locals representing its plants as contract preparations for negotiations between the “Big Three” and the UAW over the next contract get underway.

UAW/Delphi negotiations melt down
UAW President Ron Gettelfinger told reporters the UAW was taking matters between Delphi and the UAW “to the next step.”

“We are moving forward internally, because this thing has gone on long enough and people have taken advantage of the situation,” said Gettelfinger, seemingly accusing Delphi executives of abusing the bankruptcy process.

Delphi’s new proposal, which is rankling UAW members, is said to include new hires being paid less than the $14 starting wage, no cost of living adjustments in the contract, and massive cuts to health care and pension benefits.

UAW says don’t sell Chrysler

UAW President Ron Gettelfinger today told reporters what he thinks about the sale of the Chrysler Group should by Daimler Chrysler. In short, he doesn’t think Daimler should sell Chrysler.

He said he still believes there is value in keeping the companies together because of the combined synergy between Chrysler and its Mercedes counterpart. Gettelfinger also stated that there was support from many members of the DCX board to keep the “C” in DCX, according to The Detroit News.

Chrysler to build two new Detroit plants
As part of a $3 billion initiative to build new plants and modernize existing ones to build new more fuel efficient engines, transmissions, and axles, Chrysler announced it would spend more than $1.4 billion to construct to new Detroit area plants the Detroit News reported.

GM pressures UAW Locals to make concessions
GM is pressuring the UAW Locals to accept work rule concessions and the outsourcing of some jobs previously conducted by UAW labor to nonunion firms. Proposed changes to work rules include 10 hour shifts without overtime pay and would allow nonunion staff to clean facilities, drive trucks and replenish parts bins. GM says allowing them to outsource janitorial work would save the company between $300-$500 million a year according to Automotive News.

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04/19, 6:32 AM

posted by:

Get Real

Holy Tunnels Batman !!!!

I think we went through a wormhole and ended up in the UAW world of 1965.

04/19, 8:54 AM

posted by:

RSPINAJR

Well said! And the public wants to know why the Japanese brands are cleaning up the streets with GM, Ford and Chrysler! Case in point right here. I’m all for the unions but strike Delphi and cripple GM?

WORK WITH THE AUTOMAKERS AND WE WILL BE SUPERIOR ONCE AGAIN!

We can’t get out of our own way like this!

04/19, 10:11 AM

posted by:

Madcapp

I hope DCX doesn’t sell Chrysler. I’d but a Daimler-Chrysler Challenger. I wouldn’t buy a Chery-Chrysler Challenger.

04/19, 10:38 AM

posted by:

fisher321

I agree with Madcapp. Keep it DCX and to hell with the unions. There are enough people in this country who would work for the American auto makers without all the union ” perks “. The auto makers should consider building new plants in areas of the country where they have not yet gone and the people haven’t been conditioned to believe that the unions are their saviors. If the domestic auto makers go under, it won’t be the fault of the product as a whole, but the unions who drive them under. Make the unions irrelevant or non-existant.For the most part, the U.S. auto makers make decent reliable transportation. I would like to see deisel options here though.

04/19, 12:40 PM

posted by:

Stuart

DCX has got the UAW by the balls and are finally in a position to downsize to an adequate size hopefully rather then sell

04/20, 2:05 AM

posted by:

TOZO

Chery-Chrysler. Lots of common letters there. Yeah though: that would be aweful.

04/20, 9:26 PM

posted by:

Diel

You do know Dodge makes the Challenger?

 
 
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