Negotiations between UAW and Detroit's Big Three are already tense, autonomous systems transform how we produce automotive parts and trends from car holdings. All this and more in the morning shift on Monday, July 15, 2019.
1. Gear: Here are the major UAW topics
Negotiations between United Auto Workers Union and Detroit Three (General Motors, Ford and Fiat Chrysler) begin this week, which determines the new four-year contracts for nearly 150,000 employees. And tensions are high.
Between the scandal of the actual UAW and GM that closes a bunch of plants, there are also issues such as throbbing car sales, trade war and the threatening threat of automation to consider. It will probably be pretty nasty. The most important discussion questions are as follows, which helpfully posted by Bloomberg.
Plant Protection: This is probably the biggest problem. GM's construction rods have pulled the ire not only the association, but also the president, the congress and the democratic candidates. The association's GM head wants to "secure work" for its members on closed plants.
Temporary Workers: Hiring a temp worker is a quick fix when a company needs someone to cover something quickly. But,
GM's desire to take on more temp workers is going to run proud of UAW's leadership, which was a tender one during their March negotiation convention. Members were kicked up for limiting use of temps because they were paid less, qualified for skimpier benefits and have weaker protection under the union contract.
Health Care: UAW members apparently have some of the best healthcare benefits in the country, according to the Kaiser Family Foundation. This is not cheap for car manufacturers. A named source for Ford was quoted at the withdrawal to say that the health service of its 56,000-hour staff would exceed $ 1 billion next year, and that GM pays nearly $ 900 million annually to its US-based hourly staff.
But healthcare is one of those things you really don't want to touch. Not unless you want a riot on your hands anyway. Car manufacturers are likely to cut somewhere else if they want to save money.
UAW Corruption: "Fat, Stupid and Happy" was how former FCA executives wanted the unions to feel after the FCA-UAW corruption scandal that has been a UAW disaster. While much of this has been blamed on a few bad individuals, the scandal has undoubtedly shaken the members confidence. The community may have to work extra hard to convince its members that it is fighting for them, Bloomberg expects.
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Strike: UAW President Gary Jones raised strike wages in March, which should tell car manufacturers that the association means business. A former UAW adviser told Bloomberg that he believes the Union will not get its preliminary agreement ratified with the companies. How it chooses to escalate and put pressure on it is still to be seen, with the nuclear power alternative as a strike.
Buckle down, children. It's going to be a long trip.
2. Gear: All-New Parts
For over a hundred years, we have been driving our own cars. But now, the autonomous technology is very much a part of our present, and it also changes how we produce car parts.
Because cars are becoming more and more loaded with autonomous features, parts such as tires, seats and headlights are equipped with more and more sensors so that the system can monitor as much information as possible when making decisions, Bloomberg reports.
For example, Tokyo-based Koito Manufacturing adds "sensors and artificial intelligence chips" to headlights that will start around 2025. The high-tech headlights
will be able to process information and respond, for example, by illuminating poorly illuminated crossings, signaling pedestrians that it is safe to cross and increase the alarm to surrounding drivers by blinking a particular color.
Asahi Glass Co. Ltd. Has apparently designed windows that have built-in antennas for 5G connectivity, thus better enabling vehicles-to-vehicles and car-to-infrastructure capabilities.
Summer day, maybe, we don't even need headlights anymore. I mean, if the cars are driving themselves already and they are so loaded with radar and sensors that they already know what's around them, what do we need to look for?
3. Gear: Inventories Run Short
In the block to build transitions, SUVs and trucks to meet demand, the industry has apparently created a glut of big cars that people do not necessarily buy. What the numbers show is that people actually buy the smaller cars.
This is from Automotive News, which reports,
In total, car manufacturers and dealers had estimated 4,004,700 unsold cars to start July, a 69-day supply slightly up from the 3,992,100 vehicles available in beginning of June and about flat from the previous year.
But within this gross number, the product is being moved over the past few years by several car manufacturers away from sedans, coupes and hatchbacks – and against crossovers, SUVs and other light trucks – have begun to play out in stock at dealerships.
1,008,000 unsold cars were estimated at the beginning of July, a 60-day supply, accounting for just over 25 percent of the total inventory. By comparison, car sales in the US accounted for 29.4 per cent of total sales during the first six months of the year.
Too many light trucks! It may be light at the end of this large car tunnel, because it seems like a reasonably steady crowd still buys the smaller cars.
4. Gear: More Amazon
I haven't met a person who's been stoked about having Amazon in the car, but I guess they're out there? Anyway, Amazon has plans to keep up with the Alexa expansion in the automotive industry. Happiness.
Audi and the BMW Group (which include the Mini) will apparently be the first to install Alexa into the software system of their cars, reports Automotive New Europe. From the story:
Audi plans to roll out Alexa gradually across his vehicle fleet, spokeswoman Amelia Fine-Morrison said. Audi launched Alexa on the new e-tron all-electric crossover last year. The next vehicle will be the newly developed Q3, she said.
BMW's partnership with Amazon for Alexa is about providing a seamless experience between their home devices and their vehicles for their "digital lifestyle," said Dieter May, BMW's senior vice president of digital services and business models.
Look, I'm sure Alexa helps with convenience and connectivity and all that, but the thing is a pain in the butt to use. The one I have at home has become a glorified kitchen timer and music player, and it often screws up even the two tasks.
5. Gear: EV Rebates
Despite the many attractive EV options now available to buyers, most still opt for the petrol-powered cars. Much of this comes down to cost.
But a California legislator is trying to increase the state's EV discount so people have more of an incentive to go without gas, reports Detroit News.
The commander Phil Ting, D-San Francisco, bears a bill that will increase government-funded car discounts up to as much as $ 7,500, rising from today's top discount of $ 2,500.
Over time, Ting's bill will reduce the value of the rebates , which gives car buyers an incentive to move faster by switching to electric vehicles.
He says he is trying to achieve a goal earlier Gov. Jerry Brown sat last year with a new law aiming to put 5 million zero emission electric vehicles on the California roads by 2030.
"The goal would be if we were able to create a large enough market for clean cars that "They would be competitive with gas cars. We believe that this bill is a very important component of moving us into our 5 million reindeer future by 2030," Ting said during a hearing on Tuesday.
The expiration shows that it is only about $ 600,000 in use in California, and this is because EVs tend to be more expensive than ICE cars, which are a major buyer deterrent. 1,500 for PHEV, prices that have not been updated for over five years, and apparently underfunded sometimes, so buyers need to put on waiting lists, nobody likes it
Tings bill, if passed, would mean California Air Resources Boar d need to find a steady stream of funds for discounts and also determine how much the discount would be. Electric cars are good! They are fun to drive.
Conversely: First order from a dentist
Ernst Pfenning, a Chicago dentist, becomes the first person to order Henry Ford's two-cylinder $ 850 A-car model. Congratulations on him.
Neutral: How big of a discount will make you switch to an EV?
A $ 7,500 discount is not a change of prey. Would you be happy with that? Or do you want more?