Several General Motors include news, future emissions regulations in the United States, Nissan's plans for the future, Volkswagen is betting on the electric ID.3, and Faraday Future is still a thing and still raising money to be one. All this and more in The Morning Shift for Wednesday, October 23, 2019.
1st Gear: GM-UAW Tentative Deal
The United Auto Workers union and General Motors have a preliminary agreement agreement in place after the UAW made its biggest move to strike since a two-day walkout in 2007 . With the tentative agreement comes the weighting of advantages and disadvantages, and Automotive News has a pretty good overview of who wins and who loses in the current agreement.
One of the big winners, in Automotive News & # 39; s mind, is the Detroit-Hamtramck assembly plant. Here it is:
While GM won the ability to shut down plants in Ohio, Michigan and Maryland, the union secured a major victory in holding open GM's Detroit-Hamtramck Assembly Plant, which is scheduled to close in January. Workers there will have the opportunity to build electric trucks, vans and battery modules, representing a commitment of $ 3 billion . While the trade union has expressed concern for electric vehicles, and while EVs are still a small part of the market, the award cements job security for up to 2225 full-capacity people. If that doesn't secure their "yes" votes, nothing will.
The story also has a great overview of what the tentative agreement means for new hires, and puts them in the "losers" category:
The union secured a win for all current workers, who will earn a top salary of $ 32.32 by the end of the current agreement. But the fate of new employees is a little less clear.
All current full-time temporary employees with at least 3 years of continuous service (layoffs up to 30 days do not count) will become permanent employees by 2020.  However, new hires after the contract date start at $ 16.67 per hour. There is no language about salary increases or promises to move directly to full-time jobs. In fact, a section from previous appointments stating that they will be considered for regular job opportunities has been exceeded. Instead, part-time temporary workers will only be considered for full-time temporary workers, with the possibility of permanent employment after serving two years as full-time.
It is also unclear about new full-time employees per hour on the new, condensed four-year growth in top salary that current full-time employees won.
Automotive News has a complete, comprehensive list here .
2. equipment: New US emissions regulations will be more restrictive than we thought: EPA boss
The Trump administration's environmental protection chief said this week that new emissions regulations will be out this year and will be stricter than we thought, reports Reuters . It has been a major theme for many years now, with the administration fighting with the state California other states and automakers during their determination to release fuel from the Obama era – economy regulations.
No details were provided as to what the new regulations will contain, but EPA Administrator Andrew Wheeler said in a recent speech that plans are "actually more limiting for CO2 emissions than the Obama proposal was" as proposed by Trump. the administration will get rid of some of the elements that make it easier for the car manufacturer to comply.
Here's the background for how we got here and where we are going, via Reuters:
The Trump administration is involved in a legal battle for car emissions from the state of California and other states that want to keep the Obama administration's standards, which require pushing the average fuel efficiency of new vehicles to 46.7 miles per gallon by 2026.
The Trump administration's earlier proposal asked to freeze the average fuel efficiency target for the vehicle to 37 mpg. Wheeler said he is hopeful California regulators will have a different view when they see the administration's final proposal.
Only three automakers complied with US fuel efficiency standards in 2017, Wheeler noted, saying that the Obama rules "are not based on reality."
The Trump administration, you will recall, is about "safer cars versus more fuel-efficient cars", which is a logical carnival ride since these two things are not interdependent. The president thinks that fuel efficient cars “like paper mache. Some touch them and the whole car collapses. "It could not be further from the truth .
Reuters has anyway more about the story here .
3. provides: Nissan Could Ax certain products; Conveyor; Datsun Brand In Push For More Profitability
Nissan wants to "increase profits by diminishing" when looking at things after Carlos Ghosn, two named company sources with direct knowledge of the matter told Reuters in a story published Wednesday. That means, according to history, to shoot unprofitable products, assembly lines and probably the Datsun brand.
Nissan calls moved the "performance recovery plan" internally, reports Reuters, and is a result of Nissan under Ghosn doing everything possible to meet sales goals – including "practically giving away cars" to fleet buyers, . Reuters quoted a source as saying. From History:
The plan is the Yokohama-based carmaker's latest attempt to pull out of the crisis after Ghosn was arrested for financial behavior – charges he denies. The scandal has further strained an already dysfunctional alliance with Renault SA and threw Nissan into disarray when it is on course to book the lowest operating profit in 11 years.
The sources said that Nissan is likely to kill full-size variants for the full-size Titan pickup. Non-profitable variants include simple cab and diesel versions.
A planned shutter of underutilized production lines is likely to hit hardest in emerging markets that build Datsun and other small cars the hardest, they added.
Nissan declined to comment on the story, Reuters reported.
Fourth gear: Volkswagen's Bet on The ID.3
Volkswagen has not looked greener in recent years. The discovery of the huge Dieselgate emissions scandal among automakers began with it, and cheat emissions are not a great look. But the carmaker is part of the PR and product campaign to turn it all around, and the all-electric ID.3 hatchback is one of the starting points.
Bloomberg has a great history of upcoming ID.3, part of Volkswagen's decision after Dieselgate to spend nearly $ 50 billion on EVs after the scandal costing more than $ 30 billion. From Bloomberg:
ID.3, which is scheduled to hit the streets in mid-year, is the first of at least 70 electric cars in VW's pipeline. German assembly lines will start rolling in November, and by 2020, two factories in China will start production, allowing VW to build more cars annually than Tesla Inc. has sold throughout its history. By 2022, the company expects to have eight facilities around the world that make battery-powered cars, from ID.3 to trucks to Porsche's four-door Taycan.
While ID.3, priced from around $ 30,000 with a range of 200 miles or more, is aimed at countering the threat of Tesla's Model 3 and the stiffest competition will come from gasoline-powered cars like VW's own Golf -hatchback. The company has made an electric Golf since 2012, but the vast majority of sales are for combustion versions, and Volkswagen October 24 plans to unveil the latest iteration of the model as it seeks to go around old and new worlds.
Bloomberg has more here .
5th Gear: Faraday Future Still Kicking; Fundraising
Oh, you thought the startup of electric car Faraday Future was nothing anymore? This was probably not so far fetched, given that its entire existence has been, questionable . But Faraday Future is still alive and kicking, and hey, it's looking for some means if you have any.
Bloomberg reports that Faraday's new CEO wants to raise about $ 850 million by the first quarter of next year, because Faraday has cars to build:
The company plans to use the revenue from the upcoming funding around a bridge to an initial public offering, CEO Carsten Breitfeld said in a telephone interview. He took over the job weeks before Jia Yueting, Faraday's founder, filed for bankruptcy in the United States after raising billions of dollars in personal debt to try to build a business empire in China.
Faraday, less than six months removed from securing $ 225 million funding, will select a leading investor for the upcoming round by the end of this year, and both new and existing supporters will participate, said Breitfeld. The company's capital requirements mean that a stock exchange listing "cannot be in the foreseeable future", while acknowledging that the conditions for an offer are not ideal.
We'll see how all this goes.
Reverse: Skyfall Premieres
23. on October 2012, it had its 23. James Bond movie Skyfall premiered, along with these red carpet photographs from Guardian . Seven years later, we wait for Bond 25 .
Neutral: How much of your next paycheck is going to Faraday Future?
Don't lie. Everything.