2009 Ford Flex
Build Your Own
No word on when Ford's minivan-replacement, the Ford Flex will actually debut, but you can now see lots of pictures, and build your own on the Ford website here.
To me the Flex looks a lot like a LandRover LR3, which is part of the Ford Premium Automotive Group. Of course, if you paid $55,000 for a LandRover, you'd say: "Don't be ridiculous, the Flex has a Chrome 3 bar grill. The LandRover has a bodycolored 3 bar grill." My mistake.
Monday, September 24, 2007
At Whom is the Strike Deadline Aimed?
All weekend, the news stories indicated that the UAW and GM were close to an agreement. Just in time for the Monday morning media, the UAW announced an 11:00 AM strike deadline. If the parties are close to an agreement, it seems to me that a strike would be more effective in selling the agreement to the UAW rank and file than it would be to sell it to GM. Here's my reasoning: Assuming that GM was close to accepting the UAW's terms anyway, GM can end a strike with just a little nudge. A short strike would not cost GM much. They have high inventories in most models. So high that incentives were just increased.
On the other hand, with concessions that have already been foreshadowed, the UAW can expect substantial resistance from the rank and file. It would help the odds of acceptance to remind the members how bad strike pay is, and how stressful strikes can be. Also, the UAW negotiators can show that they got that "last dollar" out of GM by demonstrating that it took a strike (or an imminent strike) to get a deal.
When a tentative deal is finally reached, it will be interesting to see how long the union gives the members to examine the deal before a ratification vote. You just know that this deal will be a bad mothe . . . (shut your mouth). It's a complicated deal, and no one understands it but its mother. In a rational market, the union would give the members time to examine the deal and debate its merits, a level of scrutiny that is warranted by the effect that the deal will have on the members' future. Of course, that's not going to happen, I bet that the members will be forced to vote on the deal with very little chance to examine the details. If the members are on strike, they will have even more pressure to take a deal laid on the table.
The bottom line: if there is a strike, don't panic. It's likely to be a "show" strike designed to coerce the members into accepting a contract. If it is anything else, it means that there wasn't a deal to be made, and we were probably screwed anyway.
All weekend, the news stories indicated that the UAW and GM were close to an agreement. Just in time for the Monday morning media, the UAW announced an 11:00 AM strike deadline. If the parties are close to an agreement, it seems to me that a strike would be more effective in selling the agreement to the UAW rank and file than it would be to sell it to GM. Here's my reasoning: Assuming that GM was close to accepting the UAW's terms anyway, GM can end a strike with just a little nudge. A short strike would not cost GM much. They have high inventories in most models. So high that incentives were just increased.
On the other hand, with concessions that have already been foreshadowed, the UAW can expect substantial resistance from the rank and file. It would help the odds of acceptance to remind the members how bad strike pay is, and how stressful strikes can be. Also, the UAW negotiators can show that they got that "last dollar" out of GM by demonstrating that it took a strike (or an imminent strike) to get a deal.
When a tentative deal is finally reached, it will be interesting to see how long the union gives the members to examine the deal before a ratification vote. You just know that this deal will be a bad mothe . . . (shut your mouth). It's a complicated deal, and no one understands it but its mother. In a rational market, the union would give the members time to examine the deal and debate its merits, a level of scrutiny that is warranted by the effect that the deal will have on the members' future. Of course, that's not going to happen, I bet that the members will be forced to vote on the deal with very little chance to examine the details. If the members are on strike, they will have even more pressure to take a deal laid on the table.
The bottom line: if there is a strike, don't panic. It's likely to be a "show" strike designed to coerce the members into accepting a contract. If it is anything else, it means that there wasn't a deal to be made, and we were probably screwed anyway.
UAW SETS STRIKE DEADLINE FOR 11:00 AM TODAY!
Gettelfinger is Shocked, Yes, Shocked that it's come to this.
While it's true that since the contract expired Sept. 15 that UAW has only agreed to continue with the old agreement on a day-to-day basis, it came as a surprise when, at 1:30 this morning, the UAW released a memo setting a strike deadline for 11:00 this morning. Here is the complete text from the statement as printed at detnews.com:
Gettelfinger is Shocked, Yes, Shocked that it's come to this.
While it's true that since the contract expired Sept. 15 that UAW has only agreed to continue with the old agreement on a day-to-day basis, it came as a surprise when, at 1:30 this morning, the UAW released a memo setting a strike deadline for 11:00 this morning. Here is the complete text from the statement as printed at detnews.com:
For immediate release
Monday, September 24th, 1:40 AM
UAW shocked by GM’s failure to recognize worker contributions, Sets strike deadline for 11 am on Monday, September 24th.
The United Auto Workers announced today that due to the failure of General Motors to address job security and other mandatory issues of bargaining, the union has set a firm strike deadline for 11 am on Monday, September 24th.
"We’re shocked and disappointed that General Motors has failed to recognize and appreciate what our membership has contributed during the past four years," said UAW President Ron Gettelfinger. "Since 2003, our members have made extraordinary efforts every time the company came to us with a problem: the corporate restructuring, the attrition plan, the Delphi bankruptcy, the 2005 health care agreement. In every case, our members went the extra mile to find reasonable solutions."
"Throughout this time period," said Gettelfinger, "it has been the dedication of UAW members that has helped GM set new standards for safety, quality and productivity in their manufacturing facilities. And in this current round of bargaining, we did everything possible to negotiate a new contract, including an unprecedented agreement to stay at the bargaining table nine days past the expiration of the previous agreement."
"This is our reward," said UAW Vice President Cal Rapson, director of the union's GM Department. "A complete failure by GM to address the reasonable needs and concerns of our members. Instead, in 2007 company executives continued to award themselves bonuses while demanding that our members accept a reduced standard of living."
"The company’s disregard for our members has forced our bargaining committee to take this course of action," said Rapson. "Unless UAW members hear otherwise between now and the deadline, we will be on a national strike against GM at 11:00 am EDT on Monday, September 24th."
The UAW negotiating team will remain at the bargaining table, Rapson said, throughout the night and up until the 11:00 am deadline.
Saturday, September 22, 2007
GM/UAW Contract Update 9/22/2007
Is a Deal Close?
The news stories have been going back and forth, but today's story is that both sides have agreed on the funding of the VEBA retiree healthcare trust. Negotiations have moved to other subjects. According to the Detroit News, GM has agreed to fund the VEBA more than their 65% ceiling. (Bankrupt Dana Corp. funded their VEBA at 71%. The UAW was holding out for at least that much funding.) The Detroit News suggests that the new contract will include wage cuts of at least $5.00 per hour. Higher medical co-payments and perhaps more plant closings.
http://detnews.com/apps/pbcs.dll/article?AID=/20070922/AUTO01/709220339/1148
Is a Deal Close?
The news stories have been going back and forth, but today's story is that both sides have agreed on the funding of the VEBA retiree healthcare trust. Negotiations have moved to other subjects. According to the Detroit News, GM has agreed to fund the VEBA more than their 65% ceiling. (Bankrupt Dana Corp. funded their VEBA at 71%. The UAW was holding out for at least that much funding.) The Detroit News suggests that the new contract will include wage cuts of at least $5.00 per hour. Higher medical co-payments and perhaps more plant closings.
http://detnews.com/apps/pbcs.dll/article?AID=/20070922/AUTO01/709220339/1148
From the "You're doin' a heck of a job Mikey"
NHTSA Chief Can't Install Child Seat
As reported in the Kicking Tires blog, the head of the National Highway Traffic Safety Administration, Nicole Nason, recently disclosed that she took a three-day course in installing a child seat in July. Upon taking the class, she found out that .
I don't know what's the most screwed up thing here. (1) That a person who can't install a child seat would be appointed to head NHTSA; (2) That the head of the agency that regulates child seats wouldn't find out she didn't know beans about them until 16 months into the job; or (3) That anyone would take (or need) a three-day class in installing child safety seats.
Oh yes, this is the George W. Bush administration, where the quality needed to be the attorney general is to generally be an attorney; where the secretary of education gets slaughtered in Celebrity Jeopardy; where the head of FEMA is appointed without knowing anything about disaster management; and where your swears-like-a-sailor Vice-president can't tell a lawyer from a gamebird.
http://blogs.cars.com/kickingtires/2007/09/head-of-nhtsa-i.html
NHTSA Chief Can't Install Child Seat
As reported in the Kicking Tires blog, the head of the National Highway Traffic Safety Administration, Nicole Nason, recently disclosed that she took a three-day course in installing a child seat in July. Upon taking the class, she found out that .
I don't know what's the most screwed up thing here. (1) That a person who can't install a child seat would be appointed to head NHTSA; (2) That the head of the agency that regulates child seats wouldn't find out she didn't know beans about them until 16 months into the job; or (3) That anyone would take (or need) a three-day class in installing child safety seats.
Oh yes, this is the George W. Bush administration, where the quality needed to be the attorney general is to generally be an attorney; where the secretary of education gets slaughtered in Celebrity Jeopardy; where the head of FEMA is appointed without knowing anything about disaster management; and where your swears-like-a-sailor Vice-president can't tell a lawyer from a gamebird.
http://blogs.cars.com/kickingtires/2007/09/head-of-nhtsa-i.html
Friday, September 21, 2007
The Dollar's Looney Fall
According to Bloomberg.com, for the first time in 31 years, the U.S. dollar is worth less than the Canadian dollar, the Loonie. Each Euro is worth around 1.4 US dollars. So if it seems that you aren't making much more than you used to, don't worry, it's not worth as much anyway (????)
In theory, the weak dollar makes it cheaper to build cars in the US than in Canada, and definitely cheaper than in Europe. So, naturally, General Motors plans on importing the Saturn Astra from Belgium any day now. If terrorists keep blowing up stuff in Mexico, then maybe we'll have a better chance of keeping the car manufacturing plants in the USA.
Ironically, the fall of the dollar is tied to the reduction in short term interest rates by the Fed. The Fed reduced the rates due to problems in the mortgage industry and the credit crunch. The market reacted by raising long-term 30 year fixed interest rates. The Fed's short term rates have no direct effect on the LIBOR rate that is the benchmark for many/most variable rate mortgages. The LIBOR rate is still high, as high or higher than last year, so don't look for your variable rate mortgage to reset at a lower rate anytime soon.
What am I babbling about? Who knows? time to quit. It's Friday.
According to Bloomberg.com, for the first time in 31 years, the U.S. dollar is worth less than the Canadian dollar, the Loonie. Each Euro is worth around 1.4 US dollars. So if it seems that you aren't making much more than you used to, don't worry, it's not worth as much anyway (????)
In theory, the weak dollar makes it cheaper to build cars in the US than in Canada, and definitely cheaper than in Europe. So, naturally, General Motors plans on importing the Saturn Astra from Belgium any day now. If terrorists keep blowing up stuff in Mexico, then maybe we'll have a better chance of keeping the car manufacturing plants in the USA.
Ironically, the fall of the dollar is tied to the reduction in short term interest rates by the Fed. The Fed reduced the rates due to problems in the mortgage industry and the credit crunch. The market reacted by raising long-term 30 year fixed interest rates. The Fed's short term rates have no direct effect on the LIBOR rate that is the benchmark for many/most variable rate mortgages. The LIBOR rate is still high, as high or higher than last year, so don't look for your variable rate mortgage to reset at a lower rate anytime soon.
What am I babbling about? Who knows? time to quit. It's Friday.
UAW/GM Contract Update 9/21/07
Contract talks went into the early morning hours today, and they are scheduled to resume later in the day. According to this morning's Detroit News, the two sides are Sagan numbers (billions and billions) apart in funding for the proposed retiree healthcare (VEBA) plan. The Detroit News also reports that the UAW rejected the VEBA as proposed by General Motors. The News reports that after the VEBA discussion was tabled, discussion shifted to an alternate proposal by GM to cut costs by reducing wages $5.00 per hour, increasing out-pocket healthcare costs, reducing vacation and other benefits. (Hmmm, do you suppose we might have a stake in there somewhere?) The alternate proposal also omits the future work guarantees sought by the union.
Contract talks went into the early morning hours today, and they are scheduled to resume later in the day. According to this morning's Detroit News, the two sides are Sagan numbers (billions and billions) apart in funding for the proposed retiree healthcare (VEBA) plan. The Detroit News also reports that the UAW rejected the VEBA as proposed by General Motors. The News reports that after the VEBA discussion was tabled, discussion shifted to an alternate proposal by GM to cut costs by reducing wages $5.00 per hour, increasing out-pocket healthcare costs, reducing vacation and other benefits. (Hmmm, do you suppose we might have a stake in there somewhere?) The alternate proposal also omits the future work guarantees sought by the union.
Thursday, September 20, 2007
Auto News: GM Proposing 401(k) for New Hires
Trade paper Automotive News (autonews.com - free registration required) says that GM has proposed replacing its traditional pension with a 401(k) plan for new hires. The article also says that GM is proposing putting a hold on cost of living raises to UAW members in order to pay for the retirees' VEBA that has been the focus for all of the current negotiations.
There is a blackout on news from the negotiations, and I have not seen the Autonews report confirmed. I'm not betting my paycheck on its accuracy.
Trade paper Automotive News (autonews.com - free registration required) says that GM has proposed replacing its traditional pension with a 401(k) plan for new hires. The article also says that GM is proposing putting a hold on cost of living raises to UAW members in order to pay for the retirees' VEBA that has been the focus for all of the current negotiations.
There is a blackout on news from the negotiations, and I have not seen the Autonews report confirmed. I'm not betting my paycheck on its accuracy.
Wednesday, September 19, 2007
Hillary Rides to the Rescue - of the Insurance Industry
Can Dennis Kusinich save the day?
This week Senator Hillary Clinton unveilled her health care plan. While up to now, her campaign rhetoric was based upon the fact that she learned her lessons and had the scars to prove it, her new plan doesn't look a lot different than the one that was shot down in flames in 1993. In her new plan, insurance is mainly provided by employers, and consumers must carry insurance or face penalties. If there's anything significant to take costs out of the system, I haven't seen it. If there's anything that reduces the burdens on struggling employers, I haven't seen it. If there's anything that equalizes the playing field betwen employers that cover retirees (GM, Ford, Chrysler) and those that don't (Toyota), I don't see it.
Senator Clinton's plan Looks a lot like Senator Obama's and John Edwards', especially Edwards'. While Rudy Giuliani accused Senator Clinton of advocating "socialized medicine." In fact it is the lack of a single (government) payor which is the key flaw in the Clinton plan. The Clinton plan looks like the Massachusets plan put into place by Governor Mitt Romney. Recent statistics show that Massachusets has the highest per capita health care costs in the country.
Even Michael Moore is not smitten by Clinton's plan. Moore advocates the single payor "Medicare for all" plan that is pending in the House as H.R. 676. It's also known as the "Conyer's bill", named after Michigan Representative John Conyers, and it has 78 cosponsors. Among the presidential candidates, only Dennis Kusinich has come out in favor of it.
The Detroit Three may need single payor insurance to survive in the long term. They need a system that takes the cost of health insurance off of the employers' backs. Only "fringe" candidate Kusinich supports this. Can Kusinich save the automakers? I'd like to support Kusinich, but I'm having a hard time getting past the whole hair thing.
If you want to sound off on the healthcare issue to your congressional representative, here's a link to all of teh e-mail addresses through the Michaelmoore.com site.
Can Dennis Kusinich save the day?
This week Senator Hillary Clinton unveilled her health care plan. While up to now, her campaign rhetoric was based upon the fact that she learned her lessons and had the scars to prove it, her new plan doesn't look a lot different than the one that was shot down in flames in 1993. In her new plan, insurance is mainly provided by employers, and consumers must carry insurance or face penalties. If there's anything significant to take costs out of the system, I haven't seen it. If there's anything that reduces the burdens on struggling employers, I haven't seen it. If there's anything that equalizes the playing field betwen employers that cover retirees (GM, Ford, Chrysler) and those that don't (Toyota), I don't see it.
Senator Clinton's plan Looks a lot like Senator Obama's and John Edwards', especially Edwards'. While Rudy Giuliani accused Senator Clinton of advocating "socialized medicine." In fact it is the lack of a single (government) payor which is the key flaw in the Clinton plan. The Clinton plan looks like the Massachusets plan put into place by Governor Mitt Romney. Recent statistics show that Massachusets has the highest per capita health care costs in the country.
Even Michael Moore is not smitten by Clinton's plan. Moore advocates the single payor "Medicare for all" plan that is pending in the House as H.R. 676. It's also known as the "Conyer's bill", named after Michigan Representative John Conyers, and it has 78 cosponsors. Among the presidential candidates, only Dennis Kusinich has come out in favor of it.
The Detroit Three may need single payor insurance to survive in the long term. They need a system that takes the cost of health insurance off of the employers' backs. Only "fringe" candidate Kusinich supports this. Can Kusinich save the automakers? I'd like to support Kusinich, but I'm having a hard time getting past the whole hair thing.
If you want to sound off on the healthcare issue to your congressional representative, here's a link to all of teh e-mail addresses through the Michaelmoore.com site.
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