The "American Leyland" News Thread

[EyeMWing]

Exellent. Now how do I go about getting appointed CIO of GM so that I may collect my duly deserved government-issue golden parachute?

[Spectre]

Originally Posted by EyeMWing

Exellent. Now how do I go about getting appointed CIO of GM so that I may collect my duly deserved government-issue golden parachute?

That might be difficult as there will be a line of no-talent hacks waiting for the position - since nobody with any skill or talent will even consider working for American Leyland now, i.e., those unemployable anywhere else.

[argatoga]

http://www.autoblog.com/2009/11/02/n...-over-weekend/

What's good for the goose may be good for the gander, but what works for one country or automaker doesn't necessarily work for another. So while the Canadian Auto Workers union may have approved a new agreement with Ford, below the 49th parallel their compatriots apparently feel otherwise.

Up for ratification over the past week and into the weekend was a proposal that would essentially grant Ford the same measures that unionized auto workers extended to Chrysler and General Motors in the midst of their bankruptcy proceedings. The measures include limitations placed on the unionized workers' rights to strike for increased wages and benefits, as well as a reduction in paid vacation time, a broad wage freeze as well as one on cost-of-living adjustments and increased employee contributions towards insurance and pensions. The agreement would also allow the automaker more flexibility in shifting jobs around, and in exchange the workers expected more jobs to be created - or at least fewer to be lost.

Some union leaders pleaded with their constituents that ratification of the deal was essential to keeping all three of the Detroit automakers on an even keel, thereby maintaining a common ground on which to build negotiations for the future. However as voting drew to a close across the country this weekend, UAW members at three of Ford's largest U.S. plants - the Dearborn Truck Plant, Romeo Engine Plant and UAW Local 862 representing the Louisville Assembly Plant and Kentucky Truck Plant - all voted against the new contract, making its passage now virtually impossible.

[Spectre]

Yeah, I was going to post this, but the forums were down at the time.

The UAW has no incentive not to screw Ford over and every incentive to do so. They now own or have significant interest in Ford's two domestic competitors (i.e., American Leyland), so they would want to make Ford as uncompetitive as possible. At the very least, it would make their own product more attractive, at worst it might drive Ford into bankruptcy and with the Obamagov potentially into their control as part of American Leyland.

Yes, this is a violation of the Sherman Anti-Trust Act - but they'll never get prosecuted under this government.

[EyeMWing]

I get the distinct feeling that the cheapest way for Ford to build a car is going to pretty quickly become internationally building it, and shipping it over. Dockworkers are much less problematic than autoworkers.

Fortunately for Ford, I think they just might have the guts to do it if that's what it takes.

Also:

Originally Posted by Spectre

That might be difficult as there will be a line of no-talent hacks waiting for the position - since nobody with any skill or talent will even consider working for American Leyland now, i.e., those unemployable anywhere else.

So, the same as every CIO position in the entire country. I'm not aware of a single CIO who isn't a no-talent hack.

[Spectre]

Originally Posted by EyeMWing

I get the distinct feeling that the cheapest way for Ford to build a car is going to pretty quickly become internationally building it, and shipping it over. Dockworkers are much less problematic than autoworkers.

Fortunately for Ford, I think they just might have the guts to do it if that's what it takes.

Well, Boeing, the company Mulally just left and which he set up a lot of the current corporate culture at, just had their union attempt to extort them in a similar fashion over the 787. In fact, Boeing wasn't even trying to go for a 'fair deal' to match competitors, they only wanted a no-strike pledge. The union said no.

So Boeing is now going to locate the production line in South Carolina at an existing facility where the workers voted to pitch the union out some time ago, in a state that's union-hostile and right-to-work.

There is every chance that if the UAW keeps pushing like this, Ford is just going to close their remaining US plants and move production to Mexico or Canada for now, and perhaps to the Southern US once new plants can be built.

[Clegko]

Originally Posted by EyeMWing

I get the distinct feeling that the cheapest way for Ford to build a car is going to pretty quickly become internationally building it, and shipping it over. Dockworkers are much less problematic than autoworkers.

Fortunately for Ford, I think they just might have the guts to do it if that's what it takes.

Sadly, the US still has tax tariffs that damn near prohibit that from happening. However, that didn't stop them doing it with the Transit Connect van, which they import over as a "Wagon," then strip them and weld in the side windows.

[Spectre]

Originally Posted by Clegko

Sadly, the US still has tax tariffs that damn near prohibit that from happening. However, that didn't stop them doing it with the Transit Connect van, which they import over as a "Wagon," then strip them and weld in the side windows.

If they build them in Canada or Mexico, there's no tariffs.

And if you take a look, the most important models they have are already not built in the US - the Fusion is made in Mexico, and the new Fiesta will also be built there.

[Clegko]

Originally Posted by Spectre

If they build them in Canada or Mexico, there's no tariffs.

And if you take a look, the most important models they have are already not built in the US - the Fusion is made in Mexico, and the new Fiesta will also be built there.

I was responding to EyeMWing's statement of building them internationally, which I took to assume Europe/Australia.

[EyeMWing]

Originally Posted by Clegko

I was responding to EyeMWing's statement of building them internationally, which I took to assume Europe/Australia.

We're still 3 distinct countries over here.

... For the moment.

[Clegko]

Originally Posted by EyeMWing

We're still 3 distinct countries over here.

... For the moment.

Yes, but i'm a clot and think of domestic vehicles as "USA, Mexico & Canada" while international vehicles are from anywhere else.

[CrazyRussian540]

These renders are from the live blog with Chrysler today. The whole 5-year plan can be found here




Tell me what you see in the "showroom" in the lower left corner.

I see a Lancia Delta! That got me excited.

[argatoga]

REPORT: GM to let rejected dealers apply for new franchises
http://www.autoblog.com/2009/11/13/r...ew-franchises/

General Motors' bankruptcy lasted all of 42 days, and the General got a lot of liabilities off the book in that short window of opportunity. One of the more controversial moves was to give 1,300 dealers across the US a pink slip post-dated for October 2010, bringing the Detroit, MI-based automaker down to a more manageable 3,600 retail outlets. The move rankled local communities and lawmakers alike, as tens of thousands of jobs will soon disappear. GM says the move will save them bushels full of cash by lowering overlapping marketing efforts and making the remaining dealerships more competitive with the General's lower market share.

While those sound like rational reasons to close dealerships, GM's decision to open several new stores across the US is a bit confusing. GM isn't revealing how many dealerships will be added or which urban and rural areas will receive the Buick, Cadillac, Chevrolet and GMC outlet, but Automotive News is reporting that some of the jettisoned dealerships will be able to apply for new stores. GM spokesman Greg Martin reportedly told AN that GM is looking at, "select points in certain markets around the country as part of our ongoing analysis of our dealer consolidation efforts." The Committee to Restore Dealer Rights, which represents some of the rejected dealers, told the industry pub that at least twelve of the dealers from Michigan, Illinois, Pennsylvania, Ohio, Colorado and Massachusetts received letters inviting them to apply for a new dealership.

The National Automotive Dealers Association no doubt appreciates GM allowing select rejected dealers apply for new franchises, but the dealer mouthpiece feels those retailers should have first dibs for any new stores. Many lawmakers agree, and both politicians and dealer rights groups reportedly feel that GM's terms are inadequate. In September, GM CEO Fritz Henderson reportedly told Michigan lawmakers that the company could restore a limited number of rejected dealers, but new compensation was off the table.

[argatoga]

http://www.autoblog.com/2009/11/13/k...-saab-dealers/

According to Automotive News, Federal Express letters arrived at 81 of Saab's 218 dealers on Thursday stating that their franchises had not been selected to move forward and become a dealer for the post-sale entity, Saab Cars North America. The package from General Motors said that Swedish supercar maker Koenigsegg, Saab's buyer, had selected only certain stores based on its business plan requiring strong, well-located dealers showing profits and high volume.

All Saab dealers signed termination agreements in June when GM entered bankruptcy. The dealers who received reject letters today will follow the terms of those agreements. Meanwhile, the remaining 137 U.S. Saab dealers will have to wait patiently until the end of November when the sale is scheduled to close (although those close to the deal say it may take longer). Current Saab dealer contracts with GM will not expire until October 2010, at which point the remaining dealers will sign new franchise agreements with Saab Cars North America.

[argatoga]

http://www.autoblog.com/2009/11/16/b...oans-next-mon/

General Motors will announce later today plans to repay the U.S. government some $6.7 billion in loans ahead of its initial due date of July 2015. The payments are expected to begin as early as next month, with $1 billion paid each quarter until the full sum is paid – although that doesn't cover the total $50 billion the taxpayers have "invested" in the automaker after it declared bankruptcy earlier this year.

However, as the Washington Post points out, the amount the government will get back from GM depends on the value of the General's stock. With $6.7 billion in debt, $2.1 billion preferred stock and a 61 percent stake in the automaker, the $50 billion total is a long way off from being paid in full. And when GM reports its financial results tomorrow, it's not expected to show a profit, although the overall picture could be slightly better than anticipated.

Looks like a PR trick against the US car buyer. See we payed back $6.7 billion of the $56.7 billion we took from you!

[Dogbert]

Originally Posted by argatoga

REPORT: GM to let rejected dealers apply for new franchises

Why the hell? Does not compute...

1. Close tons of overlapping dealerships
2. Open more dealerships that will inevitably overlap
3. ???
4. Profit?

I think a lot of people are hung up about the "job loss" aspect of this, and GM is trying to pander to that.

Originally Posted by argatoga

Looks like a PR trick against the US car buyer. See we payed back $6.7 billion of the $56.7 billion we took from you!

Eh, I wouldn't be so cynical about it. I mean, at least it's a step in the right direction, right? Better $6.7 billion than $0.0 billion, which is what some people have said they're going to pay back.

[argatoga]

Originally Posted by Dogbert

Why the hell? Does not compute...

1. Close tons of overlapping dealerships
2. Open more dealerships that will inevitably overlap
3. ???
4. Profit?

I think a lot of people are hung up about the "job loss" aspect of this, and GM is trying to pander to that.


Eh, I wouldn't be so cynical about it. I mean, at least it's a step in the right direction, right? Better $6.7 billion than $0.0 billion, which is what some people have said they're going to pay back.

They took $56.7 from the American tax payers and have shown little sign of reforming. Of course I am going to be cynical until proven otherwise.

[Labcoatguy]

Originally Posted by Dogbert

Eh, I wouldn't be so cynical about it. I mean, at least it's a step in the right direction, right? Better $6.7 billion than $0.0 billion, which is what some people have said they're going to pay back.

They're paying it back in stocks and bonds, basically, which depends completely on how well the company performs in the future. It could easily become less than that $6.7 billion value if things go badly, aka continue as they are.

[Spectre]

Yup, they're paying back in stocks and bonds. Which, at their current rate of decline, will be worth pretty close to nothing in about a year.

This is a PR stunt, coming on the heels of the news that GMAC needs yet another bailout and that none of the government oversight bodies believe that we're going to be getting paid back on those 'loans'.

[argatoga]

http://www.autoblog.com/2009/11/19/r...eader-by-2012/

A quick glance at recent Consumer Reports or JD Power data shows that the Pentastar has a big problem on its hands, but the new Chrysler says that will change in a big way by the end of 2012. Chrysler is planning to be a quality leader in only three years by dramatically increasing staffing levels in its quality team while working to dramatically clean up its engineering processes. Just one year ago, there were only 200 staff members on the quality team. Chrysler is now hiring 200 additional workers and shifting head count to beef up its quality team to over 1,700.

Quality boss Doug Betts, who was hired from Nissan during the Cerberus acquistion, tried to address quality before the automaker descended into bankruptcy, but Chrysler's woeful money situation led to the postponement of the Pentastar's long overdue quality renaissance. With bankruptcy in the rearview mirror and Fiat's full blessing to dig deep to fix Chrysler's competitive disadvantages, Betts now has the tools needed to make drastic changes. And some progress has already been made.

For starters, Chrysler has cut per-vehicle spending by $240 million, and warranty spending is down 30 percent to an all-time low. In 2008, 75 percent of all quality problems were design issues, and that number has reportedly dropped to 50 percent this year though better engineering. The factory floor is also receiving attention, as Chrysler is adopting Fiat's "world class" manufacturing system.

Chrysler has also made several departmental shifts to give workers more autonomy to make changes faster. In the past, problems were shifted from one department to another, resulting in an average delay of 71 days to fix a problem. Now cross-departmental teams are organized by 14 vehicle groups, like brakes or transmissions instead of by model alone. Many of the quality fixes will occur as Chrysler unveils new or heavily updated products between now and 2013. The Detroit News reports that 75 percent of all models will receive heavy duty attention within the next 14 months, and all vehicles will be updated by 2013.

Yet another Chrysler promise.