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The morningAll your daily news on the car in a convenient place. Is your time not more important? Negotiations between the UAW and the Detroit Three Big 3 are already strained, self-contained systems are redefining the way we produce auto parts and trends seen from car stocks. All this and more in The Morning Shift of Monday, July 15, 2019.
1st Gear: Here are the major UAW topics
Negotiations between the United Auto Workers union and the three of Detroit (General Motors, Ford and Fiat Chrysler) begin this week, which will determine new four-year contracts for nearly 150,000 employees. And the tensions are high.
Between the scandal at the very heart of the UAW and the closure by GM of several factories, problems such as falling car sales, the trade war and the looming threat of automation are also to be taken into account. . It's probably going to be pretty ugly. The key issues for discussion are as detailed by Bloomberg.
Plant Protection: This is probably the main problem. GM's factory closures have angered not only the union, but also the president, the congress and the Democratic candidates. The head of the union, GM, wants to "secure work" for its members in the closed factories.
Temporary Workers: The hiring of a temporary worker is a quick fix when a company needs someone to cover something quickly. But,
GM's desire to hire more agency workers is going to come up against the UAW leadership, which has listened to it at their negotiating agreement in March. Members were motivated by the need to limit the use of temporary workers because they are paid less, can claim reduced benefits and have lower protections under the union contract.
Health Care: According to the Kaiser Family Foundation, members of the UAW apparently benefit from the country's best health care benefits. It's not cheap for automakers. An anonymous source from Ford, quoted by the point of sale, reportedly said health care for its 56,000 hourly employees would exceed $ 1 billion next year, and that GM would pay nearly $ 900 million a year for its American hourly staff.
But health care is one of those things you do not really want to touch. Not unless you want a revolt on your hands, anyway. Automakers are likely to have to cut back on their expenses if they want to save money.
UAW Corruption: Former FCA leaders wanted union officials to be confused after the scandal of corruption between FCA and UAW, which was a disaster for public relations. Although much of this has been attributed to a few pests, the scandal has undoubtedly shaken the confidence of members. Bloomberg predicts the union may have to redouble its efforts to convince its members that it is fighting for them.
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Strike: In March, UAW President Gary Jones increased strike pay, which should tell automakers that the union is synonymous with business. A former UAW adviser told Bloomberg that he was confident that the union would not be ratifying its preliminary agreement with the companies. It remains to be seen how he will choose to escalate and exert pressure, from the nuclear option, a strike.
Buckle your belt, the kids. It will be a long journey.
2nd gear: all new parts
For over a hundred years we have been driving our own cars. But now that autonomous technology is an integral part of our present, it is also changing the way we make auto parts.
As cars are increasingly loaded with autonomous features, parts such as tires, seats and headlights are equipped with more and more sensors so the system can control as much information as possible, while making decisions, reports Bloomberg.
For example, Koito Manufacturing, based in Tokyo, adds "artificial intelligence sensors and chips" to the headlights it wants to launch by 2025. High-tech headlights
will be able to process information and react, for example by lighting poorly lit level crossings, signaling pedestrians that it is safe to cross and alerting nearby drivers by flashing a specific color.
Asahi Glass Co. Ltd. is apparently designing windows with built-in antennas for 5G connectivity, thus making better use of vehicle-to-vehicle and vehicle-to-infrastructure capabilities.
One day maybe, we will not even need lighthouses anymore. I mean, if the cars are already driving and if they are so loaded with radar and sensors that they already know what's around them, what would they need to see?
3rd gear: the short inventory
In the rush to build crossovers, SUVs and trucks to meet the demand, the industry has apparently created a glut of big cars that people do not necessarily buy. The numbers show that people are still buying smaller cars.
This is from Automotive News, which reports,
Overall, automakers and dealers accounted for about 4,004,700 unsold vehicles to begin in July, a 69-day offer slightly up from 3,992,100 vehicles in circulation at the beginning of June and about unchanged from in the previous year.
However, among these rough numbers, several automakers have turned away from sedans, coupes and sedans – to get closer to crossover vehicles, SUVs and other light trucks – have begun to appear in the dealer's inventory inventories.
The number of unsold cars expected to start in July is estimated at 1,008,000, a stock of 60 days, which is just over 25% of the total stock. In comparison, US car sales accounted for 29.4% of total sales in the first six months of the year.
Too many light trucks! The end of this large car tunnel may be illuminated, as it seems that a relatively stable number of people are still buying the smaller cars.
4th gear: More Amazon
I have never met a person who was amazed to have Amazon in his car, but I guess she is there? Anyway, Amazon plans to follow the development of Alexa in the automotive industry. Joy.
Audi and BMW Group (which includes Mini) will apparently be the first to install Alexa in the software system of their cars, reports Automotive New Europe. From the story:
Audi plans to gradually deploy Alexa on its fleet, said spokeswoman Amelia Fine-Morrison. Audi launched Alexa on the new all-electric e-tron crossover last year. The next vehicle will be the redesigned Q3, she said.
BMW's partnership with Amazon for Alexa aims to provide a seamless experience between their home appliances and their vehicles for their "digital lifestyle," said Dieter May, senior vice president of digital services and business models for BMW .
Listen, I'm sure Alex is helping with convenience, connectivity and everything else, but it's very painful to use. The one I have at home has become a glorified kitchen timer and music player, and it often fails even those two tasks.
5th gear: EV rebate
Despite the many attractive electric vehicle options currently available to buyers, the majority of them still opt for gasoline cars. Much of that comes down to costs.
But a California lawmaker is trying to increase discounts on electric vehicles in the state to encourage more people to live without gasoline, reports the Detroit News.
MP San Francisco MP Phil Ting is billing the state-funded electric car rebates for up to $ 7,500, up from a current maximum of 2,500.
Over time, Ting's bill would reduce the value of the rebates, prompting car buyers to switch to electric vehicles more quickly.
He says he is trying to reach a goal set by former Gov. Jerry Brown last year with a new law that aims to install 5 million zero-emission electric vehicles on California's roads by 2030.
"The goal would be if we could create a market big enough for clean cars and their competitive price compared to petrol cars. We believe this bill is an essential element in bringing our future closer to 5 million clean cars by 2030, "said Ting at a hearing on Tuesday.
The outlet notes that there are only about 600,000 electric vehicles in circulation in California. And that's because electric vehicles tend to be more expensive than ICE cars, which is an important deterrent for buyers.
The California rebate program currently provides a rebate of $ 2,500 for BEVs and $ 1,500 for PHEVs, rates that have not been updated for more than five years. In addition, it seems to have been sometimes underfunded, so buyers have to be put on waiting lists. Nobody likes that.
If Ting's bill were passed, it would imply that the California Air Resources Board needs to find a steady flow of funding for the rebates and determine the amount of the rebate. Electric cars are good! They are fun to drive.
Reverse: First order at a dentist
Ernst Pfenning, a Chicago dentist, becomes the first person to order Henry Ford's $ 850 model-A two-cylinder car. Congratulations to him.
Neutral: What would be the scale of a discount that would allow you to switch to a VE?
A $ 7,500 rebate is not a radical change. Would you be happy with that? Or would you like more?
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