GM refuses to cut health care for striking workers

Last week, GM shocked United Auto Workers and outside observers by ending health coverage for striking employees and deferring the costs to the union's strike fund. This GM decision was anticipated, but not too early, and as you might guess, it was disgusting for many reasons, including the great benefits of GM right now and the healthy compensation of executives.

But after being criticized by the public and legislators, and after realizing that it will probably not be workers who will back this time, GM has chosen to restore health care for strikers. "It's really an attempt to do what's right for our employees," spokesman Dan Flores told the Detroit Free Press.

According to interviews that Jalopnik had with UAW officials yesterday, GM may also have been forced to do so, at least until the end of the month.

More from the press:

The reversal of health care comes as GM faces strong criticism of its initial decision.

The Democratic presidential candidate, Bernie Sanders, used the issue with compensation of $ 21.87 million from 2018 granted by GM President and CEO Mary Barra to shame the company while he was gathering workers in front of the Detroit-Hamtramck assembly plant.

"They think they will force you to submit. Imagine a company in which the CEO receives $ 22 million and then reduces the health care benefits of their workers, "said the Vermont Senator.

An informed source of the interviews said that GM is not afraid to take advantage of the issue, but has chosen to restore health care because its image has been tarnished.

Terry Dittes, who heads the negotiations with GM for the UAW, said in a letter sent Thursday to Scott Sandefur, GM's top negotiator, that GM's "irresponsible actions" in health care had " played "with the lives of UAW families.

The labor experts had also questioned the tactics.

"They're throwing gas at the fire," Free Press professor Harry Katz, a professor of collective bargaining at Cornell University's School of Industrial Relations and Labor, Jack Sheinkman, told Free Press. "It makes workers feel more angry. GM thinks it will scare them or cause them to rethink the cost of their benefits. I think it's going to turn against us. It's fast, reckless and insensitive.

Whatever the case may be, it must be a huge relief for the striking workers and their families (and, if you allow me to be so bold here in Morning Shift, it also shows just how much care employer-paid health benefits are ridiculous.) notes that GM and the UAW are still "far away" from the negotiations and that it could run out another week or so before & # 39; 39, an agreement in principle is reached.

That means it will end up costing the builder, who has already lost half a billion dollars because of the strike.

2nd speed: US axle plans temporary layoffs during GM strike

But the auto industry is an important sector that is not limited to auto factories. American Axle, a Detroit-based signal manufacturer, has announced it will proceed with temporary layoffs at GM's strike. GM is the largest customer of American Axle and is responsible for 39% of its sales. Via Bloomberg:

American Axle began firing workers at a Michigan plant following the United Auto Workers strike against the supplier's largest customer, General Motors. The managing director, David Dauch, expects a financial impact of the loss of income.

"We continue to manage most of our operations, although we have people we are temporarily out of" at a plant in Three Rivers, Michigan, said Dauch in an interview Wednesday.

3rd gear: Toyota and Subaru deepen their links

Increasingly, consolidation is the name of the game in the automotive industry, as automakers face a costly and uncertain future around electrification and autonomy, not to mention a possible economic downturn somewhere on the horizon. As a result, you see everything from teams to direct acquisitions.

The next to work together more are Toyota and Subaru. Toyota is increasing its stake in the much smaller manufacturer, and both will be working on even more new vehicles. Via Bloomberg:

Subaru, maker of the Forester and Outback wagons, will also take a stake in Toyota, strengthening their capital ties and collaboration, according to a statement from both companies. Toyota, which drops from 17% to 17% at around 20% at the closing price on Friday, plans to make Subaru an equity-accounted company, by including in its income statement the sales and profits of the manufacturer.

As part of their deal, Toyota and Subaru will jointly develop all-wheel-drive vehicles – a traditional Subaru force. The companies will also work together on the new Toyota 86 and Subaru BRZ sports cars.

"For Toyota, this alliance not only brings technologies such as Subaru's i-Sight, AWD engines and flat engines, but also safety know-how," he said. Yoshida said. "It brings elements that Toyota does not have."

Hell, I'm glad the 86 and BRZ come back.

4th speed: Tesla delivery forecasts are optimistic

I think it's been a while since we've really talked about Tesla here at The Morning Shift. In addition to the intriguing confrontation of the Nürburgring, Tesla has the feeling that he has spent most of this year doing the normal things that the usual automakers do: stabilize production and create new cars while preparing to unveil new models over the next year.

Model Y, Semi, Roadster, etc., remains to be seen, but CEO Elon Musk told employees that the company was ready to record a new delivery record. Shares have increased accordingly.

Via Bloomberg:

Shares of Tesla Inc. have risen the most since June after Chief Executive Officer Elon Musk told employees in an email that the automaker had a chance to surpass the vehicle delivery record set in the second quarter.

"We have a chance to reach our first quarter delivery of 100,000 vehicles," wrote Musk with reference to the quarter ending this month. "Net orders should follow to reach about $ 110,000, so the demand is strong."

Tesla shares rose 6.1% to $ 242.56, the largest gain in almost four months. The advance helped reduce the 27% decline this year.

Musk, 48, has been in the habit of sending emails at the end of the quarter to rally the troops in search of production and delivery goals. If Tesla were to hand over 100,000 vehicles in the last two quarters of the year, shipments would reach roughly the lower end of the company's planned 360,000 to 400,000 range for 2019.

5th gear: the auto workers fear the disruption

To summarize many of the things we talked about today, here is a final Bloomberg article on the fear of auto workers, including those who are on strike or watching, on electric vehicles. Specifically, they have fewer parts and generally require less labor, which threatens their use.

In fact, according to a study cited in the article, mounting an electric motor and battery requires 40% less hours than a traditional motor and transmission. And "engines and transmissions currently represent just under half of the automakers' manufacturing capacity," which I did not know until now.

Thus, even if the production of electric cars is the same as that of ICE vehicles (a result in many years), their construction would require less manpower.

The fear that the rechargeable cars, which have fewer parts and require less manpower, lead to catastrophic jobs has triggered the first strike of the United Auto Workers against General Motors for more than 10 years. Ford Motor Co. and Fiat Chrysler Automobiles NV, which will market their own battery-powered models over the next few years, could suffer the same fate if they can not dispel the UAW's fears that widespread adoption of electric vehicles will endangering the use of electric vehicles. 35,000 union members.

"Our jobs could be gone – they do not need us anymore," said Tim Walbolt, president of the UAW Local, who represents workers at a Fiat Chrysler transmission plant plant near Toledo. in Ohio. "It scares us."

In ongoing negotiations, GM said the closed plant in Lordstown, Ohio, could be used for battery manufacturing, but "it is unlikely that the plant will need all the staff needed for a plant. engines or transmissions ".

Reverse: it did not work