Posts tagged EV
Stellantis announces layoffs at Toledo Jeep plant
December 11, 2023 // As part of the new contract, the use of so-called temporary workers will change. At the Toledo plant, Stellantis said in the Thursday announcement that it will transition from an "alternative work schedule" to a traditional two-shift operation. This will lead to the loss of jobs, according to the company. According to a Worker Adjustment and Retraining Notification notice from Stellantis, 1,094 of the layoffs are supplemental employees and the remaining 131 are production operators/team members. Also affected is the Mack Assembly Complex in Detroit, which will transition from a three-shift operation to a two-shift operation. Layoffs also are expected there, according to Stellantis.
Commentary: The UAW’s Strike Win on Plant Closures Is Too Rigid
December 2, 2023 // The transition to battery-electric vehicles is difficult enough without the addition of the UAW’s capacity alignment restrictions. Pricing and profit uncertainty within the sector is daunting, dealers seem reluctant to go all-in on the vision and the required infrastructure to ease consumer’s range anxiety will take multiple years to develop. Additionally, proposed CO2 and emission standards could add additional costs if manufacturers do not sell enough zero-emission vehicles. Manufacturers will need flexibility when transitioning from ICE-dedicated plants to dedicated BEV capacity. Rationalization is mandatory given the potential price pressure that will come from excess capacity in North America. The production volume for total light vehicles is a fixed amount. Supply does not create demand. Thus, the more manufacturers implement product and marketing strategies to fill BEV capacity, the more they will be forced to reduce ICE capacity.
Ford workers join those at GM in approving contract settlement that ended UAW strikes
November 20, 2023 // The United Auto Workers union overwhelmingly ratified a new contract with Ford, a pact that, along with similar deals with General Motors and Stellantis, will raise pay across the industry, force automakers to absorb higher costs and help reshape the auto business as it shifts away from gasoline-fueled vehicles. Workers at Ford voted 69.3% in favor of the pact, which passed with nearly a 15,000-vote margin in balloting that ended early Saturday. Earlier this week, GM workers narrowly approved a similar contract. At Stellantis, 68.7% of workers favored ratification, an insurmountable lead with votes at only two small facilities left to be counted.
Tesla allowed to ban factory workers from wearing union T-shirts: court
November 17, 2023 // On Tuesday, the 5th Circuit said that it was wrong for the NLRB to require Tesla to prove that special circumstances justified its policy. The company still allowed workers “to affix any number or size of union stickers to their team wear,” so it was not unlawfully interfering with union organizing, the court said.
‘Battle royale’: Tesla and anti-union Musk make enticing targets for UAW’s next push
November 5, 2023 // Some current UAW members are already fired up to take on Tesla. “Go out west to California? Absolutely, I would go,” said John Jake Kincaid, a Stellantis employee in Michigan. “Show them our strength.” Still, fighting for a contract at companies with established relationships with union workers is a far different effort than starting from scratch. Several workers who were key to Tesla’s earlier union effort are no longer at the company. The Fremont plant’s history with the UAW predates the electric vehicle maker. For about 25 years, Toyota and GM operated the facility together in an unusual joint venture. It was a union shop. In 2009, GM pulled out of the partnership as part of its bankruptcy proceedings and in 2010 Toyota shut the operation down, throwing 4,700 people out of work. A month later, Tesla bought the sprawling 5.3 million square foot factory; the union didn’t come with the purchase.
Bad vibes are sending shudders through Tesla, GM and Ford
October 30, 2023 // EV-specific factors include higher average costs than gas-powered models and many consumers lack of familiarity with the tech. "I see EV sales plateauing and even falling over the next 6 months," Brauer predicts. Threat level: "Investors have been too optimistic about EV demand growth . . . slowing demand growth is coming sooner than expected, especially in the high-end EV market," said Lee Hang-koo of Korea Automotive Technology Institute tells the Financial Times.
GM reaches tentative deal with UAW, ending strikes at Detroit automakers after six weeks
October 30, 2023 // It’s not immediately clear how much the labor deals will increase labor costs for the companies, which had argued that giving in to all of the union’s demands would affect their competitiveness and even long-term viability. Deutsche Bank recently estimated the overall cost increase of the agreement at Ford to be $6.2 billion over the term of the agreement; $7.2 billion at GM; and $6.4 billion at Stellantis.
UAW and Stellantis reach tentative contract deal as union adds strike at Tennessee GM factory
October 29, 2023 // Under the deal, the union said it saved jobs in Belvidere as well at an engine plant in Trenton, Michigan, and a machining factory in Toledo, Ohio. “We’ve done the impossible. We have moved mountains. We have reopened an assembly plant that was closed,” Fain said. The deal includes a commitment by Stellantis to build a new midsize truck at its factory in Belvidere, Illinois, that was slated to be closed. About 1,200 workers will be hired back, plus another 1,000 workers will be added for a new electric vehicle battery plant, the union said. “We're bringing back both combustion vehicles and electric vehicle jobs to Belvidere,” Fain said.
AUTOS Ford lays off 700 who were building electric version of F-150
October 17, 2023 // The company said it will temporarily cut one of the three shifts at its Rouge Electric Vehicle Center in Dearborn, Michigan, near the company's main headquarters. It will rotate the layoffs between the three shifts. Ford had temporarily closed the plant this summer to upgrade its production capability, and the company said this latest layoff is related to "multiple constraints, including the supply chain and working through processing and delivering vehicles held for quality checks after restarting production in August."
As Predicted, UAW Strike Remains Limited, Spares Automakers From Full Walkout
October 11, 2023 // As CEI noted when the strike began, “The claim that this ‘stand up’ approach creates the maximum pressure is bogus. History clearly shows that if a union wants a serious confrontation with the manufacturers, it has all of its members on the picket lines. … The fact that [UAW President Shawn] Fain hasn’t ordered that suggests he doesn’t actually want that or doesn’t think the union could sustain it.” After two weeks, Fain tacitly conceded there had been no progress in the talks, so he upped the pressure to 25,000 workers on the picket lines, or about one-sixth of the UAW’s members. To be clear, this is causing problems for manufacturers. Fain has targeted the plants where work stoppages can cause the most economic damage. Losing $200 million is still real money even for a corporation like GM. But the UAW’s call for wage increases of up to 36 percent, well beyond the 20 percent the auto makers have offered, is something the manufacturer hasn’t budged on yet. And it isn’t likely to so long as only one-sixth of the UAW members are striking.