Chrysler seeks to keep lid on UAW pay through 2019
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WOW Chrysler wants to keep lid on UAW pay through 2019
Chrysler Group wants specific assurances in this round of UAW talks that the union will not try to resuscitate pay raises, cost-of-living allowances and other fixed costs after the expected 2015 expiration of the agreement, a source familiar with negotiations said.
Chrysler has committed $4 billion in U.S. investment since coming under the control of Fiat S.p.A. in 2009. And CEO Sergio Marchionne is insisting on long-term labor cost stability that goes beyond the next four years, the source said.
"This change of culture, from the old ways of doing business, must apply beyond 2015," the source said.
The assurances could come in the form of new contract language that would bind the UAW from seeking wage and benefit changes that would increase Chrysler's overall fixed costs, including a new Jobs Bank program, through 2019, the source said.
The Jobs Bank program -- discontinued in 2009 -- guaranteed workers pay and benefits while laid off.
Chrysler spokeswoman Jodi Tinson declined to comment. UAW spokeswoman Michele Martin said the union would have no comment.
There's precedent in recent UAW accords for provisions that run beyond a contract expiration. For instance, the no-strike clauses negotiated at GM and Chrysler in 2009 remain in place through 2015.
Marchionne said earlier this week Chrysler cannot afford the same contract just negotiated by General Motors because Chrysler paid almost $2 billion in debt service over the past two years on government bailout loans.
GM wasn't hampered by that financial burden because the U.S. government received equity for the $50 billion it lent the automaker.
Chrysler posted a net loss of $652 million last year and expects to generate an annual profit of $200 million to $500 million this year, excluding certain expenses.
GM, in contrast, posted net profits of $5.7 billion during the first half of 2011.
Marchionne is expected to return to the United States from Europe today to renew UAW talks that broke off abruptly Sept. 14, when UAW President Bob King didn't show up to a meeting that Marchionne said was scheduled. King reportedly was tied up in bargaining at GM.
While briefing journalists on the GM settlement Tuesday, King wouldn't say whether the union would turn next to Chrysler or Ford Motor Co. King said he has talked with Marchionne a number of times since their dust-up and he didn't expect the matter to affect negotiations.
The source said the UAW and Chrysler would need to agree to another contract extension if a new tentative agreement can't be reached under the existing one-week extension that expires at 11:59 p.m. ET on Wednesday.
The details of the tentative agreement with GM were shared with UAW local officials on Tuesday. King said he expected the 48,000 UAW members at GM to ratify the contract by Sept. 28.
Chrysler is looking to provide many of the same provisions of the GM agreement, but at a discount, the source said. For example, Chrysler is offering a $3,500 signing bonus for its 23,000 hourly workers vs. the $5,000 one negotiated by GM, the source said.
The general direction of the four-year GM contract, however, is appealing to Chrysler.
Economic gains are concentrated in the signing bonus, three lump-sum $1,000 payments for inflation protection and a slightly enhanced profit-sharing plan. At the end of the contract, GM hourly workers will not have had a wage increase in 12 years.
Chrysler has committed $4 billion in U.S. investment since coming under the control of Fiat S.p.A. in 2009. And CEO Sergio Marchionne is insisting on long-term labor cost stability that goes beyond the next four years, the source said.
"This change of culture, from the old ways of doing business, must apply beyond 2015," the source said.
The assurances could come in the form of new contract language that would bind the UAW from seeking wage and benefit changes that would increase Chrysler's overall fixed costs, including a new Jobs Bank program, through 2019, the source said.
The Jobs Bank program -- discontinued in 2009 -- guaranteed workers pay and benefits while laid off.
Chrysler spokeswoman Jodi Tinson declined to comment. UAW spokeswoman Michele Martin said the union would have no comment.
There's precedent in recent UAW accords for provisions that run beyond a contract expiration. For instance, the no-strike clauses negotiated at GM and Chrysler in 2009 remain in place through 2015.
Marchionne said earlier this week Chrysler cannot afford the same contract just negotiated by General Motors because Chrysler paid almost $2 billion in debt service over the past two years on government bailout loans.
GM wasn't hampered by that financial burden because the U.S. government received equity for the $50 billion it lent the automaker.
Chrysler posted a net loss of $652 million last year and expects to generate an annual profit of $200 million to $500 million this year, excluding certain expenses.
GM, in contrast, posted net profits of $5.7 billion during the first half of 2011.
Marchionne is expected to return to the United States from Europe today to renew UAW talks that broke off abruptly Sept. 14, when UAW President Bob King didn't show up to a meeting that Marchionne said was scheduled. King reportedly was tied up in bargaining at GM.
While briefing journalists on the GM settlement Tuesday, King wouldn't say whether the union would turn next to Chrysler or Ford Motor Co. King said he has talked with Marchionne a number of times since their dust-up and he didn't expect the matter to affect negotiations.
The source said the UAW and Chrysler would need to agree to another contract extension if a new tentative agreement can't be reached under the existing one-week extension that expires at 11:59 p.m. ET on Wednesday.
The details of the tentative agreement with GM were shared with UAW local officials on Tuesday. King said he expected the 48,000 UAW members at GM to ratify the contract by Sept. 28.
Chrysler is looking to provide many of the same provisions of the GM agreement, but at a discount, the source said. For example, Chrysler is offering a $3,500 signing bonus for its 23,000 hourly workers vs. the $5,000 one negotiated by GM, the source said.
The general direction of the four-year GM contract, however, is appealing to Chrysler.
Economic gains are concentrated in the signing bonus, three lump-sum $1,000 payments for inflation protection and a slightly enhanced profit-sharing plan. At the end of the contract, GM hourly workers will not have had a wage increase in 12 years.
source:www.autonews.com
GM contract too expensive for Chrysler, too cheap for Ford
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GM Contract is expensive for Chrysler but it is too Cheap for Ford
DETROIT -- The UAW's tentative contract at General Motors is too rich for Chrysler Group and too lean for the rank-and-file at Ford Motor Co., sources at the companies say.
That means the GM contract is unlikely to provide a pattern for contracts at Ford and Chrysler.
A source familiar with negotiations said the GM tentative contract is too expensive for Chrysler. And Chrysler CEO Sergio Marchionne said as much today at the opening of a dealership in Turin, Italy.
Marchionne -- quoted by an Italian wire service, Agenzia Giornalistica Italia -- said Chrysler and GM started these negotiations at different places financially.
"GM and us are in two completely different positions," Marchionne said. "We were born in 2009, into very different situations. I had an 8-billion euro debt, they had a 50-billion dollar capital. Two very different situations."
Marchionne is scheduled to return to the bargaining table on Tuesday and said he is confident a deal will be reached "quickly." He declined to elaborate further on the talks.
The source said Chrysler was subject to an interest rate of 19.7 percent on its government loan, which was repaid earlier this year. The debt service on the government loans cost Chrysler about $2 billion over the two years, the source said.
Chrysler is also far less profitable and is sitting on a smaller pile of cash than its cross-town rivals - a situation that makes it harder to match the GM deal.
Chrysler, for example, wants a smaller signing bonus than the $5,000 signing bonus GM agreed to pay its 48,000 workers under the tentative agreement.
Company negotiators also have vowed not to pay a penny more than the average $49 an hour in wages and benefits Chrysler provides now to its hourly workers, regardless of what the UAW negotiated at GM.
So if the UAW wants a $2-$3 an hour increase for entry-level workers won at GM, the union will have to subtract that cost from somewhere else, such as health care spending.
"You can't put the same menu on the table for the two companies," the source said.
GM's average 'all-in' compensation is $56 an hour, while it's $58 an hour at Ford.
UAW President Bob King has scheduled a press conference in Detroit on Tuesday to discuss the tentative GM accord.
The GM deal is favorable to the company because it does not raise fixed costs in the form of wage increases or a restoration of cost-of-living allowances, according to analysts.
Instead, the UAW agreed to the signing bonus and an enhanced profit-sharing plan that is expected to provide more consistent payouts to hourly workers than the current plan pegged to U.S. profitability only. The new plan is pegged to global profitability.
Morgan Stanley analyst Adam Jonas wrote in a report to investors Monday that GM's labor spending won't be significantly increased by the tentative contract.
"GM's labor priorities are to keep the North American break-even low and to protect the balance sheet," Jonas wrote. "We believe both have been achieved."
Ford auto worker Gary Walkowicz said GM's tentative contract does not recover nearly enough of the $7,000 to $30,000 in concessions made by Ford hourly workers since 2007.
Based on reported details of the GM pact, a contract with those terms at Ford would not be ratified by the rank-and-file who want a pay raise and restoration of a COLA, he said.
"I don't think it would fly here," said Walkowicz, who is a UAW committee man at the Dearborn Truckplant in Michigan, where Ford F-150 pickups are assembled.
Walkowicz said a $5,000 signing bonus would be spread over four years. At $1,250 a year, that's an increase of just 2 percent of a straight-time wage for hourly workers of $58,240. In contrast, a 3 percent COLA that compounds annually would yield $18,000 in additional money to workers over the four years, he said.
"That $5,000 is a drop in the bucket to what we've lost," Walkowicz said.
A Ford source familiar with negotiations said the average Ford hourly worker will earn about $75,000 in 2011 when overtime is factored in, along with a $5,000 profit-sharing bonus and a potential $5,000 signing bonus.
That means the GM contract is unlikely to provide a pattern for contracts at Ford and Chrysler.
A source familiar with negotiations said the GM tentative contract is too expensive for Chrysler. And Chrysler CEO Sergio Marchionne said as much today at the opening of a dealership in Turin, Italy.
Marchionne -- quoted by an Italian wire service, Agenzia Giornalistica Italia -- said Chrysler and GM started these negotiations at different places financially.
"GM and us are in two completely different positions," Marchionne said. "We were born in 2009, into very different situations. I had an 8-billion euro debt, they had a 50-billion dollar capital. Two very different situations."
Marchionne is scheduled to return to the bargaining table on Tuesday and said he is confident a deal will be reached "quickly." He declined to elaborate further on the talks.
The source said Chrysler was subject to an interest rate of 19.7 percent on its government loan, which was repaid earlier this year. The debt service on the government loans cost Chrysler about $2 billion over the two years, the source said.
Chrysler is also far less profitable and is sitting on a smaller pile of cash than its cross-town rivals - a situation that makes it harder to match the GM deal.
Chrysler, for example, wants a smaller signing bonus than the $5,000 signing bonus GM agreed to pay its 48,000 workers under the tentative agreement.
Company negotiators also have vowed not to pay a penny more than the average $49 an hour in wages and benefits Chrysler provides now to its hourly workers, regardless of what the UAW negotiated at GM.
So if the UAW wants a $2-$3 an hour increase for entry-level workers won at GM, the union will have to subtract that cost from somewhere else, such as health care spending.
"You can't put the same menu on the table for the two companies," the source said.
GM's average 'all-in' compensation is $56 an hour, while it's $58 an hour at Ford.
UAW President Bob King has scheduled a press conference in Detroit on Tuesday to discuss the tentative GM accord.
The GM deal is favorable to the company because it does not raise fixed costs in the form of wage increases or a restoration of cost-of-living allowances, according to analysts.
Instead, the UAW agreed to the signing bonus and an enhanced profit-sharing plan that is expected to provide more consistent payouts to hourly workers than the current plan pegged to U.S. profitability only. The new plan is pegged to global profitability.
Morgan Stanley analyst Adam Jonas wrote in a report to investors Monday that GM's labor spending won't be significantly increased by the tentative contract.
"GM's labor priorities are to keep the North American break-even low and to protect the balance sheet," Jonas wrote. "We believe both have been achieved."
Ford auto worker Gary Walkowicz said GM's tentative contract does not recover nearly enough of the $7,000 to $30,000 in concessions made by Ford hourly workers since 2007.
Based on reported details of the GM pact, a contract with those terms at Ford would not be ratified by the rank-and-file who want a pay raise and restoration of a COLA, he said.
"I don't think it would fly here," said Walkowicz, who is a UAW committee man at the Dearborn Truckplant in Michigan, where Ford F-150 pickups are assembled.
Walkowicz said a $5,000 signing bonus would be spread over four years. At $1,250 a year, that's an increase of just 2 percent of a straight-time wage for hourly workers of $58,240. In contrast, a 3 percent COLA that compounds annually would yield $18,000 in additional money to workers over the four years, he said.
"That $5,000 is a drop in the bucket to what we've lost," Walkowicz said.
A Ford source familiar with negotiations said the average Ford hourly worker will earn about $75,000 in 2011 when overtime is factored in, along with a $5,000 profit-sharing bonus and a potential $5,000 signing bonus.
Grand Am body kits - for a grand look
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Grand Am body kits - for a grand look
Of various Pontiac cars Grand Am was very popular in the USA in the 1980s and 1990s. Actually the car had debuted earlier in 1970s as a family sedan. It could seat up to four persons and was meant for those who wanted a small family car at an attractive price. It had also been favored by the rental car fleet owners. Some major improvements had been made in the car from 1996 onwards when besides sedan a coupe body style was also added to the line up. Its last generation lasted from 1999 to 2005, which was larger than the earlier models and had better platform and suspension.After acquiring a car the car owners invariably go in for aftermarket products. Though these items do not form a part of driving machinery are nonetheless important. They improve performance of the vehicle to some extent and also enhance its looks. Body kits are one of the popular aftermarket products. They include parts like bumpers, side skirts, spoilers, and side guards. Spoilers improve the aerodynamics and traction of the car and the guards protect some parts of the car. All of them substantially contribute to the final appearance of a car as they are externally attached highly visible parts. Grand Am body kits are offered in the market in a variety of designs and styles to cater to the requirements and tastes of their numerous customers. Customers can even impart a personalized look to their car by properly selecting body kits.
For selecting body kits the better option will be to go online as it will be less time consuming and bothersome than visiting automobile stores. On websites you can see how Grand Am body kits will look when installed on your car. You can know which one of the three or four materials normally used in making them has been used and what are its advantages and disadvantages. You can also learn there about their comparative prices. You will, however, have to ensure that the body kits are correctly fitted, and so it will be preferable to engage a professional for the job. You can know more about Grand Am body kits at www.ilovebodykits.com.
Louie Liu has been in the car aftermarket products industry for 5years. He specializes in body kits, headlights, cold air intakes & other aftermarket products. You can learn more about Grand Am body kits, body kits and other car aftermarket products at his site www.ilovebodykits.com.
Source: http://www.articletrader.com
300ZX body kits - rejuvenate your car
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300ZX body kits - rejuvenate your car
Nissan 300ZX is a rear wheel drive sports car which has been appreciated for its attractive styling, ample power, good handling, and reliability. Its fourth generation launched in 1990 was considered to be the best in many respects. It was available as a coupe and "2+2" coupe and later a convertible version was also added to the line-up in 1993. However, due to some economic factors Nissan stopped importing it in the USA after 1996.Despite a car not being imported now the existing model can always be rejuvenated by installing body kits; and for that matter any car can be rejuvenated any time by body kits. Body kits generally comprise of parts like front and rear bumpers, side skirts, spoilers, and side guards. As would be apparent these are all externally attached parts which are very visible and capable of giving a new look to a car. Body kits are usually made of polyurethane, or fiberglass, or carbon fiber. Polyurethane is a flexible material so body kits made of it are better at resisting minor damages and scratches. Fiberglass body kits fit better and can be easily repaired. Carbon fiber body kits are lighter and hence advantageous but are costlier.
300ZX body kits are available in the market in a variety of designs and styles. Because of the wide range of choice available you can not only modify the looks of a car but can give it an exclusive new look of your choice. Your car can have a customized look which the onlookers will tend to associate with you. Your car can become your calling card. For selecting body kits it will be advisable to go online as that will save your time which you may otherwise spend in making a round of automobile stores. On several websites you can get all the information required for this purpose. Body kits are not expensive items so you can even change your existing body kits just to give a new look to your car. However, while installing 300ZX body kits you have to see to it that they are correctly installed preferably by engaging a professional. You can know more about 300ZX body kits at www.ilovebodykits.com.
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Louie Liu has been in the car aftermarket products industry for 5years. He specializes in body kits, headlights, cold air intakes & other aftermarket products. You can learn more about 300ZX body kits, body kits and other car aftermarket products at his site www.ilovebodykits.com.
Source: http://www.articletrader.com
240SX body kits - for a look you like
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240SX body kits - for a look you like
It had always been a challenging task to make a mark in the automobile market, faced with constant introduction of new technologies and performance enhancing features. There was much more tough competition in the introduction-level sport coupe segment of market in the 1990s. At such a time Nissan introduced 240SX as a sport car in 1989 in coupe and hatchback body styles. It attracted attention because it was a rear-wheel drive vehicle; while at that time other sport coupes were front-wheel driven. Though the front-wheel drive had some positional advantages; rear-wheel drive was capable of deriving better performance from the vehicle. It was also appreciated because it provided a comfortable ride due to its multilink rear suspension. In the second generation introduced in 1995 only the coupe body style was retained. Some changes were made in the car in 1996 and 1997, but Nissan discontinued its import in the USA after 1998.Customers treat their cars as a pride possession and enjoy doing them up. They often install body kits for adorning a car. They can make a familiar car look different, and that is what a number of customers want. They want their car not to be lost amongst similar other cars; and want it to have a unique look which reflects their personality. Being highly visible parts, body kits can very well do that. 240SX body kits are marketed in a variety of designs and styles to cater to numerous customers having varied tastes but the same desire to give their car a unique look. Body kits are not expensive items and it is not difficult to install them, so you can at any time replace your existing body kits with the new ones.
You can see various designs of 240SX body kits on websites, so selecting suitable body kits need not pose any problem for you. You can get on websites all the other relevant information like their price and material used in making them. Though installing body kits is not difficult it has to be ensured that 240SX body kits are correctly installed to avoid any problem that may crop up later. You can see more about 240S body kits at www.ilovebodykits.com.
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Louie Liu has been in the car aftermarket products industry for 5years. He specializes in body kits, headlights, cold air intakes & other aftermarket products. You can learn more about 240SX body kits, body kits and other car aftermarket products at his site www.ilovebodykits.com.
Source: http://www.articletrader.com
Carbon fiber hood - more than just style
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Carbon fiber hood - more than just style
There is a lot of association of youth with style. If you will see the dressing habits of the young then the color schemes and the cuts of the dresses will exude a lot of style. On the other hand if you will see the dresses of most old persons they will be rather conservative and though there may still be some style it will be muted and sober. Style therefore is associated with youthfulness and exuberance. And sometimes extended to imply that it lacks substance and just creates hype around a product with does not have the depth of wisdom which comes with age and refinement.But that is not necessarily true. There can be great style which has depth and offers useful tangible benefits as well. Take for example the very popular car aftermarket product carbon fiber hoods. As far as adding style to your car is concerned it is a great option since it is located right at the front and you can have some nice graphics making the style statement you want.
And there is a lot of substance to opting for carbon hoods. Carbon fiber is very light and very strong. It is the reason why it is used in the manufacture of the latest aircraft where low weight is very desirable and yet adequate strength cannot be compromised. Therefore when you switch from the hood that came with the stock car to a carbon fiber hood you reduce the weight of your car. This makes its performance more responsive since the power to weight ratio is now better. And there is less load on the front axle of the car which makes the steering of the car more responsive as well because we steer the car with the help of the front wheels.
As you can see besides the great looks carbon hoods give serious benefits as well. They therefore offer a strong value proposition which few other products can match. Now wonder they are very popular. You can check them out conveniently by going online. You can also look for special deals. You can see the latest carbon fiber hoods at www.ilovebodykits.com.
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Louie Liu has been in the car aftermarket products industry for 5years. He specializes in body kits, headlights, cold air intakes & other aftermarket products. You can learn more about carbon fiber hoods and other carbon hoods at his site www.ilovebodykits.com.
Source: http://www.articletrader.com
Car spoiler - external looks & hidden elegance
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Car spoiler - external looks & hidden elegance
It is not enough to have good looks to become a big Hollywood star. If that were true then every model would aspire for and acquire fame in Hollywood. Instead the good looks and charisma need to be backed up with acting talent and a screen presence that make the persona larger than life. And similarly for a product to be a much desired car aftermarket star it should not only enhance the looks of the car it should also have a good impact on the performance of the car.Now there are several products that offer you the double benefit of improved performance and style. But few can match the impact of a car spoiler. This is because a car spoiler looks great as it is prominently mounted at the rear of the car and gives it a sporty high performance car look. It is immediately noticed and boosts the image of your car. But surely it cannot be mounted there just for its looks? If that were true you would have seen other products sticking out of the car at various places. And sure enough the car spoiler is mounted there for a purpose. It produces a downward force which is proportional to the speed of the car. Therefore when the car is traveling at top speed the car spoiler is pressing the car down to the road and making sure the ride stays stable even at such a high speed. Car spoiler is therefore not merely a decorative appendage and has a unique and useful function. You will notice that even racing cars have car spoilers which is a testament to its usefulness because a racing car will not needlessly carry extra weight.
You can of course reduce the extra weight by opting for carbon fiber spoilers which are lighter. And if you want the style to look at its very best you can opt for OEM style spoilers. Car spoilers are available for all performance cars. You can check out the options for your car easily by going online. You can also look for special deals and discounts. You can see the latest car spoilers at www.ilovebodykits.com.
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Louie Liu has been in the car aftermarket products industry for 5years. He specializes in body kits, headlights, cold air intakes & other aftermarket products. You can learn more about Car spoilers including Carbon fiber spoilers & other car aftermarket products at his site www.ilovebodykits.com.
Source: http://www.articletrader.com
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