GM Seeks to Cut Wages in Half
at Indianapolis Factory

Jane Slaughter

July 30, 2010

GM stamping plant workers in Indianapolis have told the company they won’t cut their wages in half, even when threatened with a shutdown. A prospective buyer of the 650-worker factory has indicated he wants United Auto Workers members to drop from $29 an hour to $14.65.

“If they were to succeed in cutting our wages here,” said shop chair Greg Clark, “they could easily just bring stamping work here, whipsaw us against the other facilities, and before you know it, the whole stamping division would be under siege.” Other GM stamping plants are in Parma, Ohio; Marion, Indiana; and Flint, Michigan.

Although UAW Local 23 members voted 384-22 in May against opening the contract, the UAW International is strongly backing the cuts, indicating that it may go around the local to talk to prospective buyer JD Norman Industries of Illinois. But Clark says, “If you need a wage cut before you even begin, this is not the business you need to be in. Maybe you should try something else.”

Many of the Indianapolis workers are “GM gypsies” who have been forced to transfer from plant to plant during their careers. Clark, for example, is on his fifth factory and third plant closing. The union contract gives workers the right to “follow their work,” so if the plant closes next year as threatened, workers could likely find GM jobs in other towns.

The mood is uncertain as workers wait to see what the UAW International will do. Machine repairman Kenneth Craig said some high-seniority workers want to see the plant bought if they could retire and then return to work at half pay. “They don’t care what it will do to the rest of the union,” Craig said. Clark, who says he thinks members voted for him as shop chair 10 months ago because “they were tired of being pushed around,” said, “You do have some individuals who think it’s just about self. It’s bigger than that.”

REVOTE IN SAGINAW

Meanwhile, 2,200 GM parts workers in Saginaw, Michigan, revoted on steep concessions June 29 and this time said yes. As in Indianapolis, they also had been pressured by International and local UAW officials who said the wage cuts would help GM sell the plant.

Production workers in Saginaw, most with less than four years’ seniority, were already working at second-tier wages of $14.50 to $18.50 an hour. They were offered voluntary “buydowns”: a worker making $18.50 will get a lump sum of $30,000 if he agrees to work for $14.50, or $40,000 if he goes down to a starting wage of $12. Wages will be frozen for five years, except for small raises for the $12 workers in years four and five.

Skilled trades workers were given no option: they must take an $8 an hour wage cut, from $37 to $29, in exchange for a $50,000 lump sum. Skilled new hires will come in at $24, apprentices at $20.

All workers will get a signing bonus of $5,000. Other concessions are to cut shift premiums in half: third shift drops to 5 percent and second to 2.5 percent. Time-and-a-half for overtime won’t be paid till after the 40th hour of work in a week, rather than eight hours in a day.

EAGER TO BUY DOWN

“People are inquiring daily, how soon can I buy down?” said Saladin Parm, a district committeeperson. He predicted that 85 to 90 percent of the workforce will buy down their wages: “They think ‘maybe in two to three years I’m not going to be here.’” It would take a worker who accepted a $6.50 wage cut for $40,000 about three years to start falling behind, if taxes and overtime aren’t taken into account.

“We have a younger group that will take the money and do other things with their lives,” Parm said. Another segment are in their late 50s. “The corporation is trying to get toward a transient workforce. It’s not like the old days where you worked 30 years.”

With planned high turnover and a continuous stream of new workers, GM or its successor can enjoy the $12 an hour wage indefinitely.

Immediately after the 3-1 vote against concessions June 17, GM laid off 50 skilled trades people and some production workers. The company then added family health insurance to its offer. Before, bought-down workers would have gotten insurance only for themselves. The second time, they voted yes 3 to 1.

Ford sale of Volvo expected
to be done next week

Automaker sheds latest European marque
with purchase next week by China's Geely

Detroit News staff and wire reports
July 30, 2010

Ford Motor Co. plans to complete the sale of Volvo Cars to Zhejiang Geely Holding Co. next week, marking the biggest acquisition of a global brand by a Chinese company, people familiar with the plans said Wednesday.

Ford is selling Volvo to Geely for $1.8 billion, less than a third of what it paid for the Swedish carmaker in 1999, as part of the Dearborn automaker's strategy to focus on its blue-oval brand.

Ford and Geely have been aiming to close the deal next week.

Li Shufu, founder and chairman of Zhejiang Geely, will be the chairman of a new board for Volvo Car Corp. after the deal is completed, Geely said this month. A former Volvo chief executive, Hans-Olov Olsson, will be vice chairman.

But it has given no indication whether negotiations to hire Stefan Jacoby, most recently head of Volkswagen's U.S. operations, to be Volvo's next chief executive are nearing completion.

Volvo's current CEO Stephen Odell will leave the company to become chairman and CEO of Ford of Europe.

The Volvo sale concludes Ford Chief Executive Officer Alan Mulally's strategy to shed the European luxury marques purchased by his predecessors.

Since Mulally's arrival from Boeing Co. in 2006, Ford has sold Aston Martin, Land Rover and Jaguar, which it acquired in 1989 as the first of a stable of premium brands that failed to generate the profits the automaker expected.

Of Ford's European brands, Volvo provided the most benefits to Ford, and the acquisition was considered among the most successful in an industry littered with unhappy deals.

"The Volvo-Ford marriage was one of the strongest because their car buyers had similar characteristics," said Rebecca Lindland, an analyst at IHS Automotive in Lexington, Mass.

Geely declined to comment on the timing of the completion.

Ford will continue to supply Volvo with engines, transmissions and other components. It also agreed to offer engineering and technology support, and access to tooling for common components for an unspecified period.

Ford to cut nearly
400 jobs in Windsor

CAW CONTACT
Volume 40, No. 27
July 28, 2010

Government Must Extend Temporary EI Measures

The federal government must act immediately to extend budget measures and pilot projects providing vitally important Employment Insurance supports to laid off workers, the CAW is urging Prime Minister Stephen Harper.

“All the key Employment Insurance stimulus measures and projects are starting to fall off the table, beginning September 11,” CAW President Ken Lewenza and Fish, Food and Allied Workers President Earle McCurdy told Harper in a July 13 letter.

“This will come as a terrible shock to most Canadians. Many of those currently on regular EI would have already exhausted their benefits if not for those measures,” Lewenza and McCurdy state.

In its latest employment outlook, the Organization for Economic Cooperation and Development noted that the number of long-term unemployed almost doubled as a percentage of Canada’s labour force in the last two years and recommended that EI temporary extensions “should be maintained until the pool of long-term unemployed begins to drop significantly.”

Talk of early exit strategies for government stimulus at the G20 meetings and elsewhere is deeply disturbing, Lewenza and McCurdy state.

“Indeed, the recovery is still vulnerable. There’s a danger of a double dip recession and both unemployment and underemployment will be with us for some time. Our members know this only too well; some are in their second layoff in as many years.”

A battle is also heating up in the US over UI extensions. There the federal government has already extended benefits for up to 99 weeks, adding 73 weeks of extra benefits on top of the 26 weeks provided by most states. Canada’s EI extensions are modest in comparison.
CAW and FFAW called for eight temporary EI measures to be extended or made permanent, including:

• an extra five weeks benefits for all claimants and an extension of up to 20 weeks for long service workers;

• two pilot projects that base benefit calculations on 14 best weeks of earnings and allow earnings of up to 40% of benefits while on EI;

• EI training benefits for claimants in approved re-training programs.

To read the complete copy of the letter to Harper go to: http://www.caw.ca/en/9128.htm

CAW Reaches Deal With St. Marys Cement

The CAW has reached a tentative agreement with St. Marys Cement after a five month long strike at the Bowmanville facility over pensions and a number of other concessions.

The tentative agreement is subject to ratification by the 87 CAW Local 222 members and voting will take place on Thursday, July 29. Details of the agreement will be released following ratification.

St. Marys Cement is a wholly-owned subsidiary of Brazilian company Votorantim Cimentos.

CAW Members Approve VIA Deal

CAW members at VIA Rail have voted 88 per cent in favour of a new collective agreement, in a series of ratification meetings held across the country over the past weeks.

“This agreement is a major victory for VIA workers, especially in light of the many concessions initially demanded by the company,” said CAW President Ken Lewenza. He congratulated the CAW master bargaining committee for their efforts during the difficult round of negotiations.

“Now we must turn our attention to pushing the federal government to properly support this important service which links our country from east to west,” said Lewenza. “For many years, governments of the day have undervalued and underfunded VIA Rail, putting an ever-increasing strain on operations.”

The three year agreement includes wage increases in each year; improvements to the benefit plan, including short-term and long-term disability, maternity leave; a new apprenticeship program for maintenance and for the first time, establishes health care spending accounts for retirees.

“I’m pleased that we were able to arrive at this agreement which enjoyed such high support from VIA workers,” said CAW National Council 4000 Secretary-Treasurer Heather Grant, representing both the customer service and on-board service workers.

“Improvements to the collective agreement were important to our members, but equally important was finalizing the apprenticeship program for skilled trades which will be put into place in locations across the country,” said CAW Local 100 President John Burns, whose local union represents maintenance workers.

The CAW is VIA Rail's largest union, representing 2,200 workers. The union reached the agreement with VIA on June 26.

Dragon Boats for the Cure

More than 100 CAW Local 444 members came out to participate in and support the recent Dragon Boats for The Cure races, held on July 10 and 11, 2010 at Tecumseh, Ontario's Waterfront Park. The Dragon Boats for The Cure festival raises money for breast cancer research. Women breast cancer survivors and supporters from all over North America came to participate. CAW Local 444 raised $23,000. Photo: Gord Gray, CAW Local 444.

Bargaining Opens at B.C. Lower Mainland Ports

The Vancouver Container Truckers Association-CAW Local 2006 officially opened bargaining July 22 with a group of separate companies engaged in moving containers to and from the various lower mainland ports.

VCTA-CAW Local 2006 represents the largest group of container truck drivers at lower mainland ports in British Columbia. The membership is seeking a benchmark agreement for container truck drivers which will promote port stability and put an end to constant under-cutting of owner-operator rates.

“We can’t have stability at the ports with an increasing number of unscrupulous container truck companies competing in a race to the bottom,” said VCTA-CAW Local 2006 President Paul Johal.

Port Metro Vancouver (PMV) terminals saw a massive withdrawal of service by 1200 owner-operators in 2005 to protest working conditions and a race to the bottom on rates. The dispute disrupted port operations and cost the provincial and national economies hundreds of millions of dollars.

As a result, the federal government amended the Port Authorities Operations Regulations to set up a licensing system with benchmark and minimum rates for applicable owner-operators. The B.C. Ministry of Transportation and Infrastructure also set up a program to investigate and make recommendations to PMV to enforce the correct rates. PMV can sanction, suspend, or cancel the licenses of offenders.

“It seems the Ports aren’t that interested in rate enforcement as they won’t name companies with suspended or cancelled licenses,” said CAW National Representative Gavin McGarrigle. 

“The Ports need to be ordered to do a better and more transparent job of rate enforcement. The Port regulations need to be changed to provide for true stability instead of the fake appearance of stability that we are left with today,” said McGarrigle.

Further bargaining is scheduled for August 4 and 5.

Attack on Public Sector Workers’ Collective Bargaining Unfair

The CAW criticized the Ontario government’s attempt to attack the collective bargaining rights of public sector workers and the important services these workers provide across the province following a consultation with Ontario Finance Minister Dwight Duncan and other public sector unions on July 20.  

“To suggest that the provincial deficit should be borne by public sector workers is tremendously short-sighted and unfair,” said CAW President Ken Lewenza. “Ontario can only get out of a deficit position by growing the economy, not by making it even more precarious. This will in no way protect services as the province is claiming.”

Lewenza said that the union recognizes the difficulty the province is facing due to the loss of jobs and the impact of the financial crisis but insists that the cost cannot be borne almost wholly by workers.

Under its austerity program, intended to cut into what is projected to be a $21 billion deficit, the provincial government is zeroing in on workers in the education, civil service and health care sectors, a move Lewenza said is unwarranted and will further stall what is already a fragile economic recovery.

The union is also condemning the government’s approach to hospital funding, cut back this year with many facilities facing severe funding shortfalls and even closures in some communities.

Lewenza said the Public Sector Compensation Restraint to Protect Public Services Act, is having far-reaching implications even into the for-profit long term care sector, which employs thousands of CAW members. “For-profit providers such as Extendicare and Revera are now demanding wage restraints and threatening lay-offs despite the fact that the province recently announced $157 million in new funding for the long term care homes sector.”

“This is already a sector characterized by low wages, long working hours and staffing shortages. Too many people working in this sector, predominantly women, have to string together two part time jobs in order to provide for themselves and their families. Our message to the province and to these private sector employers is that we will not tolerate this wage freeze.”

The consultation was the first of a number of others to follow. Lewenza said the union plans to continue meeting with the government to arrive at a solution which precludes placing the burden directly on public sector workers and the important public services these workers provide.

Winnipeg Casino Workers to Vote on CAW Representation

One thousand workers at the Club Regent and McPhillips Street Station casinos in Winnipeg participated in a union displacement vote that could see them represented by the CAW – Canada’s largest gaming workers union. The vote took place over three days, from July 22 to 24.

Some workers at the two casinos have expressed frustration with their current union over inadequate representation and perceived lack of transparency in decision-making, which sparked their campaign to be represented by the CAW.

"Many of the workers we have spoken to fully understand the benefits of being a union member, they just want the type of open, democratic and progressive representation that other workers enjoy with the CAW," said John Aman, the union’s national organizing director.

In response to the workers’ desire to be represented by the CAW, the incumbent union launched a public campaign intending to discredit the CAW and discourage workers from voting for the CAW.

“It’s unfortunate that this union has chosen to spend an extraordinary amount of time, money and energy to publicly attack our union, especially when there are so many outstanding workplace issues affecting their members’ lives,” Aman said.

Vote results are expected to be announced by the Manitoba Labour Board in the coming weeks.
   
CAW is Canada’s largest union in the gaming sector, representing over 7,000 workers at Caesars Windsor Casino, Brantford Casino, Slots at Sudbury Downs, Great Blue Heron Casino, Edgewater Casino and the Woodbine Racetrack as well as other locations.

$46 Million Poultry Plant Good News for N.S. Members

Plans for a $46 million chicken and turkey processing plant in Nova Scotia is a positive step towards getting CAW members back to work in the Annapolis Valley.

CAW Local 2216 members who worked at ACA Co-operative poultry processing facility in Nova Scotia were left reeling by a decision to downsize the plant resulting in 185 layoffs.

Plans were announced July 13 to build a new plant in the Kentville Industrial Park. The facility will be jointly owned by Maple Lodge Farms and a group of local farmers, processing chickens and turkeys raised in Nova Scotia and Prince Edward Island.

CAW Local 2216 President Dean Tupper said the announcement of the new state-of-the- art facility is a positive step toward getting many CAW members back to work.

“After some tough times and enormous uncertainty for our members this plant promises to bring a more stable work environment, while also creating more jobs in the local community,” said Tupper. “Our members have made tremendous sacrifices to keep this industry alive in Nova Scotia,” Tupper said.

The ACA Co-operative facility’s future has been in jeopardy for some time as new poultry processing technology has come to market. In the latest round of contract negotiations with ACA, CAW Local 2216 members ratified a new cost-saving agreement that was needed to secure investment in the new plant.

“I want to thank the membership for their strong support of the bargaining committee during this very tough round of negotiations,” said CAW national representative Chad Johnston.

“The decisions they had to make while they were in the process of losing their jobs weren’t easy for them or their families. It was our sincere hope that those tough decisions would help them secure a better future and this announcement is a step in the right direction,” he said.

Looking Back to Move Forward: CAW Women’s Art Project

The CAW Women’s Program has undertaken an innovative community arts project entitled Looking Back to Move Forward that will celebrate CAW women and their history.

The project aims to compile a patchwork of CAW women’s stories of struggle, activism and personal experiences over the past 25 years into a creative art collage that will be on display at CAW Council in Toronto this December.

The union has received funding from the Ontario Arts Council and the Toronto Arts Council for this initiative and has partnered with experienced community artist Florencia Berinstein, who will coordinate and animate the project.

The project requires the help of all CAW sisters. Women from all sectors of the union and all geographic regions are encouraged to participate.

Please visit http://www.caw.ca/en/9002.htm to download the project questionnaire. All questionnaires must be filled out and be returned through any of the following options:

Mail:        Florencia Berinstein, Project Artist,
                 602 Delaware Avenue,
                 Toronto, Ontario M6H 2V2
Email:      fberinstein@gmail.com
Fax:         416-599-8661

If you have questions about this arts project, please contact Julie White, CAW Director of Women’s Programs, at: julie.white@caw.ca

CAW 25th Anniversary Song Contest

The CAW is turning 25 this year and what better way to celebrate our two and a half decades than by a song?

Talented CAW members from across the country have submitted their original work.

Now it's up to you to decide what song will be chosen to commemorate the union's first 25 years.

The three finalists are:
“The Line” by Adrian Burnett (CAW Local 3000)

"It's only getting better" by Art Farquharson (CAW Local 114)
"Stand up for what you believe" by Glen MacNeil (CAW Local 2027) 

Songs can be heard online by visiting: http://www.caw.ca/en/9169.htm

To cast your vote, please visit the CAW homepage: www.caw.ca/en 

Voting closes on August 4. The winning song will be performed at the CAW Joint Council in Montreal, Quebec - August 27-29.

CAW Welcomes New Members

►        Manitouwadge General Hospital, Manitouwadge, Ontario – 8 new members in CAW Local 229.

►        Hampton Court Retirement Lodge, Southampton, Ontario – 18 new members in CAW Local 2458;

►        OLG Mohawk Slots (Security) Campbellville, Ontario – 40 new members in CAW Local 252;

►        Cascade Carriers LP, Multiple locations in Alberta – 54 new members in CAW Local 4050;

►        Orchard Court, Shannex Incorporated, Kentville, Nova Scotia – 60 new members in CAW Local 2216;

Ford to sell $1.08 billion
of loan bonds
They could be sold starting this week

BY SARAH MULHOLLAND
BLOOMBERG NEWS
July 28, 2010

Ford plans to sell $1.08 billion of bonds tied to auto loans after the U.S. Securities and Exchange Commission created a six-month window for companies to offer asset-backed debt without including ratings in marketing documents.

The bonds may be sold as soon as this week, according to a person familiar with the offering who declined to be identified because terms aren't public. The automaker last sold similar debt in April, according to data compiled by Bloomberg News.

Ford is the first issuer to sell asset-backed bonds since President Barack Obama signed an overhaul of regulation on Wednesday. The Wall Street legislation makes ratings companies vulnerable to lawsuits when underwriters include their assessments in documents used to sell debt.

Moody's Investors Service, Standard & Poor's and Fitch Ratings, in an effort to avoid the legal liability, told borrowers not to include debt ratings in marketing materials, leading some issuers to postpone public bond sales last week.

The law subjects ratings companies to so-called expert liability, meaning they would face the same legal risks as accountants and other parties that participate in bond sales.

The SEC said Friday in a statement that companies could omit ratings from regulatory documents for six months to give market participants a transition period to comply with new laws.

Ford's sale is the first public asset-backed securities issue to be offered since Toyota's finance arm sold $1.75 billion in bonds on July 14, Bloomberg data show.

The U.S. automaker postponed the sale last week because of the new law, Dow Jones Newswires reported last week.

"Ford Motor Credit Company worked with the SEC to find an approach that temporarily resolved this industry issue," Margaret Mellott, a Ford spokeswoman, said in an e-mailed statement.

The financial overhaul was spurred by the 2008 financial crisis that triggered the collapse of Lehman Brothers Holdings.

Obama vowed the law will bring an end to taxpayer bailouts of financial firms and said adjustments to the regulations may have to be made along the way

INPLANT REPORT
July 27, 2010

Kim Clout, CAW Local 584, Plant Chairperson

Hopefully everyone is having a safe and enjoyable summer spending quality time with family and friends. Your Inplant has continued to be very busy during the summer period. We're dealing with several issues related to the announced restructuring and the natural insecurity that the membership feels as a result of these changes. The company's position that we will lose the equivalent of 15 jobs has not changed. It is still impossible to determine the exact impact until we get into the fall. Your union's number one priority is, and has always been to protect your job. We are now beginning to emerge from a period of enormous turmoil.

Last week the company approached the union with a plan to begin the CAW union awareness training. As reported earlier, we pushed this training back to the fall in an attempt to deal with any excess manpower issues. The restructuring should be completed by September. Your Inplant viewed the CAW training discussions as an opportunity to once again state our position that no one should hit the street. In exchange for agreement on moving forward with the training, we demanded that the company put in writing its plans with regard to manpower levels as we move forward. We are very pleased that after several discussions, we received a document from the company today that we feel should go a long way in alleviating some of the memberships concerns over job security, at least in the near future. The following is a portion of the document your Inplant felt was important to communicate to the membership as quickly as possible:

"As this training activity may generate perceived concern in the minds of some employees that a surplus manpower problem is possible later in the year, under our current forecast, we foresee NO difficulties in managing our manpower levels throughout the remainder of the year. Plans are in place to deploy any surplus personnel to support our contractual and legislative training requirements as well as sales and marketing program initiatives. Accordingly, our business volumes, training needs and other operational activities would indicate NO potential for layoffs in the foreseeable future."

Simply put, we pushed the company for a written commitment that none of our members would be laid off this year at the minimum. On top of that, we were also successful in getting the company to once again commit that we would work constructively together with the common goal of avoiding any future layoffs that may result from the restructuring.
This is an important first step in the negotiation process we have now entered. Your Inplant will continue to demand job security for this membership. As I stated earlier, it is and always will be our #1 priority. We will fight like hell to protect your right to provide for your family.

Hopefully this will eliminate any short term insecurity and allow the membership to truly enjoy the summer with piece of mind for the next while. We will communicate any new information as fast as we can.

In Solidarity,
Kim Clout
Plant Chair
On Behalf of the Inplant Committee

2011 Ford Explorer:
Icon drives into new era

Scott Burgess / The Detroit News
July 27, 2010

There are three living icons at Ford Motor Co.: The Mustang, the F-150 and the Explorer.

Perhaps that's why the debut of the 2011 Ford Explorer spanned nine cities, countless tweets and a nearly endless video run on Facebook.

In the past, a vehicle this big, this important, would have been saved for a media blast at the Detroit auto show. But Ford doesn't want to wait. The new Explorer will hit dealerships this winter.

"I've never seen anything like this before," said Victor Lams, an employee at the company's world headquarters in Dearborn.

Nope. There hasn't been anything like this in recent Ford history.

The Explorer debuted to applauding workers and onlookers holding up cell phone cameras to capture the event for family and friends. In the past, it would have been revealed amid flashing cameras and a string of executive interviews for the media.

But this is a new era at Ford.

Ford pitchman Mike Rowe talked with CEO Alan Mulally in New York City. Ford's President of the Americas Mark Fields introduced the Explorer in Los Angeles. And vice president and global product guru Derrick Kuzak asked every employee in Dearborn to get to know the Explorer to help sell it.

The debut lived up to the Explorer's iconic billing.

Ford is on a roll. Ford knows it, the media knows it, and, more importantly, consumers know it. Last week, the automaker announced its fifth consecutive profitable quarter. It's producing great small calls, smart big cars and excellent trucks.

But the new Explorer does more to show the changes inside Ford than any single vehicle wearing a Blue Oval.

No vehicle more accurately defines Ford than the Explorer. In the '90s, the Explorer was unstoppable. During its second decade, it became a symbol of excess and waste, and now, as it enters its third decade, it intends to redefine SUVs.

We've doubted Ford before, should we really do it again?

I've long believed the growing trend toward crossovers -- truck-like vehicles built on car-like platforms that provide car-like rides, better gas mileage and lots of space -- was a product of fashionable practicality. Deep down, consumers want an SUV, and they would buy them if they got 35 mpg. There is nothing more American than a truck.

The new Explorer, which will have a starting price of $28,995, demonstrates how a company can change the trajectory of a falling star. Unlike the Ford Taurus -- where Ford employed the Kirstie Alley plan -- which saw the midsize disappear for a few weeks and then reappear as large sedan, Ford avoided making mistakes with the Explorer.

So is this SUV different than the previous Explorers? Is Ford trying to toughen up a crossover or put lipstick on a truck? Both, and neither.

Customers have always liked the utility of the Explorer, Kuzak said, but they didn't like its body-on-frame ride or its V-8 gas mileage. So Ford addressed those specific issues. A unibody construction will ensure a smoother ride.

More importantly, Ford predicts a 20 percent increase in fuel economy with the new 3.5-liter V-6 and a 30 percent jump in fuel economy with the all-new turbocharged, direct injection 2-liter four-cylinder engine.

A vehicle once known for its ability to crush small buildings in a single rev will now feature a four-cylinder for the first time -- and Ford plans to charge customers a premium for the smaller engine. The amount of the upcharge was not released Monday.

"People have stayed away from Explorers because of its poor gas mileage," said Brian Godfrey, general manager at Pat Milliken Ford in Redford. "This vehicle is definitely going to bring new customers to dealerships."

Yes, it will. And while the debate will continue about whether the new Explorer is truly an SUV with off-roading abilities, few will ask the more important question: Will it even need off-road capabilities? According to Ford, of the millions of Explorers on the road, only 18 percent of owners take them off road, ever.

It would seem silly to cater to a group of noisy enthusiasts when the other 82 percent don't care; they want the smoother ride and better mileage.

With the all-new Explorer, Ford has embraced its heritage but with an eye toward the future.

The Explorer does more than redefine future SUVs, it redefines Ford Motor Co.

Major SUV Fuel Economy Gains, Technology, Style Highlight Reinvention of Ford Explorer
Ford Explorer – the vehicle that defined a segment – has been completely reinvented, raising customers’ expectations of sport utility vehicle (SUV) fuel efficiency, safety, technology, capability and quality. “The all-new Explorer will deliver today’s SUV buyers the attributes they really want and value, and a few they might not even have dreamed of,” said Mark Fields, Ford president of The Americas. “We’re proud to introduce the new Explorer to customers and fans around the world today and pleased to begin a whole new era that blends strong SUV fuel economy and performance.”

The all-new Explorer launches today to its Facebook friends in a unique social media initiative, followed by reveal events throughout the U.S. and Canada.

Shattering SUV Fuel Economy and Performance Expectations
“The new Explorer simply does everything well,” said Derrick Kuzak, group vice president, Global Product Development. “It raises the bar for ride and handling on the road and transforms the off-road experience. It’s the hands-down winner for towing capability and ease. All this capability – and three rows of seating – with amazing fuel economy will make Explorer the absolute right choice for families with a sense of adventure.”

The 2011 Explorer with V-6 power is expected to deliver more than 20 percent better fuel economy than the 2010 model, shattering conventional expectations for SUV fuel efficiency. When equipped with the available 2.0-liter EcoBoost™ I-4 engine, Explorer fuel economy is expected to improve by more than 30 percent and exceed the 2010 Honda Pilot and 2010 Toyota Highlander V-6.

Chief Nameplate Engineer Jim Holland said the team targeted two key objectives when developing the 2011 Ford Explorer. “It had to look modern and contemporary – inside and out – yet be instantly recognizable as an Explorer,” said Holland. “Next, the new Explorer needed to deliver the fuel economy today’s customers want, combined with the performance, capability and empowerment they expect from an SUV.”

Driven by the commitment to give customers unsurpassed fuel efficiency with each new vehicle, Ford attacked every detail to transform Explorer with significantly improved fuel economy:

Weight reduction is a key element in improving Explorer fuel efficiency. While adding significant content to the vehicle, engineers were able to reduce total vehicle weight by almost 100 pounds through the use of lighter materials such as an aluminum hood. Explorer weight loss is even more impressive, as the latest versions of Honda Pilot and Toyota 4Runner have added pounds versus previous models.

Explorer’s available advanced 2.0-liter EcoBoost I-4 delivers the power of a normally aspirated V-6 without compromising four-cylinder fuel economy. Aimed at the SUV buyer whose top priority is fuel economy, this turbocharged and intercooled I-4 engine delivers a projected 237 horsepower at 5,500 rpm and 250 lb.-ft. of torque from 1,700 through 4,000 rpm. The EcoBoost employs direct injection of gasoline, Ti-VCT, direct-acting mechanical bucket (DAMB) valve lifters and four valves per cylinder.

Explorer’s standard powertrain combines front-wheel drive with a 3.5-liter Ti-VCT V-6 engine, delivering an estimated 290 horsepower and 255 lb.-ft. of torque. Ti-VCT allows individually optimized camshaft timing of valve opening and closing events to improve mechanical efficiency while delivering increased power and reducing part-throttle emissions. Mated to a six-speed automatic transmission, this powerful, flexible and efficient V-6 is projected to deliver more than 20 percent better fuel economy versus the previous Explorer V-6 model.

Explorer’s variable-displacement air-conditioning compressor provides a fuel economy benefit with less drag and smoother transition for improved driveability.

Each Explorer engine is paired with a unique six-speed automatic transmission, combining lowered initial gears for improved off-the-line acceleration and higher gearing for improved efficiency at lower engine rpm when cruising.

Explorer V-6 models are available with an intelligent 4WD system that adds terrain management. Situation-selectable, this powertrain advancement takes the guesswork out of 4WD range choice.

A driver need only turn the console-mounted knob to the proper setting among snow, sand, mud and normal modes. This system also includes a hill descent mode.

Simpler and more convenient for SUV veterans, the system will be a confidence-builder for drivers new to the segment.

Contemporary Design with Segment-Leading Craftsmanship and Quietness
In addition to its clean, modern design inside and out, Explorer aims to please SUV shoppers with a thoughtful, flexible interior package that abounds with clever storage capacity. The new SUV features more head and shoulder room, three rows of flexible seating, and room for everything families want to take along on their adventures.

The Explorer design – inside and out – is executed with world-class craftsmanship. Tight margin gaps are just one indication of the immense attention to detail applied to craftsmanship across the spectrum, from design to engineering to manufacturing.

The Chicago facility where Explorer will be produced raised the bar on initial quality measures with the recent Taurus launch, which is good news for customers.

“Crafting a high-quality vehicle is like preparing a gourmet meal,” said Peter Bejin, craftsmanship supervisor. “You start with high-quality ingredients, execute your recipe with flawless preparation and finally, present it with flair and panache.”

Quietness – another profound advancement in the all-new 2011 Ford Explorer – also will signal quality to customers.

The team enhanced noise, vibration and harshness (NVH) control for the all-new Explorer using an advanced technology called NoiseVision. A ball with hundreds of tiny cameras and microphones, NoiseVision allows engineers to pinpoint and address potential noise issues earlier in the development process.
Explorer is expected to be superior to in-segment competitors and rival premium SUVs in quietness and NVH control.

Explorer Safety – Strength, Technology and Innovation
The all-new Explorer targets top safety ratings with a stiff unibody structure and a class-leading suite of active and passive safety features and technologies, plus another Ford safety innovation – the world’s first second-row inflatable rear belts.

Rear seat passengers – often children or mature passengers – can be more vulnerable to head, chest and neck injuries. Ford’s unique inflatable rear belts spread impact forces across more than five times the area than conventional seat belts, reducing pressure on the chest while helping to control head and neck motion. Belt comfort should also help increase usage rates. Studies show inflatable belts to be more comfortable for passengers due to padding.
From the boron front bumper beam through the hydroformed front frame rails and high-strength steel side-impact tubes, Explorer’s rigid body structure is designed to provide robust protection for occupants. In the instance of a crash, these elements come together to protect Explorer driver and passengers inside a safety cage of strength.

Standard Explorer safety features include:

Available Explorer safety features include:

Stretching the Breadth of Capability
The 2011 Ford Explorer redefines customer expectations for driving dynamics and comfort – on any road, anytime, anywhere – while stretching the breadth of SUV capability. Transforming Explorer’s driving quality was central to creating an SUV for 21st century customers.

“Our objectives for Explorer dynamics were threefold,” said Carl Widmann, vehicle engineering manager. “The first element was to greatly increase on-road comfort, capability and driving dynamics. The second was to maintain the ‘any road, anytime, anywhere’ capability of the previous model. Finally, we aimed to apply technology to the task of safely towing, as V-6 Explorer models are rated up to 5,000 pounds. We think customers will be pleased with the next-generation Explorer on all three counts.”

The theme of the all-new Explorer dynamics development was balance. The team sought to provide an engaging driver experience in harmony with the extended breadth of 4WD capability to build driver confidence.

The shift to a unibody construction platform enabled a reduction in road noise and significantly decreased Explorer body roll in dynamic cornering situations. Independent front suspension is of the short- and long-arm configuration with a 32-millimeter front stabilizer bar. Independent rear suspension is the SR1 configuration, so-named for its one-to-one shock absorber ratio, which enables precise ride control.

Explorer’s EPAS system allows for variable rates of assistance based on speed, turn-in and direction. In addition to optimized steering feel, tight on-centering and appropriate resistance, EPAS provides a fuel economy benefit in comparison to traditional hydraulic power assist systems. EPAS also enables a competitive turning radius for optimum maneuverability in parking situations, combined with increased assistance at low speeds for parking ease.

EPAS allows for the addition of Curve Control, a new feature that senses when a driver enters a turn too quickly and applies brake pressure to stabilize the vehicle.

In addition, EPAS enables the optional active park assist technology. When activated, the system scans for a suitable spot, calculates the trajectory, and steers the vehicle. The driver continues to control brake and throttle inputs, but the system steers the vehicle throughout the parking maneuver.

Off-Roading Standout On a Variety of Surfaces
The key to Explorer 4WD capability is Ford’s new terrain management system.
Replacing the traditional SUV transfer case configuration, the new system takes the guesswork out of maximizing 4WD and the capabilities it enables. Rather than employment of four-high, four-low and auto settings, Explorer terrain management is selectable by situation. The four settings – available by shift-on-the-fly – include normal, mud, sand and snow.

Each setting provides unique engine behavior, throttle tip-in, transmission shift scheduling and calibrations for traction and stability control systems. Terrain management also includes Hill Descent Control™, which provides engine braking to increase driver confidence and control when descending a steep incline.

Explorer models with V-6 power are rated to tow a maximum of 5,000 pounds. To aid with hookup –especially when alone – a reverse camera with zoom-in functionality is available, allowing a driver to back up to the trailer on-center. The Explorer towing package includes trailer sway control – a stability package shared with the Ford F-150 pickup – to help minimize trailer sway. Trailer brake controller wiring is also included, as is a tow/haul mode. Engaging tow/haul mode increases engine braking to help slow the vehicle and trailer when descending steep grades.

Loaded with Features, Convenience and Connectivity
The all-new Explorer is available in three trim series levels – base, XLT and Limited. Each offering presents a robust array of standard features, with a class-leading selection of additional convenience and connectivity options so a buyer can tailor a new Explorer to his or her individual needs and desires.
Standard convenience features include:

Explorer XLT includes standard content and adds:

Explorer Limited includes all base and XLT content, plus:

“We spent our time listening to customers and addressing their needs to launch an SUV that reinvigorates the Explorer nameplate and delivers on Ford’s promise of high-quality, fuel-efficient and technologically advanced vehicles with industry-leading safety,” said Holland. “The all-new Explorer will change market perceptions about SUV style, fuel efficiency, technology and user-friendliness.”
The 2011 Explorer will be assembled at Ford’s Chicago manufacturing facility. Production begins late this year, and Explorer will be available in dealerships this winter.

Click here to view the photo gallery for the 2011 Ford Exlporer.

Click here to view the video for the 2011 Ford Explorer Reveal.

Ford reaping solid profits
after turnaround

By DEE-ANN DURBIN and TOM KRISHER
AP Auto Writers
July 25, 2010

DEARBORN, Mich. (AP) -- Four years ago, Ford mortgaged everything down to the blue oval logo to save itself. Now, even as Americans remain skittish about the economy, it's reaping big rewards and stealing business from stumbling rivals.

Ford said Friday that it made $2.6 billion from April through June, its fifth straight quarterly profit. The company, which reported record losses in 2008, now predicts it will end 2011 with more cash than debt.

With its two longtime Detroit rivals still finding their way after spending time in bankruptcy last year, Ford, which never took government bailout money, extended its success story.

President and CEO Alan Mulally said the company is ahead of where he thought it would be in its turnaround. It now sells the most popular pickup truck in the U.S., the F-Series, and the most popular crossover SUV, the Escape.

"Our performance this year gives us great confidence going forward," he said.

In the past year, Ford has gained a bigger share of the American market, the equivalent of about 154,000 cars and trucks. Rivals Toyota, General Motors and Chrysler have all lost ground.

Toyota stumbled this year because of safety-related recalls. GM and Chrysler's precarious financial positions had some people shying away from their cars.

Mulally, a tough manager masked by a boyish face and gee-whiz demeanor, joined Ford in October 2006, a year into a turnaround plan that called for closing plants, cutting jobs and dropping some of its models.

He removed obstacles, put new managers in place and forced feuding parts of the company to work together. He had cards printed out for every employee exhorting people to work together and accelerate development of new products - and carries one in his own pocket. In weekly management meetings, he holds people accountable but also greets success with applause.

Michael Robinet, an analyst for the consulting firm IHS Automotive, credits Mulally with motivating the work force. But he said the biggest reason for Ford's success is a complete overhaul of its factory and sales strategies.

When the company was losing billions last decade, it kept cranking out cars and trucks even if they weren't selling, because high labor costs made it too expensive to shut down production.

But late in 2008, the United Auto Workers union gave up a provision known as the jobs bank, in which automakers had to pay laid-off workers even if their plants were closed.

Now, workers have to take jobs at other factories or risk losing wages and benefits. With 12 fewer factories and a North American work force that is half the 140,000 people it was five years ago, Ford can limit production when demand is slow.

"It's not about the moving metal any more. It's about moving the metal profitably," Robinet said.

Ford's leaner development system allows more of its cars and trucks to share parts. The new Fiesta subcompact, for example, will be sold around the world with only minor variations. And Ford plans to bring at least six vehicles from Europe to North America in the next few years, including a new Focus and the C-Max minivan.

High quality rankings from outside groups like Consumer Reports have also helped Ford command higher prices. The average selling price of a Ford last quarter was about $2,000 higher than a year earlier, according to Edmunds.com.

Ford Chief Financial Officer Lewis Booth said the commitment to new and better products like the Ford Fusion sedan is the biggest factor in Ford's turnaround, allowing Ford to bring in more money while keeping costs competitive.

"If you've got great products, you can go to market in a sort of confident fashion," Booth said. "If you haven't, it's much tougher."

Ford's second-quarter revenue rose 14 percent to $31.3 billion. Its profit was 61 cents per share, 8 cents less than a year ago, when a big debt payment reduced Ford's interest payments.

Ford said it expects to make money for the next two years. Its stock rose 63 cents to $12.73. Ford shares fell as low as $1.26 in 2008. It's still a bargain, trading at about about seven times earnings. Toyota's ratio is more than 46.

Booth said Ford's first-half results surprised him and were better than the company expected at the start of the year. But he said Ford still must reduce debt and raise sales, particularly in fast-growing China and India, where it lags competitors.

Ford is also cautious about weaker demand for cars and trucks at home. It cut its forecast for total U.S. sales to between 11.5 million and 12 million on Friday. Earlier, it had predicted sales of up to 12.5 million.

Ford also held its third-quarter production forecast steady at 1.27 million cars and trucks worldwide, instead of raising production as it did in the second quarter.

Many analysts predict U.S. sales will continue to improve in 2011 and later. When they do, Ford is poised to rake in even more profit, Robinet said.

"Ford is setting the table for strong, stable performance going forward," he said.

Ford's profit the biggest in 12 years

Mulally expects to pay down debt and for 2011 to be even better

Christine Tierney / The Detroit News
July 24, 2010

Ford Motor Co. earned $2.6 billion on higher car and truck sales in the second quarter, its biggest quarterly profit in 12 years, and repaid some of the debt that it took on to ride out the industry downturn.

"We're ahead of where we thought we'd be after this excellent first half, and we expect even better results in 2011," Ford President and Chief Executive Alan Mulally said.

"It appears to us we're going to be able to improve the balance sheet and reduce the debt," he told analysts and reporters Friday.

Compared with its crosstown rivals, Ford made it through the downturn intact, after borrowing $23 billion in late 2006.

But its heavy debt load left Ford at a disadvantage relative to General Motors Co. and Chrysler Group LLC, which shed their debts in bankruptcy.

Now, after five consecutive profitable quarters, Ford repaid $7 billion of debt, trimming interest expenses by more than $470 million.

Chief Financial Officer Lewis Booth said the company expects to go from having net debt to a positive cash position sometime next year. "That's a strong statement about how the business is going," he said.

Ford's better-than-expected results triggered a rally in its shares, which closed up 5.29 percent at $12.73.

The company's $2.6 billion quarterly profit, on revenue of $31.3 billion, compares with a $2.26 billion profit a year earlier and was the highest quarterly total since the first quarter of 1998.

Its pre-tax operating profit totaled $2.9 billion, or 68 cents per share, Ford's best quarterly operating performance since the first quarter of 2004. The operating results exceeded analysts' expectations, averaging 41 cents per share, and reflected gains in the company's automotive and financial services businesses.

Ford's pre-tax profits in North America of $1.9 billion also were well above most estimates. Its overseas operations were profitable, too.

During the second quarter, Ford sold 1.4 million vehicles, up from 1.2 million a year ago.

The automaker is benefiting from the savings generated by a restructuring under Mulally, as well as higher vehicle prices reflecting the growing strength of its brands while many of its rivals are struggling.

Looking back, Booth described the move by Chairman Bill Ford Jr., Mulally and former CFO Don Leclair to mortgage most of Ford's assets and take out the loans as "a brilliant bit of work. I don't think anyone anticipated how bad the recession would be," he told The Detroit News.

Ex-GM worker, husband
accused of stealing secrets

Detroit News staff and wire reports / Associated Press
July 23, 2010

Detroit -- A former General Motors engineer and her husband were charged today in federal court with conspiring to sell stolen trade secrets about hybrid vehicles to Chinese automaker Chery Automobile.

Shanshan "Shannon" Du, 49, and her husband, Yu Qin, 51, both of Troy, stood mute before U.S. Magistrate Judge Mark A. Randon on conspiracy and other charges. They had been under investigation for years and were charged in 2006 with destroying documents, but the case was dropped while a broader probe continued.

The indictment says Du, who was hired at GM in 2000 and worked in the company's Advance Technology Vehicle Group, copied thousands of pages of GM trade secrets onto a portable computer hard drive five days after accepting a buyout offer in 2005. The indictment alleges the theft of secrets dates back to 2003.

GM estimates the value of the stolen documents at $40 million, according to the U.S. Attorney's Office.

"We cooperated with the authorities in developing the case, and will continued to cooperate as appropriate," GM spokesman Tom Wilkinson said. He declined to elaborate.

By the summer of 2003, Qin, who had been an engineer with Troy-based electrical systems and equipment maker Controlled Power Company, was telling people he had a deal to provide hybrid technology to Chery Automobile, the indictment says. The couple had established their own company, Millennium Technology International, in 2000.

Assistant U.S. Attorney Kathleen Corkren said GM was notified of the alleged theft by Controlled Power, which had discovered the portable hard drive containing GM documents. GM called the FBI. The indictment contains details of e-mail exchanges offering GM data and plans.

Corkren said the indictment indicates none of the trade secrets actually reached Chery.

The indictment also tells about how the couple tried to discard shredded documents that had been requested by a federal grand jury investigating the matter.

"Theft of trade secrets is a threat to national security," Andrew Arena, head of the FBI in Detroit, said in a statement. The couple was arrested this morning. Randon set unsecured bond for each at $10,000 and ordered them to not leave the three-county area. The couple asked permission to travel to Illinois next month to help their son who is beginning college there.

"It's a surprise to us," said Frank Eaman, Qin's attorney. "This investigation has been going on so long I figured if they had a basis they would have charged them a long time ago."

Ford to offer hybrid sedan at
same price as gas model

Dee-Ann Durbin

DEARBORN, Mich. — The Associated Press
Thursday, Jul. 22, 2010

For the first time, an American auto maker plans to sell a hybrid car for the same, lower price as its gas-powered counterpart, removing at least one obstacle for drivers who want a greener ride.

At a little more than $35,000 (All prices in U.S. dollars), the 2011 Lincoln MKZ sedan won't be cheap, but the decision by Ford to match the prices of the two styles could lead competitors to follow suit with future models.

The hybrid MKZ, debuting this fall and running on both gas and electric power, will be a bargain after factoring in savings at the pump. It gets more than double the mileage of the traditional version in city driving.

While auto makers won't reveal what they spend to install a hybrid system in a car, the final product usually costs several thousand dollars more than a gas-powered version of the same car.

The Lexus HS 250h, the MKZ's closest competitor, costs about $2,500 more than the Lexus IS, a similar, small, gas-powered sedan. Ford charges $8,840 more for the hybrid version of its Ford Escape SUV.

The MKZ can still make money even if Lincoln doesn't charge more for the hybrid, said Erich Merkle, president of the consulting company Autoconomy.com. Luxury cars are sold at a significant premium, he said, ensuring a profit for Ford.

Lincoln can also borrow the hybrid system from the Ford Fusion, its corporate twin, and save on development costs.

“Conventional wisdom is that the hybrid should be priced higher, but there's not really anything to say that a hybrid has to command a higher price,” Merkle said.

Besides, Ford had to keep the price down, said Jessica Caldwell, an analyst for Edmunds.com. If it had sold for more than $40,000, it would have faced tougher competition from luxury cars like the Mercedes E-Class or the Audi A6, she said.

“It's going to take moves like this one to break into the luxury market,” she said.

Other auto makers may not try to match Lincoln's move if it is limited to the MKZ, but they will have to take notice if Lincoln uses the same strategy with future hybrid models, said Aaron Bragman, an analyst with IHS Automotive.

John Felice, Lincoln's marketing manager, said pricing strategy is an opportunity to get buyers interested in the Lincoln brand. Even after a complete revamp of its cars in the past few years, Lincoln still lags behind other luxury brands. Lincoln sales were up 7.5 per cent in the first six months of this year, compared with 17 percent industrywide.

Lincoln is also trying to make up for the sales it is losing by phasing out its Mercury brand, which includes two hybrids.

The MKZ is one of most popular Lincoln models, but its sales have fallen 5 percent so far this year.

The MKZ will get 41 mpg in the city and 36 on the highway. That beats the Lexus HS 250h, which gets 35 mpg in the city and 34 on the highway. The gasoline version of the Lincoln MKZ gets 18 mpg in the city and 27 on the highway.

The new hybrid system isn't the Lincoln MKZ's only nod to the environment. Its wood trim comes from well-managed forests, while the leather seats use a chromium-free tanning process that makes them easier to recycle, Ford said.

Lincoln MKZ buyers are not eligible for federal tax credits for alternative-fuel vehicles. Federal law limits the credits to the first 60,000 buyers of a company's hybrids, and Ford hit that number on March 31.

Ford is the first U.S. auto maker to offer a hybrid and conventional version of a car at the same price. Industry analysts say they are unaware of a foreign automaker doing it, either.

Even if Ford were to lose money on the MKZ hybrid, it would probably be willing to make the trade in exchange for marketing value for the Lincoln brand, said Bruze Belzowski, assistant research scientist at the University of Michigan Transportation Research Institute.

“Lincoln might say, ‘We're going to take a hit on this,“' Belzowski said. “They may say something like ‘We're willing to take a hit on this because the marketing value is going to outweigh the cost.“'

Bailout likely also saved Ford, top Senate Democrat says

David Shepardson / Detroit News Washington Bureau
July 22, 2010

Washington -- The Senate's top Democrat argued Ford Motor Co. probably would have collapsed if the government hadn't bailed out its top two competitors.

Sen. Harry Reid, D-Nev., chided Republicans for opposing Democratic efforts on a number of fronts and defended the Obama administration's auto bailout.

"Isn't it a good thing today in America that we have an automobile manufacturing sector? If it had been up to them, General Motors would be gone. If it were up to them, Ford Motor Company would probably be gone. Chrysler definitely would be gone," Reid said on the Senate floor today. "We decided that they need help, just like New York City needed help 25 years ago."

GM and Chrysler received a $62 billion government bailout -- with the Bush administration rescuing the companies with $17.4 billion near the end of its White House tenure. The Obama administration provided about $45 billion to restructure the two companies in bankruptcy.

But Ford executives have never said the company would have collapsed if the government hadn't bailed out its cross-town rivals.

In December, Ford executive chairman Bill Ford Jr. met with President Barack Obama and praised him for rescuing GM and Chrysler.

"The way he stepped in with GM and Chrysler and preventing the collapse of the supply base was something they did swiftly and forcefully and it worked," Ford said.

White House Press Secretary Robert Gibbs on Monday defended the auto bailout -- and also suggested a failure to rescue the other companies could have brought down Ford.

"It's important to look at the decision to put into bankruptcy and restructure both Chrysler and GM, because I think it is safe to say without that decision that the president and the auto team made, it is likely that neither of those two auto companies would exist today," Gibbs said. "And I think if you listen to the CEO of Ford, it's not likely that that auto company would exist today either."

Republicans have been increasingly critical of the auto bailout. Democrats have also criticized the Obama auto task force's decision to urge more auto dealer closings in the wake of an audit by the special inspector general's overseeing $700 billion Wall Street and auto bailout fund.

2011 Ford Explorer expected
to increase sales


Crossover platform, greater fuel efficiency give new vehicle boost

Alisa Priddle / The Detroit News
July 21, 2010

Dearborn -- Ford Motor Co. expects a boost in Explorer sales with the new 2011 edition, which will be unveiled Monday, but remains tight-lipped on its volume projections.

"We expect to sell more than we do today or we wouldn't have changed the product," Jim Farley, global marketing chief, said at a Ford event Tuesday.

Analyst Aaron Bragman of IHS Automotive in Troy said selling 60,000 a year should be easy and 100,000 should be possible. "I think it will be a popular vehicle," he said.

Including the Sport Trac model, 52,000 Explorers were sold in 2009.

The new Explorer, which has gone from being a body-on-frame sport-utility vehicle to a car-based crossover, is equipped with more features and options, Farley said.

A lighter vehicle with an improved V-6 and new 2-liter EcoBoost four-cylinder also will improve fuel economy 30 percent from the outgoing model.

Farley said the new Explorer's efficiency opens up the competitive field so the seven-passenger crossover can expand beyond Jeeps and other trucky competitors to include car-based offerings.

"I think we'll get more cross-shopping now," Farley said.

Ford is tapping social media to spread the message an SUV can be fuel-efficient and offer a smooth ride.

A Facebook campaign with teaser pictures of the vehicles has been running for months and a multicity launch is planned Monday for the vehicle that goes on sale this winter.

"We're starting six months early with the risk of still needing to sell down the old ones but we think it is worth the risk," Farley said, adding the marketing effort needs to incorporate social and mainstream media.

Social media is a great tool for a prelaunch, Farley said.

Ford used social media to create a buzz about the new Ford Fiesta subcompact a year before its launch. The cars are arriving in showrooms now.

Like the Ford Taurus with which it shares underpinnings, the Explorer has the latest in infotainment technology.

MyFord Touch has Sync as the operating system for technology that includes touch screens and steering-wheel controls.

Ford: New Explorer ups
fuel efficiency by 30%

Alisa Priddle / The Detroit News
July 20, 2010

Ford Motor Co. today confirmed the all-new 2011 Ford Explorer will be 30 percent more fuel-efficient than the outgoing model.

Ford has been building up the crossover's debut with Facebook teaser pictures of parts of the vehicle and a steady diet of snippets about features and attributes. The new Explorer goes on sale later this year, but the production model has not been shown on the auto circuit.

The improved fuel economy will be achieved because the vehicle is lighter, more aerodynamic and car-based (from the Taurus family), and it has an optional 2-liter four-cylinder Ecoboost engine, which means it is turbocharged and has direct-injection. The crossover also has a six-speed automatic transmission.

The current Explorer, with a 4-liter V-6 engine, is rated as getting 14 mpg in the city and 20 mpg in highway driving. A 30 percent improvement would mean the new Explorer should get 18/26 mpg. Official figures will be released once the EPA completes its testing.

"The all-new Explorer will give a huge universe of existing and prospective customers the capability they expect and the luxury and convenience they want, all combined with the fuel economy they need," said Mark Fields, Ford president of The Americas, in a statement.

In an effort to get as many miles per gallon as possible, the Explorer will offer electric power-assisted steering, battery management, fast engine warm-up and aggressive deceleration fuel shutoff, and a more efficient air conditioning compressor.

Safety technology includes curve technology that will debut on the Explorer. It is an upgraded electronic stability control system to better hug the road if a driver takes a curve too quickly and will be added to 90 percent of Ford's light trucks and crossovers by 2015.

The public got its first look at the replacement for the body-on-frame Explorer with the Explorer America concept at the 2008 North American International Auto Show.

Ford F-350 a beast on the road

Scott Burgess / The Detroit News
July 18, 2010

I'm sorry: Did I just run over your car?

That can happen when you drive the 2011 Ford F-350, which makes every other vehicle on the road look like a tin can ready for crushing.

It is the most refined beast on the road today. Capable of arriving in a variety of configurations, the Ford Super Duty remains one of the best big rig trucks.

The Lariat edition I recently tested for a week grew on me the more I drove it -- enjoying it without actually putting this truck to work. The interior was beautiful, the ride surprisingly smooth, and it offered a bird's eye view of the road. In fact, it requires a parachute just to get out of it.

It may not fit in a lot of garages; my test vehicle measured 246 inches long (and it had the "short" 6-by-8-foot bed on it), but when you're behind the wheel, you don't really care. You just drive.

Now really, this truck is more than any journalist -- and most people -- may want to own, unless, of course, you need to haul 15,000 pounds on a regular basis and you simply enjoy intimidating other cars off the road. Then, this is the perfect vehicle.

Of course, I could have tested the even-more-powerful diesel version of the F-350, which cranks out incredible amounts of torque (735 pound-feet) that will pull most houses.

But the gas version is nearly as nice. The 6.2-liter V-8 will create 405 pound-feet of torque and 385 horsepower, more than enough to carry a winter's supply of firewood. Plus, it runs on gas.

But it's not simply a big gas engine, it's a high-tech wonder. It uses two spark plugs per cylinder to ensure cleaner and more efficient combustion. There are also dual knock sensors, dual equal variable cam timing, better engine breathing and a heavy duty six-speed automatic transmission that can handle just about everything.

Now, within the truck world, there are always a few diesel deniers -- those who weigh the diesel premium (nearly $9,000 more) against the more efficient diesel engine. (I am not one of them; instead, I believe there should be a diesel version of every vehicle on the road today.)

But for the sake of sounding fair, the argument goes that a person buying diesel will never save enough money using a diesel to pay for the premium. This is why every heavy-duty truck maker offers a big V-8 gas engine. Strictly speaking, this argument is true. Diesels are not the economical engine -- especially now that diesel fuel costs more than gas at filling stations.

However, and this is a big one, the diesel engine is nearly twice as powerful as the gas engine. And diesels are famous for incredible durability, which is something every pickup owner demands.

In the end, the engine choice is up to the driver. For someone who uses their big rig for toy hauling, boat pulling or the occasional firewood run, a gas engine might be the best choice. For others, the diesel -- for me, the gas engine was just fine.

City driving

In order to really see this vehicle's capabilities, I took it to Ann Arbor for a little city driving.

I thought the 156-inch wheel base might make driving in traffic difficult. It was far from that. Cars tended to move right out of my way as I came up behind them. Parking was a bit of a bear just finding a space big enough -- none of the city-owned parking spaces seemed big enough. I could squeeze into the space, but the back end would stick out a few feet and I wouldn't be able to open the doors.

So I had to park in those side streets that allegedly required a permit of some sort. From the driver's seat of the F-350, permits seem silly.

The interior will make anyone feel as if they're exempt from permits. The cabin is simply spectacular. The giant seats and the crew cab, which actually has more space back there than up front, are comfortable and well made. There is nearly everything a person needs during a long drive.

Then there are all of the features inside. From the voice-operated infotainment system Sync to the massive amounts of storage and the small crisp display screen between the tachometer and speedometer, Ford creates a polished interior that will impress luxury car buyers. It's complete, well built and reflects the toughness of the exterior.

A pleasure to drive

During a late night drive coming back from Ann Arbor, the truck glided down the road. Its big wheels churned along and cars moved out the way quickly as I approached them. (When the new Super Duty was created, the head lights were lowered slightly so they wouldn't glare in the eyes of car drivers.)

It's big and brawny and classy and fun. The Super Duty, in any size or configuration, may be a work truck but it's also a pleasure to drive.

While it's not something I really need, it's certainly something I like. And those people who need a big truck, the F-350 is a great place to start.

2011 Ford F-350 Crew Cab

Price: $29,715
Engine: 6.2-liter V-6 (gasoline)
Horsepower: 385
Torque : 405 pound-feet
Transmission: Six-speed automatic
EPA gas mileage : Not evaluated
Towing capacity : Up to 15,000 pounds
Max Payload : 4,050
Dimensions (provided with 6.75-foot bed):
Wheelbase: 156.2 inches
Length: 246.8 inches
Width: 79.9 inches
Height: 80.8 inches
Seats: Five people
Interior dimensions (Crew Cab)
Front / rear
Headroom: 40.7 inches / 40.8 inches
Legroom: 41.1 inches / 42.1 inches
Hip room: 67.6 inches / 67.6 inches
Shoulder room: 68 inches / 68 inches
Fuel tank : 35 gallons
Suspension:
Front: Independent twin I-beam (narrow front track) with coil springs, shock absorbers, stabilizer bar (
Rear: (4x2) Live axle with leaf springs, staggered shock absorbers and stabilizer bar;
Steering: Power assist
Note: There are a multiple of configurations for the Ford Super Duty trucks.

CAW CONTACT
Volume 40, No. 26
July 16, 2010

 
Bargaining Impasse: St. Marys Cement Strike Appeal

Despite two-and-a-half days of further negotiations and after 18 weeks on strike, St. Mary’s Cement continues to refuse to bargain a fair and equitable agreement with CAW Local 222 members who work at its Bowmanville, Ontario facility.

“We remain at a clear impasse with this arrogant corporation,” said CAW President Ken Lewenza. “St. Marys Cement is foreign-owned by a Brazilian Corporation that is making completely unacceptable demands on these workers, including an attack on their defined benefit pension plan, which has been in effect for 66 years,” he said.

“This is a critical fight for all workers who deserve to receive secure retirement income,” Lewenza said.

CAW Local 222 President Chris Buckley said the CAW will continue to press the company for a fair agreement in order to end this dispute.

Buckley blamed all levels of government for allowing foreign-owned companies to buy up Canada’s natural resources and facilities and gut our hard-earned collective agreements.

"What is even more disgusting is the fact the current government allows this company to hire scab labour to perform our jobs during this dispute. We are encouraging consumers not to buy St. Marys products during this dispute,” he said.

Paul Sowden, CAW Local 222 unit chairperson thanked all local unions across the country for their generous financial support for these workers and their families during this struggle.

"It remains our objective to bargain a fair and equitable agreement on behalf of our members and end this dispute which has gone on far too long,” Sowden said.

Lewenza, in a July 12 letter, is again calling on all CAW local unions to provide as much financial and picket line support as possible to these workers.

Cheques should be made payable to CAW Local 222 and sent to: Chris Buckley, President, CAW Local 222, 1425 Phillip Murray Avenue, Oshawa, ON, L1J 8L4.

CAW Joins Call for Public Inquiry into G20 Police Actions

The CAW has joined with dozens of progressive organizations in condemning the curtailment of civil liberties during the G20 Summit and calling for an independent public inquiry into police actions in an open letter to Prime Minister Stephen Harper and Ontario Premier Dalton McGuinty.

The detention of over 1000 citizens, many of whom were innocent bystanders, has been the subject of intense public criticism levied at the federal and provincial governments in recent weeks in the wake of G20 meetings held in Toronto on June 26-27. Of primary concern is the arbitrary nature in which these arrests took place, the extension of power granted to police in and around the security perimeter, along with the excessive force used by police and unsanitary and unsafe conditions for those detained.

The actions of police and a small group of protestors, unconnected with the People’s First rally, and the excessively strong-armed police actions marred what was a very large and peaceful demonstration in Toronto that involved tens of thousands of labour union, student and social justice activists, including hundreds of CAW members from all across Ontario. 

Demonstrators, representing a wide cross-section of Canadian civil society organizations and various progressive causes, called on G20 leaders to ensure the issues of decent work, environmental sustainability and action against global poverty were at the top of their meeting agenda, including the need to promote more extensive economic recovery efforts and prevent future economic crises by adopting a global tax on financial transactions.

A large contingent of women activists lead the peaceful march, demanding that Stephen Harper reverse his decision to exclude abortion among the various maternal health-promotion measures that G20 nations will support in developing countries around the world.

CAW President Ken Lewenza, who participated in the demonstration, called the rally a tremendous success. “I’m always inspired by the resolve of our activists who are willing to stand up against injustice and raise their voices to demand a better, more equal and humane world – especially in the face of an intimidating police presence.”

Most national and international media attention of the day focused on events that transpired after the peaceful demonstration had wound its way back to Queen’s Park, when a small group of protestors and self-identified anarchists were shown participating in acts of vandalism.

A full copy of the open letter can be found on the Canadian Federation of Students website: http://www.cfs-fcee.ca/html/english/campaigns/g20inquiry.php

Tentative Agreement at VIA Rail

CAW leadership at VIA Rail have voted unanimously in support of recommending a new three-year collective agreement to CAW membership.

Fifty elected workplace union leadership reviewed the tentative agreement in Montreal and the agreement is now being voted on by the membership in a series of meetings.

After a difficult set of contract talks the CAW and VIA Rail reached a tentative agreement on June 26. The tentative agreement came one day before the strike deadline. Details of the collective agreement will be released after ratification.

The CAW is VIA Rail’s largest union, representing 2,200 workers in customer service, on-board service and maintenance.

Mass Demonstration at Siemens Canada Head Office

CAW Local 504 members who work at Siemens Canada’s gas turbine facility in Hamilton, Ontario held a mass demonstration outside the company’s headquarters to protest plans to close the plant and move work to North Carolina.

They urged the highly profitable company to reverse the decision or find alternate work for the long-time Hamilton facility. Failing those options they demanded the company sit down with the CAW to finalize an equitable settlement.

The company has announced plans to close the gas turbine plant in July 2011.

“We’re getting increasingly frustrated at this company’s callous attitude towards its workforce, so this could be the first of many similar events if things don’t change,” said CAW Local 504 President Randy Smith. “We continue to receive strong support from our brothers and sisters at IG Metall in Germany, the metalworkers’ union which represents Siemens workers there, who believe there remains a strong future for the Hamilton facility as well as gas turbine facilities in Germany.”

“After more than 100 years of commitment from this workforce in Hamilton it’s a disgrace the way the company is treating these highly skilled workers,” said CAW National Representative Tom Rooke. “They should treat these workers with the dignity they deserve - this is a corporation that’s making billions in profits each year worldwide.”   

“It’s time for this corporation to come back to the table and negotiate a fair and equitable agreement for these workers,” said Rooke.

CAW President Ken Lewenza said Siemens is a world-wide producer that has benefitted from government support and procurement contracts, including here in Canada. “Siemens should not forget that it owes its success to its productive workforce, including our members at the Hamilton facility,” Lewenza said.

Failing the possibility of finding alternate work to keep the plant running, Lewenza said the union is demanding a fair settlement agreement, that to date Siemens has been unwilling to consider.

CAW Local 504 represents approximately 350 hourly and salaried members at Siemens in Hamilton.

Newfoundland and Labrador Crab Harvesters Stand United

After resisting demands for lower crab prices from seafood producers, Newfoundland and Labrador crab harvesters remained united, fighting to get a price of $1.35 per pound, ensuring the provincial crab fishery got underway this season. 

“Clearly $1.35 is not a feasible price for crab going into the future, but we needed to get this fishery started and harvesters are to be commended for standing united on this issue and allowing that to happen this year,” said CAW/FFAW President Earle McCurdy.

After a back and forth struggle between the Association of Seafood Producers (ASP) and CAW/FFAW negotiators the crab fishery is now moving ahead bringing tremendous relief to rural Newfoundland and Labrador communities dependent on the fishery.

McCurdy urged more provincial government involvement including improved marketing and a better overall sales structure in the industry.

In future, better and more organized ways of doing business are needed when it comes to assessing market situations and marketing products to ensure everyone gets the best possible return from the fishery, McCurdy said. He stressed the union is committed to finding solutions before the start of the next season.

“Harvesters and plantworkers, as well as those working in associated industries suffered a great deal of stress and uncertainty this year and we need to avoid that in the future,” McCurdy said. The CAW/FFAW represents thousands of harvesters and plant workers across the province.

Ontario Premier’s Letter on Navistar

The following is an excerpt from a July 5 letter to CAW President Ken Lewenza from Ontario Premier Dalton McGuinty regarding the future of the Navistar truck facility in Chatham, Ontario:

“My colleagues and I are concerned for all workers and their families who will be affected by Navistar’s strategy to move production components out of Chatham to Mexico. We understand that the employees at Navistar are talented, experienced and highly skilled with a record of high quality production, and we regret that the company had to make this decision – one which will not only affect the livelihood of the workers, but of the whole community of Chatham.”

To read the full letter – visit: www.caw.ca/en/7606.htm

Toronto Pride Parade

(Photo) CAW members join in the festivities at the 2010 Toronto Pride parade on July 4. Members snaked through the downtown core holding banners and handing out stickers that readL Proud to be Political," "Our Pride Includes Free Speech," and "Workers of the World...Caress!" among others. This year marked the 30th anniversary of the Toronto Pride parade, nown for its fun-filled celebratory atmosphere and infused with strong progressive politics that support the rights of lesbian, gay, bisexual and trans communities. Organizers estimated this year's parade was attended by 1.3 million people.
Agreement at BC Transit in Victoria

CAW Local 333 members who work at B.C. Transit in Victoria, British Columbia have ratified a new two-year agreement.
The new contract covers 680 transit operators and skilled trades workers and expires March 31, 2012. It resists concession demands and provides benefit gains, while eliminating a tier in the wage schedule, now ensuring that after two years everyone is at the top rate.

This round of bargaining occurred in a particularly tough environment with the provincial Liberal government mandating a zero cost agreement over two years.

“It is very disappointing that the right to free collective bargaining was denied by this legislation,” CAW BC Area Director Susan Spratt said. “Some of our members made gains at the expense of others. I’m very proud of our members who sacrificed to give newer members of our union a wage increase to get them to a living wage in Victoria.”

“We truly hope that in the next agreement transit workers can be recognized for the service they provide to the public in Victoria and we can move forward,” Spratt said.

Opening of Bargaining at Lower Mainland Ports in B.C. with CAW-Container Truckers

The Vancouver Container Truckers Association-CAW Local 2006 will officially open bargaining July 22 with a group of separate companies engaged in moving containers to and from the various lower mainland ports.

VCTA-CAW Local 2006 represents the largest group of container truck drivers at lower mainland ports in British Columbia. The membership is seeking an agreement that provides stability and puts an end to undercutting owner-operator rates.

“We can’t have stability at the ports with an increasing number of unscrupulous container truck companies competing in a race to the bottom,” said VCTA-CAW Local 2006 President Paul Johal.

Port Metro Vancouver (PMV) terminals saw a massive withdrawal of service by 1200 owner operators in 2005 to protest working conditions and a race to the bottom on rates. The dispute disrupted port operations and cost the provincial and national economies hundreds of millions of dollars.

As a result, the federal government amended the Port Authorities Operations Regulations to set up a licensing system with benchmark and minimum rates for applicable owner operators. The BC Ministry of Transportation and Infrastructure also set up a program to investigate and make recommendations to PMV to enforce the correct rates. PMV can sanction, suspend, or cancel the licenses of offenders.

“It seems the Ports aren’t that interested in rate enforcement as they won’t name companies with suspended or cancelled licenses” said CAW National Representative Gavin McGarrigle. 

BC Labour Minister Murray Coell expressed concerns about the lack of timely action on the Ministry of Transportation recommendations in a letter sent to PMV June 3: “Since December 2007, approximately $645,765has been collected on behalf of 351 owner-operators”. Minister Coell added “If actions are not taken on offenders swiftly, I believe the effectiveness of the program will be seriously undermined.”

“The Ports need to be ordered to do a better and more transparent job of rate enforcement. The Port regulations need to be changed to provide for true stability instead of the fake appearance of stability that we are left with today,” said McGarrigle.
“If the federal government doesn’t make these changes soon, the bargaining environment will be difficult and the current rate system at the Ports could fall apart leading to massive instability - this is an outcome that nobody wants to see, especially our members,” McGarrigle added.

Further bargaining is scheduled for August 4 and 5. 

New Contract for Coca-Cola Workers in Brampton

CAW members at the Coca-Cola bottling plant in Brampton, Ontario ratified a new three-year agreement by a margin of 69 per cent on June 27.

The new agreement includes pension improvements, new workplace training commitments, and enhanced job security language among other gains.

“This was a very challenging round of negotiations that pushed our bargaining committee right to the eleventh hour,” said CAW Local 973 President Tony Di Bartolomeo. “It was the resolve of our committee and our membership that enabled us to make the gains we did. We will continue to build on this contract moving forward.”

Bargaining committee Chairperson Ryan Parson said the union fought back company demands to drag down wages and work standards, which would have eroded the Brampton workers’ contract – widely considered to be the Cadillac agreement for Coke workers in Canada.

“The aggressive approach taken by this company to demand concessions is further proof that as a union we must remain vigilant in how our in-plant leadership administer and defend this important contract, for the benefit of all workers at Coke,” Parson said.

CAW Local 973 represents over 500 production, delivery and skilled trades workers at the Brampton bottling facility.

Ford shuffles European executives

Alisa Priddle / The Detroit News
July 16, 2010

Ford Motor Co. today announced a shuffling of its executive ranks to better pursue growth as a united global company and without the Volvo brand.

Effective Aug. 1, Ford is expanding the role of Jim Farley to global leader for marketing, sales and service. Farley had overseen these responsibilities for Canada, Mexico and South America. Adding the rest of the world to his duties marks the first time that Ford has aligned all markets under a single leader, the automaker says.

The "One Ford" plan has been a driving force under CEO Alan Mulally.

"These moves allow us to strengthen our global team as we accelerate our One Ford plan and continue to profitably grow serving our customers around the world," Mulally said in a statement.

Ford has achieved efficiency by developing products that can be sold anywhere in the world, so it makes sense to get further efficiency by aligning marketing the same way, said James Bell, executive market analyst for Kelley Blue Book in Irvine, Calif.

"Ford has plans for so much integration that it makes sense to have one person in charge of marketing and having a consistent theme," Bell said.

Other executive appointments are in anticipation of the closing of Ford's sale of Volvo to Zhejiang Geely Holding Group Ltd. this quarter.

Executive Vice President John Fleming, 58, will take over global manufacturing and labor affairs operations. Replacing him as CEO of Ford of Europe is Stephen Odell who had been CEO of Volvo Cars and who has led Ford of Europe in the past.

Volvo Chief Financial Officer Stuart Rowley assumes the same position at Ford of Europe.

Ford's agreement to sell Volvo still needs approval from Chinese government regulators.

In other moves, Eduardo Serrano, head of Ford of Mexico, is appointed executive director of Latin America.

Serrano and Ford Canada President David Mondragon will now report to Mark Fields who oversees the Americas.

Li Shufu, the founder and chairman of Zhejiang Geely Holding Group Co., will be the chairman of a new board for Volvo Car Corp. once the sale is finalized.

A former Volvo Chief Executive, Hans-Olov Olsson, will be the vice chairman of Volvo Cars, the Chinese company said today.

Perk-packed 2011 Ford Edge offers luxury in growing crossover market

Latest model has new powertrain, better mileage and link to Sync

Scott Burgess / The Detroit News
July 15, 2010

Dearborn -- With the second-generation Edge, Ford Motor Co. is further positioning itself to tap the growing popularity of crossovers with American consumers.

The 2011 Edge, which arrives in dealerships next month, features a new powertrain, better overall mileage and an all-new interior, Ford officials said.

The Edge Sport model will feature a 3.7-liter V-6 (the same engine found in the 2011 Mustang) that produces 305 horsepower and 280 pound-feet of torque. It also will have standard 22-inch wheels.

The new Edge will help Ford draw new customers to the brand not only because of the expanding crossover segment but also because of the vehicle's growing success, said Amy Marentic, Ford's large cars and crossover marketing manager.

By the end of 2010, midsize crossovers are expected to represent more than 11 percent of the total market, Ford predicts.

"Crossovers are still growing, and we expect them to continue to grow," Marentic said.

Edge sales have jumped 35.8 percent this year through June, with Ford selling more than 56,000 units, according to Autodata Corp.

Forty-nine percent of Edge buyers are new to Ford and 70 percent remain loyal to the brand with their next purchase, Marentic said.

The Edge fits well in the market place, especially for consumers who are considering moving down from more luxurious vehicles but do not want to give up luxury amenities, said Aaron Bragman, an automotive analyst for IHS Global Insight.

"Ford is right, crossover utility vehicles are going to continue to grow in sales," Bragman said. "They are becoming the family vehicle of choice. They're replacing SUVs."

The Edge will debut features that will eventually make their way into other Ford vehicles. They include the Ford MyTouch system, which connects the driver quickly to the Sync mobile information and entertainment system. The exterior has been designed to look more refined and sportier, said Elaine Bannon, the vehicle's chief engineer.

The new base model Edge SE, powered by Ford's 3.5-liter V-6, will cost $27,995, including shipping. That price is $200 less than the outgoing model.

The 2011 Edge SE also adds 2 miles per gallon on the highway and 1 mpg in city driving, bringing its EPA mileage numbers to 19 mpg city and 27 mpg highway.

The Edge Sport will have a starting price of $36,995 US and offer 18 mpg in the city and 25 mpg on the highway, Bannon said.

Auto-sector jobs lost
despite sales growth

The Canadian Press
July 14, 2010

TORONTO — The number of people employed by the Canadian auto industry has declined this year despite a recovery in sales, according to data compiled by DesRosiers Automotive Consultants.

As of April, 123,829 Canadians worked in the auto industry. This is down more than seven per cent from 133,375 in the same period of 2009 and a whopping 26 per cent decline from nearly 168,000 in 2008, before the global recession hit and the Canadian and U.S. governments lent billions of dollars to General Motors and Chrysler to protect auto jobs.

"The most important political variable in the automotive equation and the critical reason that our collective governments dumped over $100 billion into the Detroit Three ... was to arrest declines in jobs," industry analyst Dennis DesRosiers wrote in a commentary.

"Close to 10,000 jobs have been lost compared to the identical period a year ago and remember, a year ago the industry was in deep trouble, so to be down from the depressed levels of a year ago indicates that the automotive and parts sector in Canada ... is in seriously bad shape."

This is the fifth year in a row that employment in the Canadian auto industry has declined. Industry employment hit its peak in 2001 with almost 200,000 jobs and has since dropped by nearly 40 per cent.

DesRosiers said each of the industry's subsectors -- including assembly; parts; tool, die and mould; and body and trailer -- employs fewer people this year than it did last year.

"Politicians should be very worried. We are seeing the (winnowing) away of our vehicle and parts manufacturing sector and I quite frankly don't see much ability for any politician to stop this," DesRosiers said.

Canada's auto sector is largely based in southern Ontario.

Part of the reason jobs continue to disappear despite a recovery in sales is that previously announced shutdowns of Canadian assembly plants are still taking effect.

GM Canada recently closed its transmission factory in Windsor, Ont., putting 1,100 people out of work. This followed on the heels of the closure of its truck plant in Oshawa, Ont., last year, which eliminated 2,600 jobs. And Ford Canada will close its St. Thomas, Ont., plant next year, leaving another 1,500 auto workers without a job.

It is estimated that for every one job in the assembly sector, another six to seven are created in related industries.

Ford Edge Sport gets
Mustang engine

Dee-Ann Durbin / Associated Press
July 14, 2010

Detroit -- The Ford Edge Sport is getting sportier with a new engine swiped from the Ford Mustang.

Ford Motor Co. said Wednesday that the 2011 Ford Edge Sport -- the high-performance version of the Edge, which is one of the country's top-selling mid-size crossovers -- will have the same engine as the Mustang sports car. It's the first time the Mustang's 3.7-liter engine has gone into an Edge.

The 305-horsepower V-6 engine will give the Edge Sport 40 more horsepower than the current model -- and 41 more horsepower than the V-6 on the Chevrolet Equinox, a close competitor that outsold the Edge in the first half of this year.

But Ford stressed that the 2011 Edge Sport will have the same fuel economy as the current version, which gets 20 miles per gallon on the front-wheel-drive version. That's because the engine is more efficient and Ford has made other fuel-saving changes, including improving the vehicle's aerodynamics and lowering the idle speed.

The Edge Sport has other sports-car touches, including paddle shifters on either side of the steering wheel for shifting gears. The transmission reverts to automatic mode when the paddles aren't in use. The Edge Sport also has new 22-inch forged aluminum wheels, a painted black grille and sport-tuned suspension for a firmer ride.

The Edge Sport also has the industry's first iTunes tagging system, an option that lets customers tap a button if they hear a song they like on the radio. The system captures the song for later purchase on iTunes.

Elaine Bannon, the chief engineer of the Ford Edge Sport, said the bigger wheels and more powerful engine are the kinds of upgrades performance-oriented customers might make on their own. She said her team wanted to make the Edge Sport the Mustang of the staid, family hauling crossover segment. Crossovers are SUVs built on a lower car platform.

Bannon said the Edge Sport, which has been on the market for two years, doesn't make up a big percentage of Edge sales but generates excitement about the vehicle.

"It's the soul of the lineup and gives a glow factor across the lineup," she said.

The Edge Sport goes on sale at the end of the summer. It will start at $36,220, or about $9,000 more than the base model Edge.

Ford also announced Wednesday that the 2011 Edge SEL and Limited versions, which have a 285-horsepower V-6 engine, will have the best fuel economy among their V-6 competitors. They are rated at 19 miles per gallon in the city and 27 on the highway.

Ford's Flat Rock plant on single shift; 550 workers to be relocated

Alisa Priddle / The Detroit News
July 13, 2010

Back from vacation shutdown, Ford Motor Co.'s Flat Rock plant is now operating on a single shift and excess employees are being relocated to other plants.

Ford announced in February that the AutoAlliance International plant, jointly owned by Mazda Motor Corp., would consolidate all Ford Mustang and Mazda6 production on a single shift starting this week.

At that time, the automaker's early estimate was that as many as 900 workers would have to be reassigned, and there were jobs for all of them.

It turned out the single shift, which is running 35 percent faster, needed more workers than anticipated, said Ford spokeswoman Marcey Evans. As a result, about 550 had to be moved to other plants.

"None went to indefinite layoff," Evans said, but some are on temporary layoff as they wait to be phased into other plants in the process of expanding their work force.

Michigan Assembly in Wayne needs extra workers later this year to make the Ford Focus, and the Chicago assembly plant is adding a second shift of 1,200 in the third quarter to make the new Ford Explorer.

Flat Rock now has about 1,750 workers.

The plant assembled about 102,000 cars in 2009 and the forecast is to increase output this year, helped by the new 2011 Mustang with a more fuel-efficient engine.

The plant had a lot of downtime last year as Mustang sales fell 27 percent and Mazda6 sales were off 34 percent. Both the Mustang and Mazda6 are up less than 1 percent for the first half of the year, but in June they were up 18 percent and 84 percent respectively.

UAW president, the Rev. Jackson
to launch jobs and
peace campaign today

Louis Aguilar / The Detroit News
July 12, 2010

United Auto Workers President Bob King and civic rights leader the Rev. Jesse Jackson Sr. intend to launch a new campaign that will call for more American jobs, beef up federal enforcement of the workplace and industry, and end the wars in Afghanistan and Iraq.

The Jobs, Justice and Peace Campaign will be announced at the UAW's Solidarity House in Detroit this afternoon, according to a press statement released Friday by the Rainbow PUSH Coalition, the Chicago-based group led by Jackson.

The campaign begins with an Aug. 28 march in Detroit. The date commemorates the June 1963 "Freedom Walk" in Detroit led by Martin Luther King Jr.

King first delivered portions of his "I Have a Dream" speech in Detroit prior to leading the largest civil rights demonstration in history -- the March on Washington on Aug. 28, 1963.

The planned UAW-Rainbow PUSH Coalition march continues a more activist tone that King has set for the union since succeeding Ron Gettelfinger as president at the union's mid-June convention.

King has urged a boycott of Toyota dealers as part of an effort to organize a Tesla electric car factory at the old GM-Toyota assembly plant in Fremont, Calif.

In his convention acceptance speech, he said he wanted to be known as "an idealist ... a dreamer ... a visionary."

Afterward, King took to the streets of Detroit with Teamsters President James P. Hoffa and NAACP President and CEO Benjamin Jealous after his union convention speech.

"If we don't win social justice for everyone, we don't win!" King told a crowd that filled a city block.

Why Americans get a better deal

Kate Robertson
Investopedia.com
July 12, 2010

Every time a Canadian looks at the price of a book or a magazine, he or she is faced with a harsh reality. There it is, the price of the book if sold in the United States; below, the more expensive price if it's sold in Canada. This used to be because the Canadian dollar was weaker, but as the two currencies reached parity back in 2007, consumers discovered the price gap for commodities was still fairly high.

According to Douglas Porter, a Canadian economist at the Bank of Montreal, prices were, on average, a whopping 24 per cent higher for the same products sold in Canada than in the United States.

Though the Canadian dollar has taken a few hits since then, it has recovered. Because of pressure from consumer groups over the last few years, price gaps have narrowed even further. Still, Mr. Porter says prices are still about 7-per-cent higher in Canada. Sound unfair? Here's why.

More Companies, More Competition

Quite simply, the lay of the land in the United States is vastly different from Canada's. There are about 310 million Americans compared to 34 million Canadians, which means there are more companies and retail outlets serving more people in the United States. And when there is more competition, prices drop. (When the Canadian dollar reaches parity with the U.S. dollar, how does that affect you? Find out in Why Things Are Getting A Little Loonie.)

"More competition generally means lower prices, downward pressure on whatever pricing structure is used and, for all models, better product quality, more consumer choice and innovation - all of which benefit not only individual Canadians, but the economy as a whole," Melanie L. Aitken, Canada's commissioner of competition, recently told the Economic Club of Canada.

Distribution and Scale

With a small population spread out over a vast geographic area, Canadian distributors are responsible for transporting a smaller numbers of goods to harder to reach areas, which can be expensive. For example, the majority of books found in Canadian retail outlets are stored centrally, in the Greater Toronto Area, and then shipped out to stores from there.

According to a report commissioned by the Department of Canadian Heritage, "Book distribution in Canada is heavily influenced by an important structural aspect of the domestic marketplace: Canada is a relatively small market, with a modest population spread over a large geographic area. Economies of scale are particularly difficult to achieve in such a market."

Regulations, Labour Costs and Employee Benefits

The U.S. has fewer unions, lower labour costs and fewer benefits for employees that manufacture goods, which could influence the prices of those goods. Last year, the Canadian Auto Workers confirmed that employees at Ford of Canada's plants made, on average, $16 (U.S.) per hour more than Ford workers in the United States. The union and the company negotiated a new contract that included an amendment that workers would have to give up certain benefits, like a $1,700 annual special bonus, in November of last year. (Learn the pros and cons of these organizations and how they fit into today's economy in Unions: Do They Help Or Hurt Workers?)

"It is a credit to the relationship we have with the CAW that we were able to reach a responsible agreement in such turbulent economic times," said Stacey Allerton Firth, vice-president of human resources at Ford of Canada. "Both the union and the company realized that we had to work collaboratively to meet the competitive challenges facing the industry."

The Bottom Line

Historically, American retail outlets and tourism have benefited from a stronger Canadian dollar and price gaps that send shoppers north of the border south to buy. And in turn, many predict that fewer Americans make the trip north, where their dollar has less spending power. According to Statistics Canada, there have been 50-per-cent fewer cross-border shopping trips by Americans in Canada since 2003. There have been 2.2 million more same-day car trips by Canadians to the United States. (Find out how to capitalize on exchange rates in order to save money while shopping in North America in Cross-Border Shopping Tips.)

Cross-Border Shopping Tips (Click Here)

Recalls announced
at Ford, Chrysler

July 10, 2010
David Shepardson / Detroit News Washington Bureau

Washington -- Ford Motor Co. is recalling 33,728 Transit Connect vans and halting sales until it fixes the vehicles.

The Dearborn automaker told the National Highway Traffic Safety Administration that it is recalling 2010 Transit Connect vehicles to replace a part above the B-pillar trim on both the left and right side of the vehicle to address potential noncompliance with federal law.

A government test showed a vehicle didn't meet one federal safety standard. The recall covers all Ford Transit vehicles built between Dec. 5, 2008, through May 31 at its Kocaeli plant in Turkey.

Ford said it is not aware of any reports of accidents or injuries related to this issue.

On April 23, Ford was informed by NHTSA of the test result recorded for a 2010 model year Ford Transit Connect. Ford investigated the test results, including assessing of test setup conditions and additional system testing and analysis, to confirm the test results.

Ford spokesman Wes Sherwood said the company was repairing vehicles to make them ready for sale. "The parts are available at our regional storage facilities so dealers can order them now. We alerted dealers about this earlier in the week," he said.

Chrysler recalling 22,000
Separately, Chrysler Group LLC said today it is recalling 22,000 vehicles over possible brake problems.

The recall includes some 2010 Dodge Nitro, Dodge Ram 1500 pickup tricks, along with Jeep Liberty and Wrangler vehicles.

The recall includes 7,800 Ram pickups and 8,800 Jeep Wranglers.

Chrysler said the vehicles have been built with potentially defective brake tubes. The condition could lead to loss of brake fluid and reduced braking performance, which could increase the chance of a crash.

Chrysler said the recall also covers another 6,000 vehicles in Canada, Mexico and other foreign markets.

"The condition was discovered internally through improved quality control processes. Chrysler Group LLC will conduct a voluntary safety recall on all potentially affected vehicles to inspect and replace the affected components. The improvement will be completed at no cost to the customer," Chrysler spokesman Nick Cappa said.

Chrysler dealers will replace the brake tubes as part of a recall that will begin next month.

Nickel workers approve
contract with Vale

Brenda Bouw Mining Reporter

Vancouver — Globe and Mail Update
Friday, Jul. 09, 2010

Unionized workers at the former Inco nickel mines in Ontario will be back on the job within weeks after approving a new labour contract and ending one of the longest strikes in Canadian history.

After a year-long strike, union members voted about 75 per cent in favour of a five-year contract, which includes modest wage increases, a new two-tier pension plan, a tighter bonus based on the price of nickel, and some layoffs. About 84 per cent of the union’s eligible striking workers cast ballots on Wednesday and Thursday.

“I’m pleased with the deal,” said Wayne Fraser, director of the district that includes the striking United Steelworkers locals 6200 and 6500. “There are still 25 per cent of the membership that are not happy, but we’ll live to fight another day.”

Workers will return to work over the next six weeks, which was part of the contract agreement.

The deal also includes changes that will sees Brazilian owner Vale SA squeeze costs and boost productivity at the operations it obtained when it bought Inco in 2006 for $19.4-billion, one of a series of foreign takeovers of Canadian mining companies at the time.

Approval of the contract came just days before the one-year anniversary of the strike, which began July 13, 2009.

About 3,100 workers at mines in Sudbury and Port Colborne walked off the job after the members of the United Steel Workers union failed to agree to its first-ever contract with Vale.

Much of the disagreement revolved around a bonus tied to the price of nickel, as well as a move towards a defined contribution pension plan.

The contract approved Thursday includes minor changes from a proposal overwhelmingly rejected by union members in March.

The new deal is expected to serve as a blueprint for 120 workers on strike at Vale’s operations in Voisey’s Bay, Nfld. who have been on strike since Aug. 1, 2009.

Vale’s Canadian operations produce about 10 per cent of the world’s nickel supply.

Toyota knew Lexus flaw 2 years ago

Yuri Kageyama / Associated Press
July 9, 2010

Tokyo -- Toyota knew two years ago about the engine problem behind its latest Lexus recall, even changing the spring part to correct it, but did not think a recall was warranted until recently, a company official said Tuesday.

Toyota Motor Corp. started Monday a global recall over engine defects in its Lexus luxury models sold around the world, as well as the Crown sold in Japan, moving to repair some 270,000 vehicles to replace valve springs -- crucial engine components that are flawed and could cause vehicles to stall.

In August 2008, Toyota changed that spring part, making it thicker, to prevent the problem, spokesman Hideaki Homma told the Associated Press. That is why the latest recall does not affect vehicles produced after August 2008.

Toyota, the world's top automaker, previously thought the problem was caused by a foreign substance entering during manufacturing of the valve springs, and beefed up checks so that wouldn't happen. It had thought the issue was an isolated problem that didn't require a recall.

"We changed the part in August because then the problem won't happen at all, even if tiny particles enter during manufacturing," Homma said. "We are talking about microscopic particles here."

But the complaints started climbing, and Toyota decided recently they weren't isolated problems after all, but a design defect, and decided to issue the recall, Homma said.

Toyota has promised to recall problem cars more quickly to salvage a once pristine reputation now in tatters after recalls ballooned to more than 8.5 million vehicles around the world since October.

Toyota executives have repeatedly vowed to put customers first. But it has been criticized as lagging in its response to quality lapses, and was slapped with a record $16.4 million fine in the United States for responding too slowly when the recall crisis erupted.

Auto analyst Koji Endo at Advanced Research Japan Co. said automakers routinely improve parts and technology when a product is remodeled, and the facts don't necessarily point to a cover-up.

But he said that recall after recall at Toyota are devastating for its image, underlining how it had not properly paid attention to quality during its booming expansion years.

"They are paying for that now," he said. "Demand had been surging and so it was difficult to balance that with maintaining quality."

Endo said the popularity of the Lexus was likely to drop in the United States, providing a chance for growth to luxury rivals BMW and Mercedes-Benz amid a gradually recovering market.

Affected in the latest recall were Lexus models GS350, GS450h, GS460, IS350, LS460, LS600h, LS600hL and Crown models, including about 138,000 vehicles in the United States, nearly 92,000 in Japan, 15,000 in Europe, 10,000 in the Middle East, 6,000 in China, 4,000 in Canada, and 8,000 elsewhere.

Toyota has received about 200 complaints, but no accidents due to the defects have been reported.

The latest woes come on top of a recall last week for 17,000 Lexus hybrids after testing showed fuel can spill during a rear-end crash.

Ford to allow users to
limit Sync distractions

David Shepardson / Detroit News Washington Bureau
July 8, 2010

Washington -- Ford Motor Co. will offer consumers the ability to block features of its Sync communications system as the debate grows over distracted driving.

The Dearborn automaker said in a statement late Wednesday that the new feature, dubbed a "Do Not Disturb" button, will lock out capabilities "that are not relevant to the task of driving while the vehicle is in motion."

Ford will offer the new system first on the 2011 Ford Edge and Lincoln MKX through its new My Ford Touch, its second-generation of Sync. The measure blocks incoming phone calls or text messages from a Bluetooth-enabled mobile phone and diverts calls into voicemail and saving text messages on the device for viewing later.

The move goes beyond voluntarily guidelines agreed to by automakers.

Ford will not allow a driver to manually enter a destination on a navigation system unlike some other automakers, said Alan Hall, a Ford spokesman.

Ford says the advantage of the system -- unlike turning the phone off -- is drivers can still make voice-activated outgoing phone calls, and the SYNC 911 assist feature can make a call to 911 in case of an emergency.

Ford is also locking out and limiting content of its new My Ford Touch system that it's introducing this summer. The system will have a web browser -- but drivers won't be allowed to use it while driving.

The move bars drivers from using screens such as point-of-interest reviews and ratings, sports scores, movie listings, and ski conditions while in motion.

Ford is also barring any action that requires typing on a keypad and limiting lists of navigation and phone choices that the user can view to fewer entries -- like phone contacts or recent phone calls.

Congress is mulling new proposals to combat distracted driving.

The Ford announcement came as Transportation Secretary Ray LaHood criticized a nascent lobbying effort saying he was "stunned to read that anyone would organize an effort to undercut road safety."

The lobbying firm Seward Square circulated a leaked proposal in recent days to convince automakers, electronics firms and others to oppose additional distracted driving proposals. The firm has since withdrawn the proposal.

In February, LaHood worried about the growing number of distractions in cars.

"Some of these car manufacturers are putting all these gadgets and bells and whistles that are going to distract people -- and we're trying to get gadgets and bells and whistles out of their hands and out of their ears," LaHood said.

LaHood has said he's focused on getting cell phones out of the hands of drivers.

It comes as more states are banning texting behind the wheel.

"Text messaging has become the default communications method for consumers of all ages," said John Schneider, chief engineer, Ford multimedia and infotainment engineering. Ford's "latest connectivity improvements will reduce the temptation to pick up the phone and take your eyes off the road, providing a safer solution for the use of mobile devices in the car."

Ford supports banning hand-held texting.

Ford stock drops 12 cents;
analyst cuts target

July 7, 2010
BY BRENT SNAVELY
FREE PRESS BUSINESS WRITER

Ford's stock price dropped 12 cents Tuesday after a Goldman Sachs analyst cut his price target on Ford shares by $2 because of growing concerns that industry sales during the second half of the year won't meet expectations.

Goldman Sachs analyst Patrick Archambault cut his price target on Ford to $14 from $16. He also reduced his 2010 forecast for U.S. auto sales to 11.7 million from 12 million.

Ford's stock closed at $10.16 per share on Tuesday, down 1.2% from Friday.

Still, Archambault said in his report that he continues to recommend Ford as a buy because the company's turnaround plan is ahead of schedule.

Ford's stock price remains stalled even though it surprised Wall Street last week by paying off more than $4 billion of its debt.

Since then, Ford's stock has risen 28 cents from $9.88 per share.

Ford's surprise debt payment failed to boost its stock price because it was followed by news Thursday that the industry's seasonally adjusted annual rate declined in June to 11.1 million from 11.6 million in May, feeding concerns that the U.S. economic recovery might be stalled.

The SAAR indicates what sales would total for the year if demand remained constant over 12 months, adjusting for seasonal factors.

Most analysts and industry executives had hoped that promising sales trends in May would carry over into June and lead to a mild sales recovery for the year.

Barclays Capital analyst Brian Johnson said that the weak current sales pace is likely to drag down stock prices across the automotive sector for the next few weeks.

Obama to name Ford CEO
Mulally to export council

David Shepardson / Detroit News Washington Bureau
July 7, 2010

Washington -- President Barack Obama plans to name Ford Motor Co. president and CEO Alan Mulally to a presidential council on exports.

Obama is also expected to hold a meeting on exports today.

In March, Obama named Boeing Co. president and CEO W. James McNerney Jr. as chair of the President's Export Council -- a group first created in 1973 by executive order. He also named Xerox Corp. CEO Ursula Burns as vice chair.

The president's council has 28 private-sector members, along with congressional and executive branch members. Sen. Debbie Stabenow, D-Lansing, is among the members of the council.

She was named in March.

"We need to be exporting our products, not our jobs," Stabenow said. "Without addressing the needs of our manufacturers in our trade policies, we will continue to lose millions of jobs to countries like China, which misaligns its currency and blocks our exports."

Mulally isn't expected to attend today's announcement because Ford's board of directors has a regularly scheduled meeting.

But Mulally had lunch at the White House last week with Obama and four other business leaders.

Ford spokesman Mike Moran declined to comment.

Obama wants to double U.S. exports within five years. He also wants to resolve issues with the stalled South Korea free trade agreement by November.

Ford and some other automakers want the administration to do more to open South Korea's market to U.S. exports.

Chrysler assembly operations lagging: CAW president

Brampton Guardian July 5, 2010

Canadian car plants should look to Europe for a lesson on how to be “world-class”, Canadian Auto Workers (CAW) union president Ken Lewenza says.
Lewenza and other CAW officials representing employees at Chrysler’s Brampton and Windsor plants returned this week from a visit to Fiat factories in Italy, Poland and Germany.

Fiat has a minority stake in Chrysler and is partnering with the automaker as it strives to rebound from economic troubles.

Lewenza said production is more advanced at the European Fiat plants than at Chrysler’s plants in Windsor and Brampton.

“The auto industry has always had peaks and valleys, but if you could run a plant as efficient as Fiat runs their particular plants, then I believe Chrysler has a great future,” Lewenza told CBC News.

“It really means empowering each member, each employee of Chrysler corporation to find ways to eliminate waste, because if you can eliminate waste, you have more money to invest in future products, you have more money to invest in the facility itself.” Lewenza said North American assembly operations clearly have something to shoot for.

“The plants are cleaner, there’s much more investment in technology, there’s much more investment in human dignity in the workplace, from washrooms to workstations to just the kind of quality of work,” said Lewenza, noting that with time, Fiat’s sleeker “world-class manufacturing” could be implemented at Chrysler factories in North America.

More picking Ford pickups

Not taking federal aid helps automaker

July 4, 2010
BY BRENT SNAVELY
FREE PRESS BUSINESS WRITER

After owning three Ram pickups, Jason Reed of Texas -- the nation's largest pickup market -- decided to switch brands in April: He bought a Ford F-150.

"I've never been a Ford guy -- ever," said Reed, 42.

He wasn't just won over by the features on the Ford truck, though. Another factor also helped seal the deal: the taxpayer-backed bankruptcies of Chrysler and General Motors.

"I just don't like the idea of our federal government doing that," Reed said.

Interviews with some truck drivers, dealers and auto experts reveal that Reed is not alone. Pickup drivers are shifting to Ford trucks, in part because Ford didn't take emergency taxpayer assistance.

More than 90% of all new big pickup sales still go to Detroit Three brands, and the segment is well known for its patriotism and brand loyalty. But Ford has gained 5.2 percentage points of market share in the highly profitable full-size truck segment this year, while Chrysler lost 4.2 points and GM pickups lost 1.7 points, according to Autodata.

Mike Levine, senior editor at PickupTrucks.com, said some truck owners in his online forums remain irked by the U.S. investment in GM and Chrysler.

"That is reflected in the sales -- right or wrong," he said.

Added Art Spinella, president of CNW Marketing Research in Oregon: "The buy-American attitude of a large proportion of pickup buyers keeps them in Detroit's corner, but until GM and Chrysler are totally out from under government involvement, Ford will be the preferred brand."

Pickups give Detroit 3 a needed pick-me-up

The Detroit Three continue to sell more than 90% of the full-size pickups in America, despite major investments by both Toyota and Nissan to make inroads in the highly profitable segment over the past decade.

That strong customer loyalty continues to benefit Detroit's bottom line, even as automakers try to shift more attention to fuel-efficient cars.

The profit margin on a full-size pickup can exceed $10,000, depending on the model and level of optional equipment, said John Wolkonowicz, a senior analyst with IHS Automotive.

Through June, Ford captured 39.8% of the full-size truck segment, a gain of 5.2 percentage points, according to Autodata Corp.

General Motors' Chevy Silverado and GMC Sierra captured 36.8% (a decline of 1.7 percentage points), and Chrysler's Ram held 14.1% of the large pickup segment (a decline of 4.2 percentage points).

Doug Scott, Ford's truck marketing manager, said Ford is gaining market share in the pickup segment because customers are embracing the company's redesigned Super Duty pickup, introduced in April, which gets 20% better fuel economy.

He also noted Ford's F-150 pickups were redesigned in 2008 with the needs of core truck buyers, such as contractors and hunters, in mind.

Scott also acknowledged that Ford's ability to survive without emergency federal loans also has helped.

"Anecdotally ... I've heard it whether it is from customers and dealers," Scott said. "It is probably the customer that is most patriotic."

Last year, the U.S. government provided $50 billion to GM and $8.2 billion to Chrysler as the companies restructured in bankruptcy.

But until both companies go through an initial public offering, and shed all government ownership, Art Spinella, an auto analyst with CNW Research in Oregon, said Ford will have an edge.

"Large pickup buyers tend to be politically conservative," Spinella said. "That said, they are strong proponents of 'Buy American' and are rock hard in their belief that government should stay out of dictates to business."

Time is right for new models

Lisa Whalen, GM's director of corporate planning, said GM has held its own in the truck wars despite the company's turmoil and expects to gain ground as the economy recovers and as it introduces its redesigned heavy duty Silverado and Sierra this summer.

"There is a halo effect when you launch a new product," Whalen said. "As the economy starts to recover, this is a good time for us to introduce a new product."

In June, Silverado sales increased 25.1% and Sierra sales increased 26.9% after the company became more aggressive with incentives to match competitors'. Overall, full-size pickups gained 25.9% in June.

GM Vice President Steve Carlisle said that the increased incentives helped give GM trucks a boost in June.

Meanwhile, Chrysler, which introduced a redesigned heavy-duty Ram pickup last year, had hoped its sales would increase by more than 10% in 2010. So far this year, Ram sales have declined 10.2%.

Chrysler declined to comment for this report.

Built Ford proud

Paul Shamo, owner of Taylor Ford, said a lot of customers -- especially small-business owners -- are coming into his dealership already looking to switch from other brands to Ford.

For George Gill, president of Boomer Construction Materials in Detroit, Ford's ability to survive without taxpayer dollars was an added reason to stick with the company.

"We are very comfortable that Ford didn't take the bailout money," said Gill, who bought a silver Ford F-150 Lariat from Bob Maxey Ford in Detroit last week. "We are very proud of Ford."

GM sells more in China than U.S.

First time any overseas market has outsold GM’s domestic market in the carmaker’s 102-year-old history

July 3, 2010 - Toronto Star

General Motors Co.’s first-half sales in China surpassed those in the U.S. for the first time as the world’s fastest-growing major economy propelled global auto demand.

Sales in China by GM and its joint ventures totaled 1.21 million vehicles in the six months ended June 30, topping U.S. deliveries of 1.08 million, based on figures reported separately by the Detroit-based company. This would be the first time any overseas market has “consistently outsold” GM’s domestic market in the carmaker’s 102-year-old history, said Michael Albano, a Shanghai-based spokesman.

Surging demand among China’s 1.37 billion people is speeding automakers’ recovery after a recession cut global auto sales last year and forced GM’s predecessor, General Motors Corp., into bankruptcy. GM is counting on expansion overseas to bolster profit as it prepares for an initial public offering as early as the fourth quarter.

“China is one of GM’s bright spots globally,” said John Zeng, a Shanghai-based automotive analyst at IHS Global Insight. “GM has done a better job in the Chinese market than other American automakers. The huge potential in this market will continue to fuel GM’s growth here.”

Government stimulus measures helped China’s industrywide vehicle sales jump 46 per cent last year to 13.6 million, surpassing the U.S. for the first time to become the world’s largest national automobile market. U.S. auto sales fell 21 per cent to 10.4 million, the fewest since 1982, as unemployment rose amid the worst recession in six decades.

GM makes vehicles including Buick Excelle and Regal cars as well as Chevrolet Lova compacts with its Chinese joint-venture partner SAIC Motor Co. It also makes Sunshine minivans at SAIC- GM-Wuling Automotive Co.

The SAIC-GM-Wuling venture’s deliveries, which are included in GM’s monthly sales reports, are excluded from tallies by some industry analysts because GM owns 34 percent of the venture, while SAIC Motor has a 50.1 per cent stake.

GM and its partners aim to boost vehicle sales in China to 3 million a year by 2015 from 1.83 million in 2009, Kevin Wale, president of the carmaker’s China business, has said. The company estimates it will top 2 million sales in the country this year.

GM’s June deliveries in China rose 23 per cent from a year earlier to 176,486 units, the carmaker said today. The company plans to introduce 25 new or updated models in the country by the end of 2011, including its Chevrolet Volt plug-in car, it said in April.

GM’s four ventures with SAIC Motor Corp. were among companies approved for a Chinese government energy-efficiency subsidy, the Ministry of Industry and Information Technology said on its website today.

Full-year auto sales in China may rise 17 per cent this year to 16 million, according to the State Information Center, even as growth may slow in the second half.

The rate of expansion in auto demand slowed in April and May as prices for gasoline, consumer goods and real estate rose. The government raised the consumption tax on small vehicles to 7.5 per cent in January after cutting it in half to 5 per cent last year.

In the U.S., GM and Ford Motor Co. reported June sales that fell short of analyst estimates as consumers concerned about unemployment and the economy avoided large purchases. A 9.7 percent jobless rate and continued lower home prices have reduced consumers’ confidence and are keeping them out of showrooms, dealers and analysts said.

GM’s sales in its home market last month rose to 195,380, an 11 per cent increase from a year earlier, which trailed the 16 per cent average growth estimate of six analysts surveyed by Bloomberg.

Industrywide U.S. deliveries in June reached an annualized rate of 11.1 million vehicles, according to Woodcliff Lake, New Jersey-based Autodata Corp. The figure trailed the average estimate for an 11.2 million-vehicle pace and is a drop from 11.6 million in May.

GM’s predecessor entered bankruptcy on June 1, 2009, and the new company emerged in July 2009. The carmaker reported first-quarter net income of $865 million this year, helped by higher production and smaller discounts. Chief Financial Officer Chris Liddell on May 17 called the profit a “good, useful step” toward an IPO.

The automaker’s equity is worth $70 billion, according to a May 20 report by Eric Selle, a JPMorgan Chase & Co. debt analyst who projects a return of 47 cents on the dollar for holders of bonds issued by General Motors Corp. that will be converted to stock and warrants in new GM. At yesterday’s bond prices, GM’s equity is worth about $47 billion.

GM posted operating profit of $1.2 billion in the first three months as revenue rose 40 per cent from a year earlier to $31.5 billion.

Ford pays $3.8 billion in cash
to retiree health fund

Automotive News -- July 1, 2010

DETROIT (Bloomberg) -- Ford Motor Co. will pay about $3.8 billion in cash to a union health-care fund, a sign the automaker is confident that CEO Alan Mulally's focus on the namesake brand will produce profits.

Ford was required to pay $859 million to the UAW Retiree Medical Benefits Trust by June 30 to fund benefits for former hourly workers. Ford paid cash even though it had the option to pay as much as $610 million in stock under an agreement reached with the union last year. It also prepaid $2.9 billion toward its health-care obligations, it said today.

Ford defied the expectations of analysts who had said the automaker would pay a portion of its obligation in stock because the second-largest U.S. automaker's shares have been trading down since closing at a 52-week high of $14.46 on April 26. The chief of Ford's Americas unit also warned analysts the U.S. auto market had “flat-lined” since last year's third quarter as consumers avoided making big purchases.

“There was speculation that they would pay with equity; that would have been a bit alarming,” said Colin Langan, an analyst with UBS Securities. “With all of the risk out there, it's a good sign that they feel they can pay with cash.”

Ford shares, after spending much of the day trading up about 5 percent, closed at $10.06, up 19 cents or 1.9 percent on the New York Stock Exchange -- reversing a five trading-day decline.

Ford said it will pay $3.8 billion in cash to the UAW trust, dropping its balance owed to the fund to $3.6 billion. The automaker said it is also paying $255 million in deferred dividends to another trust held by other investors.

Debt reduction

Added with other debt payments made in the second quarter, Ford said it has reduced debt by $7 billion in the quarter, reducing annual interest payments by $470 million. At the end of the first quarter, Ford had $34 billion in debt. This should reduce Ford's debt to as low as $27 billion.

“Our One Ford plan to profitably grow our business is working, and we are increasingly confident about our future,” Mulally said in a statement. “We expect to continue to improve our balance sheet as we deliver on our plan.”

Ford used cash for its first payment of $610 million in December and pre-paid an additional $500 million after its shares had a fourfold annual gain last year. The company said at the time that it paid in cash because the stock's volume- weighted average share price in the period before the payment, which determines the price of the stock it issues to the trust, was $9.13, less than the $10 the stock closed at on Dec. 31.

The stock closed yesterday at $9.88, 13 percent below the average of about $11.35 in the 30 trading days ending June 28. The company has 3.34 billion shares outstanding.

Cash surprise

Kristin Dziczek, director of the labor industry group at the Center for Automotive Research in Ann Arbor, Mich., said she had expected Ford to make payments to the union's trust in stock, which would have preserved cash while producing minimal dilution for shareholders.

“It was a big surprise,” she said. “This is a move to try to get on equal footing with other auto companies. Ford still has a dirty balance sheet.”

Ford has $22.3 billion in automotive gross cash after paying $3 billion on its revolving credit line in April, said Mark Fields, the company's president of the Americas. Ford also has $31.3 billion in automotive debt, higher than rivals such as General Motors Co., the largest U.S. automaker, he said.

Of the $4 billion, $1.3 billion will come from Ford Credit, reducing the drain on automotive cash. In the first quarter, Ford earned $2.1 billion in cash flow from operations.

2006 Borrowing

Ford borrowed $23 billion in late 2006, giving it a cash cushion that helped it withstand losses and avoid the bankruptcies that befell its U.S. rivals last year. The company was able to develop new models as the U.S. auto market fell to its lowest level in 27 years in 2009. Ford has said the debt load now puts it at a disadvantage against GM and Chrysler, which had their obligations cut in bankruptcy.

The UAW, GM, Ford and the predecessor of Chrysler Group LLC agreed in 2007 to create retiree health-care trusts to remove those liabilities from their labor costs. Prior to the payments Ford has made, the company owed $13.2 billion to the union-run health-care trust, also known as a Voluntary Employee Beneficiary Association, or VEBA. Ford has annual payments scheduled through June 2022, according to company filings.

Ford's U.S. sales have risen 30.3 percent this year, almost twice as much the overall gain in industry sales.

Mulally expanded the namesake brand and improved quality, helping the company earn $2.7 billion last year after three years of losses. Mulally has said the automaker will be “solidly profitable” this year.

PRESS RELEASE: Ford Takes Action to Further Strengthen Balance Sheet by Reducing Debt by $4 Billion

-- Ford to pay $3.8 billion in cash to the UAW Retiree Medical Benefits Trust by making scheduled debt payments due on Notes A and B held by the trust and paying the entire remaining balance of Note A ahead of schedule

-- Company to pay $255 million of previously deferred quarterly distributions on 6.50% Cumulative Trust Preferred Securities of Ford Motor Company Capital Trust II; quarterly distribution payments will resume starting with the payment due on July 15, 2010

-- Ford obtains more flexibility over a three-year period to pre-pay all or a portion of the remaining $3.6 billion outstanding principal amount of Note B

-- These actions, combined with an April payment of $3 billion on its 2013 revolving credit facility, reduced Ford's debt by more than $7 billion during the second quarter; the total debt reduction will save Ford more than $470 million in annual interest expense

Ford Motor Company (NYSE: F) today is reducing its debt by more than $4 billion - primarily by retiring debt owed to the UAW Retiree Medical Benefits Trust ahead of schedule. The company said it is taking the action to further strengthen its balance sheet as it gains momentum on its One Ford plan and remains on track to deliver solid profits and positive Automotive operating-related cash flow this year.

Ford is making scheduled payments in cash totaling about $860 million on Notes A and B held by the UAW Retiree Medical Benefits Trust - including about $250 million due under Note A, and $610 million due under Note B. Ford had the option to pay Note B with cash or Ford stock but agreed to pay with cash. In addition, Ford and its subsidiary, Ford Motor Credit Company, are paying a combined $2.9 billion to retire the remaining obligation on Note A at an agreed upon discount of 2 percent.

Separately, Ford is making a $255 million cash payment to bring current previously deferred quarterly distributions on the 6.50% Cumulative Trust Preferred Securities of Ford Motor Company Capital Trust II.

With today's actions and an April payment of $3 billion on its 2013 revolving credit facility, Ford will have reduced its debt by more than $7 billion in the second quarter. The second quarter debt reduction will save Ford more than $470 million in annual interest expense.

"Our One Ford plan to profitably grow our business is working, and we are increasingly confident about the future," said Ford President and CEO Alan Mulally. "We expect to continue to improve our balance sheet as we deliver on our plan. Importantly, our business results make it possible to take these actions while still accelerating the investments we are making in our business to serve our customers with the very best cars and trucks.

"We are pleased to make these payments ahead of schedule for the benefit of Ford and our UAW-Ford retirees who count on the Trust for their health care benefits," Mulally said.

The second quarter debt reductions are in addition to a series of actions Ford has taken since early 2009 to improve its balance sheet. These include completing transactions in spring 2009 that reduced Ford's Automotive debt obligations by $10.1 billion, and raising more than $5.7 billion since the second quarter of 2009 through several equity and equity-linked offerings.

The VEBA Trust Note Obligations

Pursuant to a March 2008 settlement agreement, the UAW Retiree Medical Benefits Trust was created to assume responsibility for providing retiree health care benefits to eligible Ford-UAW employees and their dependants, the cost of which would be funded with assets contributed by Ford.

The settlement was amended in March 2009 to create Notes A and B, which smoothed Ford's payment obligations and gave Ford the option to use Ford stock to make payments under Note B. On Dec. 31, 2009, Ford completed the transfer of assets, including Notes A and B, to the UAW Retiree Medical Benefits Trust, and the trust assumed the retiree health care liabilities.

June 2010 Agreement

The payments made today result from an agreement last week between Ford and the UAW Retiree Medical Benefits Trust that includes:

-- Ford making the scheduled payments on Notes A and B in cash totaling about $860 million.

-- Ford and Ford Credit purchasing for cash the remaining $2.96 billion outstanding principal amount of Note A at a price of 98 percent, or $2.9 billion, of which $1.6 billion is being paid by Ford and $1.3 billion is being paid by Ford Credit. Ford Credit intends to deliver to Ford the portion of Note A that it is purchasing from the UAW Retiree Medical Benefits Trust to satisfy existing intercompany tax liabilities it owes to Ford.

-- Subject to regulatory approval, the UAW Retiree Medical Benefits Trust is providing Ford a three-year right beginning in July 2010 whereby Ford has the flexibility to pre-pay for cash, periodically during each year, all or a portion of the remaining $3.6 billion outstanding principal amount of Note B at a 5 percent discount for purchases made prior to 2012 and at a 4 percent discount for purchases made after 2011. Previously, Ford could pre-pay Note B once a year at par.

"We are very pleased with this transaction, which continues the process of diversifying the Trust's assets at very attractive values and assists the thousands of Ford retired employees, their families and survivors and others who look to the Trust to fund their retiree health benefits," said Samuel W. Halpern, president of Independent Fiduciary Services, Inc., the independent fiduciary and investment manager for the UAW Retiree Medical Benefits Trust.

Repayment and Reinstatement of Distributions on Trust Preferred Securities

Ford also announced today that it is paying in cash to the trustee all accrued distributions previously deferred totaling $255 million on the Trust Preferred Securities, and that it intends to resume making quarterly distribution payments starting with the payment due on July 15, 2010.

The accrued distributions will be paid by the trustee on July 15, 2010, to the holders of record of the Trust Preferred Securities on June 30, 2010. Distributions on the Trust Preferred Securities had been deferred in accordance with their terms since April 15, 2009.

Ford said its liquidity and ability to generate positive cash flow are sufficient to warrant reinstatement of the distributions on the Trust Preferred Securities.

Labour groups were well represented but the variety of special interest groups was staggering. Everyone from environmental activist to Free Tibet were making themselves known in the steady rain that continued, ironically enough, until after the march was completed. Undaunted by the weather our hearty band of CAW members marched down University to Queen then west on Queen to Spadina. Turning north on Spadina we were greeted by an applauding brother Ken Lewenza. Turning right on College we found ourselves back at the legislature.

The heavy police presence was evident at all the intersections guarding the perimeter fence. Sadly, as a result of the ever present anarchist groups found at all large international functions of this nature, it was proven to the populace in general and the world media in particular that the “fortress Toronto” security effort was justified if not over the top in scale. The vast majority of the anarchist activity began after the main body of the approximately 5 to 8 thousand law-abiding demonstrators had essentially finished the route and were safely back at Queens Park.

No rational person could condone the actions of these misdirected youths who, as a consequence of their violent actions, undermine the credibility of those of us who have legitimate reasons to “vent our spleens” by using our democratic right to demonstrate in a relatively peaceful manner. This is not to say that, should the police react in a
provocative way against a non-belligerent group of demonstrators and human nature being what it is, a defensive reaction should not be unexpected. Having said that, these anarchist, by their violent actions, garner ninety percent of the media attention while the boisterous yet peaceful activists, such as ourselves, are relegated to page two.

Still, the satisfaction of knowing that Local 584 of the CAW continues its long history of involvement in labour and social issues, be it on the picket line or at demonstrations of this type, is immensely gratifying and something of which we can all be proud of as active and retired members of our local.

Thanks go to brother Dave Champagne for his efforts at organizing our portion of this event.

In Solidarity,
Brother Doug Berry (retiree’s committee)

Please note: The opinions expressed are those of the author
(Click on Photos for bigger picture)

G20 Toronto Star editorial:
Brutal spectacle failed a city and its people

The G20 security strategy has been spectacularly successful at cocooning the world’s leading politicians and staggeringly ineffective at protecting the property and peace of mind of Torontonians. And the one, inevitably, led to the other.

By bringing in thousands of heavily armed strangers and throwing up barricades everywhere to regular traffic, frightening off good and decent citizens, Canadian authorities created a ghost town in the heart of our city.

Perfect for the political leaders. Protesters were kept blocks away from where the deliberations were going on.

And most protesters conducted themselves faultlessly as the global good and great met behind rings of gulag-like fencing and battalions of police beating Plexiglas shields with batons in a primitive show of might.

It was, however, less than perfect for the city, its businesses and its inhabitants. The only force that can prevent vandalism and mayhem in a city is the presence of its population. Surely that was the lesson every urban planner learned from looking south to the hollowed-out urban war zones of the United States in the 1960s, 1970s and 1980s.

No police force, no matter how large, how well armed, how empowered to limit the civil rights of citizens, can stop vandalism in the empty shell of a city. Canadian authorities have proved that two days and nights running.

The strategy that ensured G20 leaders would never have to see a Canadian who wasn’t a politician, a police officer or a waiter lacked even a glimmer of common sense when it came to the security of Toronto and Torontonians.

They took our city to hold a meeting and bullied us out of the core, damaging the commerce of thousands of merchants and inconveniencing the entire population. Then, they failed to protect our property. Along Yonge St., as self-described anarchists were smashing stores unopposed, terrified merchants and their staffs sought shelter behind counters and in basements. If these establishments had been set alight, all of the thousands of fearsomely equipped police would have been able to do little more to save our citizens than they did to save their burning cruisers.

For the last few days, the city has looked like a vast reality TV set, where heavily garbed gladiators in black, burdened under bullet-proof vests, guns, walkie-talkies, shields and batons, try to chase down a wild, quick-footed band of anti-gladiators in black sweat suits and bandanas. And it cost us $1.2-billion to stage and choreograph this grossly unequal contest.

Canadian authorities knew that this overweening show of paramilitary hubris would draw the violent dregs of nihilism from around the world. Previous summits offered stark and certain warnings. Given that, the attempt to provide security for the city and its inhabitants has been a sad and disturbing failure.

What is the critical lesson?

Don’t even try to hold international political conferences with this kind of explosive ideological charge in the heart of a major urban centre. You sacrifice either the safety of the politicians or the safety of the city.

The idea that this was an effective way to show off Toronto to foreign guests is bewilderingly stupid.

Canadian authorities created a city no citizen could recognize and no visitor could admire. Then, they allowed a pack of brutes to trash it.