[ad_1]
stock plummeted earlier this week after announcing plans to raise more capital and one analyst understands why. It was one of the reasons he downgraded the stock.
Source link
- Order Reprints
- Print Article
Tag: Autos
-
GM’s stock hits three-year low amid UAW strike, potential air bag recall
[ad_1]
United Auto Workers members strike the General Motors Lansing Delta Assembly Plant on September 29, 2023 in Lansing, Michigan.
Bill Pugliano | Getty Images
DETROIT – General Motors’ stock price fell below $30 a share Thursday for the first time in more than three years amid ongoing strikes by the United Auto Workers union and a report of a potentially costly airbag recall for the automaker.
Since the UAW union’s targeted strikes began Sept. 15, shares of the Detroit automaker have fallen by more than 10%. The stock closed at $33.66 a share a day before the work stoppages began.
The most recent share decline occurred midday Thursday following The Wall Street Journal reporting GM has at least 20 million vehicles built with a potentially dangerous air-bag part that the government says should be recalled before more people are hurt or killed.
The potential recall of roughly 52 million air-bag inflators from Tennessee-based auto supplier ARC Automotive had been reported about previously, but the number of affected GM vehicles had not.
The National Highway Traffic Safety Administration held a public meeting Thursday on its determination that the air-bag parts are defective and should be recalled, according to the report. Automakers, including GM, have until later this year to file responses on the matter.
GM’s stock since Oct. 1, 2020
GM has recalled about 1 million vehicles due to the problem. The company reiterated Thursday that it “believes the evidence and data presented by NHTSA at this time does not provide a basis for any recall” beyond the ones the company has already done.
“Neither the affected automakers nor NHTSA, despite eight years of study and investigation, have identified a systemic design or manufacturing defect in ARC frontal airbag inflators,” the company said in an emailed statement. “If GM concludes at any time that any unrecalled ARC inflators are unsafe, the company will take appropriate action in cooperation with NHTSA.”
GM said it “will continue to work collaboratively with NHTSA, other manufacturers, and ARC to monitor and investigate the long-term performance and safety of ARC airbag inflators.”
While many Wall Street analysts have said a strike by the UAW was already priced into GM shares, the automaker’s stock has only experienced five positive trading days out of 14 sessions.
GM confirmed Thursday it had made a counteroffer to the union, marking its sixth since the start of negotiations. It comes a day after the automaker said the strike cost it $200 million in lost production during the third quarter.
“We believe we have a compelling offer that would reward our team members and allow GM to succeed and thrive into the future. We continue to stand ready and willing to negotiate in good faith 24/7 to reach an agreement,” the company said Thursday in an emailed statement.
The last time shares of GM dropped below $30 a share during intraday trading was on Oct. 2, 2020, according to FactSet.
[ad_2]
-
GM secures new $6 billion credit line as UAW strike costs reach $200 million
[ad_1]
DETROIT – General Motors secured a new $6 billion line of credit as the automaker braces for additional strikes by the United Auto Workers union.
“The facility that we announced today is a $6 billion line of credit that I think is prudent in light of some of the messages that we’ve seen from some of the UAW leadership that they intend to drag this on for months,” CFO Paul Jacobson told CNBC’s Phil LeBeau in an interview on “Halftime Report.”
The targeted strikes already cost the automaker $200 million during the third quarter, GM said Wednesday.
A GM spokesman said the $200 million strike cost is due to lost production on wholesale volume, largely due to the UAW’s initial Sept. 15 strike at GM’s midsize truck and full-size van plant in Wentzville, Missouri. The strike has since expanded to GM’s parts and distribution facilities nationwide and, as of last Friday, a crossover plant in mid-Michigan.
As a result of the strike in Missouri, GM also idled its Fairfax Assembly Plant in Kansas, where it builds the Cadillac XT4 SUV and the Chevrolet Malibu sedan, and laid off nearly 2,000 workers.
Both GM CEO Mary Barra as well as Ford Motor CEO Jim Farley have publicly criticized UAW President Shawn Fain and the union’s strike strategy, claiming Fain is not actually interested in reaching deals for 146,000 workers with GM, Ford and Chrysler parent Stellantis.
Members of the United Auto Workers (UAW) Local 230 and their supporters walk the picket line in front of the Chrysler Corporate Parts Division in Ontario, California, on September 26, 2023, to show solidarity for the “Big Three” autoworkers currently on strike.
Patrick T. Fallon | AFP | Getty Images
“It’s clear that there is no real intent to get to an agreement,” Barra said in an emailed statement Friday night. “It is clear Shawn Fain wants to make history for himself, but it can’t be to the detriment of our represented team members and the industry.”
Fain has consistently said the union is available to negotiate 24/7 and has in turn accused the automakers of slow-walking negotiations.
GM’s newly announced line of credit will require the automaker to maintain at least $4 billion in global liquidity and $2 billion in U.S. liquidity. The terms of the credit agreement also restrict GM from mergers or sales of assets and limits on other, new debt. As of June 30, GM’s total automotive liquidity was $38.9 billion.
The credit line comes more than a month after Ford obtained a $4 billion line of credit to help it manage through “uncertainties” in the market.
[ad_2]
-
Ford reports 7.7% increase in third-quarter sales
[ad_1]
United Auto Workers members strike at the Ford Michigan Assembly Plant on September 15, 2023 in Wayne, Michigan.
Bill Pugliano | Getty Images
DETROIT – Ford Motor’s third-quarter U.S. new vehicle sales increased 7.7% compared to a year earlier, driven by increased sales of traditional pickup trucks across its lineup.
The Detroit automaker on Wednesday reported a 15.3% increase in truck sales compared to a 5.1% decline in cars and sales of SUVS that were essentially flat.
An ongoing strike by the United Auto Workers union against the Detroit automakers, including Ford, was not expected to directly impact sales during the quarter.
This is a developing story. Please check back for additional updates.
[ad_2]
-
San Francisco woman trapped under autonomous Cruise vehicle after being struck in hit and run
[ad_1]
A woman crossing a normally busy stretch of downtown San Francisco suffered serious injuries Monday night after a hit-and-run driver struck her, throwing her into the path of an oncoming driverless Cruise car, which then ran her over, according to video recorded by the autonomous vehicle that Cruise showed to the NBC Bay Area Investigative Unit.
Courtesy NBC Bay Area
A San Francisco woman was seriously injured after a hit-and-run driver struck her Monday evening, hurling her underneath the autonomous Cruise vehicle.
Police responded around 9:30 pm to a hit-and-run incident at the intersection of Fifth and Market Streets, San Francisco police told CNBC. The force of the impact hurled the pedestrian in front of a Cruise vehicle, which applied the brakes “aggressively” and remained in place at the request of police, a Cruise spokesperson and San Francisco police said.
Police rendered aid at the scene before medics transported the woman to the hospital, the police said.
“Our heartfelt concern and focus is the wellbeing of the person who was injured and we are actively working with police to help identify the responsible driver,” a Cruise spokesperson told CNBC. The Cruise vehicle did not have a passenger in it.
Police haven’t found witnesses as of Tuesday morning, NBC Bay Area reported, but Cruise vehicles have numerous cameras inside and outside the vehicle and captured much of the incident. CNBC reviewed footage from the incident, which shows both the Cruise vehicle and the hit-and-run car driving along Fifth Street.
A woman crossing a normally busy stretch of downtown San Francisco suffered serious injuries Monday night after a hit-and-run driver struck her, throwing her into the path of an oncoming driverless Cruise car, which then ran her over, according to video recorded by the autonomous vehicle that Cruise showed to the NBC Bay Area Investigative Unit.
Courtesy NBC Bay Area
The hit-and-run driver struck the pedestrian as both cars were crossing Market Street. The pedestrian did not appear to be using a marked crosswalk. The woman was thrown across the hit-and-run vehicle into the right lane where the Cruise vehicle was driving. The Cruise vehicle came to an immediate stop after the impact. NBC Bay Area reported that the woman was trapped underneath the left rear axle of the vehicle and that San Francisco Fire was forced to use the “jaws of life” to extricate her.
First responders told NBC Bay Area that the woman suffered multiple traumatic injuries and was transported to Zuckerberg San Francisco General Hospital. San Francisco police said the pedestrian’s status is unknown.
Cruise is a subsidiary of General Motors and has been piloting its driverless fleet across San Francisco since August. The company has drawn scrutiny from first responders and the public over several incidents involving traffic holdups and delays. Along with Alphabet-subsidiary Waymo, Cruise is one of the few U.S. companies testing autonomous driving.
[ad_2]
-
Tesla, Rivian, Discover, Sphere Entertainment, Nvidia, and More Stock Market Movers
[ad_1]
[ad_2]
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
https://www.barrons.com/articles/stock-market-movers-e5dab615
Source link -
Tesla Delivery Numbers Are Coming. Here’s What To Expect.
[ad_1]
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
https://www.barrons.com/articles/tesla-delivery-numbers-are-coming-221f59d7
-
Order Reprints
-
Print Article
[ad_2]
-
Order Reprints
-
Ford CEO says UAW is ‘holding the deal hostage’ over EV battery plants
[ad_1]
Members of the United Auto Workers union picket outside the Michigan Assembly Plant in Wayne, Michigan, on Sept. 26, 2023.
Matthew Hatcher | AFP | Getty Images
DETROIT — The United Auto Workers union is holding up negotiations with Ford Motor over future electric vehicle battery plants, Ford CEO Jim Farley said during a press briefing Friday.
“I believe we could have reached a compromise on pay and benefits, but so far the UAW is holding the deal hostage over battery plants,” he said after the UAW announced it would expand strikes to two additional assembly plants — one each for Ford and General Motors.
Farley criticized the union for its targeted strike strategy, saying he feels the actions were “premeditated” and insinuating the union was never interested in reaching a deal before a Sept. 14 deadline.
“We have felt from the very beginning, between all the lines of our comments, that the original strike was premeditated and that everything is taking way too long,” he said. “That actual events are predetermined before they happen. It’s been very frustrating.”
Farley’s public criticism of the union is uncharacteristic for Ford, which is historically viewed as the most union-friendly company of the Detroit automakers.
Farley said the company isn’t “at an impasse” with the union but warned that day “could come if this continues.”
GM CEO Mary Barra echoed much of Farley’s criticisms of Fain and the UAW’s strike strategy.
“It’s clear that there is no real intent to get to an agreement,” she said in an emailed statement Friday night. “It is clear Shawn Fain wants to make history for himself, but it can’t be to the detriment of our represented team members and the industry.”
UAW President Shawn Fain fired back at Farley, saying the CEO hasn’t been present at the bargaining table and that he’s “lying about the state of negotiations.”
“It could be because he failed to show up for bargaining this week, as he has for most of the past ten weeks. If he were there, he’d know we gave Ford a comprehensive proposal on Monday and still haven’t heard back,” Fain said in a statement Friday afternoon. “He would also know that we are far apart on core economic proposals like retirement security and post-retirement healthcare, as well as job security in this EV transition, which Farley himself says is going to cut 40 percent of our members’ jobs.”
Multibillion-dollar EV battery plants — and their thousands of expected workers — are crucial to the automotive industry’s future and uniquely positioned to have wide-ranging implications for the UAW, automakers and President Joe Biden’s push toward domestic manufacturing.
Current and former union leaders previously told CNBC that the battery plants will have to be a priority for the labor organization, regardless of whether they’re directly discussed in the national agreement, for the long-term viability of the union.
However, they’re considered a “wild card” issue in the contract negotiations. Many of the battery plants that have been announced cannot legally be included in the current talks, as they are joint venture facilities.
United Auto Workers President Shawn Fain addresses picketing UAW members at a General Motors Service Parts Operations plant in Belleville, Michigan, on Sept. 26, 2023, as U.S. President Joe Biden joined the workers.
Jim Watson | Afp | Getty Images
Ford has announced four future battery plants, including three joint ventures and a wholly owned subsidiary using battery technology licensed from Chinese auto supplier CATL. Ford earlier this week paused construction on the latter plant in Marshall, Michigan, due to the union negotiations, Farley said.
“We can make Marshall a lot bigger or a lot smaller,” Farley said Friday.
GM is the only Detroit automaker with a joint venture battery plant in operation and unionized — making it the first in the country to face this particular negotiating dynamic and a landmark plant to set standards for the industry.
Farley noted that some of the battery production won’t even be covered under the timeline of the deals that are currently being negotiated. He also defended the company’s prior offers, which include more than 20% hourly wage growth, reinstatement of cost-of-living adjustments, job protections and other benefits.
“If the UAW’s goal is a record contract, they have already achieved this,” Farley said. “It is grossly irresponsible to escalate these strikes and hurt thousands of families.”
[ad_2]
-
Micron, Peloton, GameStop, Workday, Nike, CarMax, and More Stock Market Movers
[ad_1]
[ad_2]
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
https://www.barrons.com/articles/stock-market-movers-299270e4
- Order Reprints
- Print Article
Source link -
Workers with Canadian union Unifor vote in favor of Ford contract
[ad_1]
Lana Payne speaks on stage as Unifor, Canada’s largest private sector union, announced her as their new president to replace outgoing leader Jerry Dias in Toronto, Ontario, Canada August 10, 2022.
Cole Burston | Reuters
Canadian labor union Unifor said on Sunday its members had voted to ratify a new contract with Ford Motor, a relief for the Detroit automaker locked in a separate tussle with its U.S. union over demands for better pay and benefits in the country.
This is breaking news. Please check back for updates.
[ad_2]
-
Tesla Stock Is Falling. China Is the Reason.
[ad_1]
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
https://www.barrons.com/articles/tesla-stock-china-sales-7dd26568
[ad_2]
-
UAW targets 38 facilities at GM and Stellantis for expanded strikes, skips Ford
[ad_1]
DETROIT — The United Auto Workers is expanding strikes to 38 parts and distribution locations across 20 states, targeting General Motors and Stellantis, UAW President Shawn Fain said Friday morning.
The union will not initiate additional strikes at Ford Motor, as the company has proven it’s “serious about reaching a deal,” Fain said in a Facebook Live comment.
“We still have serious issues to work through, but we do want to recognize that Ford is showing that they’re serious about reaching a deal,” said the outspoken union leader. “At GM and Stellantis, it’s a different story.”
Fain said the union and Ford have made progress on issues including eliminating some wage tiers, reinstating cost-of-living adjustments and an improved profit-sharing formula.
He also said the union won the right to strike over plant closures during the term of the deal as well as an immediate conversion of temporary, or supplemental, workers — those with at least 90 days of employment — upon ratification.
Ford said the company is “working diligently with the UAW to reach a deal,” but “we still have significant gaps to close on the key economic issues.”
(L-R) Supporter Ryan Sullivan, and United Auto Workers members Chris Sanders-Stone, Casey Miner, Kennedy R. Barbee Sr. and Stephen Brown picket outside the Jeep Plant on September 18, 2023 in Toledo, Ohio.
Sarah Rice | Getty Images
“In the end, the issues are interconnected and must work within an overall agreement that supports our mutual success,” Ford said in a statement Friday.
The strikes at the GM and Stellantis parts suppliers will add roughly 5,600 autoworkers, including roughly 3,500 employees at GM, to the UAW’s ongoing strikes at the Detroit automakers.
“Today’s strike escalation by the UAW’s top leadership is unnecessary,” GM said in a statement. “We have now presented five separate economic proposals that are historic, addressing areas that our team members have said matters most: wage increases and job security while allowing GM to succeed and thrive into the future.
“We will continue to bargain in good faith with the union to reach an agreement as quickly as possible,” the automaker said.
Stellantis said in a statement it questions “whether the union’s leadership has ever had an interest in reaching an agreement in a timely manner.”
Roughly 12,700 UAW workers went on strike a week ago at the following locations: GM’s midsize truck and full-size van plant in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio.
Parts distribution centers have been a major point of concern during these talks, especially at Stellantis. The automaker has proposed consolidating 10 “Mopar” parts and distribution centers, which are scattered across the country, into larger Amazon-like distribution centers.
GM has agreed to eliminate the wage differences at its parts and components plants, according to Fain. He commended the Detroit automaker for that action but condemned it for resisting further measures that Ford has agreed to with the union.
Targeting the parts and distribution centers is a unique strategy. It does not affect the production and assembly of vehicles but rather the distribution of parts to dealers.
The new work stoppages, if prolonged, could cause significant disruption for dealers, which could in turn delay fixes for customers. Repair wait times have already been problematic due to recent supply chain issues.
“This will impact these two companies repairs operations,” Fain said. “Our message to the consumer is simple: The way to fix the frustrating customer experience is for the companies to end price gauging. Invest these record profits into stable jobs and stable wages and benefits.”
Many, including Wall Street analysts, expected the union to expand work stoppages to full-size truck plants of the Detroit automakers, which are crucial to the profitability of the companies.
The affected facilities for GM include 18 plants in 13 states: Michigan, Ohio, Colorado, Wisconsin, Illinois, Nevada, California, Texas, West Virginia, Mississippi, North Carolina, Tennessee and Pennsylvania.
For Stellantis, the extended strikes affect 20 facilities in 14 states: Michigan, Ohio, Wisconsin, Minnesota, Colorado, Illinois, California, Oregon, Georgia, Virginia, Florida, Texas, New York and Massachusetts.
“This expansion will also take our fight nationwide,” Fain said. “We will keep going, keep organizing and keep expanding the stand-up strike as necessary.”
UAW began targeted strikes after the sides failed to reach tentative agreements by the expiration of the previous contracts at 11:59 p.m. Sept. 14.
The additional plant strikes come despite record contract offers from the automakers, including roughly 20% hourly wage increases, thousands of dollars in bonuses, retention of the union’s platinum health care and other sweetened benefits.
Stellantis said on Friday it had made a “very competitive offer” that would see current full-time hourly employees earning between $80,000 and $96,000 a year by the end of the contract, constituting a 21.4% compounded increase; a long-term solution for an idled factory in Belvidere, Illinois; and, “significant product allocation that allows for workforce stability through the end of the contract.”
“We still have not received a response to that offer,” the company said.
The union has demanded 40% hourly pay increases, a shortened workweek, a shift back to traditional pensions, the elimination of compensation tiers and a restoration of cost-of-living adjustments, among other improvements.
United Auto Workers members and supporters rally at the Stellantis North America headquarters on September 20, 2023 in Auburn Hills, Michigan.
Bill Pugliano | Getty Images News | Getty Images
The additional strikes come a day after The Detroit News Thursday night reported leaked messages involving UAW communications director Jonah Furman that raised questions about the union’s motives for the work stoppages.
In the undated private group messages, viewed by CNBC, Furman describes UAW’s strategy and targeted strikes as causing “recurring reputations damage and operational chaos.”
Furman, who did not respond for comment, said if the union “can keep them wounded for months they don’t know what to do.”
Fain did not address the messages on Facebook Live beyond discussing the union’s strategy of “doing things differently” to “win record contracts.”
— CNBC’s Gabriel Cortes and John Rosevear contributed to this report.
[ad_2]
-
4 moments from the September Meeting of the CNBC Investing Club with Jim Cramer
[ad_1]
Here’s a sneak peek at four moments from the August Monthly Meeting of the CNBC Investing Club with Jim Cramer.
1. How is Apple not a growth company?
2. Don’t bail on Nvidia — still best in AI
3. Cramer avoids emotional bank decision
4. Ford should go it alone in UAW strike
Here’s a full list of the stocks in Jim’s Charitable Trust, the portfolio used by the CNBC Investing Club.
[ad_2]
-
Where key issues stand as UAW closes in on extended strikes against GM, Ford and Stellantis
[ad_1]
(L-R) Supporter Ryan Sullivan, and United Auto Workers members Chris Sanders-Stone, Casey Miner, Kennedy R. Barbee Sr. and Stephen Brown picket outside the Jeep Plant on September 18, 2023 in Toledo, Ohio.
Sarah Rice | Getty Images
DETROIT — With a deadline for expanded strikes by the United Auto Workers against the Detroit automakers closing in, the “serious progress” called for by the union seems all too elusive.
The UAW and General Motors, Ford Motor and Stellantis are all holding their ground on demands, and it appears likely the union will strike additional plants at some, if not all, of the automakers at noon Friday — as it’s warned.
While talks are ongoing, there has been little reported movement in proposals since the strikes were initiated on Sept. 15 at assembly plants in Michigan, Ohio and Missouri. Sources familiar with the talks describe a “big” gap in demands and the parties being “far apart.”
Headline economic issues and benefits such as hourly pay, retirement benefits, cost-of-living adjustments, wage progression and work-life balance remain central to the discussions. All issues play into one another and can change based on demand priorities.
Each automaker has its own unique issues, but overall the companies want to avoid fixed costs and what they’ve called “uncompetitive practices” such as traditional pensions. The union, in contrast, is attempting to regain benefits lost during past talks and secure significant increases to pay and other benefits, while retaining platinum health care for members.
In the end, it comes down to money, and how much a deal will cost the companies. Wall Street is currently expecting record costs to come from a settlement, though still below the $6 billion to $8 billion in demands the union would like, according to Wells Fargo.
Here’s a general overview of where the union and companies stand on key issues.
Wages
Union leaders have been highly transparent during collective bargaining this year with the automakers. However, they’ve largely been quiet on any potential for compromise around a demand of 40% wage increases over four and a half years.
Media reports indicate the union has adjusted that demand to the mid-30% range. UAW President Shawn Fain last week said the union has not made an offer below 30%.
The automakers have countered with wage increases of around 20% over the length of the contract — what would still be a record — to a top wage of more than $39 per hour for a majority of workers.
Sources familiar with the talks say if the companies do increase hourly wages beyond that 20% level, they’re likely to lower other benefits or reduce jobs in the future to try to make up the difference.
A Ford source said the company’s current proposals would offer entry-level employees starting salaries of about $60,000, potentially increasing to $100,000 or more during the life of the deal. That includes base pay, expected overtime, profit-sharing and other cash bonuses.
Under GM’s latest proposal, President Mark Reuss said about 85% of current represented employees would earn a base wage of about $82,000 a year. That’s compared with the average median household income of $51,821 in nine areas where GM has major assembly plants, he said.
Tiers/’In-progression’/Temps
Wage tiers — putting autoworkers into distinct pay ranges or classifications — is a tricky, moving target.
The companies and union have defined tiers differently during past negotiations as well as during the talks this year. Tiers can signify the following scenarios: workers doing the same job for different pay and benefits; similar but different job responsibilities; or differences between workers at assembly and components plants, depending on the talks.
The UAW has called broadly for “equal pay for equal work.” It’s a cornerstone of the group’s platform, while automakers have historically argued for pay to be based on seniority, job classification and responsibilities.
So-called tiers were established in 2007 as a concession by the union to allow lower wages and benefits for workers hired after the contracts were ratified that year — what became known as a second tier. The starting pay of these workers was roughly half that of the incumbent workers, and they would not be eligible for the same active health-care benefits, pensions or retiree health-care coverage.
The union has won some similar benefits back for newer workers compared to veteran, or “legacy” ones, but there remains different classifications of workers and pay tiers that amount to “in-progression” wages, in which a worker earns more the longer they’re employed.
For this year, the automakers have largely proposed cutting an existing eight-year pay progression in half and eliminating some pay discrepancies between workers who do similar jobs such as parts and components.
The union would like to eliminate the in-progression pay structure entirely and have workers across the contract earning the same wage (after a 90-day adjustment period) including temporary, or supplemental, workers.
One source familiar with the talks said there’s a “philosophical difference” between the sides. Ford, which utilizes the fewest temporary workers, has agreed to move all current temps with 90 days of work to full-time employees.
COLA/Profit-sharing
The UAW suspended cost-of-living adjustments in 2009, as the companies attempted to cut costs. COLA helps employees maintain the value of their compensation against inflation.
The union now wants to reinstate COLA, especially following a period of decades-high inflation. But the automakers, in general, have proposed either lump-sum payments or suggested utilizing calculations based on inflation levels that the union argues wouldn’t be sufficient to offset increased costs.
Automakers have further argued that profit-sharing payments that have traditionally been based on North American profits of the companies have assisted in offsetting inflation.
The companies are attempting to change or lower profit-sharing payments to offset other increased costs, while the union would like an enhanced formula.
The UAW previously outlined a calculation of providing $2 for every $1 million spent on share buybacks and increases to normal dividends.
32-hour workweek
The union has proposed better work-life balance, including a potential 32-hour workweek for the pay of 40 hours. It has argued that salaried workers are allowed remote or hybrid work, giving them more time at home with their families.
A shorter workweek has been a non-starter for the automakers, which have countered with additional vacation time, added holiday pay such as for Juneteenth and two-week paternal leave, in some cases.
Product
For the UAW, product commitments equal jobs, meaning more members for the union.
UAW leaders are specifically concerned with vehicle production commitments at Stellantis, which has proposed closing, selling or consolidating 18 facilities. The locations included its North American headquarters, 10 parts and distribution centers and three manufacturing components facilities (two of which have already been fully or partially decommissioned).
A source familiar with the talks said GM has committed product to all of its facilities, following three closures four years ago.
Retirement benefits and savings
The UAW has demanded a “significant” increase in pay for retired workers. The union last week said the companies had rejected all such increases. However, GM CEO Mary Barra said the automaker included in its offer a lump-sum cash payment of $500 for retirees.
A Ford source said the company’s current offer includes a health-care retirement bonus program with lump sums of either $50,000 or $35,000, upon retirement, based on seniority, for newer workers.
Automakers also have pushed back on returning to traditional pensions in lieu of 401(k) plans.
A proposal last week by Ford included a 6.4% contribution from the company and $1 per hour for every hour worked, with a previous cap removed, according to a company source.
GM also offered an unconditional 6.4% company 401(k) contribution for employees who are not eligible for pensions.
[ad_2]
-
Instacart, Ford, Pinterest, Coty, Dollar General, Intel, and More Stock Market Movers
[ad_1]
[ad_2]
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
https://www.barrons.com/articles/stock-market-movers-457cee3b
- Order Reprints
- Print Article
Source link -
NIO, Moderna, Block, U.S. Steel, and More Stock Market Movers
[ad_1]
This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.
https://www.barrons.com/articles/stock-market-movers-8c0c7b23
-
Order Reprints
-
Print Article
[ad_2]
-
Order Reprints
-
China’s capital city is letting the public take fully driverless robotaxis — and has bigger rollout plans, startup Pony.ai says
[ad_1]
Baidu’s Apollo Go robotaxi, on the right, operates in the Yizhuang suburban district of Beijing alongside Pony.ai’s version. The two vehicles are pictured here in November 2021 shortly after Beijing allowed the companies to charge fares.
Vcg | Visual China Group | Getty Images
BEIJING — China’s capital city is taking swift steps to allow robotaxi businesses to grow.
As of Tuesday, the suburban Beijing city district of Yizhuang is officially letting local robotaxi operators — primarily Baidu and startup Pony.ai — charge fares for fully autonomous taxis, with no human staff inside.
That fully eliminates the cost of a driver. Previously, commercial public-facing robotaxis were required to have an employee to sit inside with the passenger. Yizhuang district is about half an hour’s drive from downtown Beijing and is home to corporations such as JD.com.
More approvals for robotaxi operations in the city are coming, said Ning Zhang, vice president at Pony.ai and head of its Beijing research and development center.
“We have very high confidence … maybe only in three years, our full driverless vehicles are going to be running over the whole Beijing city,” he said in an interview with CNBC on Monday.
Citing conversations with Beijing’s mayor, Zhang said that by the end of the year, the city aims to expand robotaxi testing areas to Daxing International Airport and around one train station.
In July, Beijing Mayor Yin Yong met separately with Pony.ai, Alibaba and Xiaomi to encourage their work in connected cars, artificial intelligence and other advanced tech. That’s according to a state media report republished by Pony.ai on its official WeChat account.
The city has also previously announced general plans to increase the testing area for robotaxis.
Less than two years ago, in November 2021, Beijing city allowed the robotaxi operators to collect fares for public-facing rides, a first step toward eliminating the cost of the driver. People can book highly subsidized robotaxi rides from Baidu and Pony.ai in Yizhuang district via the companies’ apps.
Out of more than 200 robotaxis that Pony.ai operates in the region, only about ten are currently fully driverless, Zhang said. He noted that Beijing city considers seven factors in a phased process of allowing public robotaxi operation, including which seat the safety driver is sitting in and whether the car is being used for testing or for commercial operation.
After initial testing, Zhang expects fully driverless robotaxis could operate around Daxing airport next year.
Beijing city did not immediately respond to a CNBC request for comment. Baidu did not share how many fully driverless robotaxis it could operate as of the announcement.
Robotaxi safety
In the U.S., San Francisco has been one of the leading cities testing robotaxis. In August, California state authorities said Alphabet’s Waymo and General Motors‘ Cruise could offer paid robotaxi services in San Francisco and carry passengers throughout the city, 24 hours a day.
Shortly after, the California Department of Motor Vehicles said Cruise would have to reduce its robotaxi fleet by 50% in San Francisco. The company’s self-driving vehicles were recently involved in multiple crashes.
Pony.ai’s Zhang claimed the startup has never had any fully driverless public-facing robotaxi accidents in China, and that it has the best safety record in the world.
When asked about the safety record of other robotaxi operators in China, Zhang said he could not share details but said competitors have had accidents.
When asked about its robotaxi safety record in July, a representative for Baidu referred CNBC to a report that did not provide much clarity on the issue.
Beijing Daxing International Airport lies south of downtown Beijing, designated by the yellow star, with the Yizhuang area near the “G2” marker closest to downtown.
Google Maps
Building a safety track record that supports further government permits for robotaxi operations relies heavily on data.
Pony.ai’s Zhang said the company cleans its data by removing sensitive information such as vehicle license plate numbers and data related to the identity of a person — including erasure of faces from videos.
He said only a limited group of people have access to sensitive data and that China data stays in China, while any U.S. data stays in the U.S.
Pony.ai claims it has a valuation of $8.5 billion as of March 2022. Zhang said the company’s robotaxi business aims to break even by 2025.
Chinese tech giant Baidu operates robotaxis, branded Apollo Go, in other cities in China and claims to have run more than 3.3 million rides.
In June, the tech giant said it received approval to operate robotaxis without staff in a suburb of Shenzhen. That followed similar approval in August 2022 to remove human staff in some robotaxis in parts of Wuhan and Chongqing.
Pony.ai also operates robotaxis in Guangzhou, Shenzhen and Shanghai, Zhang said.
— CNBC’s Kif Leswing and Lora Kolodny contributed to this story.
Correction: This story has been updated to reflect that Pony.ai’s breakeven target is for its robotaxi business.
[ad_2]
-
Where the Strike Stands. What Auto Makers and UAW Say.
[ad_1]
UAW workers went on strike in the early morning hours on Friday at the GM Wentzville Assembly plant in Wentzville, Mo.
Photograph by Nick Schnelle
[ad_2]
-
Stellantis offers raises, inflation protection measures to UAW as strikes continue
[ad_1]
Demonstrators during a United Auto Workers (UAW) practice picket outside the Stellantis Mack Assembly Plant in Detroit, Michigan, US, on Wednesday, Aug. 23, 2023.
Jeff Kowalsky | Bloomberg | Getty Images
Stellantis said Saturday that its most recent proposal to the United Auto Workers includes raises of nearly 21% over the course of the contract, including an immediate 10% pay increase, and the end of wage tiers for some workers, the latest development in a historic showdown between the big three Detroit automakers and the union.
The Jeep maker’s proposal, which is in line with proposals from Ford and General Motors, would also continue to offer profit sharing to workers, according to new details on the offer released by the company Saturday.
“The teams have been very, very careful to listen, very careful for us to come up with best offers that we can do that also protect … the company,” COO Mark Stewart said on a Saturday call with reporters.
The standoff between the UAW and major automakers Stellantis, Ford and General Motors reached a fever pitch Friday, with the union starting work stoppages after an agreement wasn’t met by a Thursday night deadline. The so-called stand-up strike started with walkouts at three key plants — one for each automaker — with the possibility that the UAW can call on more of its members to join the strike if needed.
The union has been seeking 40% hourly pay increases, a reduced 32-hour workweek, a move back to traditional pensions, the elimination of compensation tiers and a restoration of cost-of-living adjustments, among other items. The UAW didn’t immediately respond to a request for comment about the proposal.
Meanwhile, Ford and GM resumed negotiations Saturday after no talks occurred between the union any of the automakers the previous day. Stellantis said it planned to pick up talks again Monday.
UAW President Shawn Fain said earlier this week that Stellantis had previously offered a 17.5% increase.
Under the new proposal, starting pay for supplemental employees would increase by $4.22, or nearly 27%, to $20 an hour.
The company also said it would cut the timeline for ascending the hourly wage scale in half to four years, meaning all full-time hourly employees would reach the top before the contract expires. Under the offer, the wage-tier system would be eliminated entirely for its Mopar division, which is known for service, parts and customer interfacing.
Stellantis also offered an inflation protection measure within compensation. The company said it has committed more than $1 billion for improvements in the pension and retirement savings plans for current employees and retirees.
Stellantis leadership also pushed back against the union’s descriptions of the automaker’s plans to close or sell 18 facilities. The company has said it aims to run parts distribution centers more efficiently and continue shifting resources toward electric vehicles. Jobs in these plants would be persevered, the company said.
The automaker also stressed its commitment to bargaining and reaching an agreement that is financially feasible, echoing concerns raised by Ford and GM leadership. Ford CEO Jim Farley said in a CNBC interview Friday that the UAW demands would force the company to “choose bankruptcy over supporting our workers.” Stellantis’ leadership noted that the company needs to stay competitive with automakers that don’t have unionized employees.
“It’s not about warfare, it’s about win-win,” Stewart said. “It’s about us finding something that is great for our folks today, able to keep a future for tomorrow … for our company to be able to continue the investment path we have for electrification, and for our U.S. operations to be strong so we can compete against the transplants and we can compete against the new entrants.”
President Joe Biden said Friday that the companies should improve their current offers to ensure a strong contract is agreed on amid a period of record profits.
— CNBC’s Michael Wayland contributed to this report.
[ad_2]
-
Take a look at the powerful and easy-to-drive $2.1 million Rimac Nevera electric hypercar
[ad_1]
MALIBU, California – The most amazing thing about the $2.1 million Rimac Nevera is how easy it is to just get in and drive.
The Nevera is an electric hypercar from Croatia. It sits low — very low — to the ground, and at first glance it looks like the simple act of getting into it could be complicated. But the doors, which lift up and out sort of like a Lamborghini’s, cut into the roof just enough to ensure that I don’t bump my head as I drop myself into the driver’s seat.
Getting underway does take a little bit of learning. Gears are shifted with a big knob to the left of the steering wheel, the power seat’s adjustments are hidden in a touchscreen, and switches for the turn signals and headlights are mounted directly on the steering wheel. But once you’ve got that down, it’s simple to operate.
The whole car is like that — simple to operate — its 1,914 horsepower notwithstanding.
One of the first things I noticed as we got underway is that it’s easy to see out of the Nevera. That’s not a given with cars like this. For example, in Ferraris and Lamborghinis and other low-slung highway rockets, it’s often a challenge to see what’s behind you. But while the Nevera is definitely low slung, there’s just enough of a rear window to make it easy to drive in highway traffic. Good side mirrors certainly help with that.
There’s also just enough mechanical noise to remind you that you’re in a hypercar. There may not be an engine, but there are four electric motors and they make mellifluous mechanical sounds as the car moves down the road. Not so loud that I couldn’t converse with my passenger, Rimac’s Ryan Lanteigne, in a reasonable talking voice. It is just loud enough to remind us that we’re driving in something special.
And the Nevera is very special indeed — as it should be for its just over $2 million asking price. You’ll see why in the video.
The Rimac story
Rimac — pronounced REE-mahtz, roughly — is Croatia’s first and only automaker. Its 35-year-old founder, Mate (MAH-ta) Rimac, started tinkering with electric vehicles after he blew the engine in an old BMW he raced as a teenager. After rebuilding it with an electric drivetrain — and winning some races, besides — he founded Rimac Automobili in 2009, hoping to one day build an electric supercar in his home country.
Although Rimac the company’s first years were a struggle, Mate’s timing turned out to be excellent in retrospect, with automakers around the world moving to electrify their fleets.
Rimac’s early prototypes were impressive enough to attract significant investments from Hyundai and Porsche, and it raised another 500 million euros (or about $534 million) last year. Those served as the foundation of what is now a thriving business consulting to traditional automakers eager to build high-performance EVs. Aston Martin and Swedish supercar maker Koenigsegg are among Rimac’s clients, along with a number of others that the company says it can’t yet disclose.
The Nevera is named for the fierce summer storms that roll into Croatia from the Adriatic Sea. (Rimac employees like to say that neveras — the storms — are “extremely powerful and charged by lightning,” just like their car.)
The Nevera (the car) serves both as a rolling display of Rimac’s EV expertise and as the supercar that Mate Rimac has long dreamed of building. It’s a four-motor design — one for each wheel — with a 120 kilowatt-hour battery pack, enough for about 300 miles of range under normal driving conditions.
Four motors and a cravat
But there’s nothing normal about the Nevera’s power output. Those four motors give it a total of 1,914 horsepower, and 2,360 newton-meters of torque — enough for a top speed of 258 miles per hour. Zero to 60 miles per hour takes just 1.74 seconds, according to Rimac.
I didn’t verify that time with any great accuracy, but I can attest that such a power thrust is plausible. As friendly as it is to drive in traffic, the Nevera is almost unbelievably quick when fully uncorked. But it never feels uncontrollable, and that’s a significant engineering achievement.
Even more impressive, albeit more subtle, is the way those four motors work together. The car’s systems adjust each motor’s power output 100 times a second to ensure optimum handling moment to moment. Or, put another way, the Nevera blasts through and out of tight corners without hesitation. That’s a trick that other supercars can only emulate with braking.
It’s an even more impressive trick given the car’s weight, around 5,100 pounds. But as hard as it might be to believe, that weight is so well packaged, with the batteries mounted low and close to the Nevera’s center, that it’s hardly noticeable. (Of course, the tremendous power on tap helps.)
It’s a good-looking car, too, low and radical but not over the top. Civilized. It’s well-made, with flawless carbon fiber on the outside and comfortable leather throughout the interior. Croatia doesn’t have a tradition of car making, but the Nevera does reflect some national pride: In addition to the car’s name, the intakes on its sides are styled to resemble a cravat, the ancestor of the modern necktie — a Croatian invention dating to the 16th century.
The Nevera starts at 2 million euros, or just over $2.1 million. If that’s in your price range, speak up soon. Rimac says it plans to build just 150 of them.
[ad_2]
