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AdvertisementAdvertisementThe traditional auto industry has had more than a decade to build viable electric vehicle businesses. Again, maybe the traditional auto companies get a pass. WeWork-level lossesFord's EV business lost $1.3 billion, before interest and taxes, in the third quarter of 2023 – on just $1.8 billion of revenue. Detroit has responded with EV price cuts to try to compete with Tesla. Its auto business had a gross profit margin of more than 16% in Q3.
Persons: Tesla, , Ford, Elon, haven't, China's BYD, Goldman Sachs, Kelley, Mercedes, Price Organizations: Ford, GM, Service, General Motors, Toyota, Honda, Wall Street, EV, Detroit, Mercedes, Benz, Tesla, LG Energy, Auto Locations: Detroit
Listen now: Tunnel warfare and other top stories
  + stars: | 2023-10-31 | by ( ) www.reuters.com   time to read: 1 min
Listen on the Reuters app. Plus, what the UAW deal could mean for future labor relations and the top Halloween trends. Listen to our special episode on Hamas' tunnels here. Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. Further ReadingIsrael engages Hamas militants inside Gaza's tunnelsUAW reaches deal with GM, ending strike against Detroit automakersUS officials, Jewish leaders meet to address antisemitism on campusOur Standards: The Thomson Reuters Trust Principles.
Organizations: Apple, Google, Reuters, UAW, Thomson, Reading, GM, Detroit Locations: Israel, Gaza
For years, investors have poured money into legacy automakers as a cheaper derivative play to Tesla and other high-flying electric vehicle stocks. But that may be the wrong strategy for those looking to participate in the highly anticipated EV boom, according to Morgan Stanley's Adam Jonas. "What investors seem to be waking up to today is the idea that the tens of billions of $ invested in EVs may be value destructive rather than value accretive." Month to date, GM has dropped about 15%, while Ford lost 21%. This, coupled with rising interest rates that threaten demand and average transaction prices, is enough to keep investors on edge, Jonas said.
Persons: Morgan Stanley's Adam Jonas, Ford, Jonas, Michael Bloom Organizations: Ford, General Motors, GM
For the third month in a row, the Conference Board’s Consumer Confidence Index fell — dropping to 102.6 in October from an upwardly revised 104.3 in September. The decline in consumer confidence was not evident across all age groups and household income levels. People above the age of 55 exhibited the biggest monthly decline in consumer confidence. Meanwhile, consumers with a household income between $25,000 to $35,000 saw the biggest decline in confidence about the economy over the past month. In contrast, consumers with a household income between $100,000 to $125,000 saw the biggest jump in confidence over the past month.
Persons: ” Dana Peterson, “ Consumers, , Bill Adams, ” Peterson, Jeffrey Roach Organizations: New, New York CNN, Conference, Board, Conference Board, , Big Three, United Auto Workers, Comerica Bank, LPL Financial, Federal Locations: New York, Israel
A Toyota logo is seen during the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. REUTERS/David 'Dee' Delgado/File Photo Acquire Licensing RightsOct 31 (Reuters) - Toyota Motor (7203.T) said on Tuesday it would boost investment by $8 billion and add about 3,000 jobs at its electric-vehicle battery manufacturing plant in North Carolina, accelerating the Japanese automaker's push to electrify its lineup. Toyota's North Carolina facility is set to begin operations in 2025 and will be the company's first automotive battery plant globally. It will have six battery production lines, four supporting hybrid vehicles such as the Prius, and two additional lines to support battery EVs. NORTH CAROLINA HUBNorth Carolina is emerging as a leading hub for electric vehicle and battery manufacturing, with new investments planned by companies ranging from Redwood Materials to Vietnam's Vinfast .
Persons: David, Dee, Delgado, Tesla, North Carolina Governor Roy Cooper, Nathan Gomes, Savio D'Souza, Devika Organizations: New York, REUTERS, Toyota, Ford, General Motors, United Auto Workers union, Tesla, Samsung SDI Co, Panasonic, Chrysler, Stellantis, Materials, North, North Carolina Governor, Thomson Locations: Manhattan , New York City, U.S, North Carolina, Detroit, NORTH CAROLINA, United States, Bengaluru
GM, UAW Reach Tentative Labor Deal to End Strike
  + stars: | 2023-10-30 | by ( Ryan Felton | ) www.wsj.com   time to read: 1 min
The UAW’s accord with GM follows tentative agreements with Ford and Stellantis and is expected to bring the union’s historic walkout that sent more than 45,000 workers to the picket lines to a close . Photo: James Breeden/ReutersGeneral Motors became the last of the Detroit automakers to reach a new tentative labor deal with the United Auto Workers union Monday to end a strike that has spanned more than six weeks, according to people familiar with the talks. This latest accord follows tentative agreements struck last week with Ford Motor and Chrysler-parent Stellantis and is expected to bring the union’s historic walkout that sent more than 45,000 workers to the picket lines at nine U.S. factories and dozens of parts-distribution centers to a close.
Persons: James Breeden Organizations: GM, Ford, Reuters General Motors, Detroit automakers, United Auto Workers, Ford Motor, Chrysler
The United Auto Workers union said it reached a tentative deal with Stellantis on Saturday, six weeks after workers went on strike. Earlier this week, Ford also reached a tentative agreement with the UAW. Photos: Emily Elconin/Bloomberg NewsThe end of the United Auto Workers strikes against Ford Motor and Chrysler-parent Stellantis offered some relief in Detroit after a bruising six-week labor showdown. But the car companies aren’t in a celebratory mood. The details of the UAW’s tentative labor pacts with Ford and Stellantis, reached in recent days, show that the automakers’ labor-cost disadvantage to rivals such as Toyota and Tesla is about to get worse, just as many aspects of their growth plans get cloudier.
Persons: Stellantis, Ford, Emily Elconin Organizations: United Auto Workers, UAW, Bloomberg, Ford Motor, Chrysler, Ford, Toyota, Tesla Locations: Detroit
“We won things no one thought possible," UAW President Shawn Fain said when he announced the tentative agreement last week. More recently, Ford, GM and Stellantis were all offering 23% total pay increases. For historical comparison, the union said its workers saw pay increases of 23% for all the years from 2001 through 2022. SHORTER WORK WEEKThe UAW asked for a shorter work week — 40 hours of pay for 32 hours of work. RIGHT TO STRIKEThe union said it won the right to strike against any of the three companies over plant closures.
Persons: , Shawn Fain, Ford's, Fain, Ford, Organizations: United Auto Workers, Ford, General Motors, GM, UAW, Ultium, LG Energy Locations: U.S, Michigan, Korea
Ford was the first to announce it reached a tentative agreement with the UAW on Wednesday. A brief refresherThe strike, which began nearly seven weeks ago, has been the longest US auto strike in 25 years. What will this mean for car prices? Now you’d think people in the market for a new car would pay the price, by way of higher car prices, given all the added costs the Big Three will face if the tentative deals go into effect. That’s because the historic strike doesn’t officially end until it is ratified by rank-and-file members.
Persons: , Ford, it’s, Vanessa Yurkevich, Chris Isidore — CNN’s, there’s, CNN’s Yurkevich, Isidore Organizations: New, New York CNN, United Auto Workers, — Ford, General Motors, UAW, Anderson Economic Group, Big Three, Ford, Stellantis, GM Locations: New York
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGM strikes tentative deal with UAW to end six-week labor stoppageCNBC's Phil LeBeau joins 'Fast Money' to talk the latest revelations coming out of the UAW strike and automakers.
Persons: Phil LeBeau Organizations: UAW
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailEV sales for automakers will be sluggish in the near term, says RBC Capital's Tom NarayanTom Narayan, RBC Capital global auto analyst, joins 'Power Lunch' to discuss the impact of the UAW's tentative deal on automakers.
Persons: Tom Narayan Tom Narayan Organizations: RBC, RBC Capital
DETROIT (AP) — Pressure in rising on General Motors as the lone holdout in a strike targeting all three big Detroit automakers after a tentative contract agreement with Jeep maker Stellantis was reached with the United Auto Workers union over the weekend. The Ford agreement revives cost-of-living adjustments that the UAW agreed to suspend in 2009 during the Great Recession. At Stellantis, workers get cost-of-living pay that would bring raises to a compounded 33%, with top assembly plant workers making more than $42 per hour. Overnight, 8,200 Stellantis workers in Canada represented by a different union, Unifor, walked off the job. At the peak, about 46,000 UAW workers were on strike — about one-third of the union’s 146,000 members at all three companies.
Persons: Stellantis, , Erik Gordon, Ford, Shawn Fain, Fain, Chuck Browning, ” “, ” Browning, Gordon, Bruce Baumhower, ” Unifor, ____ Bajak, John Raby, Corey Williams, Haleluya Organizations: DETROIT, General Motors, Detroit, United Auto Workers, UAW, Ford, GM, Saturday, Silverado, Sierra, Vehicles, GMC Acadia, Cadillac, University of Michigan, ” “ UAW, Jeep, Locations: American, Spring Hill , Tennessee, Texas , Michigan, Missouri, Spring, Mexico, Arlington , Texas, Detroit, America, Stellantis, Toledo , Ohio, Canada, Unifor, Boston, Charleston , West Virginia, Sterling Heights , Michigan, Jersey City , New Jersey
People attend a Stellantis presentation at the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. REUTERS/David 'Dee' Delgado/File Photo Acquire Licensing RightsOct 30 (Reuters) - Canadian labor union Unifor said early on Monday it has commenced strikes at all Stellantis (STLAM.MI) facilities in the country, with more than 8,200 members staging a walkout after failing to reach a tentative agreement in labor contract talks. Chrysler-parent Stellantis said it was "extremely disappointed" with the strike action and would continue to bargain until an agreement is reached. The UAW and Stellantis reached a tentative agreement on a new labor contract on Saturday. Stellantis assembles some of its popular vehicles including the Dodge Charger, Challenger and the Chrysler Pacifica minivan in its Canadian plants.
Persons: David, Dee, Delgado, Unifor, Stellantis, Unifor's, Abinaya Vijayaraghavan, Jacqueline Wong, Edwina Gibbs Organizations: New York, REUTERS, Plant, Chrysler, United Auto Workers, UAW, Ford, General Motors, GM, Dodge, Chrysler Pacifica, Detroit, Thomson Locations: Manhattan , New York City, U.S, Brampton, Canada, United States, Bengaluru
The tiered wage system, which allows the companies to pay newer workers much less than seasoned workers, was eliminated at two plants. and Stellantis, but the benefits are expected to mirror those in the Ford agreement. Then the agreements must be ratified by a majority of union members at each of the automakers. Shawn Fain, the president of the U.A.W., announced this month that G.M.’s battery plants, which it owns through a joint venture, would be covered by the national labor contract reached by the two sides. The union also said its agreement with Ford would make it relatively easy for workers at the company’s battery plants to join the U.A.W.
Persons: Shawn Fain Organizations: Ford, G.M Locations: Stellantis
The UAW's talks, replete with weekly addresses by union President Shawn Fain, were among the most unabashed. The agreements may be a selling point for non-union shops to push for unionization, said San Francisco State University labor and employment professor John Logan. Nissan (7201.T) and other competitors may feel compelled to boost wages to retain their workforce. UPS AND ITS RIVALSThe UPS deal in August raised pay and eliminated a two-tier wage system for drivers at the Atlanta-based company. That bolstered organizing efforts among Amazon workers and put pressure on UPS rivals to close a growing gap in pay.
Persons: Shawn Fain, Harley Shaiken, Stellantis, John Logan, Mack, Marcos Feldman, Feldman, Joe Biden, Kate Bronfenbrenner, Bianca Flowers, Jonathan Oatis Organizations: United Auto Workers, Detroit Three, Ford Motor, Chrysler, General Motors, University of California, Berkley ., San Francisco State University, UAW, Starbucks, Economic, UPS, Caterpillar, Workers, Deere & Co, Employers, U.S . Department of Labor, Amazon, National Labor Relations Board, Atlanta -, FedEx, Reuters, Cornell University, Industries, Thomson Locations: Detroit, Berkley, Berkley . Union, New York, Atlanta
DETROIT — The United Auto Workers and General Motors have agreed to a deal that will put an end to collective bargaining talks between the union and Detroit automakers following more than six weeks of targeted U.S. labor strikes, sources told CNBC. GM is the final Detroit automaker to reach a deal with the union following historically contentious talks. Tens of thousands of workers across the country went on strikes after the sides failed to reach agreements by a Sept. 14 deadline. Ford Motor was the first to reach a tentative agreement with the union, on Wednesday, followed by a deal with Chrysler-parent Stellantis on Saturday. The headline economics of the deals, such as 25% wage increases, were patterned off of Ford's initial deal.
Organizations: DETROIT, United Auto Workers, General Motors, Detroit, CNBC, GM, UAW, Bloomberg, Ford Motor, Chrysler
Panasonic lowered its full-year operating profit forecast for the energy unit that makes batteries for Tesla (TSLA.O) and other automakers to 115 billion yen ($769 million) from 135 billion yen. The battery unit's production in Japan suffered from slowing uptake for high-end EVs in North America, Panasonic said in the presentation material, as the U.S. Inflation Reduction Act spurred demand changes among consumers. Panasonic added its production at its North American operations remained steady, and it saw firm sales of vehicles eligible for tax credits. South Korean battery firm LG Energy Solution (373220.KS) last week warned of slowing revenue growth in 2024 due to global economic uncertainties affecting the outlook for EV sales. General Motors (GM.N) is also slowing the launch of several EV models to cut their costs, and pulling back on EV product spending.
Persons: Steve Marcus, Tesla, Elon Musk, Daniel Leussink, Kim Coghill, Miral Organizations: Panasonic, REUTERS, Rights, Panasonic Holdings, Korean, LG Energy, EV, General Motors, Thomson Locations: Las Vegas , Nevada, U.S, Japan, China, Europe, North America, KS
The agreement comes days after the union announced tentative agreements with Ford Motor and Stellantis on new contracts. The three deals contain many of the same or similar terms, including a 25 percent general wage increase for U.A.W. The tentative agreement with G.M., the largest U.S. car company by sales, requires approval by a union council that oversees negotiations with the company, and then ratification by a majority of its 46,000 U.A.W. The most recent escalation of the strike came on Saturday, shortly after the union reached a deal with Stellantis, the parent company of Chrysler, Jeep and Ram. told workers to go on strike at G.M.’s plant in Spring Hill, Tenn., that makes several sport utility vehicle models.
Persons: Ram Organizations: Motors, United Automobile Workers, U.S, automakers, Ford Motor, G.M, Stellantis, Chrysler, Jeep Locations: U.S, Missouri , Michigan , Tennessee, Texas, G.M, Spring Hill, Tenn
DETROIT — Canadian union Unifor and Stellantis have reached a tentative agreement early Monday morning, ending a brief strike that began after a deal wasn't reached by 11:59 p.m. Sunday. Details of the tentative agreement with Stellantis were not immediately available. The Canadian work stoppage comes nearly three weeks after Unifor launched a roughly 12-hour national strike against General Motors after the sides failed to reach a tentative agreement by a union-set deadline. The Canadian union is negotiating with each automaker separately and using a deal first reached last month with Ford as a pattern for GM and Stellantis. However, once the UAW reached a tentative agreement, which must still be ratified by members, Wednesday with Ford Motor , it has used that deal as a template for proposals with Stellantis and GM.
Persons: Lana Payne, Payne, Jerry Dias, Stellantis, Unifor Organizations: DETROIT —, Chrysler, Pacifica, Dodge Challenger, UAW, Stellantis, General Motors, Detroit automakers, U.S ., Ford, Ford Motor, GM Locations: Toronto , Ontario, Canada, Canadian, Ontario
The United Auto Workers announced Saturday it reached a tentative agreement with Stellantis. Stellantis would add 5,000 jobs after previously wanting to cut 5,000, including rehiring 1,200 workers. AdvertisementAdvertisementThree days after reaching a tentative agreement with Ford, the United Auto Workers announced Saturday it had also agreed a deal with Stellantis. Like the Ford deal, temporary workers are set to get the biggest wage increase, of more than two-and-a-half times. The tentative agreement means that General Motors is the last of the Big Three automakers to reach a deal with the union.
Persons: , Stellantis, Shawn Fain, Rich Boyer, Fain Organizations: United Auto Workers, Stellantis, Service, Ford, UAW, Big, Bloomberg Locations: Belvidere, Plant, Illinois
SoFi Technologies — Shares seesawed as traders digested the company's latest quarterly results. McDonald's — Shares gained 2.3% after the company beat both top and bottom lines for the third quarter. Western Digital — Shares of the data storage company jumped 6% after the company performed better than analysts polled by LSEG expected in the fiscal first quarter. Invitation Homes — The home leasing company rose nearly 1% following an upgrade to outperform by Oppenheimer. Saia — The transportation stock rose 3.4% on the back of an upgrade to outperform from peer perform by Wolfe Research.
Persons: SoFi, originations, McDonald's, Stellantis, LSEG, Revvity, FactSet, Oppenheimer, L3Harris, Raymond James, Eastman, AbbVie, Tesla, Bernstein, TD Cowen, , Femsa, Saia, Jesse Pound, Samantha Subin, Pia Singh, Hakyung Kim, Justin Sullivan Organizations: General Motors, GM, CNBC, Ford, Spirit Realty Capital, Realty, Western Digital, Semiconductor, FactSet, Eastman Chemical —, JPMorgan, Barclays, Citi, Wolfe Research, SoFi Technologies Locations: U.S, San Francisco , California
Neither the union nor GM would confirm the tentative deal. Most recently that happened at Mack Trucks, where nearly 4,000 UAW members went on strike on October 8 after voting no on their own tentative agreement. There are a total of more than 18,000 UAW members at GM now on strike, though they could be returning to work within days. The strike had a total of nearly 50,000 UAW members on strike at one point or another, although not all at the same time. During the UAW strike, a coalition of unions at Kaiser Permanente had 75,000 workers walk out in the largest US health care strike in history.
Persons: Stellantis, Mack Trucks, Fain, Ford, Joe Biden, Biden, Betsy Klein Organizations: New, New York CNN —, Motors, United Auto Workers, America’s, Ford, GM, UAW, Mack, EV, Air Force, Kaiser Permanente Locations: New York, Spring Hill , Tennessee, Arlington , Texas, Fargo, Michigan, Delaware
NEW YORK (AP) — U.S. labor unions are once again flexing the muscles in the national spotlight. UNION RATES HAVE BEEN FALLING FOR DECADES. Only 6% of U.S. private-sector workers belong to unions today, a sliver of the 35% that were union members in 1953. The National Labor Relations Act of 1935 granted private-sector employees the right to unionize. That means that what worked in auto workers' labor campaign, for example, may not be possible for other industries.
Persons: Gridlock, ” Alexander Colvin, , Eunice Han, Cathy Creighton, Shawn Fain “, ” Creighton, Joe Biden, Todd Vachon, Taft, Hartley, Vachon, Ronald Reagan, , haven't, John F, Kennedy, ” Vachon, Han, Colvin, ” Colvin, Creighton Organizations: , United Auto Workers, Big, Cornell University's School of Industrial and Labor Relations, Associated Press, Labor, University of Utah, Cornell University’s Industrial, Labor Relations Buffalo Co, NLRB, Motors, Ford, Facebook, Rutgers School of Management, Labor Relations, Bureau of Labor Statistics, National Labor Relations, Starbucks, Gallup Locations: Las Vegas , Detroit, Southern California, U.S, United States, Midwest
Union wages, and the battles to keep them, have elevated the fortunes of countless Black families, Brooks said. “Black people could take advantage of that and buy homes in neighborhoods throughout Detroit,” Perry said. “Without the union jobs, (employers) can do anything, say anything and you're out the door,” she said. Only about 25% of Detroit's residents are in that range, and about two-thirds of city residents earn less than $50,000 per year, Goss said. Martin described her childhood during the 1970s and 1980s in her predominantly Black Detroit neighborhood as among the “happiest times” of her life.
Persons: WAYNE, Britney Johnson, Johnson's, , , Tracy Brooks, Johnson, Brooks, Bobbie Allen Sr, Allen, ” Brooks, Andre Perry, ” Perry, Mike Duggan, Anika Goss, Goss, Yolanda Martin, Martin, Tracy Hadden Loh, ” Martin, ” ___ Jefferson, Rhonda Shafner Organizations: Black, United Auto Workers, Ford, Union, General Motors, Ford Motor, Blacks, Brookings Metro, Brookings Institution, Daimler Chrysler, Fiat Chrysler, PSA Peugeot, Detroit Future, Chicago . Locations: Mich, Ford's Wayne, Texas, Michigan, Detroit, Stellantis, U.S, Chicago, Black Detroit, Rosedale, Grandmont, Novi, New York
Politicians from across the spectrum have visited the garrison of workers permanently stationed outside the Crevalcore plant, less than 40 kilometres from Ferrari's headquarters. Marelli has put the plan on hold but confirmed it wants to abandon the plant, leaving workers in a limbo. Samira Chouri, 50, has worked at the Crevalcore plant for 18 years. Some 37% of the EU's 800 billion euros ($845 billion) post-pandemic recovery fund is earmarked for climate friendly investment. Climate change think tank ECCO said Italy needed to spend between 7-13 billion euros more per year to meet Europe's decarbonisation goals.
Persons: Marelli, Grazia Vitiello, Samira Chouri, Calsonic, I'm, Sergio Manni, Francesco Simeri, Chouri's, Giovanni Sanfelice, ANFIA, Francesco Zirpoli, Zirpoli, Giorgia Meloni's, Europe's, Vittorio Sarti, Giulio Piovaccari, Vagnoni, Toby Chopra Organizations: U.S, KKR, Volkswagen, BMW, Fiat Chrysler, FCA, Venice University, Center, Automotive, Mobility, Thomson Locations: Italy, Italy's, Emilia Romagna, Marelli, Stellantis, France, Crevalcore, Europe, Rome, Italian
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