UAW’s newest President, Bob King, recently reiterated the ban on foreign vehicles in UAW parking lots. King’s comments were in response to a reporter who got kicked out of a UAW parking lot for driving a Toyota Camry. King’s reasoning is that “Foreign automakers accept U.S taxpayer’s dollars in incentives to build assembly plants in the United States, jeopardizing the future of middle-class workers in the domestic auto industry.”
Although I will be one of the first to preach the importance of protecting the domestic industries, I completely disagree with UAW’s policy. Unions came about for good reasons, such as improving working conditions, creating the 8 hour work day and 5 day work week, fair wages, etc. But, this policy goes opposite of what the UAW is “supposed” to stand for – pro-American. This is actually, quite un-American. Competition leads to better innovation and better products, not bullying.
So is this what UAW leadership is paid to accomplish – create stupid policies? I thought it was to stand up for their workers. Maybe it would be more beneficial to work on helping make the domestic companies more efficient and cost effective. Or, how about working on changing our trade policies with other nations and make it fair to sell our products overseas.
Oh, by the way, I’ve been reading article after article about this story, along with people’s comments, and I’ve noticed something interesting – many people state that this worsens their perception of the UAW (as if it’s not bad enough), and worsens their perception of UAW built cars. So how about that, people won’t buy domestic cars because of this! Thanks Bob.
Source: The Detroit News
In the midst of revealing the new 2011 Ford Explorer, Alan Mulally stopped by to talk Ford with Jim Cramer. Jim asks Alan about all of the happenings at Ford, what Ford has been doing to get out of the economic hole and what it’s doing to continue the upward momentum. What a great interview – take a look at the video.
The Detroit Free Press recently conducted a study of what kind of returns the US government can expect from saving Chrysler, General Motors, and GMAC (now known as Ally financial). The analysis concluded that of the $84 billion paid out to the companies, US taxpayers might get back $74 billion. Currently, $18.3 billion has been paid back, which includes interest, debt, and dividends. The likelihood of the repayment has been increased due to the rebounding car sales, in addition to the companies’ increased profits.
Currently, the US government owns approximately 60.8 percent of General Motors, which is valued at approximately $51 billion as of Monday – this makes the government’s stake worth $26.3 billion. Add the $7 billion that has been paid back and the $2.1 billion that the government owns in preferred shares, the total investment in GM is $35.5 billion, equaling a loss of $14.6 billion.
The government’s investment in Chrysler is significantly smaller compared to GM, valued at $12.8 billion. Of that, $2.5 billion has been paid back and the government owns $7.14 billion of Chrysler debt. With the company expected to be worth $13.6 billion a year from now, the government’s 9.9 percent stake in Chrysler, all of the above numbers, and some complicated math, the total loss could equal $2.4 billion.
I say that’s a pretty decent return on investment – saving millions of jobs and helping preserve the country’s manufacturing base – dare I say that the government actually made a good decision?? I’m not one to promote such intervention, but this seems like a worthwhile endeavor.
Check out the analysis by the Detroit Free Press.
Check out what makes a Viper ACR-X just that much more eXtreme!
The video above showcases the extra work that goes into turning the Viper ACR into the even more powerful and impressive, ACR-X. Where do I sign???
Ford top non-luxury brand in J.D. Power Initial Quality Study
Awesome job Ford! Ford has gone from being 23rd in 2004 to 8th last year, and to 5th place this year in the J.D. Power IQS, beating out everyone except for Porsche, Acura, Mercedes-Benz, and Lexus. Lincoln has also shown significant improvement, going from 26th last year to 8th this year. Ford has been showing significant continuous improvement year-over-year, which has been outpacing the rest of the auto industry.
The J.D. Power and Associates 2010 Initial Quality Study consists of responses from owners of 82,000 2010 model year vehicles after three months in service. The study measures problems per 100 vehicles with data recorded on vehicles registered during the November-February time frame.
News at USA Today.
Take a look at Dodge’s latest commercial in time for today’s World Cup match between USA and England. I hear our team is not favored to win…but this commercial gives me hope!
2011 Jeep Grand Cherokee commercial recalls where we have come from
Check out the first commercial for the 2011 Jeep Grand Cherokee. This SUV is quite impressive, I can’t wait to get a chance to drive one. The interior craftsmanship is first rate, and the exterior design looks like an expensive suit; taut but still masculine. I think the design will translate well into sales for struggling Chrysler.
Check out this cool little review (and listen to the awesome sounds) of the new 2011 Ford Mustang Shelby GT500 as it tears up some curves.
Looking for great financing on some American metal? How about cash back? If so, then you are in luck! Chrysler, Jeep, Dodge and Ram are offering varying levels of incentives, everything from 0% financing to $4,000 cash back. Challenger buyers can even get $2,000 towards Mopar accessories. For more details, head on over to Autoblog.
(Image source: Ram)
