Main page | September 30, 2007 - October 6, 2007 »

Back Seat Driver: Guilty of Dangerous Driving

I was out walking with my 5-year-old son Charlie in the dense fog that enveloped Jamestown last night when a couple of teenage nitwits hurtled by on roller blades while holding onto the door handles of a car driven by another nitwit teenager.

Fair enough. I was a nitwit teenager once upon a time. Just hope they wise up before they hurt themselves.

But I am no longer a nitwit teenager and as I was heading home from work earlier in the evening, I finally came to the conclusion that I had allowed myself to get into some pretty bad driving habits of late. And I bet that I am not the only one.

These habits are driven by a couple of devices most of us now own: the cell phone and the iPod.

Making phone calls on the cell phone is bad enough, but at least most of the numbers we call - family, friends, doctors, colleagues, etc - are already entered and all it takes is the click of a couple of buttons to locate them.

But when it comes to text messaging, it is impossible not to take one's eyes off the road for extended periods of time. Not only one's eyes but one's whole concentration. Yes, I have text messaged many times without incident. But I cannot help thinking it's only a matter of time.

And I also cannot help thinking that if everyone else is texting, when is one going to hit me?

And then there is the iPod. Some months ago I bought one with 30G of memory at the same time I was buying a new Apple MacBook. (I am a Mac man going back to the early 1980s.) I confess that it sat on my desk for a couple of months before my 14-year-old stepson Patrick showed me how to turn it on!

But once he did, I was sold and have uploaded a substantial portion of my eclectic CD collection which ranges from the sublime Mr. Handel to Van Morrison (40 albums) to the Soukous dance music of Kanda Bongo Man of the Congo.

All very well. But then I bought a connection to my car stereo through the tape player and found myself dithering around selecting music when I should have had my eyes on the road.

So I am officially swearing off texting and changing music on my iPod while driving.

Talking on the cell phone? Well, I am not so sure about that. Three nights ago, Charlie fell off his bike and broke his elbow. I bundled him into the car and set off for South County Hospital and was mighty glad to be able to set up an appointment with Dr. Dan Coghlin of Narragansett Bay Pediatrics on the way down there.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 9:31 AM to Safety | Permalink | Comments 0

GM could get labor pay savings from UAW deal: report

NEW YORK - General Motors Corp would be able to buy out as many as 24,000 UAW workers and replace them with lower-paid hires under a tentative contract agreement, according to Reuters citing a Wall Street Journal report on its Web site.

Such a potential buyout stems from a move by the union to expand the definition of non-production job classifications, the article said, citing management and union officials briefed on the pact.

GM will be able to hire at a much lower pay package janitors, landscape workers and material handlers, the report said.

It will also be allowed to define some entry-level production work and skilled-trade positions as a "non-core position," whereby they get paid about half or less of the $70-to-$75 an hour wage-and-benefit package traditionally given UAW members, the report said.

Those workers would have the opportunity later to transfer to the higher-paying production jobs, the report said.

Posted by Peter C. T. Elsworth  at 9:27 AM to GM , Unions | Permalink | Comments 0

UAW locals to hear details

UAW local leaders are expected to meet in Detroit this morning to learn the much-awaited official details of the tentative agreement reached early Wednesday between the union and General Motors Corp., as UAW President Ron Gettelfinger and other union officials work to get the deal ratified, according to the Detroit Free Press.

Today is the first time the union will broadly distribute the specifics of a landmark deal that restructures retiree health care, introduces a two-tier wage system and eliminates wage increases for the duration of the 4-year contract. And the union's more than 73,000 GM workers are anxious to see the hard facts.

Posted by Peter C. T. Elsworth  at 9:23 AM to Auto industry , GM , Unions | Permalink | Comments 0

Ford to give HD Radio a huge boost

Ford's decision to make HD Radio receivers a standard dealer-installed option across all of its models has finally given the technology the boost it needs to be more than a niche for audio fans, according to the Detroit Free Press's Mike Wendland

I remember the first time I heard HD Radio. It was at the Consumer Electronics Show in Las Vegas in 2002. It blew me away. AM stations sounded like FM stations. Music playing on FM stations sounded like a CD.

But what has stalled widespread HD Radio's adoption up to now has been the hassle of having to yank out the old radio receiver from the dashboard and replace it with a new one.

With radio controls embedded in the steering wheel on some models, that just became too painful for many consumers. The HD receivers have also been expensive, as much as $700.

Posted by Peter C. T. Elsworth  at 3:32 PM to Ford , Technology | Permalink | Comments 0

Dingell unveils draft of gas tax

WASHINGTON -- U.S. Rep. John Dingell says his proposed plan for curbing greenhouse gases through higher taxes will likely include a "cap and trade" system for controlling carbon dioxide favored by several other lawmakers, and could give Detroit automakers an opening to sell more diesel-powered vehicles, according to the Detroit Free Press.

The Dearborn Democrat unveiled a draft outline of his proposal on his Web site today calling for a 50-cent-per-gallon increase in gasoline taxes and a $50-per-ton levy on carbon emissions from fossil fuels.

Posted by Peter C. T. Elsworth  at 3:29 PM to Alternative fuels | Permalink | Comments 0

Oil Surges on Supply, Iran Worries

NEW YORK -- Oil and other petroleum futures surged Thursday amid supply concerns sparked by a decline in crude inventories at a key Oklahoma terminal and the confrontation between the West and Iran, according to the Associated Press.

The U.S. is trying to raise support for new U.N. sanctions against Iran over its nuclear programs. Iranian President Mahmoud Ahmadinejad says the nuclear issue is "closed," and has vowed to defy any U.N. sanctions.

Many traders are betting the West will take action against Iran before the end of the year, and worry that economic sanctions or a military strike will result in the disruption of oil supplies from the Middle East, Gheit said.

November light, sweet crude jumped $2.58 to settle at $82.88 a barrel Thursday on the Nymex, while October gasoline rose 6.65 cents to settle at $2.0939 a gallon.

Posted by Peter C. T. Elsworth  at 3:24 PM to Crude oil market , Gas prices | Permalink | Comments 0

Chrysler, Ford deals may mirror GM accord

With a tentative agreement in hand with General Motors, the UAW expects to move quickly to lock in similar labor contracts with Chrysler and Ford, according to the Detroit Free Press.

"I think the pattern bargaining is still very much in play," UAW President Ron Gettelfinger said shortly after announcing the GM deal. "We expect this will basically be the same agreement."

Gettelfinger suggested that the UAW may try to finish up talks with Chrysler and Ford simultaneously.

During the past two contract talks, it took the UAW between 20 and 40 days from the day the first tentative agreement was reached until deals with all three automakers were ratified. If that holds true, a deal with all three of Detroit's automakers could be wrapped up in a month.

Posted by Peter C. T. Elsworth  at 9:35 AM to Auto industry , Chrysler , Ford , GM , Unions | Permalink | Comments 0

A new U.S. auto industry emerges

General Motors and the UAW bet their futures on a dramatic new labor agreement Wednesday that could ensure the survival of both -- making GM more competitive against its foreign rivals and helping the union stanch the loss of members, according to the Detroit Free Press.

More broadly, the proposed labor contract has the potential to shape a new Detroit auto industry that can compete on a more-level playing field with Toyota Motor Corp. and other foreign rivals not burdened by huge retiree legacy costs built up over the 20th Century. Also, the agreement has the potential to recast the UAW -- often dismissed as an industrial relic -- and give it more clout in the national health care debate.

The landmark feature of the UAW's tentative deal with GM is a controversial retiree health care trust that would shift tens of billions of dollars of retiree medical, hospital and prescription costs to the UAW and off GM's books.

The agreement, which ended the first national strike against GM in 37 years, will serve as the template for new agreements at Chrysler LLC and Ford Motor Co.

Posted by Peter C. T. Elsworth  at 9:32 AM to Auto industry , GM , Unions | Permalink | Comments 0

Chevron Approves $15 billion Buyback Program

SAN FRANCISCO -- Enriched by high oil prices, Chevron Corp. will spend up to $15 billion buying back its own stock - a commitment that pleased shareholders and rankled critics clamoring for bigger investments in projects that might help lower energy costs, according to the Associated Press.

The three-year repurchase program announced Wednesday served as yet another reminder of the cash cascading into the oil industry while motorists have been trying to cope with higher gasoline bills.

The dichotomy has triggered Congressional threats to repeal some of the industry's tax breaks or impose a special tax on profits above a certain threshold.

Posted by Peter C. T. Elsworth  at 9:25 AM to Gas prices | Permalink | Comments 0

Least Fuel-Efficient Hybrids

Interested in an energy-efficient auto? You're in luck. That's because nearly every major car company has a hybrid line, or has plans to introduce one soon.

But enter the showroom, and instead of seeing green, you may be seeing red. Many of the market's hybrids--cars which combine gasoline engines with battery-powered electric motors--forsake fuel-efficiency in the name of power and performance, according to Forbes.com

The average gas mileage of hybrid models available in the U.S. is 33 miles per gallon (combined city and highway). But Chevy's newest Silverado hybrid truck gets only 16 mpg. The newest Lexus LS 600h L hybrid sedan clocks in at 21 mpg, the 2007 Saturn Vue hybrid at 26 mpg.

Posted by Peter C. T. Elsworth  at 8:09 AM to Alternative fuels | Permalink | Comments 0

And Now, the Carship Enterprise?

Here's a concept with a difference. This is a new prototype center console from German supplier Preh Automotive, which has production cabin components for the all-new Audi A4, according to thecarconnection.com

Looking like something off the bridge of the Starship Enterprise, it's called the PrehCon. It's made entirely from what's known in the interiors industry as black panel display technology.

It means that when the driver gets behind the wheel he sees no buttons or lights - there's only a flat black surface and the chrome detailing around the edge. But as soon as he touches the starter button everything comes to life, illuminated in smart ice-blue neon.

That includes the icons on the switches which reveal what each one does. Note also the vibrant coloring on the side of the console, which could be programmed only to light up at night.

Posted by Peter C. T. Elsworth  at 8:04 AM to Design , Technology | Permalink | Comments 0

OnStar Data Used to Study Auto Crashes

WASHINGTON -- General Motors and the University of Michigan Medical School are working on a new study that will try to guide emergency workers and doctors who respond to car accidents - and develop safer vehicles along the way, according to the Associated Press.

Researchers are using crash and injury data from GM's OnStar service to learn more about the links between certain types of crashes and injuries. The in-vehicle system alerts emergency rescue officials when an air bag deploys or the vehicle is involved in a crash.

The study could help emergency room doctors know what to expect before the victim of a car accident arrives at the hospital. It also may help rescue workers determine when they need heavy equipment to extricate passengers or should send injured motorists to trauma centers.

Posted by Peter C. T. Elsworth  at 7:43 AM to GM , Safety | Permalink | Comments 0

Gettelfinger indicates simultaneous Ford, Chrysler talks

With a tentative agreement in hand with General Motors, the UAW expects to move quickly to lock in similar labor contracts with Chrysler and Ford, according to the Detroit Free Press.

“I think the pattern bargaining is still very much in play,” UAW President Ron Gettelfinger said this morning on WJR-AM radio. “We expect this will basically be the same agreement.” He said there could be some modifications for the individual automakers but “for the most part it will be a pattern agreement.”

Gettelfinger suggested that the UAW may try to finish up talks with Chrysler and Ford simultaneously.

Posted by Peter C. T. Elsworth  at 7:40 AM to Auto industry , Chrysler , Ford , GM , Unions | Permalink | Comments 0

Highlights of the GM-UAW deal

According to the Detroit Free Press, the tentative agreement between the UAW and General Motors Corp., a person briefed on the deal said, is expected to include:

• A retiree health-care trust, known as a voluntary employee beneficiary trust, or VEBA. While neither party would officially comment on the amount GM will pay into the VEBA, UAW President Ron Gettelfinger said financial analysis of the plan indicates it should be solvent for 80 years. GM has pushed for the trust to relieve itself of the responsibility for more than $50 billion in retiree health care cost liability. People familiar with GM’s position have said they believe the automaker will pay less than $35 billion into the trust.

A two-tier wage and benefits scale under which new hires will make a lower hourly wage and receive a different package of benefits than current workers.

• A second tier of compensation for jobs that GM and the UAW have agreed are “non-core” production jobs. This is expected to include many positions in which workers do not have their hands on a vehicle in the assembly process.

• To relieve the pain of the wage reductions for the workers currently assigned to jobs defined as “non-core” in the tentative deal, the automaker is expected to offer a targeted special attrition program.

• No wage increases.

• A $3,000 signing bonus.

• A lump-sum bonus in the last three years of the four-year contract.

• The possibility of the automaker maintaining the same level of its U.S. manufacturing workforce.

Posted by Peter C. T. Elsworth  at 7:38 AM to Auto industry , GM , Unions | Permalink | Comments 0

G.M. and Union Reach Tentative Agreement

DETROIT — The United Automobile Workers union and General Motors reached a landmark agreement early today, ending a two-day strike, according to the New York Times.

The key provision of the historic new contract is a health care trust that would get G.M.’s massive liability off its books.

The deal was announced by the company and the union in separate statements. The U.A.W. had walked out on G.M. on Monday morning, but production will resume this afternoon.

G.M. said the tentative agreement was reached at 3:05 a.m. Eastern. The U.A.W. recessed the strike and said if the contract was not ratified, workers could return to picket lines. The agreement included a memorandum of understanding to establish an independent health care trust, as well as other changes to the national agreement.

G.M. said implementation of the trust would be subject to court approval, as well as a review by G.M.’s accounting for the trust by the Securities and Exchange Commission.

The memorandum apparently establishes the principle of the trust, and allows the two sides to complete its details later. Analysts had predicted the union and the company might have to take that step, because of the complexity of such a trust.

Posted by Peter C. T. Elsworth  at 7:31 AM to Auto industry , GM , Unions | Permalink | Comments 0

GM-UAW talks continue as strike enters second day

DETROIT - Negotiators for the United Auto Workers union and General Motors Corp have resumed bargaining on Tuesday while more than 73,000 factory workers participated in the second day of the first national strike against the automaker in more than 30 years, according to Reuters.

GM workers walked off the job on Monday after 10 weeks of contract talks seen as crucial to GM's survival as it restructures money-losing U.S. operations and tries to free itself from a health-care obligation of more than $50 billion.

A GM spokeswoman said the two sides began talking around mid-morning. Meantime, workers at a GM facility in Warren, Michigan, could be seen picketing early on Tuesday with signs reading "UAW on Strike."

Many analysts predicted that a protracted strike against the largest U.S. automaker was unlikely and the two sides could still settle on a deal on wages and benefits that delivers many of the sweeping concessions GM has sought.

Posted by Peter C. T. Elsworth  at 1:04 PM to GM , Unions | Permalink | Comments 0

In G.M. Strike, Both Sides See a Crossroads

The United Automobile Workers union wielded its most potent weapon against General Motors yesterday, sending 73,000 workers to picket lines in its first national strike at G.M. since 1970, according to the New York Times' Micheline Maynard.

Union officials said they were left no choice but to strike because General Motors was unwilling to accept the union’s demand that it protect workers’ jobs and benefits.

For General Motors, its unyielding stance reflects its decision to accept the short-term pain of a strike at 80 facilities in 30 states to achieve its goals: a lower cost structure and more flexible work force to better compete against surging Japanese automakers like Toyota and Honda.

“This really is a defining moment,” said James P. Womack, an expert on manufacturing and co-author of “The Machine That Changed the World,” which studied the plants of Japanese automakers in the United States. “G.M. has backed away from defining moments for generations. And now somebody there has finally said, ‘We have to do this because it’s a new era.’ ”

The length of the walkout may hinge on the answers to two crucial questions: How long can the U.A.W. afford to stay out? And how long can G.M. endure a strike? While an indefinite strike would pose risk to both sides, each has made a calculated decision that it has more to gain by standing tough.

Posted by Peter C. T. Elsworth  at 9:58 AM to GM , Unions , commentary | Permalink | Comments 0

Automakers go back to seating's future

Back-seat drivers may be as annoying as ever, but at least they won't be as cramped.
Some automakers are working to turn back seats into more pleasant accommodations for adult passengers, according to USA Today.

Among the latest to make an improvement is Honda (HMC), which lengthened its flagship Accord sedan from midsize to a full-size model, mainly to add more legroom in the back seat. The new Accord, which just went on sale, has another 1.4 inches of knee room in back.

In a change for what has traditionally been a family sedan, Honda says kids are no longer the primary back-seat riders for Accord.

The car's target customers now are empty-nest boomers and white-collar Gen Xers, many of whom don't have many kids. Instead, auto executives envision the back seat as a place to try to impress adult friends and business clients.

Posted by Peter C. T. Elsworth  at 9:55 AM to Design | Permalink | Comments 0

Strike: Wall Street's not too worried, yet

The strike might be on, but Wall Street doesn't believe that an agreement between GM and the UAW to create a new retiree health care fund is completely off, according to Detroit Free Press columnist Susan Tompor.

GM stock held its own. GM closed at $34.74 Monday, down 20 cents a share. Ford Motor Co. closed at $8.48 a share, up 25 cents a share. GM has requested that the UAW take control of a new retiree health care fund to pay out future liabilities estimated at $50 billion in exchange for a onetime payment into the fund from the automaker.

Posted by Peter C. T. Elsworth  at 9:48 AM to GM , Unions , commentary | Permalink | Comments 0

A weakened union plays its only trump card

Let's take UAW President Ron Gettelfinger at his word when he says, as he did Monday after striking General Motors Corp., "There's not one person on this stage ... that wanted to see these negotiations end in a strike. Who wins in a strike?"

Gettelfinger, of course, blamed GM for being unreasonable.

But wasn't he also conceding, in a way, that the UAW is in a predicament? It's an institution with declining influence, fewer and fewer friends and one big weapon it can ill afford to use without destroying itself in the process, according to Detroit Free Press columnist Tom Walsh.

Posted by Peter C. T. Elsworth  at 9:45 AM to GM , Unions , commentary | Permalink | Comments 0

How long can the strike last?

The strike many believed never would happen shut down General Motors plants nationwide Monday, casting uncertainty on whether the U.S. auto industry can get the kind of revolutionary changes it says it needs to compete, according to the Detroit Free Press.

An end to the first nationwide UAW strike in 31 years will depend on resolving the key union issues of wages and benefits, job security and investment in U.S. facilities and vehicles, UAW President Ron Gettelfinger indicated at a news conference Monday.

He repeatedly said that the strike was not related to talks over a landmark retiree health care trust on which the two parties are believed to have agreed to a general framework.

Posted by Peter C. T. Elsworth  at 9:42 AM to GM , Unions , commentary | Permalink | Comments 0

Long Strike Could Cost GM Billions

DETROIT -- If the United Auto Workers strike against General Motors Corp. lasts longer than a week or two, it could cost GM billions of dollars and stop the momentum the company was building with some of its new models, according to several industry analysts, according to the Associated Press.

A strike of two weeks or less would not hurt GM's cash position and would actually improve its inventory situation, Lehman Brothers analyst Brian Johnson said Monday in a note to investors. But a longer strike would be harmful, causing GM to burn up $8.1 billion in the first month and $7.2 billion in the second month, assuming the company can't produce vehicles in Mexico or Canada, Johnson wrote.

Initially, the strike wouldn't have much impact on consumers because GM has so much inventory, the analysts say. The company had just under 950,000 vehicles in stock at the end of August, about 35,000 less than at the same time last year.

But Tom Libby, senior director of industry analysis for J.D. Power and Associates, said even a short strike could hurt GM because its new crossover vehicles - the Buick Enclave, GMC Acadia and Saturn Outlook - are selling well and in short supply.

Posted by Peter C. T. Elsworth  at 9:40 AM to GM , Unions , commentary | Permalink | Comments 0

Backseat Driver: As went the British auto industry, so goes Detroit?

Does the demise of the British car industry set an example for Detroit?

The names of the great British marques live on, giving class and credibility to the vehicles that carry them, but the companies have long been shells for foreign carmakers.

In particular, the two biggest companies, Austin and Morris, went out of business as independent companies decades ago.

Rolls-Royce is owned by BMW as is Mini. Bentley is owned by Volkswagen. Jaguar and Landrover are owned by Ford is currently trying to sell. Ford sold Aston Martin for about $1 million to an investment consortium in March.

Indeed, the most viable British carmakers are Ford, which is owned by Ford, and Vauxhall, which is owned by GM with only remaining wholly owned British marques tiny specialty outfits like Morgan and Noble.

Meanwhile, France has Peugeot-Citroen and Renault, Italy has Fiat and Germany, of course, has three premier global marques - BMW, Mercedes-Benz and Volkswagen.

What happened to the British car industry?

It might be easy to blame its demise on the damage caused by WWII. But France, Germany and Italy were all heavily damaged by the war.

No, a more likely culprit can be found in the dreadful labor relations that followed WWII, with rotten management often at loggerheads with intransigent unions.

And herein the lesson for Detroit. The current strike against GM by the United Auto Workers union is merely the latest incident in a long history of ebbing market share to Asian and European manufacturers.

For decades Detroit has been a byword for second-rate design and execution, forced to play catchup with innovations in both design and technology pouring out of Asia.

As for glamor, long gone are Detroit's glory days of the 1950s and 1960s. German and German-owned British marques and high-end Italian marques are the cars people currently drool over.

And now the union contracts that have had Detroit against the financial ropes for years in terms of health and retiree benefit costs are front page news with the first nationwide strike against GM since 1970.

I hope Detroit is not following the dismal post-war history of Britain's auto industry, but the signs are not encouraging.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 4:48 PM to commentary | Permalink | Comments 0

Trapdoor Opens on Hybrid Credit

Get these tax credits while they last.

In August, Honda sold its 60,000th hybrid vehicle. That means the clock has started ticking on the phase-out, and eventual end, of credits for people who buy a Honda hybrid, according to the New York Times. Hybrid tax credits were part of the Energy Policy Act of 2005.

The 2007 Accord Hybrid qualifies for a $1,300 credit and the Civic Hybrid for $2,100. (Some earlier models still qualify technically for the credit, but it’s only for the vehicle’s original owner; credits are not available for pre-owned cars.)

However, the Energy Policy Act sets a limit on the number of hybrids eligible. Once an automaker sells its 60,000th hybrid (all hybrid models combined), the tax credit begins to fade.

Posted by Peter C. T. Elsworth  at 4:39 PM to Alternative fuels , Honda | Permalink | Comments 0

Trapdoor Opens on Hybrid Credit

Get these tax credits while they last.

In August, Honda sold its 60,000th hybrid vehicle. That means the clock has started ticking on the phase-out, and eventual end, of credits for people who buy a Honda hybrid, according to the New York Times. Hybrid tax credits were part of the Energy Policy Act of 2005.

The 2007 Accord Hybrid qualifies for a $1,300 credit and the Civic Hybrid for $2,100. (Some earlier models still qualify technically for the credit, but it’s only for the vehicle’s original owner; credits are not available for pre-owned cars.)

However, the Energy Policy Act sets a limit on the number of hybrids eligible. Once an automaker sells its 60,000th hybrid (all hybrid models combined), the tax credit begins to fade.

Posted by Peter C. T. Elsworth  at 4:39 PM to Alternative fuels , Honda | Permalink | Comments 0

UPDATE: UAW Pickets go up at GM's plants

In the first national UAW strike since the 1970s, General Motors Corp. workers across the nation walked off the job this morning after negotiations over a new labor contract reached an impasse, according to an update by the Detroit Free Press.

Thousands of UAW members who work for GM walked off the job at 11 a.m. today — 9 days after a 4-year contract was set to expire. The contract had been extended hour by hour, until late last night when the UAW issued the strike deadline.

UAW Ron Gettelfinger said during a noontime press conference that the union will continue to negotiate with GM while workers picket.

Posted by Peter C. T. Elsworth  at 4:32 PM to Auto industry , GM , Unions | Permalink | Comments 0

UAW strike has terrible implications for GM, the UAW, Michigan

The UAW striking General Motors, especially if the walkout lasts more than a few hours, is a dangerous move with all sorts of awful implications for the company and the future of the UAW to say nothing of Michigan's economy, according to the Detroit Free Press' Tom Walsh.

General Motors, while making good progress on its turnaround the past two years, is still losing money in North America and could still suffer enormous damage from a walkout of any length.

And what of the UAW itself, which has been touting its efforts to organize the nonunion U.S. plants of Toyota Motor Corp., other Asian automakers and growing suppliers such as Denso. By striking GM, the union provides fodder to the anti-union campaigns at all those companies, which play upon workers' fears that strike-happy U.S. labor unions will scare companies into closing U.S. plants and cutting jobs en masse.

Meanwhile, Michigan's economy labors under the dual burden of its reliance on the Detroit Three auto companies and their declining market share, exacerbated by the longstanding reputation of Detroit and Michigan as a stronghold of truculent, overpaid and inflexible labor unions.

Forget about all gains in productivity and recent cooperative deals between labor and management to cut health care costs and simplify work rules. The old anti-business, pro-labor image is a hard one to shake. Any nationwide automotive strike, no matter how brief, sends the wrong message to growing companies looking for the best place to invest.

Posted by Peter C. T. Elsworth  at 4:28 PM to Auto industry , Unions | Permalink | Comments 1

Bugatti Resigned to Exclusivity

Sorry, all you wanna-be Bugatti buyers. If you can't come up with the $1.4 million it'd take to park a Veyron in your garage, you'll have to just settle for something more mundane - perhaps a Ferrari F430 or Mercedes-Benz SLR, according to thecarconnection.com

The reborn French marque, the top-line subsidiary of Volkswagen AG, has been struggling to lay out plans for its post-Veyron future, and according to senior managers, one likely move would be to introduce a second model at a slightly more reasonable price.

Make that former managers. With sales of the $1.4-million supercar running at an even more modest pace than the one per week originally forecast, VW ordered a shake-up earlier this year. And now, the new managers have nixed the idea of letting the Bugatti name appear on something that might come in at just a million dollars even.

Posted by Peter C. T. Elsworth  at 4:23 PM to Supercars , VW | Permalink | Comments 0

G.M. Workers Begin Walkout Over Contract Impasse

DETROIT — Members of the United Automobile Workers union walked off the job today at General Motors plants across the country after union leaders and company officials failed to reach an agreement in contentious talks on a new contract, according to the New York Times.

It is the first national strike by the union since 1970. That strike, also against G.M., lasted for two months. The U.A.W. last struck G.M. at two plants in Flint, Mich., in 1998, in a strike that went on for seven weeks.

The union’s president, Ron Gettelfinger, said the union would go back to the bargaining table today. “This is nothing we wanted,” he said. “Nobody wins in a strike.”

Posted by Peter C. T. Elsworth  at 1:20 PM to Auto industry , Unions | Permalink | Comments 0

Bentley Goes on a Diet

Bigger is better, or so goes the old mantra that defines carmakers and Costco shoppers alike. But at least one automaker is thinking twice about its future and betting that big sales growth - and big, heavy, high-powered cars - may not necessarily be the answer, according to thecarconnection.com

Bentley certainly has done its share of growing, in recent years. Not all that long ago, as the poor-relation sibling to Rolls-Royce, it was a nearly forgotten brand that came a hair's breadth away from being abandoned entirely.

Now a subsidiary of the German giant, Volkswagen AG, Bentley is one of the world's most successful luxury marques, with products like the Continental GTC racking up sales of 10,000 a year.

Posted by Peter C. T. Elsworth  at 11:41 AM to Design | Permalink | Comments 0

Playing the Options for Best Returns

HOMEOWNERS have learned that some home improvements pay off handsomely, returning every dollar spent when the time comes to sell.

Similarly, car buyers are finding that optional safety features — stability control systems and side curtain air bags, for instance — can do more than just keep the family safe, according to the New York Times.

Along with options like CD changers and leather upholstery, the extra-cost safety equipment can help owners get a higher price when it is time to sell or trade in the car, according to companies that track resale values.

Posted by Peter C. T. Elsworth  at 11:39 AM to Safety | Permalink | Comments 0

They’re Electric, but Can They Be Fantastic?

Electric cars are the future.

That, at least, is the message automakers are sending to consumers as they trumpet big plans for cars that can bypass the gas pump.

Of course, backers of electric vehicles, or E.V.’s, floated those assurances in the 1970s, ‘80s, and ‘90s, when General Motors released its star-crossed EV1. Today, almost no one drives an electric car.

But with a gallon of premium gas topping $3 on average, and as carmakers and entrepreneurs pour money into the latest generation of electric cars, the prospects appear brighter, according to the New York Times.

Posted by Peter C. T. Elsworth  at 11:36 AM to Environment | Permalink | Comments 1

UAW STRIKES GM: Pickets go up at automakers' plants

UAW members started picketing at Hamtramck, Lansing and Orion and other locations when the union’s 11 a.m. deadline for a new labor agreement with General Motors passed, according to the Detroit Free Press.

At 1:40 a.m. this morning, the UAW officially announced that it had set an 11 a.m. strike deadline, which coincides with scheduled lunch breaks at some plants. The two sides continued to negotiate this morning.

Posted by Peter C. T. Elsworth  at 11:27 AM to GM , Unions | Permalink | Comments 0