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Chrysler Union Leaders OK Contract

DETROIT (AP) -- Local union leaders voted overwhelmingly Monday to recommend approval of a tentative four-year agreement between the United Auto Workers and Chrysler LLC, paving the way for a vote by members, UAW President Ron Gettelfinger said, according to the Associated Press.

Chrysler workers would see gains of $10,235 over the life of the agreement, according to a UAW booklet of contract highlights obtained by The Associated Press. Chrysler also would contribute $10.3 billion toward the creation of a union-run trust for retiree health care. The union said it reversed a company plan to sell its parts division and a parts-trucking operation as part of the negotiations.

Posted by Peter C. T. Elsworth  at 2:23 PM to Unions | Permalink | Comments 0

Oil Futures Hit New Record of $86

NEW YORK -- Oil prices surged as high as $86 a barrel Monday for the first time after OPEC said crude production by non-member countries is likely falling even as global demand for oil is rising, according to the Associated Press.

Prices were also supported by concerns Turkish forces will pursue Kurdish rebels into Iraq, disrupting oil supplies, and by technical buying by investment funds.

Despite the Organization of Petroleum Exporting Countries' decision last month to boost its production by 500,000 barrels per day beginning next month, the rest of the world will likely produce 110,000 fewer barrels of oil per day than expected in the fourth quarter, OPEC said in a report.

At the same time, fourth quarter demand for crude oil will grow by 100,000 barrels a day over last year, OPEC said.

The estimates add to sentiment that crude supplies are tight. Last week, the Energy Department reported that domestic crude inventories fell during the week ended Oct. 5 when they had been expected to rise. And the International Energy Agency concluded that oil inventories held by the world's largest industrialized countries have fallen below a five-year average.

"The fact that U.S. crude inventories fell yet again ... reinforced the market's underlying concern that demand has yet to slow down sufficiently to allow stocks to build, while supply is also perceived to be struggling to catch up," wrote Edward Meir, an analyst at MF Global UK Ltd., in a research note.

Light, sweet crude for November delivery rose $2.16 to $85.85 on the New York Mercantile Exchange after rising as high as $86, a record trading price.

Posted by Peter C. T. Elsworth  at 2:22 PM to Crude oil market | Permalink | Comments 0

Rhode Island gas prices down another penny

Gasoline prices in Rhode Island trickled down another penny this week, according to AAA Southern New England and reported in the Providence Journal.

The average price for regular, unleaded gasoline is $2.679 per gallon at the self-service pump, according to AAA's weekly survey.

The average price also dropped a penny last week.

That's the lowest it has been since April 2, AAA said.

Rhode Island's average is eight cents below the national average, according to AAA.

Posted by Peter C. T. Elsworth  at 11:56 AM to Gas prices | Permalink | Comments 0

Detroit's 3 finally on track, tough critic says

Chalk up this past week as a big win for the home team, Detroit's three automakers, writes Tom Walsh of the Detroit Free Press.

General Motors workers ratified a new labor contract by a ratio of nearly 2-1.

Chrysler and the UAW forged a new tentative pact with only a hiccup of a 6-hour work stoppage.

Ford Motor Co. lured marketing hotshot Jim Farley away from Toyota Motor.

GM stock surged past $40 a share for the first time in more than two years, closing at $42.64, up 11.6% on the week. Ford shares rose 10% to $9.20.

If it's too early for Detroit to declare victory over automotive competitors from Japan, Korea and Europe -- and yes, it is too early -- we can at least enjoy this spate of good fortune for our much-maligned home team.

Still skeptical? OK, but have a listen to Maryann Keller, a relentless critic of Detroit's auto industry for the past three decades as a Wall Street analyst, author, consultant and now a director of two auto-related companies, Lithia Motors and Dollar Thrifty Automotive.

"For the first time in 30 years I think that Detroit is going to finally turn around," Walsh said Keller told him Friday.

"The cars are better, the management is smarter and the costs are down with these new contracts. The UAW and Big 3 have finally figured out how to save each other and create a headache for the Japanese."

Posted by Peter C. T. Elsworth  at 11:51 AM to Auto industry , Chrysler , Ford , GM | Permalink | Comments 0

Motor Trend names CX-9 its SUV of the year

DETROIT — Motor Trend magazine says it has selected the 2008-model Mazda CX-9 as its sport utility vehicle of the year, according to the Detroit Free Press.

The award from a field of 11 finalists is to be featured in the magazine’s Nov. 6 edition, Motor Trend said in an announcement prepared for release today.

Motor Trend editor-in-chief Angus MacKenzie said tests showed that the CX-9 was “arguably the most enjoyable sport/utility to drive, and a great reminder that SUVs can be as exciting as any car.”

The other finalists were the Buick Enclave, Hyundai Veracruz, Jeep Liberty, Jeep Patriot, Land Rover LR2, Nissan Rouge, Saturn Vue, Subaru Tribeca, Toyota Highlander and Toyota Land Cruiser.

Posted by Peter C. T. Elsworth  at 11:30 AM to Driving | Permalink | Comments 0

If There’s Something on Their Mind, Their Cars Say It

SAY what you will about traffic jams, they provide ample time to ponder the stickers on all those bumpers as they creep by, according to the New York Times.

Well, not necessarily just the bumpers. Stickers have been turning up on rear windows and side ones, on hatchbacks and trunk lids, and on the front and back doors. Nor are they necessarily stickers: many people are putting messages on their cars with magnets. Those messages, though, can be a head-scratching hodgepodge of colors, symbols and phrases. This may be especially true for anybody raised thinking the range was limited to “Princeton University,” “Gore 2000,” or the skulls of the Grateful Dead.

Indeed, an informal survey of metro-area parking lots and streets, in traffic jams and at highway rest areas, turned up the following: paw prints, small and large, and one from a bear; baseballs and tennis balls embedded in shattered glass, or the appearance of it; yin-yangs and stars; and symbols warning of radiation and biohazards.

Posted by Peter C. T. Elsworth  at 11:28 AM to Fun | Permalink | Comments 0

Daimler, BMW Hooking Up?

With the separation from Chrysler complete, Daimler AG is very likely to pursue closer ties with its archrival BMW, according to knowledgeable sources inside the automaker, according to thecarconnection.com

For the past several weeks, the German press has been filled with speculation about joint development projects for everything from small cars to new engines. Moreover, Daimler chief executive officer Dieter Zetsche didn't exactly reject the idea of closer ties with BMW.

Daimler, in fact, made one known but ultimately unsuccessful bid for BMW back in the early 1960s and by and large the two companies have kept their distance for the past half-century or so.

In recent years, however, BMW and Daimler have collaborated successfully in the development of hybrids and more projects are possible if they are mutually beneficial, Zetsche said during the special shareholders meeting in Berlin earlier this month.

Posted by Peter C. T. Elsworth  at 11:18 AM to BMW , Mercedes-Benz | Permalink | Comments 0

GM Details Effect of UAW Contract

DETROIT -- A new four-year contract between General Motors and the United Auto Workers will transfer an estimated $46.7 billion worth of retiree health care liability from the company to the union, the company said Monday, according to the Associated Press.

That leaves GM with about $17.6 billion in retiree health care for salaried employees and other obligations, the company said. It was the first time GM has detailed its savings from the agreement.

"The 2007 national negotiations were in many ways the most complex and comprehensive that we've been engaged in," Rick Wagoner, GM chief executive and chairman, said during a conference call to explain the labor deal.

Posted by Peter C. T. Elsworth  at 11:15 AM to GM , Unions | Permalink | Comments 0

Oil Futures Hit New Record Above $85

NEW YORK -- Oil prices surged above $85 a barrel Monday for the first time after OPEC said crude production by non-OPEC countries is falling even as global demand for oil is rising, according to the Associated Press.

Prices were also supported by concerns Turkish forces will pursue Kurdish rebels into Iraq, disrupting oil supplies, and by technical buying by investment funds.

Despite the Organization of Petroleum Exporting Countries' decision last month to boost its production by 500,000 barrels per day beginning next month, the rest of the world will likely produce 110,000 fewer barrels of oil per day than expected, OPEC said in a report.

At the same time, fourth quarter demand for crude oil will grow by 100,000 barrels a day over last year, OPEC said.

Posted by Peter C. T. Elsworth  at 11:13 AM to Crude oil market | Permalink | Comments 0