AD #2699 – Ford Shows Off SEMA Models, GM Faces Market Share Loss After Strike, Renault Cuts Profit Outlook

This is Autoline Daily reporting on all aspects of the global automotive industry.

UAW MEMBERS TO VOTE ON GM DEAL
Looks like the strike at General Motors is coming to a close, but it’s not over yet. The union will now put the proposed contract up for a vote by the workers. And they’ll stay out on strike until it’s ratified. The union did not want to take the risk of ending the strike, then have workers reject the contract, and have to resume the strike again. So they’re staying out until it’s ratified. GM really sweetened the pot to get a settlement. Strikers will get an $11,000 signing bonus, and 3% pay raises the first two years of the contract, and 4% lump sum payments for the final two years.

GM FACES MARKET SHARE LOSS AFTER STRIKE
Labor strikes don’t just affect union workers and the company they’re striking against. They hurt suppliers and car dealerships and they drive away customers. The Center for Automotive Research points out that General Motors lost market share every time it faced a strike from the UAW. And once that market share is gone, it’s lost forever. GM has never been able to make it back up again. In the 1998 strike, GM lost 2% market share, or about the equivalent of 340,000 sales in today’s market. Strikes are not the only reason why GM has lost market share. But the data shows they are a contributing factor.

TESLA MODEL 3 GETS SMALL RANGE BOOST
Tesla quietly increased the range of the Model 3 Standard Range Plus model. It will now go 250 miles on a charge, which is 10 more than before. Although, Tesla didn’t say how it increased the range. The price of that model went up by $500 as well. The EV maker also changed the standard wheel option for the Model 3 performance to a dark gray 20-inch wheel and increased the vehicle’s price by $1,000. 

RENAULT CUTS PROFIT OUTLOOK
We’ve seen a number of automakers adjust their forecasts for the year due to slowing sales and the need to invest in expensive technologies. And Renault is the latest. The automaker said its sales will drop between 3% and 4% this year, that operating margins would be at 5%, instead of a goal of 6% and it would re-asses some of the mid-term goals of its current 5-year plan. The news sent shares of the automaker tumbling more than 13%. As of now, Renault has not announced any job cuts.

FORD SHOWS OFF SEMA MODELS 
Ford is showing off some customized SEMA vehicles. The aftermarket is huge and this gives automakers a chance to show off what they’ve got, so it’s no surprise Ford is strutting its stuff. It’s debuting eight lowered or lifted models, including the Escape, Explorer, and Expedition, all with unique paint, wheels, and other options. The Air Design Escape gives a striking black-on-white paint job with 20-inch wheels and fender flares. Blood Type Racing customized its Explorer Limited Hybrid with black chrome wheels, tinted lights, and a snowboard rack. MAD Industries built its Expedition with beefy Nitto tires, 50-inch lightbar, and rooftop tent. Check these out at the SEMA show starting November 5th.

Acura has been around for 30 years but it’s hard to define what the brand stands for. So to learn how Acura is rebuilding itself and where it plans to expand its lineup, be sure to watch Autoline This Week with Jon Ikeda, the Vice President of Acura. You can watch that show now on our website, Autoline.tv or you can find it on our YouTube channel.

SUBARU JAPAN PLANT IDLED DUE TO TYPHOON
Subaru was forced to halt production at its main plant in Japan due to the typhoon that hit the country last weekend. While the plant wasn’t affected, several of the company’s suppliers suffered flood damage, which caused a parts shortage. The facility builds the BRZ, Forester, Crosstrek, WRX and Impreza. The shutdown is expected to last about a week. Subaru is the first automaker in Japan to idle production because of the typhoon but other automakers could follow suit.

CATL BEGINS BATTERY FACTORY IN GERMANY
Chinese battery maker CATL is breaking ground on its first overseas factory in Germany. The facility is scheduled to produce lithium-ion batteries starting in 2022. CATL has partnerships to supply batteries to BMW, Volkswagen, Daimler, Volvo and Bosch, so it makes sense that it would want a factory in the same region as those companies.

But that’s it for today, thanks for watching and have a great weekend.