AD #3660 – GM, Ford Fed Up with UAW‘s Shawn Fain; Auto Suppliers Beg for Strike Relief; Tesla Updates Model Y in China

  

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

GM’S MARY BARRA SLAMS SHAWN FAIN…
Day 18 of the UAW strike and tempers are starting to flare. General Motors and Ford say that they are fed up with Shawn Fain’s rhetoric and the theatrics. GM CEO Mary Barra slammed the UAW president. She said, and I quote “By their own admission, the UAW leadership’s plan from the beginning has been to drag their membership into a long, unnecessary strike to further their own personal and political agendas.” Barra was referring to a leaked UAW memo that said the union’s strategy is to keep the automakers “wounded for months” and cause “recurring reputations damage and operational chaos.” She said the UAW’s strategy is only going to help non-union car companies.

…SO DOES FORD’S FARLEY 
Ford CEO Jim Farley accused Shawn Fain of holding up the contract because he wants workers at battery plants included in this contract, even though those plants haven’t been built yet and none of the workers have been hired. Farley also hit back at Shawn Fain’s tactics. 

“Shawn has been on TV more than Jake at State Farm at this point. I’ve heard what he wants. But I’ve never heard him say once why he believes the UAW can be a competitive advantage for Ford.”

UAW EXPANDS STRIKE TO TWO MORE PLANTS
The union ramped up the pressure on Friday by striking two more assembly plants: GM’s Grand River plant in Lansing, Michigan, which makes the Chevrolet Traverse and Buick Enclave; and Ford’s Chicago Assembly which makes the Explorer and Lincoln Aviator. That put about 7,000 more workers on strike, bringing the total to about 25,000. Labor experts are beginning to believe that the strike could go on for months. One source told Autoline that if you include ratification of local contracts, not just the master agreement, that things may not get fully wrapped up until January.

UAW REACHES AGREEMENT WITH MACK TRUCK
But the UAW did reach a new labor agreement with Mack Trucks. Unlike the public bargaining that Shawn Fain is doing with GM, Ford and Stellantis, none of the contract details with Mack have been released. And by averting a strike with the truck maker, the union preserves its strike fund for its battle with the automakers.

AUTO SUPPLIERS BEG FOR STRIKE RELIEF
However, we knew from the beginning that a lengthy strike was going to impact the smaller tiered suppliers the most. The Motor & Equipment Manufacturers Association, which represents more than a thousand auto companies at many different tiers, says that 75% of its members will be forced to lay off employees if the strike lasts for one month. So, it sent a letter to the Biden Administration urging it to offer support to help keep smaller suppliers going. It’s asking for loans with low interest rates and possible loan forgiveness of amounts between $500,000 and $10 million for companies that generate less than $200 million of revenue. The funds would go towards keeping suppliers afloat during the strike, helping them ramp back up once the strike ends and transition to EVs in the future.

TESLA UPDATES MODEL Y IN CHINA
Tesla launched an updated version of the Model Y in China. But it’s not getting new exterior lighting and fascias like the Model 3, at least not yet. However, like the new 3, it comes up with an updated wheel design, the same ambient lighting package and new dashboard material. It also seems like the Standard version is getting a motor upgrade because its time from 0-100 km/h dropped a full second to 5.9 seconds. And the updated Y sees some efficiency gains as well. Range of the Standard version is up slightly and the Long Range version can go 28 kilometers or about 17 miles further than before. Despite the changes, Tesla is keeping starting prices the same, which ranges from about $36,000 to $48,000 in China. 

NO NEW EV PLANT FOR VW IN WOLFSBURG
Volkswagen officially wiped out plans to build a new EV plant in Germany. It was supposed to be built around the middle of the decade at an all-new site in Wolfsburg and produce electrics off of its new SSP platform, which is being developed now. Instead VW will convert its main plant that’s already in Wolfsburg, to make SSP EVs, like the new Golf. That’s going to save VW billions of euros. In fact, VW is prepping its entire German-based production network to be as efficient as possible with some sites making both electric and ICE vehicles as well as vehicles from other VW brands that were never built there before. In 2026, it will start making a new electric A segment SUV that it will make in high-volume at its Wolfsburg plant. And as for its software defined vehicle with Level 4 AV capabilities, called Trinity project, it will update its Zwickau plant, which is also in Germany, to make those vehicles. 

AUTO ALLIANCE SAYS CAFE RULES NOT FEASIBLE
The Alliance for Automotive Innovation, a lobbying group that represents the auto industry, is blasting NHTSA’s CAFE or Corporate Average Fuel Economy proposal. The group says it “exceeds maximum feasibility” and that automakers will pay $14 billion in fines between 2027 and 2032 for being unable to comply with the standards. The Alliance also claims that the rules will add $3,000 to the cost of new vehicles on average and says it will hurt car sales. NHTSA responded by saying automakers can introduce more electric vehicles to comply and avoid penalties.

TEAMSTERS OPPOSE GM CRUISE AV EXEMPTION
The Teamsters union is urging NHTSA to deny a petition from General Motors to exempt its Cruise Origin autonomous shuttle from vehicle safety standards. The president of the union says the self-driving vehicle is “dangerous for other motorists, for pedestrians and for middle-class jobs.” Cruise says most of the public comments responding to the petition have been positive and that the company will work with NHTSA to “ensure the safe and responsible deployment of the technology.” Cruise is seeking to deploy up 2,500 autonomous vehicles annually with no steering wheel, mirrors, turning signals or windshield wipers.

MERCEDES LAUNCHES L3 DRIVE PILOT IN U.S.
And speaking of autonomy, Mercedes-Benz is launching its Level 3 hands free driving system in the U.S., the first automaker to do so. The technology, called Drive Pilot, will first be available on a limited number of EQS sedans later this year in California and Nevada, the only two states that have approved the system. Next year, the S-Class will also get the technology. The system will be offered through a subscription on the Mercedes me connect store and includes a $2,500 activation fee.

ITALY WANTS TO BLOCK CHINESE EV IMPORTS
European countries are starting to fight back against low-priced EVs from China that have flooded the market. Italy is proposing new incentives for vehicle purchases that factor in carbon emissions for manufacturing and transport. Chinese cars likely won’t qualify for the incentives because most are built at plants that are coal powered and the vehicles are shipped by boat. France also adopted a similar scheme last month, which Italy is using as a framework for its proposal.

But that brings us to the end of today’s show. Thanks for making Autoline Daily a part of your day.