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Category Archives: economy
Auto Industry Sets Record for Transaction Prices, Incentive Spending in December 2019. However, US Sales Falling?
The combination of record prices with overall sales means that consumers will spend $462 billion on new vehicles in 2019. This is up $8.4 billion from last year and marks the first time that expenditures will exceed $460 billion. Continue reading
Posted in economy, news analysis, sales
Tagged 2019 US Auto Sales, auto industry commentary, autoinformed.com, j.d power, Kenneth Zino
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Fasten Your Seat Belt – General Motors Files RICO Lawsuit Against Fiat Chrysler Automobiles
In GM’s view FCA was the sponsor of “pervasive wrongdoing, paying millions of dollars in bribes to obtain benefits, concessions, and advantages in the negotiation, implementation, and administration of labor agreements over time.” Continue reading
FCA + PSA = Massive Job Losses
For enthusiasts as well a workers there are other threats. How about a spin-off FCA’s expensive low-return Alfa Romeo/Maserati operations? Simple math here: It would provide funds for the new FCA-PSA group while improving its utilization rate. Continue reading
UAW Members Okay Contract with GM. Ford Motor Next
The contract achieved most but not all of the demands, notably Lordstown will no longer be a GM plant. Ford Motor is the next company to agree with or slightly modify the pattern agreement, followed by FCA. Continue reading
Posted in economy, labor issues
Tagged 2019 UAW Strike, auto industry commentary, autoinformed.com, automotive blog, Kenneth Zino, uaw gm
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September New Passenger Car Registrations Up in European Union, But Trend is Downward
During the first nine months of 2019, EU new car registrations were down 1.6% compared to the same period the year before. Despite demand recovering across the European Union in September, Germany (+2.5%) was the only major market to post positive results so far this year. Spain (‐7.4%) saw the strongest drop, followed by the United Kingdom (‐2.5%), Italy (‐1.6%) and France (‐1.3%). Continue reading
Posted in economy, sales
Tagged acea, auto industry commentary, autoinformed.com, Kenneth Zino
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Global Light Vehicle Sales Fall Again in September
The selling rate drop in September seems partly the result of further changes to the WLTP** emissions testing in Europe, which may have pulled sales forward to August, at the expense of September. In China, LV sales dropped once again. Unfavorable calendar effects thwarted any chance of YoY growth in the US, even though the selling rate was good. Continue reading
Posted in economy, sales
Tagged auto industry commentary, autoinformed.com, Kenneth Zino, lmc automotive, WLTP
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Western European Passenger Car Sales Weak
The introduction of WLTP in September 2018 distorted the market in August and September last year, with a high base effect in August and a low base effect for September as it became clear that diesels were dirty and not meeting emission standards. Continue reading
Posted in economy, sales
Tagged auto industry commentary, autoinformed.com, automotive blog, Kenneth Zino, lmc
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US Medical Uninsured Rate and Number Up from 2017
Healthcare of course is one of the key issues in the ongoing UAW GM strike. Continue reading
Weak Chinese Retail Sales in August Delay Recovery
Chinese passenger production improved in August, with a drop of -0.7% to 1.66 mn units, recovering from the double-digit declines seen in recent months. LCV output fell by – 0.9% to 0.24 mn units. LV output was down by 0.8% YoY, on total build of 1.90 mn units. Now that vehicle stocks have been unwound, OEMs no longer are carrying bloated inventories and are preparing to resume normal production rhythms, says LMC. However, LMC decided to make a further cut to the passenger vehicle growth forecast for 2019, from -5.5% to -7.4%. This is bad news for the global economy in general and the Detroit Three. Continue reading
Posted in economy, sales
Tagged auto industry commentary, autoinformed.com, Chinese Vehicle Sales, Kenneth Zino, lmc
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GM Strike Gets Nasty as it Cancels UAW Healthcare Plan
The UAW activated the strike fund as soon as it became aware of GM’s strategic (ham-fisted?) decision to cut healthcare. Continue reading
Posted in economy, labor issues
Tagged auto industry commentary, autoinformed.com, Brian Rothenberg, Ken Zino, UAW GM Strike
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Teamsters to Honor Picket Lines of 50,000 UAW GM Workers
“We laud the UAW for its work to ensure that its GM employees are treated with respect and dignity on the job. At a time when more and more companies are downsizing and shipping jobs out of the U.S., it is imperative that unions fight for their members. Workers should be rewarded for good work with fair wages and benefits. That’s what the UAW is demanding.” Continue reading
General Motors Offers UAW $7 Billion in U.S. Investments, an $8000 “Signing Bonus” or is that Bribe?
In its latest statement – with perhaps a hint of desperation – GM said today that “We presented a strong offer that improves wages, benefits and grows U.S. jobs in substantive ways, and it is disappointing that the UAW leadership has chosen to strike at midnight tonight Continue reading
UAW to Strike GM – Contract Talks Deadlocked
The strike does not just involve GM and its suppliers. It has the potential to turn into a national crisis and affect the upcoming presidential election. It could certainly drag in Ford and FCA. At midnight more than 850 Aramark workers in Michigan and Ohio walked off the job over better wages, health care and retirement.The teamsters have yet to be heard from. Continue reading
Western European Car Registrations Fall by -8.5%
“We suspect that last month’s strong sales may have been the result of an increased use of self-registrations by dealers and OEMs, ahead of further changes to WLTP regulations which came into effect on 1 September, and we may therefore see some payback in selling rates in the coming months,” says LMC. Continue reading
Posted in economy, news analysis, sales
Tagged auto industry commentary, autoinformed.com, automotive blog, eu, Ken Zino, lmc
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EU Passenger Car Registrations Decline in January 2020
ACEA claims that major taxation changes announced by some EU member states for 2020 pulled registrations forward into December 2019, explaining the January drop. Continue reading →