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The UAW's 'record contract' hinges on pensions, battery plants

DETROIT - After nearly four weeks of disruptive strikes and hard bargaining, the United Auto Workers and the Detroit Three automakers have edged closer to a deal that could offer record-setting wage gains for nearly 150,000 U.S. workers. General Motors, Ford Motor and Chrysler parent Stellantis have all agreed to raise base wages by between 20% and 23% over a four-year deal, according to union and company statements. Ford and Stellantis have agreed to reinstate cost-of-living adjustments, or COLA. The companies have offered to boost pay for temporary workers and give them a faster path to full-time, full-wage status. All three have proposed slashing the time it takes a new hire to get to the top UAW pay rate. The progress in contract talks follows the first-ever simultaneous strike by the UAW against Detroit's Big Three automakers. The union began the strike on Sept. 15 in hopes of forcing a better deal from each major automaker. But coming close to a deal is not the same thing as reaching a deal. Big obstacles remain on at least two major UAW demands: restoring the retirement security provided by pre-2007 defined benefit pension plans, and covering present and future joint- venture electric vehicle battery plants under the union's master contracts with the automakers. On retirement, none of the automakers has agreed to restore pre-2007 defined-benefit pension plans for workers hired after 2007. Doing so could force the automakers to again burden their balance sheets with multibillion-dollar liabilities. GM and the former Chrysler unloaded most of those liabilities in their 2009 bankruptcies. The union and automakers have explored an approach to providing more income security by offering annuities as an investment option in their company-sponsored 401(k) savings plans, people familiar with the discussions said. Stellantis referred to an annuity option as part of a more generous 401(k) proposal on Sept. 22. Annuities or similar instruments could give UAW retirees assurance of fixed, predictable payouts less dependent on stock market ups and downs, experts said. Recent changes in federal law have removed obstacles to including annuities as a feature of corporate 401(k) plans, said Olivia Mitchell, a professor at the University of Pennsylvania Wharton School and an expert on pensions and retirement. "Retirees want a way to be assured they won't run out of money," Mitchell said.

GM is training more first responders for EV emergencies in the U.S. and Canada

GM is training more first responders to be able to handle emergencies involving electric vehicles. The automaker is "significantly expanding" its EV First Responder Training program in the United States and Canada as electric vehicle sales continue to grow. Its initiative will primarily focus on training firefighters and equipping them with the necessary knowledge about full electric vehicle technologies. GM says it's hoping to dispel misconceptions when it comes to handling EVs in emergency situations. One of those misconceptions is that water is dangerous around EV batteries — turns out the recommended way to put out lithium-ion battery fires is by using copious amounts of water.  Andrew Klock, a senior manager of education and development at the National Fire Protection Association (NFPA), said: "The best way for the public and private vehicle fleet owners to rapidly adopt EVs is to train firefighters and emergency responders on how to handle incidents involving battery powered vehicles. The fire service has had more than 100 years to gain the knowledge needed to respond to internal combustion engine fires, and it is critical that they are now educated on EV safety." The NFPA held trainings of its own that had benefited 300,000 first responders, but it believes more than 800,000 members of the community still need further training.   GM previously piloted the program in southeast Michigan, but now it's conducting training events across Michigan and in Fort Worth, Texas, as well. Later this summer, it's bringing the program to metro New York City and Southern California. Participants will have to attend four-hour sessions, with up to two per day, held in various venues, such as fire houses and dealerships. Interested first and second responders can register through the program's dedicated website and earn a certificate from the Illinois Fire Service Institute if they score higher than 70 percent on the learning assessment by the end of their training.  The automaker already has a few EV models on the market, including the Chevy Bolts, the GMC Hummer EV and the Cadillac Lyriq. It has huge electrification plans for the future, though, and training responders could help make potential customers more receptive to the idea of switching to electric vehicles. GM aims to launch 30 EV models by 2025 and to exclusively sell EVs ten years after that. Related video: Green Cadillac Chevrolet GM GMC Safety Electric

Why GM will import the Cadillac CT6 PHEV from China

There's a clear-cut reason that General Motors is going to build its upcoming plug-in hybrid CT6 sedan in China. Sure, the car will be sold in China and the US, but the real reason for the "Made In China" stamp is environmental. If an automaker wants to build a new model in China, adding a green powertrain is an easy way to do that. The CT6 will have both a PHEV option as well as standard gas engine versions. David Leone, Cadillac's executive chief engineer, told AutoblogGreen recently that, "[China is] far more receptive to approving localized production of vehicle programs that have new energy vehicle powertrain applications." To put it succinctly, since the CT6 has a PHEV option, it is easier for GM to build all CT6 models in China. Some of them will then be imported to the US. "Most new global Cadillacs will also be produced in China as well. It's our second-largest market in the world." "To bring any new car into China, to produce it, you need government approval," Leone said. "The government isn't interested in bringing many new cars to market that don't have new energy credits. [The CT6] also provides new energy credits that enables it to be an attractive, well-received product in China." Leone said that there are two main markets for the various CT6 models: China and the US. The car will arrive in the 2017 model year, so some time after the end of June 2016. There are other practical reasons to build the PHEV in China, like the cells in the battery pack. Those are provided by LG Chem, which makes some cells in Michigan but more in South Korea. And GM already builds cars in China through its joint venture with SAIC, Shanghai General Motors, or SGM. "In February 2013 we started making the XTS, in summer of 2014 we started making the ATS-L," Leone said. "We will be producing [the CT6] within a number of months. Most new global Cadillacs will also be produced in China as well. It's our second-largest market in the world." The Chinese and US versions of the CT6 will be identical, Leone said. While some Cadillacs sold in China are slightly different than the US versions – the Chinese ATS is 77 millimeters longer, for example – the CTS6 PHEV will be exactly the same in both places, other than slight tweaks to the trim levels. Still, "more of our cars going forward will be the exact same car," he said. That doesn't mean that sales will be the same everywhere.