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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 slashes prices in China as sales falter

Buying a vehicle from General Motors' stable of brands might be a lot cheaper in the near future – at least for customers in China. The effort comes as GM hopes to keep sales there growing, and the decision alludes to yet another sign that the Asian country no longer has the booming auto market of past years. GM and its Chinese joint venture partner SAIC are slashing prices by as much as the equivalent to $8,700 on 40 models from Buick, Chevrolet, and Cadillac, according to The Detroit News. Across all of automaker's nameplates, the overall sales dipped in China in April by 0.4 percent to 258,484 vehicles. Among the drops, Buick was down 8.5 percent, and Chevy shrunk 5.6 percent. Caddy's numbers increased 4.6 percent for the month, though. Buick remains a popular brand in the minds of Chinese consumers, but according to The Detroit News domestic automakers there are starting to eat into the dominance of foreign companies in the market. The country remains important for GM, though. Late last year, it outlined a future strategy that included China as a major pillar, including a $14 billion investment to build five new factories and boost sales. News Source: The Detroit NewsImage Credit: Alexander F. Yuan / AP Photo Buick Cadillac Chevrolet GM Car Buying Car Dealers saic

Is the skill of rev matching being lost to computers?

If the ability to drive a vehicle equipped with a manual gearbox is becoming a lost art, then the skill of being able to match revs on downshifts is the stuff they would teach at the automotive equivalent of the Shaolin Temple. The usefulness of rev matching in street driving is limited most of the time – aside from sounding cool and impressing your friends. But out on a race track or the occasional fast, windy road, its benefits are abundantly clear. While in motion, the engine speed and wheel speed of a vehicle with a manual transmission are kept in sync when the clutch is engaged (i.e. when the clutch pedal is not being pressed down). However, when changing gear, that mechanical link is severed briefly, and the synchronization between the motor and wheels is broken. When upshifting during acceleration, this isn't much of an issue, as there's typically not a huge disparity between engine speed and wheel speed as a car accelerates. Rev-matching downshifts is the stuff they would teach at the automotive equivalent of the Shaolin Temple. But when slowing down and downshifting – as you might do when approaching a corner at a high rate of speed – that gap of time caused by the disengagement of the clutch from the engine causes the revs to drop. Without bringing up the revs somehow to help the engine speed match the wheel speed in the gear you're about to use, you'll typically get a sudden jolt when re-engaging the clutch as physics brings everything back into sync. That jolt can be a big problem when you're moving along swiftly, causing instability or even a loss of traction, particularly in rear-wheel-drive cars. So the point of rev matching is to blip the throttle simultaneously as you downshift gears in order to bring the engine speed to a closer match with the wheel speed before you re-engage the clutch in that lower gear, in turn providing a much smoother downshift. When braking is thrown in, you get heel-toe downshifting, which involves some dexterity to use all three pedals at the same time with just two feet – clutch in, slow the car while revving, clutch out. However, even if you're aware of heel-toe technique and the basic elements of how to perform a rev match, perfecting it to the point of making it useful can be difficult.