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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.

Buick adds Sport Touring trim to sedan lineup

Buick has made a few tweaks to its sedan lineup today, announcing that a new Sport Touring trim will be offered on the LaCrosse, Regal, and Verano. It's best to think of the new Sport Touring models as Buick's answer to Chevrolet's limited range of RS models, focusing on very small style changes rather than any added performance. Best to leave that to the Regal GS, we guess. For the ST trim, Buick has fitted its three four-doors with new 18-inch wheels. These relatively sporty hoops get machined faces with black inserts, like those offered on the Encore Sport Touring and the Enclave Tuscan Edition. Also coming to the LaCrosse, Regal, and Verano Sport Touring is a new rear spoiler. Like we said, these are simple styling packs meant to spice up the staid but handsome exteriors of the brand's sedans. "These new ST models underscore the importance of design choices, while complementing the safety, refinement and connectivity technologies that are drawing new customers to Buick dealerships," Buick VP Duncan Aldred said in the attached statement. The new trim level will be available on all three vehicles this fall, with prices to be announced closer to the on-sale date. Scroll on for the official presser from Buick. Related Video: Buick Expands 2016 Sport Touring Lineup Distinctive sedans join Enclave Tuscan Edition, Encore Sport Touring DETROIT – Buick unveiled 2016 LaCrosse, Regal and Verano Sport Touring (ST) models today – sedans with distinctive exterior cues designed to set them apart from the pack. Each features special 18-inch wheels with machined faces and black "pockets," and a rear spoiler. They join the Enclave Tuscan Edition and recently announced Encore Sport Touring as special models expanding Buick's lineup with more design-focused choices. "Buick is reaching an all-new generation of customers by reinventing itself in terms of design, function and capabilities," said Duncan Aldred, vice president of Buick. "These new ST models underscore the importance of design choices, while complementing the safety, refinement and connectivity technologies that are drawing new customers to Buick dealerships." The new Sport Touring sedans – and Encore Sport Touring – go on sale this fall. LaCrosse Sport Touring includes Buick IntelliLink with Apple CarPlay capability, OnStar 4G LTE connectivity with Wi-Fi hotspot, remote start, eight standard air bags (including rear-seat thorax air bags) and leather-trimmed seats – with heated front seats.

Buick takes top spot in 2022 J.D. Power Initial Quality Study

People, economies, and supply chains weren't the only things continuing to get sick over the past year. The 2022 J.D. Power Initial Quality Study (IQS) is out, showing the average rate of problems per 100 vehicles (PP100) during the first 90 days of ownership increased overall. The average figure for the 32 ranked manufacturers in 2020 was about 166 problems per 100 vehicles. In the 2021 IQS, that dropped to an average of 162. This year, the average jumps to 180 problems. J.D. Power says that figure is a record high over the 36-year history of the study. Buick leapt to the top of the rankings this year with the fewest issues, at 139 problems per 100 vehicles in the first 100 days of ownership. After Dodge became the first American automaker to lead the IQS in 2020, followed by Ram in 2021, this year marks a three-peat for U.S. carmakers. Dodge took second this year at 143 PP100, Chevrolet third with 147 PP100, Genesis the first luxury maker on the chart in fourth with 156 PP100. Between February and May, this year's study gathered responses to 223 questions from more than 84,000 new 2022-model-year car owners and lessees. The questions are designed to zero in on real-world problems new owners encounter with nine categories of vehicle features: Infotainment; features, controls and displays; exterior; driving assistance; interior; powertrain; seats; driving experience; and climate. As has been the case in the past few year, infotainment has proved to be the most problematic bugbear making scores worse. Considering features individually, six of 10 of the worst problem areas dealt with infotainment, causing infotainment's score of 45 PP100 to be 19.5 PP100 worse than the second-placed feature. Consumers ranked getting Android Auto and Apple CarPlay to connect reliably as the most troublesome.  GM didn't just score with Buick, which was one of only nine of the 33 ranked brands to show improvement this year. The conglomerate earned first place with the fewest PP100 among all the automaker groups, and scored the most model-level awards with nine, ahead of BMW with eight and Hyundai Group with three.  This year's study again showed a gap between luxury and mass-market makers, thought to be down to the amount of tech in luxury vehicles that consumers aren't properly informed about or that doesn't act as expected — that latter issue exacerbated by the chip shortage.