1961 Cadillac Fleetwood "survivor-barn Find" on 2040-cars

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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.

de Nysschen pushes to separate Cadillac, GM

Cadillac President Johan de Nysschen continues his push to separate his brand from General Motors. After controversially picking up shop and moving to New York's trendy SoHo neighborhood, de Nysschen has now gone on record as saying that within two years, the brand will enjoy "a far higher degree of autonomy and self sufficiency." That autonomy will include the brand reporting its own financial results, independent of GM. But what would such a move do for Cadillac? Well, as de Nysschen explained it to Automotive News, "Cadillac at this state makes a very sizeable contribution to the overall profit at General Motors." If that's truly the case, separating financial announcements serves to emphasize the prosperous character de Nysschen seems so keen on attaching to his brand. But that's only one phase of Cadillac's push to distance itself from GM. De Nysschen is eager to revamp the company's dealership model so that it stands out from other GM brands, calling it a "very profound focus." Those moves, according to AN, including a change to the current dealer incentive model with a particular emphasis on building the brand rather than nailing sales figures. "If you aren't strengthening the brand perception, you should have less reward," de Nysschen told AN. While his goals seem clear, de Nysschen's statements have left us wondering whether they're also somewhat counterintuitive. Emphasizing Caddy's prosperity to potential consumers while incentivizing dealers to move less metal seems more like a tactical move rather than a strategic one. And there's no telling how the new dealership model will impact de Nysschen's goal to hit 500,000 global sales by 2020. Related Video:

Junkyard Gem: 1998 Cadillac Catera

Every so often, during the last few decades of the 20th century, the suits running each of the big Detroit automakers would eye their European subsidiaries and decide that some car from the other side of the Atlantic could be making dollars over here in addition to pounds or francs or Deutschmarks over there. Chrysler didn't do so well with Simca 1204s or Plymouth-badged Hillman Avengers in the American marketplace (though the Simca-based Omnirizon did very well). Ford USA moved quite a few Capris and Fiestas during the 1970s, then bombed with the Merkur Scorpio and XR4Ti. General Motors tried, over and over, to get Americans to buy Opels (some sold by Buick dealers, others actually badged as Buicks), and I still see the occasional Kadett, GT, or Manta in junkyards to this day. For the 1997 model year, still stinging from the not-so-great sales of the Turin-Hamtramck-built Cadillac Allante, GM took the Omel Omega B and applied Cadillac badges. The result was the Catera, and I found this silver '98 in a Denver self-service yard recently. The Catera had a lot going for it, with a rear-wheel-drive layout and a modern V6 engine that made more power than the BMW 528i's straight-six that year. It should have been able to compete with European luxury sedans in North America because it was a European luxury sedan. Unfortunately, you couldn't get a manual transmission in the Catera, "traditional" Cadillac shoppers thought the Catera lacked a sufficiently massive presence, and younger Cadillac buyers flocked straight to the Escalade starting in 1999. After 2001, the Catera was no more. I still find Cateras in junkyards, nearly 20 years after the last ones were sold, so they appear to have held together pretty well. This one was in nice shape until the end, with all the original manuals still in the glovebox. Even the Catera ballpoint pen remained with the car for its whole life. As we can see in the owner's manual, Cadillac marketed the Catera as "The Caddy That Zigs." The idea was that younger car shoppers would become as Cadillac-obsessed as their grandparents had been. Inspired by the ducks in the Cadillac logo, the Catera marketing team created Ziggy the Duck to pitch this car. Things didn't go so well. The Catera listed at $29,995 in 1998, about $47,600 in 2020 dollars. That made it an affordable alternative to the BMW 5-Series or Acura 3.2 TL, but total Catera sales came to fewer than 95,000 cars over five model years.