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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.

Autonomous tech will drive motorheads off the road

While autonomous technology could make car travel much safer and more efficient — and automakers and marketers are salivating over the prospect of a "passenger economy" that could potentially generate $7 trillion by 2050 — those of us who enjoy driving are not so stoked. Experts have predicted that as autonomous vehicles are deployed in large numbers, human-driven cars eventually could be outlawed on public roads due to the carnage they create, which is currently more than 41,000 deaths a year in the U.S. alone and climbing. Such scenarios have driving enthusiasts envisioning a "Red Barchetta" style nightmare becoming reality, making Rush lyricist Neil Peart a clairvoyant as well as one of rock's most badass skin-pounders. But there could be a couple of refuges left for motorheads, and they won't be on public roads. As Popular Science's Joe Brown points out in a recent editorial, we're seeing a wave of vehicles being offered by legit mainstream automakers that aren't made for public roads. The poster child of this vanguard is the 2018 Dodge Challenger SRT Demon, which comes with a crate full of goodies that lets you turn the already formidable street-legal muscle car into a drag-strip dominator. Brown also notes that two out of five of the Ford GT's driving modes are for use on the track, "catering to the $450,000 machine's club-racing clientele." We're also currently enjoying the heyday of production off-road-ready pickups that kicked off with the Ford Raptor in 2009. The latest salvo in this escalating war of overachieving trucks is the Chevy Colorado ZR2 that can take on the likes of California's Rubicon Trail without issue. Brown also gives a shout-out to his magazine's Grand Award Winner, the Alta Motors Redshift MX, which "isn't even allowed on public roads" and is "meant for bombing around motocross tracks, big backyards and single-track woods trails." If you follow Brown on Instagram, you know that he's also a two-wheel aficionado, and he points out that sales of off-road bikes are leaving street machines in the dust. Sales of off-highway motorcycles rose 29 percent between 2012 and 2016, according to the ­Motorcycle Industry Council — compared to 6 percent for road-bike sales during the same period. "That's a nearly 400-percent drubbing," Brown remarks.

Survey says $25k barrier is a problem for EVs

The majority of consumers are more or less priced out of the market.
Electric cars are gaining popularity with the general public, but are they still too expensive? According to a survey 1,084 consumers by Navigant Research, a consulting firm located in Boulder, CO, 71 percent want their next car to cost under $25,000, while 41 percent won't go a cent above $20K. Looks like people are even thriftier than we'd originally thought.