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UAW rejects GM contract proposal but makes a counter offer

The United Auto Workers union said a new comprehensive offer made by General Motors Co late Monday to end a two-week-old strike was not acceptable and said it had made a new counterproposal. UAW vice president Terry Dittes said in a letter to members "there are many important issues that remain unresolved." The union is awaiting GM's next proposal. He said GM's offer came up short on many issues.  Dittes said GM made a "comprehensive proposal" at 9:40 p.m. Monday. "This proposal that the company provided to us on day 15 of the strike did not satisfy your contract demands or needs. There were many areas that came up short like health care, wages, temporary employees, skilled trades and job security to name a few." Dittes is the union's vice president for GM relations and the UAW's lead negotiator in these contract talks. "We have responded today with a counterproposal and are awaiting GM's next proposal to the union," he wrote. "Regardless of what is publicized in print or social media, etc., there are still many important issues that remain unresolved." The strike, in its third week, has cost GM more than $1 billion, according to J.P. Morgan analyst Ryan Brickman. He said the cost per day in potential profit is $82 million. However, another analysis, by East Lansing-based consultant Anderson Economic Group, put the losses at $25 million a day. And the effects of the strike are expanding. GM said Tuesday the strike has created a parts shortage that forced the automaker to halt production at its pickup and transmission plants in Silao, Mexico, temporarily laying off 6,000 workers. Silao is where GM builds its highly profitable four-door crew cab Chevy Silverado and GMC Sierra pickups. The strike has also forced GM to idle some Canadian workers, and many suppliers have been forced to halt operations. About 48,000 UAW members went on strike on Sept. 16 seeking higher pay, greater job security, a bigger share of the leading U.S. automaker’s profit and protection of their healthcare. 

Chevy prices new 2016 Cruze from $17,495

Chevy has released pricing information for the new 2016 Cruze. As you might expect, the MSRP on the new model has gone up a little over the model it replaces, but it remains competitive with its rivals. The new 2016 Chevy Cruze comes in four trim levels and with either a manual or automatic transmission. Though not every trim can be had with either gearbox, they are all powered by the same 1.4-liter turbo four, good for 153 horsepower. The list starts in L trim level with the manual, which goes for $17,495 - including the $875 destination charge. The automaker points out that the price of admission is lower than those of the base models of the Toyota Corolla ($18,065), Honda Civic ($19,475), and Hyundai Elantra ($18,075) – all prices verified and including delivery. The Ford Focus ($18,100), Subaru Impreza ($18,295), Mazda3 ($18,695), and Volkswagen Jetta ($19,600) also start at higher prices, with the Nissan Sentra ($17,355) and Dodge Dart ($17,990) listing for similar money. However the Kia Forte ($16,715) still comes in cheaper. Of course those prices are just for the base models. Step up to the Cruze LS and you'll be looking at $18,995 with the manual or $19,995 with the automatic. The higher-end LT and Premium models are only sold with the slushbox and retail for $21,995 and $23,995, respectively. Deliveries start in the spring. ALL-NEW 2016 CHEVROLET CRUZE PRICED FROM $17,495 Redesigned, re-engineered compact sedan is roomier and better connected DETROIT – Chevrolet announced pricing for the all-new 2016 Cruze will start at $17,495 when it goes on sale next spring. The Cruze's base price is almost $2,000 less than the 2016 Honda Civic LX ($19,475), while offering features such as the standard Chevrolet MyLink radio with a 7-inch-diagonal screen, and Android Auto and Apple CarPlay compatibility – subject to their terms, privacy statements and data plan rates as well as a compatible smartphone. OnStar 4G LTE with a Wi-Fi hotspot and a standard rear-vision camera are also available. Larger, lighter and roomier than the 2015 model – including two inches more rear knee room – the all-new Cruze is offered in L, LS, LT and Premier models. An all-new, direct-injected 1.4L turbo engine generates a General Motors-estimated 153 horsepower. A six-speed manual transmission is standard. Cruze LS with an automatic transmission starts at $19,995 with GM-estimated highway fuel economy of 40 mpg. Environmental Protection Agency estimates are not yet available.

The USPS needs 180,000 new delivery vehicles, automakers gearing up to bid

Winning the New York City Taxi of Tomorrow tender was a huge prize for Nissan, even though the company is still working through the process of claiming its prize. The United States Postal Service has begun the process to take bids for a new delivery vehicle to replace the all-too-familiar Grumman Long Life Vehicle, and that will be a much larger plum for the automaker who wins it, perhaps worth more than six billion dollars. The Grumman LLV is an aluminum body covering a Chevrolet S-10 pickup chassis and General Motors' Iron Duke four-cylinder engine. The USPS bought them from 1987 to 1994, and the 163,000 of them still in service are a monumental drain on postal resources: they get roughly ten miles to the gallon instead of the quoted 16 mpg, drink up more than $530 million in fuel each year, and their constant repair needs like the balky sliding door and leaky windshields have led the service to increase the annual maintenance budget from $100 million to $500 million. A seat belt is about as modern as it gets for safety technology, and the USPS says that assuming things stay the same, it can't afford to run them beyond 2017. Last year it put out two triage requests for proposals seeking 10,000 new chassis and drivetrains for the Grumman and 10,000 new vehicles. The LLV is also too small for the modern mail system in which package delivery is growing and letter delivery is declining. The service says it doesn't have a fixed idea of the ideal "next-generation delivery vehicles," but it listed a number of requirements in its initial request and is open to any proposal. Carriers have some suggestions, though, saying they want better cupholders, sun visors that they can stuff letters behind, a driver's compartment free of slits that can swallow mail, and a backup camera. The request for information sent to automakers pegs the tender at 180,000 vehicles that would cost between $25,000 and $35,000 apiece, and it will hold a conference on February 18 to answer questions about the contract. GM is the only domestic maker to avow an interest, while Ford and Fiat-Chrysler have remained cagey. Yet with a possible $6.3 billion up for grabs and some new vans for sale that would be advertised on every block in the country, we have a feeling everyone will be listening closely come February 18. We also have a feeling the LeMons series is going to be flooded with Grummans come 2017. News Source: Wall Street Journal, Automotive News - sub.