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Auto blog

Now at Costco: Bales of toilet paper and a Volvo or Pacifica to haul them

Costco, the beacon of bulk buying, where you can buy everything from gasoline to your own casket at deep discount, is offering some Costco-only incentives through its Auto Program in partnership with specific car brands: for now, Volvo and Chrysler, with other brands planned for later. First, Volvo: Now through Oct. 2, you can get both special incentives AND employee pricing (aka "A-Plan" pricing) AND whatever rebates and incentives Volvo might already have going on. The Costco incentives are: $3,000 on 2017 and 2018 S90 sedans. $750 on 2017 and 2018 S60 sedans. $750 on 2017 and 2018 V60 and V90 Cross Country wagons. $750 on 2017 and 2018 XC90 SUVs. $750 on the outgoing 2017 XC60 crossovers. Automaker incentives usually vary by region, but in the Detroit area, at least, Volvo currently has a $2,500 incentive on the 2018 XC90 and $3,500 on the 2017 model. Those end Aug. 31 but could be renewed in September, and others could be added then as well. Volvo is also offering special interest rates on financing some of the other models. And when all is said and done, if you fill out a Costco customer survey you'll get a $200 cash card. The Chrysler Pacifica deal, also through Oct. 2, is even simpler: Go to the Costco site, print out a certificate worth $1,000, and take it to a Chrysler dealership — any dealership, not just those that usually work with Costco, which is a first. The incentive covers both 2017 and 2018 models. And like the Volvo promotion, these Costco incentives can be combined with whatever Chrysler's doing — and it currently has a myriad of incentives on 2017 Pacificas, in various combinations that differ depending on whether you're leasing or buying. If you register at the Costco Auto Program website, you'll be put in touch with a dealer who can review the bottom line after all the discounts are factored in. Participating dealerships have offered special pricing to Costco members for years, up to the price automaker employees get. Costco's program doesn't typically work the way these Volvo and Chrysler programs do, though a similar joint promotion with Volvo back in 2013 sold 7,500 cars. If you haven't used the Costco Auto Program, but you don't like haggling at a dealership, you might give it a try. The beauty of it is that a dealer is obligated to offer you a set price and is also obligated to treat you by certain rules, such as not trying to upsell you. Last year, 490,000 vehicles were sold to Costco members through the program.

Weekly Recap: Obama reflects on the auto bailout's legacy

President Obama took a victory lap of sorts this week at the Detroit Auto Show, lauding the industry's progress and reflecting on the decision to bail out General Motors and Chrysler seven years ago. While the rescue was controversial at the time, historians will likely judge the president's actions to help save two of America's industrial symbols in a positive light. Much like Theodore Roosevelt's trust-busting tactics were controversial in the early 20th century, Obama's plan drew fire from critics who argued the free market should be left to its own devices. But providing financial aid and forcing the automakers to restructure had an enduring impact on the US economy. The auto industry has added more than 646,000 jobs since the companies emerged from bankruptcy, including manufacturing and retail positions. Make no mistake, GM and Chrysler were nearly dead in 2009. Now, GM is a powerhouse that's set to capitalize on a market that could see 18 million vehicles sold this year. Chrysler, which was renamed FCA US, survived as part of the Italian-American Fiat Chrysler Automobiles conglomerate. It's also performed well amid the strong industry conditions, though CEO Sergio Marchionne very publicly went looking for alliance partners last year, something from which he's since backed off. While Obama can claim a win, the bailout was actually started by George W. Bush, who provided short-term loans to GM and Chrysler in December 2008. Without that, they might not have made it much past Obama's inauguration. NEWS & ANALYSIS News: Spy Shooters captured the next-gen BMW Z4 during extreme cold weather testing. Analysis: The upcoming Z4 (which might be called the Z5) looks sharp. But the big deal is that BMW's much-anticipated sports-car project with Toyota is coming to fruition. Refresher: BMW and Toyota agreed to work together back in December 2011 and then announced an expansion of that deal to include sports cars in June 2012. Ultimately, it will provide BMW with a new Z4 and Toyota with another sports car, perhaps the Supra replacement. BMW is developing the platform, while Toyota is expected to chip in with hybrid technology. Big picture, this project is a good thing. It's providing enthusiasts with two modern sports cars that Toyota and BMW might not chose to develop on their own. This template has been shown to work, as the Fiat-Mazda alliance produced the MX-5 Miata and 124 Spider. News: The Jeep Grand Cherokee Hellcat was also spied, briefly.

UAW turns its focus to Fiat Chrysler, which may resist more than Ford did

DETROIT — The United Auto Workers union on Monday turned its bargaining focus to Fiat Chrysler, raising the possibility of another strike against a Detroit automaker. Ford workers ratified their contract Friday night, while the union settled with General Motors last month after a 40-day strike by 49,000 workers that shut down the companyÂ’s U.S. production. Ford, which has 55,000 UAW workers, mostly followed the pattern agreement set at GM. But industry analysts say the same deal will cost Fiat Chrysler a lot more money because of the makeup of its workforce. Fiat Chrysler CEO Mike Manley said recently that automakers are in “different conditions” in terms of labor forces, hinting the company may be reluctant to follow the pattern. The union, however, expects FCA to follow the template set by GM and Ford. “We look forward to bargaining a fair, balanced and patterned contract as FCA is a profitable company,” the UAW said in a statement. “You cannot brag about your earnings to Wall Street and at the same time ignore the sacrifice of your workforce that put you in that profitable position.” The deal with Ford and GM gives workers hired after 2007 pay raises so they reach top UAW production wages within four years. It also gives temporary workers a path to full-time jobs within three years. Workers hired after 2007 now are paid lower wages than workers hired before that, even though theyÂ’re doing the same jobs. Workers hired before 2007 get a mix of annual pay raises and lump sum payments. Fiat Chrysler has more workers hired after 2007, and a higher percentage of temporary workers than either Ford or GM. That means the terms of the contract would cost the company more money, said Kristin Dziczek, vice president of labor and manufacturing with the Center for Automotive Research, an industry think tank in Ann Arbor, Michigan. “They are looking at significant cost increases,” Dziczek said of FCA. She says a strike against FCA isnÂ’t out of the question, and depends on how willing the company is to follow the pattern set by Ford and GM. FCA said in a statement it welcomes bargaining toward a deal to keep investing in the companyÂ’s future and creating opportunities for employees and communities. Ford has about 18,500 workers hired after 2007 who will get big pay raises with the new contract, compared with GM's 17,000. But Fiat Chrysler has over 20,000 union employees hired after 2007.