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UAW to vote on strike authorization amid claims Detroit talks are moving slowly

DETROIT — About 146,000 members of the United Auto Workers union will vote next week whether to authorize their leaders to call strikes against the Detroit automakers. Union President Shawn Fain told members in a Facebook Live appearance Tuesday that the talks, which started in mid-July, are moving slowly and have yet to get to wages and other economic issues. The union's contracts with General Motors, Ford and Stellantis expire in about a month, at 11:59 p.m. Sept. 14. “If we want to make progress at the bargaining table, we need to show the companies that it's not just talk,” Fain said of the strike vote. He told local offices to report the results of their votes to the union headquarters by Aug. 24. Strike authorization votes are a routine part of contract talks and are often overwhelmingly approved, but Fain said the vote is a sign of the union's strength. Fain has set high expectations for the contract talks and says the union will seek more than 40% general pay raises over four years, restoration of pensions for newer hires, cost-of-living increases, an end to wage tiers, and other benefits. He has said workers can make big gains but must be ready to strike to get them. The union also wants guarantees that it will represent workers at 10 U.S. electric vehicle battery plants proposed by the companies. Most are joint ventures with Korean battery companies. Much of Fain's rhetoric has been focused on Stellantis, the most profitable of the three companies with the highest profit margins. Fain has complained that Stellantis is seeking concessions in the contract when the union wants gains. But a union spokesman said singling out Stellantis doesnÂ’t mean the UAW has picked a company as a strike target, and it could choose all three. He said the union doesn't plan to extend the contracts beyond Sept. 14. Automakers say they are facing billions of dollars in development costs as the industry shifts from combustion engines to electric vehicles. In a letter to employees last week, Stellantis Chief Operating Officer Mark Stewart accused Fain of “theatrics and personal insults” that Stewart said will not help to reach a deal. He wrote that the company is committed to an agreement based on “economic realism” that supports the viability of Stellantis' operations while rewarding workers. The company, he wrote, wants to find solutions to protect Stellantis from nonunion companies with lower costs and additional costs from moving to electric vehicles. “Mr.

Subprime financing on the rise in new car sales, leasing too

We all remember the financial crisis that began several years back. At its core was a splurge of subprime lending for housing loans. The housing bubble burst, triggering a collapse of the mortgage-backed securities market. Apparently, those types of loans still exist in the automotive industry, and the market share for these types of "nonprime, subprime, and deep subprime," loans has grown 13.6 percent compared to the third quarter a year ago.
According to an Automotive News report, high-risk lending expanded to 24.8 percent of total loans in Q3, up from 21.9 percent for this time last year. As this level increased, average credit scores of borrowers dropped to 755, down from 763 a year ago. In that time, the average financing amount increased $90 per vehicle, to $25,963.
At 818, Volvo maintains the highest per-owner credit score, while Mitsubishi has the lowest, at 694. The highest rate of borrowers was at Toyota, with 14 percent of the market, followed by Ford with 13.1 percent and Chevrolet at 11.1.

Ford wins second consecutive International Van of the Year award with Transit Connect

The redesigned 2014 Ford Transit Connect isn't even on sale yet, but it's already making its presence felt around the world. At a commercial vehicle expo in Russia, the Transit Connect was named the International Van of the Year.
Ford's small work van edged out the new Mercedes-Benz Sprinter by just seven points to allow Ford to grab this honor for the second consecutive year, which it won last year with the Transit Custom. Not only does this make Ford the first to ever win the award in back-to-back years, but it's also the fifth time the automaker has won this award since 2003 (two with the Transit Connect, two with the fullsize Transit and once with the Transit Custom). Ford congratulates itself for the accomplishment in a press release posted below.