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Detroit Three autoworkers could get huge bonuses

For a long time, being a line worker for one of the Detroit Three has meant living with an uncertain future. With the health of American automakers on the rise, though, things are also starting to look up for the men and women building the cars. The latest sign that things aren't bad? Big profit-sharing checks.
According to The Detroit News, Ford, General Motors and Chrysler could end up paying over $800 million to 130,000 workers as part of a profit-sharing plan. According to The News, the economic impact of these profits in Michigan alone could exceed $400 million, besting the NFL's Super Bowl, MLB's All-Star Game and the NHL's Winter Classic for their economic impact.
This is the third straight year the Detroit Three have issued profit-sharing checks to UAW employees, and for many workers, the checks are as close as they'll get to a raise, due to the most recent contract between the union and the manufacturers. On average, employees at GM and Ford receive $1 for every $1 million in North American (not just the US) pre-tax profits. Chrysler, meanwhile, gets a similar deal, although the Auburn Hills-based company calculates profit sharing using 85 percent of the brand's global profits.

GM says it favors fuel-efficiency rules based on historic rates

WASHINGTON — General Motors backs an annual increase in fuel-efficiency standards based on "historic rates" rather than tough Obama era rules or a Trump administration proposal that would freeze requirements, according to a federal filing made public on Monday. The largest U.S. automaker said the Obama rules that aimed to hike fleet fuel efficiency to more than 50 miles per gallon by 2025 are "not technologically feasible or economically practicable." The Detroit automaker said that since 1980, the motor vehicle fleet has improved fuel efficiency at an average rate of 1 percent a year. Fiat Chrysler Automobiles NV said in separate comments that the auto industry is complying with existing fuel efficiency requirements by using credits from prior model years. As a result, even if requirements are frozen at 2020 levels, "the industry would need to continue to improve fuel economy" as credits expire, it added, warning if the government hikes standards beyond 2020 requirements "the situation worsens ... without some significant form of offset or flexibility." Fiat Chrysler and Ford urged the government to reclassify two-wheel drive SUVs as light trucks, which face less stringent requirements than cars. A four-wheel drive version of the same SUV is considered a light truck. Ford backs fuel rules "that increase year-over-year with additional flexibility to help us provide more affordable options for our customers." GM's comments said it was "troubled" that President Donald Trump's administration wants to phase out incentives for electric vehicles. The Trump plan's preferred alternative freezes standards at 2020 levels through 2026 and hikes U.S. oil consumption by about 500,000 barrels per day in the 2030s but reduces automakers' collective regulatory costs by more than $300 billion. It would bar California from requiring automakers to sell a rising number of electric vehicles or setting state emissions rules. The administration of former President Obama had adopted rules, effective in 2021, calling for an annual increase of 4.4 percent in fuel-efficiency requirements from 2022 through 2025. GM has been lobbying Congress to lift the existing cap on electric vehicles eligible for a $7,500 tax credit. The credit phases out over a 12-month period after an individual automaker hits 200,000 electric vehicles sold, and GM is close to that point.

Weekly Recap: GM posts solid profits, not looking for partners

General Motors is not looking for partners. It's big enough already. So says CEO Mary Barra, who shot down overtures from outspoken Fiat-Chrysler chief Sergio Marchionne this week. Barra said GM will look to find scale within its operations, rather than through outside partners. "We think there's tremendous opportunity for us within the business as we look at efficiency measures, as we look at truly achieving the scale that we should have, because we're already in that top tier of the auto industry among the largest OEMs," she said. Barra added: "We have a very well-articulated plan. We're in the middle of executing that, and we're not going to entertain anything that might distract us from accomplishing that." Her remarks came in the wake of Marchionne's provocative comments in March. He expects a wave of industry consolidation and said he's open to teaming with Ford or GM, calling it "technically feasible." Because of its smaller size, FCA would likely stand to gain more from a partnership than GM or Ford. The Blue Oval isn't interested in teaming with Fiat-Chrysler, either. "We have no other plan or interest then to continue to accelerate our One Ford plan, deliver product excellence and drive innovation in every part of our business," a spokesperson said. GM, the largest US automaker, announced a $945-million first-quarter profit on Thursday and posted its best earnings performance in North America since 2009. Earlier in the week, GM confirmed it had sold 2.4 million vehicles around the world in the quarter, ranking behind Toyota (2.52 million) and Volkswagen (2.49 million). Other News & Notes SUVs, EVs shine at Shanghai Motor Show SUVs and electric vehicles grabbed the spotlight at the Shanghai Motor Show this week as companies vied for attention in the world's largest car market. Notably, Honda's Concept D previewed the company's future flagship SUV that's being developed for China, Mercedes rolled out a BMW X4-fighting GLC Coupe concept and Chinese company Qoros debuted its 2 plug-in SUV concept. Nissan, Volvo and several others also showcased utility vehicles in Shanghai. Automakers are rushing to take advantage of the crossover craze in China. The market for locally-produced SUVs grew 50 percent in the first quarter, according to IHS Automotive research, which called the show a "launch pad" for new utility vehicles. Even though SUVs are popular, IHS predicts their growth rate will slow, and sedans account for more sales volume in China.