Automotive News - May 5, 2008 - (Page 48)

48 • MAY 5, 2008 CAW, Ford reach extensive early labor deal David Barkholz dbarkholz@crain.com Ford Motor Co. is five months ahead of schedule on a new master labor contract with the Canadian Auto Workers that would preserve Ford’s St. Thomas, Ontario, assembly plant until at least 2011. Ford and the union agreed to the basic economic terms of a contract, the CAW said in a release. The union expected to have the deal wrapped up last week. The contract also must be ratified by the rank and file at Ford’s two Canadian assembly plants and other component plants with CAW representation. Contract talks with the union had been expected to be dicey because CAW President Buzz Hargrove opposed provisions such as the two-tier wage that were instrumental to the UAW’s contract with the Detroit 3 last fall. Months before expiration Instead, Ford and the CAW got ahead of the game with an agreement months before the current contract expires in September. “These discussions have progressed more quickly than usual,” said Ford Canada spokeswoman Lauren More. “I think both the company and the CAW recognize the importance of reaching an agreement that provides a competitive future for our business and our employees.” Ford declined to speculate on how soon a tentative agreement might be ready for ratification. The agreement would give Ford some relief, especially on the cost of vacation time and health care, while keeping union wages from being cut. CAW members earn the equivalent of about $85 (U.S.) an hour in wages and benefits, which is higher than the $73 an hour paid UAW members. Getting the contract done early also is important to Ford for the launch this fall of the Ford Flex crossover at its assembly plant in Oakville, Ontario. Health fund help The CAW said it would help Ford by freezing cost-of-living payments in the first year of the three-year contract, forgo 40 hours of vacation annually, and allow for the establishment of a pre-funded off-balancesheet retiree health fund that would reduce Ford’s cost for providing supplemental health insurance beyond the Canadian national health care system. The union also agreed to a new-hire wage and benefit package that would start workers at 70 percent of full wages but allow for a quick “grow-in” to full equal wages within three years. That is different from the UAW’s twotier agreement that would pay new hires 50 percent of the $28 an hour earned by veterans with no chance of catching up. In exchange for the cost savings, Ford assured the CAW that it would keep St. Thomas open until at least 2011, a year longer than planned. c Amy Wilson contributed to this report The 2009 Infiniti FX50 will have a device that can kill odors. - Infiniti asks: Do you smell something? Lindsay Chappell lchappell@crain.com Is there anything worse than spending $50,000 on a vehicle with that sweet, leathery new-car fragrance, only to have your 8-year-old lose a smelly bag of french fries under a seat for a month? Engineers at Nissan Motor Co.’s luxury Infiniti Division think they have solved the problem of nasty odors in the upcoming FX50. The crossover, which reaches showrooms in June, comes with a new odor-killing device that Nissan has trademarked as Plasmacluster Filtration. The system runs constantly, ionizing and deodorizing the cabin air. “Over time, the vehicle actually cleans itself,” says Stefan Conrady, senior product planning manager on the vehicle. During development, Nissan put the system through its paces. “We tried it with all sorts of unpleasant odors,” Conrady says, including leftover food and industrial smells. Developers even invited colleagues who are smokers to come to the research lab and blow cigarette smoke into the FX. The device works by charging the particulate matter floating around in the cabin. Once charged, they affix to water molecules in the air. The ionized residue is pulled through a filter, which Conrady says never needs replacing. The system is part of a new passivetechnology push from Nissan. The FX also receives a clear-coat paint that reacts with sunlight to eliminate minor scratches, as well as an intelligent safety system that automatically applies brakes to reduce the impact of a collision. c http://cirrusdesign.com http://cirrusdesign.com http://whycirrus.com

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Automotive News - May 5, 2008 Dodge dealers battle to bust Ram logjam Used-car price slump slams luxury makes INDUSTRY IN DISTRESS Tesla opens first dealership in L.A. Los Angeles Top auto execs to talk marketing at seminar Nader and the Corvair: GM edition tells whole story Dealers take Tundra to the people UAW official expects American Axle buyouts Ford plans more UAW buyouts at 2 plants Honda to some dealers: Upgrade or else Hyundai: Powertrains will take us halfway to mpg target Diesel dynamo Daimler cuts Chrysler value, again Ford domestic dealer count dips below 4,000 Seems like old times: More cash on the hood Toyota sister car poses a challenge for Subaru Suzuki to offer standard navigation in $16,000 car Mpg plan fuels states-rights battle Kerkorian interest buoys Ford stock Henderson: GM will keep tight rein on inventory Is it real, or is it just temporary? Ford Motor must stay focused on recovery 'Have you lost your mind?' Dealers are victims of Axle strike Federal oversight? Good heavens, no Geoff Polites: A salute Save a board seat for the UAW A car for everyone or cut, cut, cut, cut? Think of Buick as part of B-P-G Costs up in China, but bargains still abound Mexico sales fall 17% in March Obituary Hyundai reworks Sonata sooner rather than later Nissan's Dominique gets to the big dance Dana seeks new business with Japanese companies ZF will supply Nissan Certified Tool closes a plant German engineering company plans Ala. factory Dealers A Lexus colossus Used-vehicle leasing boosts showroom traffic Certified buyers opt for extended service contracts Repossessed vehicles offer dealers a profit opening Prepaid plans spark service visits beyond oil changes Key to managing floorplan costs: Be realistic Long-term loans: Convenience or bad deal? Dealers hunt upside-down buyers with leases, incentives and long-term loans Where have all the investors gone? Dealer rebounds from contract mess Dealers must choose: Reynolds, GM — or start over AutoTrader.com makes big pitch to bump up new-vehicle sales CAW, Ford reach extensive early labor deal Infiniti asks: Do you smell something? Sure, Nissan GT-R is impractical — but what a rush Faurecia: We'll break even in N.A. Suppliers join carmakers' charge into Russia Chrysler small cars, Jeep crossovers are hot A dreary April in Detroit Penske earnings rise in 1st quarter Lithia posts $1.9 million loss GM makes 2nd ethanol deal Group 1's earnings slip Magna profits down; sales rise AIADA picks dealer of the year Vox(wagen) populi — plus a sales pitch Wagoner's pension shift: More earlier, less overall COMMENT: Bargaining barbs will sting for a long time Bugging the boss: Who's listening to Porsche CEO? New models from the post office Critics have kind words for Pontiac's G8 Ford can't picture kids at design studio

Automotive News - May 5, 2008

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