Good morning! It’s Wednesday, October 4, 2023, and that is The Morning Shift, your every day roundup of the highest automotive headlines from around the globe, in a single place. Here are the vital tales it is advisable know.
1st Gear: GM’s $6 Billion Cushion
General Motors is reportedly establishing a $6 billion line of credit score to stabilize its liquidity amid the UAW strike in opposition to the Big Three. It’s an indication that the automaker is preparing for the lengthy haul.
The transfer by GM was introduced in a securities submitting on October 3. According to a spokesperson for the corporate, GM desires the 364-day revolving credit score line to take care of operational flexibility. From Bloomberg:
As of June 30, GM’s whole automotive liquidity stood at $38.9 billion, so it’s not susceptible to working out of cash anytime quickly. But the brand new credit score line is an indication GM could also be buckling in for a chronic work stoppage by the United Auto Workers.
The firm has been exchanging affords with the UAW, however its services have been focused for escalating union member walk-outs.
The strike shutdown a GM plant in Lansing, Michigan, final week that makes the Chevrolet Traverse and Buick Enclave crossover SUV fashions and in addition silenced a Missouri plant on Sept. 15 that builds the corporate’s Chevy Colorado and GMC Canyon mid-size picks.
Bloomberg experiences that gross sales of these two fashions fell greater than 10 p.c within the third quarter. A spokesperson advised the outlet that as of September 31, the strike has value the automaker $200 million.
2nd Gear: Ford’s ‘Costly’ Counteroffer to Auto Workers
Ford has reportedly elevated the scale of raises it’s providing United Auto Workers union members to an “unprecedented” degree. It has additionally shortened the period of time it takes for brand new hires to succeed in prime wages on the firm.
It’s the seventh counteroffer from The Blue Oval, coming simply three days after UAW members walked out of Ford’s Chicago Assembly Plant as a part of a strike escalation. From Automotive News:
The automaker mentioned it could enhance non permanent staff’ pay 26 p.c to $21 an hour, versus $20 within the final publicly identified provide, and lift most full-time staff’ pay by “more than” the 20 p.c over 4 years it beforehand supplied, with out divulging a particular quantity. Ford additionally mentioned it could scale back the time it takes new hires to succeed in prime pay by “more than half,” whereas the final provide lower that point from eight years to 4.
Ford mentioned the proposal contains product commitments for each manufacturing facility with UAW-represented staff and guarantees no jobs could be eradicated in reference to the 4 electric-vehicle battery crops it plans to open. The deal would final till May 1, 2028, which the union has requested.
“There’s no doubt our UAW workforce put us on their shoulders during the pandemic, and these same workers and their families were hit hard by inflation. We want to make sure our workers come out of these negotiations with two things — a record contract and a strong future,” Ford CEO Jim Farley mentioned in a press release. “We’ve put an offer on the table that will be costly for the company, especially given our large American footprint and UAW workforce, but one that we believe still allows Ford to invest in the future.”
There’s nonetheless no phrase on if the UAW will settle for the contract, however my guess might be not. Ford’s going to have to return up fairly a bit extra in the event that they need to meet what the UAW is asking.
third Gear: GM Sees Double Digit Q3 Sales Gains
General Motors, regardless of the strike, is having a grand ol’ time proper now. The automaker reported a 21.4 p.c gross sales acquire for the third quarter within the U.S. It has offered almost 2 million automobiles to date this 12 months. Overall, that’s reportedly a 19.3 p.c acquire for 2023.
As you could have anticipated, pickup vans and SUVs led the cost, together with fleet automobiles. From The Detroit Free Press:
In the quarter, GM offered 674,336 automobiles in contrast with 555,580 within the year-ago quarter. GM additionally made headway in electrical car gross sales and had its highest whole stock for the reason that third quarter of 2020.
According to Cox Automotive, for the 12 months, it estimated GM would acquire a half-percentage level in U.S. market share to 16.7%.
So far, the strike hasn’t actually had sufficient time to place an excessive amount of of a gross sales damage on GM.
The United Auto Workers strike in opposition to the Detroit Three automakers has had little impression on GM’s gross sales within the quarter, nevertheless it’s early because the strike began just a few weeks in the past. But a chronic strike may have an effect on GM’s total stock, consultants mentioned, and that may be detrimental given GM and different automakers had been rebuilding stock after components shortages final 12 months crippled manufacturing.
“The UAW strike is clearly a major factor that, should it persist, could reverse gains the industry has made on inventory,” mentioned Cox Automotive Chief Economist Jonathan Smoke. “The ‘Stand Up’ tactic by the UAW has so far minimized the initial disruption, but the approach could enable a much longer disruption than has been possible historically. So far, the impact has been negligible.”
EV gross sales are additionally up for The General, even because it phases out its hottest electrical car, the Chevy Bolt.
In the quarter, GM reported promoting 20,092 EVs, and that features 35 of the Zevo 600 BrightDrop supply vans. In the year-ago quarter, GM offered 15,156 EVs, largely Chevrolet Bolts. Through September, GM has offered a complete of 56,574 EVs, together with having delivered 19 of the brand new 2023 Chevrolet Blazer EVs, in-built Mexico, and 18 of the 2023 Silverado EVs, made at Factory Zero in Detroit and Hamtramck, within the third quarter.
It continues to be slowing rolling out the Cadillac Lyriq. In the quarter, GM delivered 3,018, up from the 36 it delivered within the year-ago quarter, however since January, GM has delivered solely 5,334 Lyriqs.
GM has huge plans to launch extra EVs within the second half, which the strike may disrupt if it expands to the factories the place GM builds EVs corresponding to Orion Township, house of the Chevrolet Bolt and Bolt EUV, Spring Hill Assembly in Tennessee, the place the Lyriq is made, and Factory Zero.
In Q3, Buick gross sales rose 54 p.c on the backs of the Enclave and Encore GX, good for finest within the firm. The new Chevy Trax additionally offered almost 38,000 items, which is a 498 p.c enhance from only one 12 months in the past after they had been promoting a turd.
Same because it ever was, full-size pickups are nonetheless killing it. Chevy Silverado gross sales are up 22 p.c to 143,467 items in Q3, and GMC Sierra gross sales are up 46 p.c to 73,219 items. Colorado gross sales are additionally up 5 p.c to 25,520 automobiles offered. However, the GMC Canyon noticed gross sales dip two p.c to 7,627 items.
Of all of GM’s manufacturers, Cadillac noticed the smallest beneficial properties, simply six p.c. Can’t win em’ all.
4th Gear: Stellantis Had A Rough Go Of It
Stellantis has reported a really slight gross sales decline within the U.S. The automaker noticed a one p.c gross sales dip within the third quarter in contrast with the identical time final 12 months. The automaker experiences it offered 380,563 automobiles within the quarter, and you can not blame the strike for the downturn contemplating it simply began a number of weeks in the past.
Despite the less-than-meh gross sales, Jeff Kommor, head of U.S. gross sales at the corporate, continues to be touting current momentum to shut out the quarter. Whatever you gotta do, I assume. From The Detroit Free Press:
“We’ve gained traction over the summer and we’re starting to see some momentum at the end of this third quarter,” Kommor mentioned in a information launch. “Our Jeep 4xe and Pacifica Plug-in Hybrid models continue to perform extremely well, taking the 1-2-3 sales spots among plug-in electric vehicles in the U.S. market, and our progress toward our Dare Forward 2030 plan also remains on track with the introduction of many all-new, all battery-electric vehicles next year, including the all-new Fiat 500e, Dodge Charger, Wagoneer S, Ram 1500 REV and Jeep Recon.”
Of the corporate’s manufacturers, solely Chrysler noticed a rise over the third quarter of 2022, up 96%. Those numbers had been boosted considerably by the Chrysler Pacifica. The minivan’s plug-in variant managed a 329% bump over the year-ago interval, the corporate mentioned.
Jeep and Ram gross sales had been each down 4%, Dodge fell 23%, Alfa Romeo dropped 16% and Fiat offered solely 145 automobiles within the quarter, a drop of 30%. The firm didn’t report numbers for Maserati.
Numbers had been helped a bit for Dodge and Alfa Romeo by the arrival of the 2024 Dodge Hornet, which offered 1,753 automobiles, and the 2024 Alfa Romeo Tonale, which offered 746 automobiles. The firm additionally touted its Jeep Wrangler 4xe and Jeep Grand Cherokee 4xe because the best-selling plug-in hybrids within the U.S. market.
Overall, and barely worryingly for Stellantis, this decline is definitely a shift from the second quarter when the corporate reported a six p.c gross sales enhance from the identical interval in 2022.
Reverse: Russia Pisses Off The U.S.
Neutral: ONCE AGAIN, HAVE A NEW TWITTER ACCOUNT
It appears Elon couldn’t take the warmth anymore, and my outdated Twitter (or X, idk) account bought suspended. So, I’ve risen from the ashes and created a brand new account. PLS follow @AndyKalmowitz for car content and Jets misery.
On The Radio: Shania Twain – “That Don’t Impress Me Much”
Source: jalopnik.com