|Bid||37.25 x 2200|
|Ask||37.37 x 1200|
|Day's Range||37.29 - 38.07|
|52 Week Range||30.56 - 41.90|
|Beta (3Y Monthly)||1.25|
|PE Ratio (TTM)||5.95|
|Earnings Date||Oct 29, 2019|
|Forward Dividend & Yield||1.52 (4.02%)|
|1y Target Est||48.17|
(Bloomberg) -- As the United Auto Workers strike against General Motors Co. nears a second week, the issues in dispute are similar to those that sparked strikes in the past: health care, wages and the company’s commitment to invest in U.S. facilities. The conflicts stretch all the way back to Dec. 30, 1936, when GM employees — led by UAW Local 174 President Walter Reuther — stopped production at plants in Flint, Michigan, and Cleveland. They were protesting low wages and conditions that included 12- to 14-hour shifts, six days a week, often in oppressive heat on fast-moving assembly lines. But instead of walking out, they sat down in the factories, and there they stayed for 44 days.In the ensuing eight decades, there would be dozens of contract negotiations, concessions on both sides and strikes — including the current one that’s sent 46,000 GM workers to the picket lines for the first time in 12 years. Here’s a look back at some of the actions that set precedents in the past.1937: On Feb. 11, 1937, the sit-down strikes end as GM becomes the first of Detroit’s Big Three automakers to recognize the UAW as the representative of its manufacturing employees. The first contract provides higher wages and improved conditions in the plants. Chrysler also recognizes the UAW after a sit-down strike at its Detroit plants.May 1937: Trying to organize workers at Ford Motor Co., Reuther and other UAW supporters pass out leaflets on a pedestrian bridge leading to the company’s River Rouge complex in Dearborn, Michigan. Ford security men attack and beat them in a confrontation that becomes known as the Battle of the Overpass. Pictures of the attack by a Detroit News photographer, who smuggles them past the security guards, help spur support for the union, but Henry Ford balks at recognition.April 1941: A strike at the River Rouge plant halts operations for 10 days. Henry Ford's wife, Clara, helps persuade him to negotiate with the UAW, and the first contract is signed in June.1945-46: Reuther, now a UAW vice president and head of the GM Department, wants a 30% pay increase to help workers in the aftermath of World War II. He also wants GM to implement the raise without increasing vehicle prices. The company says no, so Reuther demands that it “open its books” to show it can afford both. GM refuses again and offers the equivalent of a 10% raise, with higher prices. The union rejects the offer and on Nov. 21, 1945, begins what will be a 113-day national strike. President Harry Truman appoints a board to make recommendations based on postwar wage-price policy; the panel says GM can boost pay by 19.5 cents an hour, or about 17.5%, without raising prices.Ultimately, the company and union agree on an 18.5 cent-a-hour increase. While this is well below Reuther’s 30%, the negotiations are “extraordinarily significant,” says Harley Shaiken, currently a labor professor at the University of California, Berkeley, because Reuther puts GM on the defensive and “captures the imagination of the public,” setting the stage for more favorable contracts in 1948 and 1950.1946: UAW members elect Reuther to be the fourth president of the union.1948-50: In 1948, GM agrees to increase wages, with future adjustments based on changes in the government’s consumer price index and in national productivity — a deal the New York Times says may set a “pattern for the industry.” A year later, Ford becomes the first U.S. automaker to negotiate a pension plan with the UAW as part of a 30-month contract: $100 a month for each eligible worker. Ford agrees to pay the cost and to administer the plan jointly with the union. Chrysler agrees to the $100 benefit during contract talks but refuses to pay for it until after a strike in 1950 that lasts about 100 days.The Chrysler agreement covers three years; GM and the UAW will later negotiate a five-year pact that includes a pension plan, along with new and improved medical and other benefits. The provisions in what will be known as the Treaty of Detroit do set the tone for industry contracts for the next 30 years.1970: Reuther dies in an airplane crash on May 9, and Leonard Woodcock becomes the fifth UAW president. In September, he leads a strike against GM that lasts for 67 days, stopping production across the automaker’s facilities. The final contract includes higher wages, a plan that allows workers to retire with a pension after 30 years and payment of drug and Medicare costs for retirees. 1977: Douglas Fraser becomes the last of the UAW's founding fathers to serve as president.1979: UAW membership begins to decline after peaking at around 1.5 million in the 1970s.1979-81: Fraser leads negotiations with Chrysler on wage and benefit concessions that — along with loan guarantees from the U.S. government and help from lenders, dealers and suppliers — allow the automaker to avert bankruptcy, “We went to the membership for ratification three times in 13 months, and each contract was worse than the previous one,’’ Fraser said in a 2001 BusinessWeek interview. “We really didn't know if [Chrysler] was going to survive.”Ford and GM also will ask for concessions in the 1980s, as Japanese auto companies take an increasing share of U.S. car sales and the UAW’s focus in contract negotiations shifts to job security. Meanwhile, the UAW organizes a new Volkswagen assembly plant in Westmoreland, Pennsylvania, that produces small cars. (Slowing sales will cause Volkswagen to close the factory in 1988.)1982: Honda Motor Co. opens the first Japanese-owned auto plant in the U.S. to build Accord cars. The UAW reaches an agreement with management that the company will remain neutral on a possible unionization vote at the Marysville, Ohio, factory.1983: Owen Bieber becomes the seventh UAW president and seeks more labor-management cooperation with the Big Three.1985-86: The Canadian branch of the UAW secedes from the parent union in anger over concessions to GM, Ford and Chrysler. The UAW withdraws its National Labor Relations petition for a unionization vote at Honda's Ohio plant.1995: Stephen Yokich, a strike leader whose mother famously pushed his stroller on a picket line when he was 22 months old, becomes the eighth UAW president.1998: As the auto industry becomes increasingly global, and companies seek to better manage parts inventories to contain costs, more than 9,000 workers strike a GM metal-stamping plant and a parts-supply facility in Flint, Michigan. The ripple effect of the more-than-50-day work stoppage eventually halts output across the automaker's North American operations, cutting $1.2 billion from GM’s profits, the company says in reporting third-quarter results. 2002: Ron Gettelfinger is elected the ninth UAW president.2005-11: Turmoil roils the industry: the Great Recession, soaring gasoline prices, car sales near a 30-year low, plant closings, layoffs, bankruptcies and government bailouts at GM and Chrysler, along with a drastic restructuring at Ford. The 2007 contracts create a two-tier wage system that pays new hires about half what more senior employees earn and shifts billions of dollars in retiree health-care obligations from the auto companies to union-run funds. In 2011 negotiations, Bob King, elected the UAW’s 10th president the previous year, says workers must be rewarded for the $7,000 to $30,000 each gave up since 2005 in surrendering raises, bonuses and cost-of-living adjustments, along with other concessions. The final agreements provide signing and additional bonuses, higher hourly pay for entry-level employees and other benefits. GM, Ford and Chrysler (now majority-owned by Fiat SpA) commit to adding jobs and investing in American plants. “We made important gains for our members,” King says after GM workers approve their contract.2014-15: Dennis Williams is elected the 11th president in 2014. In 2015, some rank-and-file members criticize him for accepting a bear hug from Fiat Chrysler Chief Executive Officer Sergio Marchionne at an event to kick off contract talks. Workers overwhelmingly vote down the initial deal Williams signs off on with the automaker — the first such rejection of a national proposal since 1982, according to the Detroit Free Press. Members later approve an agreement that includes greater concessions from the company, including a path to senior-level pay for entry-level workers.2018: Gary Jones becomes the 12th UAW president in June 2018. In August 2019, FBI agents raid his home and the home of Williams, his predecessor, as part of an investigation into corruption involving the union related to illegal use of training-center funds. A UAW spokesman has called the search unwarranted and said the union is cooperating with the investigation. Sept. 16, 2019: Some 46,000 UAW workers strike GM over issues that include health-care benefits, use of temporary workers, the tiered pay scale and investment in American operations. Sources: Bloomberg News, UAW archives, contemporary news reports, Bloomberg Law, Walter P. Reuther Library at Wayne State University\--With assistance from Chester Dawson.To contact the authors of this story: Melinda Grenier in New York at email@example.comEugene Reznik in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Craig Trudell at email@example.com, Peter HallFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
It’s tough to make money as an Uber or Lyft driver. But there could be a better way to do better as a driver by reducing the cost of car ownership.
Two major Democratic presidential candidates plan to visit striking General Motors workers in Detroit in the coming days as a five-day-old labor dispute threatens to enter its second week. Senator Elizabeth Warren will join workers on the picket line outside GM's Detroit-Hamtramck plant on Sunday, while Senator Bernie Sanders will do the same on Wednesday. GM has received harsh criticism from Democrats for shifting health insurance costs for its striking workers union as its members walked the picket line for the second day on Tuesday.
The stock market lost some ground amid soaring crude oil prices, Fed policy moves and China trade headwinds.
(Bloomberg) -- When General Motors Co. made a deadline-day offer for a new labor contract to the United Auto Workers last week, it came with a gift. The company was prepared to build batteries in an Ohio town that’s been sweating the prospect that half a century of car-making will come to an end.But there was a catch. GM and an as-yet-unnamed battery supplier for its next-generation electric vehicles would offer wages similar to what the automaker pays non-assembly workers who top out at $17 an hour, according to people familiar with the proposal. Senior-level plant staff make roughly $30 an hour. The shortfall is one of several reasons the union rejected GM and went on strike.For the UAW, who builds electric vehicles and how much they earn is an existential issue. Negotiators are already trying to get a better deal for temporary and less-tenured workers who don’t make the top assembly wage -- part of a tiered-pay system set up to rebuild union ranks in the wake of the recession. If it caves to GM again, the UAW fears it will be chasing wages for a generation.Read more: In Strike at GM, Old Grievances Get Retooled for a New EraThere are also grave concerns with essentially incentivizing GM to plow money into plants making battery cells and packs -- which may require less labor and likely use more non-union sub-assembly components -- at the expense of unionized factories making engines and transmissions for gas-burning autos.Big StakesThe implications are much bigger than just the future of Lordstown, where GM idled a car plant in March, much to the chagrin of President Donald Trump. The project GM has planned is to make batteries for some of the 20 electric models the company has vowed to sell globally by 2023, potentially including the electric trucks that were part of its offer to the UAW. It’s a key component of GM’s transformation and will employ a lot of workers, one of the people said.GM has reason to view its offer as a gift. Right now, GM buys batteries for its Chevrolet Bolt electric car from South Korean supplier LG Chem Ltd. The UAW doesn’t represent those workers.The largest producer of electric vehicles is Tesla Inc., whose Chief Executive Officer Elon Musk has vehemently and publicly opposed the UAW. A Tesla employee who called for forming a union at the company’s assembly plant in 2017 claimed assembly workers there made between $17 and $21 an hour, though they also are compensated with stock options.A union-represented battery plant in Lordstown would position the union for the electric age. But rather than see the offer as a way to add new members for decades to come, the UAW fears spend it will spend that time fighting to restore the level of pay and benefits won over the past 80 years.The battery factory would not be located in GM’s idled Lordstown assembly plant. GM wants to go forward with a plan to sell the facility to a venture overseen by fledgling electric-vehicle maker Workhorse Group Inc.The Union’s WorriesThe UAW already has reservations about electrification. In a white paper published earlier this year, the union estimated 35,000 jobs at engine and transmission plants could be wiped out as electric vehicles become the norm. It’s worried that assembly of electric vehicles, which require fewer parts, will be a drag on jobs.“The production of new EV components could shift business and employment to non-auto companies that lack a large U.S. manufacturing base,” UAW researchers wrote in the white paper. “This could undermine auto job quality by shifting work to employers with no history of manufacturing labor relations or to companies more likely to import components.”There is a similar issue, though much less contentious, at GM’s so-called Poletown plant that straddles the line between the traditionally Polish town of Hamtramck and Detroit. GM also has offered to build new electric vehicles there, which would give the factory life after January, when the company ceases production of the sedans it’s been making. If the union agrees, Hamtramck would make a line of battery-powered pickups and SUVs.Orion PrecedentWhile assemblers in Hamtramck would be covered by GM’s main contract, the company would likely want to include provisions to pay some workers at a lower wage, the people said. The automaker already has a subsidiary called GM Subsystems Manufacturing LLC that makes battery packs in Brownstown, Michigan, and does non-assembly work in other plants, such as handling of parts and materials. Those workers top-out at $17 an hour.The Chevy Bolt plant in Orion, Michigan, has such a deal in place, along with GM’s plant in Lansing making Chevy Camaro muscle cars and Cadillac sedans.For all its concerns, the UAW does see building electric vehicles as a possible lifeline for a union that’s seen membership fall precipitously from its peak in the 1970s.Electric vehicles “could be an opportunity to re-invest in U.S. manufacturing to produce the vehicles of the future under high-road working conditions,” UAW researchers wrote in the white paper. “But this opportunity will be lost if components are imported from other economies or shifted to low-road employers that pay wages below U.S. manufacturing standards.”\--With assistance from Dana Hull.To contact the reporter on this story: David Welch in Southfield at firstname.lastname@example.orgTo contact the editors responsible for this story: Craig Trudell at email@example.com, Chester DawsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In the not-quite-a-week that General Motors workers have been striking, seeking better wages for less-tenured workers and trying to hang on to their unusually sweet deal on health insurance, there has been the usual choosing of sides. On Twitter, Rep. Alexandria Ocasio-Cortez has slammed GM (GM) as greedy during a time of what she called record profits, specifically after the auto maker said it would suspend payments for strikers’ health insurance. In the New York Post, conservative economist Steve Malanga sided with the company, incongruously citing 10-year-old earnings reports that have little apparent connection to today’s GM.
Some prominent market personalities, such as Leon Cooperman, chair and CEO of Omega Advisors, feel that the Fed's rate cut decision was unnecessary.
The transition to electric vehicles is good for the planet, but not so good for labor. That's the thesis of a recent article in Wired warning that electric vehicle manufacturing will lead to more layoffs. The author cites a study by Germany's Fraunhofer Institute for Industrial Engineering IAO showing that by 2030, a moderate shift to electric vehicles could leave 75,000 Germans out of work. The upshot: Expect more pushback from labor like the General Motors Company (NYSE: GM)- UAW strike, where retooling a closed plant as an electric truck facility was part of GM's offer to the union. Other industry trends are reducing the need for workers, Wired acknowledges, as auto manufacturing becomes more efficient overall.
Yesterday, Morgan Stanley analyst Adam Jonas provided his thoughts on Tesla while maintaining his rating and target price on its stock.
Since Porsche launched the Taycan, Tesla has been trying to prove its supremacy in terms of various features. It recently revealed its upcoming Plaid Mode.
A U.S. truckload carrier has temporarily laid off at least 40 drivers and five mechanics at its Canadian branch because of the strike by auto workers at General Motors Company (NYSE: GM) plants in the United States, a union official said. Martin Transportation Systems issued the notice for employees at its Windsor, Ontario, facility on Sept. 17. Unifor, the union representing about 100 of the carrier's Canadian employees, said the layoffs stemmed from the disruption of the carrier's cross-border freight business between GM's U.S. and Canadian facilities.
Last Week's Pricing Power Index: 45 (Shippers) The trucking industry operates in a market based on real-time demand and supply. When demand is higher than capacity, carriers gain negotiating power for ...
As a United Auto Workers strike cripples General Motors Co. plants and idles tens of thousands of workers nationwide, resolution of the new labor contract will face challenges because both sides have something to prove. For GM (NYSE: GM), it’s sweating a potential market downturn and the need to spend billions on new automotive technology, and for the union, it’s pressured by a shrinking membership base and a federal investigation into corruption by its leadership, The Wall Street Journal reports. The talks are further complicated by GM’s need to find cuts elsewhere to fund that tech investment and the UAW’s discontent at making sacrifices during the Great Recession and subsequent bankruptcy but feeling left out of the spoils as the automaker recovered.
About 2,000 workers at GM's Oshawa plant in Canada are on temporary layoff due to a parts shortage related to the UAW strike, GM Canada says.
Ford (NYSE:F) stock is enjoying a brief rally as investors cheered the company's restructuring plan. Shares of Ford and rival General Motors (NYSE:GM) are doing better than the automotive index.Source: overcrew / Shutterstock.com However, like most corporate restructurings, Ford's plan needs time. Unfortunately, time may be a commodity the automaker does not have. Even the most bullish economists acknowledge that a recession is coming. And the general consensus is that it will arrive in the next 12 to 24 months.Therein lies the problem for F stock. Ford is betting its future on electric and autonomous vehicles. "Our future is rooted in electrification," said Stuart Rowley, president of Ford of Europe. "We are electrifying across our portfolio, providing all of our customers with more accessible vehicle options that are fun to drive, have improved fuel economy and are better for our environment."InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's fair for investors to question if time is on Ford's side. These technologies still require major investment to create the economies of scale that will make them available to a mass market. * 8 Dividend Stocks to Buy for a Recession There's no question that the last 10 years have helped jump start this revolution. But the electric car market is not just about having cars for consumers to drive. It also means having an infrastructure that makes recharging convenient and affordable. Cost Cutting Only Takes You So FarEliminating head count and shutting plants provides a quick fix to the balance sheet. Investors love it. But ultimately, it only takes you so far.Recently, InvestorPlace contributors Will Ashworth and Mark Hake wrote about Ford's potential inability to pay their 15-cent quarterly dividend. Hake points to the company canceling its special dividend as evidence they may not have enough free cash flow to keep up with their financial commitments to shareholders, including pension obligations and debt repayments.Ashworth goes further and argues that Ford should consider only issuing a special dividend. By cutting the regular dividend they can put that free cash flow (currently about $5 billion) to work in other ways (e.g. a share buyback program). But if Ford stock no longer carried a quarterly dividend, how would that play with income investors?Ultimately, for investors to believe in Ford and F stock, the company must increase revenue and profit by selling cars. In addition to plant closings and workforce reductions throughout 2020, Ford plans to continue evolving their product line. This includes reiterating their commitment to electric vehicles. Consideration is Not CommitmentRight now, automakers are racing to meet regulators' calls for more fuel-efficient (read: electric) vehicles. But in the words of Mark Wakefield, the head of Detroit-based automotive practice consultancy, AlixPartners, the pressure from regulators to shift to battery-based vehicles is creating a "profit desert" for auto manufacturers.That's because demand is not there. Many customers are saying they would consider buying an electric car. Yet battery-based vehicles accounted for just about 5% of the American new car market in 2018.A recent survey conducted by Consumer Reports (CR) and the Union of Concerned Scientists (UCS) sampled 1,659 American adults who were considering purchasing or leasing a new or used vehicle within the next two years. According to the survey, 63% of prospective U.S. car buyers have some interest in EVs. This was broken down into three categories: * 31% who said they would consider one for their next purchase * 27% who would consider one down the road * 5% who said they were definitely planning to buy or lease one for their next vehicle.Call me skeptical. Firms use words like "consider" and "planning to" in surveys to give answers the nuance that they want. I'm not saying that either CR or UCS was deliberately attempting to skew the survey. Nevertheless, consideration is not the same as commitment.All things being equal, consumers will consider many things. But electric cars and gas-powered vehicles are not equal.Most electric cars still command a premium price and some EVs are not available in certain areas of the country. Plus, despite the growing infrastructure of nationwide, public charging stations, there is more work to do. This is particularly true in the area of the DC-fast chargers. Until that is resolved, EVs remain impractical for long-distance travel. The Bottom Line for Ford StockThe F stock price is up over 20% year-to-date. However, the stock is still trading at a large discount to other consumer discretionary stocks (less than 7 times estimated 2020 earnings).The low valuation reflects the historical reality that automakers lose money during recessions. Ford is optimistic that their restructuring can help them remain profitable even if U.S. car sales fall to 11 or 12 million units (an approximately 35% drop from the 17 million cars sold in August of this year).However, Moody's does not seem to share Ford's optimism. The rating agency downgraded Ford's bonds to junk status. Moody's cited "the considerable operating and market challenges facing Ford, and the weak earnings and cash generation likely as the company pursues a lengthy and costly restructuring plan."For many reasons, not all of which are their fault, Ford's strategy seems to require a lot of hope. However, hope is not a strategy. I need to see more before investing in Ford stock.As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post Ford Is Racing Against a Recession appeared first on InvestorPlace.
When researchers remotely hacked a Jeep Cherokee in 2015, slowing it to a crawl in the middle of a U.S. highway, the portal the hackers used was an infotainment system made by supplier Harman International. Harman, now part of Samsung Electronics, has since developed its own cybersecurity product, and bought Israel-based cybersecurity company TowerSec for $70 million to help it overhaul manufacturing processes and scrutinize third-party supplier software. The expensive efforts have prevented another public breach and helped it become a key player in automotive cybersecurity, but they show the strain suppliers and automakers face in dealing with this new dimension of automotive technology.
GM shares edged higher Friday even as United Auto Workers Union officials said talks with the carmaker aimed at ending a four-day nationwide strike would likely extend into the weekend.
(Bloomberg) -- The federal bailout of General Motors Co. helped prevent Michigan from sinking deeper after the recession. Now, the strike by its workers is threatening to exert a drag on the state and its local governments amid the record-long economic recovery.General Motors employees stopped working on Sept. 16 as United Auto Workers union leaders negotiate with the car manufacturer over wages and benefits. If the standoff continues to drag on, Michigan officials anticipate that the state could lose as much as $4.6 million a week in tax revenue, according to Moody’s Investors Service.“The work stoppage poses an outsized economic threat to the state of Michigan as well as local governments in the state such as Detroit that have above-average economic exposure to the automotive giant,” Moody’s analyst Ted Hampton wrote in a report.Michigan is the birthplace of the American automobile industry and remains heavily tethered to it. More than 20% of Michigan wages in 2017 came from manufacturing, including more than 5% from car makers, according to Moody’s. That makes it twice as dependent on manufacturing and the auto industry than the overall U.S.If the strike negatively affects the state’s revenue, the record-long economic expansion has left Michigan with a significant cash cushion to weather it: It had $1 billion in its rainy day fund at the end of June 2018, compared with $2.2 million in 2008, according to Moody’s.The bond market has also brushed off the potential impacts of the strike. Debt sold in Michigan has gained 6.5% this year, more than the 6.3% advance for the broader municipal-bond market, according to Bloomberg Barclays indexes.General Motors’ offer to end the strike includes 5,400 new and retained jobs and $7 billion in U.S. investment during the next four years, the Detroit Free Press reported Thursday. The parties resumed talks Thursday morning following negotiations late Wednesday night.To contact the reporter on this story: Michelle Kaske in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Elizabeth Campbell at email@example.com, William Selway, Michael B. MaroisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
While top U.S. auto giants General Motors (GM) and Ford (F) issue vehicle recalls recently, recreational vehicle manufacturer Winnebago Industries (WGO) inks a deal to buy Newmar.