Good morning! It’s Wednesday, October 4, 2023, and that is The Morning Shift, your each day roundup of the highest automotive headlines from all over the world, in a single place. Listed here are the necessary tales that you must know.
1st Gear: GM’s $6 Billion Cushion
Normal Motors is reportedly organising a $6 billion line of credit score to stabilize its liquidity amid the UAW strike towards the Massive 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. In response to a spokesperson for the corporate, GM needs 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 vulnerable to operating out of cash anytime quickly. However the brand new credit score line is an indication GM could also be buckling in for a protracted work stoppage by the United Auto Staff.
The corporate has been exchanging gives with the UAW, however its amenities 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 likewise silenced a Missouri plant on Sept. 15 that builds the corporate’s Chevy Colorado and GMC Canyon mid-size picks.
Bloomberg stories that gross sales of these two fashions fell greater than 10 % within the third quarter. A spokesperson instructed the outlet that as of September 31, the strike has price the automaker $200 million.
2nd Gear: Ford’s ‘Pricey’ Counteroffer to Auto Staff
Ford has reportedly elevated the dimensions of raises it’s providing United Auto Staff union members to an “unprecedented” stage. It has additionally shortened the period of time it takes for brand spanking new hires to achieve high 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 Meeting Plant as a part of a strike escalation. From Automotive Information:
The automaker mentioned it might enhance short-term staff’ pay 26 % to $21 an hour, versus $20 within the final publicly recognized supply, and lift most full-time staff’ pay by “greater than” the 20 % over 4 years it beforehand supplied, with out divulging a particular quantity. Ford additionally mentioned it might cut back the time it takes new hires to achieve high pay by “greater than half,” whereas the final supply 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 can be eradicated in reference to the 4 electric-vehicle battery crops it plans to open. The deal would final till Could 1, 2028, which the union has requested.
“There’s little doubt our UAW workforce put us on their shoulders throughout the pandemic, and these identical staff and their households have been hit arduous by inflation. We wish to be sure that our staff come out of those negotiations with two issues — a document contract and a robust future,” Ford CEO Jim Farley mentioned in a press release. “We’ve put a suggestion on the desk that will probably be pricey for the corporate, particularly given our giant American footprint and UAW workforce, however one which we consider nonetheless permits Ford to speculate sooner or later.”
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 come back up fairly a bit extra in the event that they wish to meet what the UAW is asking.
third Gear: GM Sees Double Digit Q3 Gross sales Features
Normal Motors, regardless of the strike, is having a grand ol’ time proper now. The automaker reported a 21.4 % gross sales achieve for the third quarter within the U.S. It has offered practically 2 million autos thus far this yr. General, that’s reportedly a 19.3 % achieve for 2023.
As you’ll have anticipated, pickup vehicles and SUVs led the cost, together with fleet autos. From The Detroit Free Press:
Within the quarter, GM offered 674,336 autos in contrast with 555,580 within the year-ago quarter. GM additionally made headway in electrical automobile gross sales and had its highest whole stock for the reason that third quarter of 2020.
In response to Cox Automotive, for the yr, it estimated GM would achieve a half-percentage level in U.S. market share to 16.7%.
Thus 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 Staff strike towards the Detroit Three automakers has had little affect on GM’s gross sales within the quarter, but it surely’s early because the strike began just a few weeks in the past. However a protracted strike may have an effect on GM’s general stock, consultants mentioned, and that might be detrimental given GM and different automakers had been rebuilding stock after components shortages final yr crippled manufacturing.
“The UAW strike is clearly a significant factor that, ought to it persist, may reverse positive aspects the trade has made on stock,” mentioned Cox Automotive Chief Economist Jonathan Smoke. “The ‘Stand Up’ tactic by the UAW has thus far minimized the preliminary disruption, however the strategy may allow a for much longer disruption than has been doable traditionally. Thus far, the affect has been negligible.”
EV gross sales are additionally up for The Normal, even because it phases out its hottest electrical automobile, the Chevy Bolt.
Within the quarter, GM reported promoting 20,092 EVs, and that features 35 of the Zevo 600 BrightDrop supply vans. Within the year-ago quarter, GM offered 15,156 EVs, principally Chevrolet Bolts. Via September, GM has offered a complete of 56,574 EVs, together with having delivered 19 of the brand new 2023 Chevrolet Blazer EVs, inbuilt Mexico, and 18 of the 2023 Silverado EVs, made at Manufacturing facility Zero in Detroit and Hamtramck, within the third quarter.
It’s nonetheless slowing rolling out the Cadillac Lyriq. Within 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 large 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 equivalent to Orion Township, residence of the Chevrolet Bolt and Bolt EUV, Spring Hill Meeting in Tennessee, the place the Lyriq is made, and Manufacturing facility Zero.
In Q3, Buick gross sales rose 54 % on the backs of the Enclave and Encore GX, good for greatest within the firm. The brand new Chevy Trax additionally offered practically 38,000 items, which is a 498 % enhance from only one yr in the past after they have been promoting a turd.
Similar because it ever was, full-size pickups are nonetheless killing it. Chevy Silverado gross sales are up 22 % to 143,467 items in Q3, and GMC Sierra gross sales are up 46 % to 73,219 items. Colorado gross sales are additionally up 5 % to 25,520 autos offered. Nevertheless, the GMC Canyon noticed gross sales dip two % to 7,627 items.
Of all of GM’s manufacturers, Cadillac noticed the smallest positive aspects, simply six %. Can’t win em’ all.
4th Gear: Stellantis Had A Tough Go Of It
Stellantis has reported a really slight gross sales decline within the U.S. The automaker noticed a one % gross sales dip within the third quarter in contrast with the identical time final yr. The automaker stories it offered 380,563 autos within the quarter, and you can’t blame the strike for the downturn contemplating it simply began just a few weeks in the past.
Regardless of the less-than-meh gross sales, Jeff Kommor, head of U.S. gross sales at the corporate, continues to be touting latest momentum to shut out the quarter. No matter you gotta do, I assume. From The Detroit Free Press:
“We’ve gained traction over the summer season and we’re beginning to see some momentum on the finish of this third quarter,” Kommor mentioned in a information launch. “Our Jeep 4xe and Pacifica Plug-in Hybrid fashions proceed to carry out extraordinarily nicely, taking the 1-2-3 gross sales spots amongst plug-in electrical autos within the U.S. market, and our progress towards our Dare Ahead 2030 plan additionally stays on monitor with the introduction of many all-new, all battery-electric autos subsequent yr, together with 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%. These numbers have 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 have been each down 4%, Dodge fell 23%, Alfa Romeo dropped 16% and Fiat offered solely 145 autos within the quarter, a drop of 30%. The corporate didn’t report numbers for Maserati.
Numbers have been helped a bit for Dodge and Alfa Romeo by the arrival of the 2024 Dodge Hornet, which offered 1,753 autos, and the 2024 Alfa Romeo Tonale, which offered 746 autos. The corporate additionally touted its Jeep Wrangler 4xe and Jeep Grand Cherokee 4xe because the best-selling plug-in hybrids within the U.S. market.
General, and barely worryingly for Stellantis, this decline is definitely a shift from the second quarter when the corporate reported a six % gross sales enhance from the identical interval in 2022.
Reverse: Russia Pisses Off The U.S.
Impartial: ONCE AGAIN, HAVE A NEW TWITTER ACCOUNT
It appears Elon couldn’t take the warmth anymore, and my previous Twitter (or X, idk) account received suspended. So, I’ve risen from the ashes and created a brand new account. PLS comply with @AndyKalmowitz for automobile content material and Jets distress.