Daddy-O

UAW Negotiations: Job Protection is Final Hurdle for Deal at GM
General Motors Corp. and parts supplier Delphi Corp. remained the only
auto companies Tuesday yet to reach a tentative agreement on a new
national contract with the UAW. The remaining hurdle, say people
familiar with the talks, is a disagreement over adding or protecting
jobs at Delphi, which is GM's former parts operation and still gets more
than 60 percent of its business from GM. UAW President Ron Gettelfinger
had been pushing GM to guarantee more business for Delphi, so Delphi
could in turn guarantee certain UAW employment numbers. Late Sunday
night, GM balked at giving Delphi business without more time to consider
it, said people familiar with the talks, who asked not to be named.
Gettelfinger was negotiating with GM all day Tuesday at the UAW-GM
Center for Human Resources in Detroit. "We are talking today," said GM
spokesman Tom Wickham, without elaborating. He said GM and Delphi are
operating under the terms of the old contract, which expired at midnight
Sunday, and will do so "until we reach a new agreement."
(Source: The Detroit Free Press)


Congress to Debate Rules on Pensions
Amid concern that more companies will freeze pension contributions or
stop providing the coveted benefit altogether, lawmakers today will
begin weighing how much employers should have to set aside for their
workers' retirements. The debate is of vital interest to Detroit's
automakers, airlines and other major industrial firms, whose rising
pension and retiree health care costs have become a major competitive
liability. The Big Three auto firms have had limited success in
addressing the problem at the bargaining table, and federal action could
free up billions of dollars for new product investment. The primary
issue before Congress is simple. Companies make investments in their
pension funds, and those investments earn interest over time. The
interest earned is a major factor in their being able to meet their
long-term pension obligations. The assumptions they make about the
growth in the investments determines how much they must pay every year
out of cash on hand. But the benchmark rate of interest they can use is
determined by a federal law, which expires this year. Congress must
decide if the current rate is fair, or whether it forces companies to
invest more than is really required to meet the obligations.
(Source: The Detroit News)


Mitsubishi to Test New Fuel-Cell Vehicle
Mitsubishi Motors Corp., 37 percent owned by DaimlerChrysler AG, has
built its first fuel-cell vehicle, based on the Grandis minivan, and is
awaiting government approval this year to starting testing the car in
Japan. The vehicle uses DaimlerChrysler's FC-System technology and a
Ballard Power Systems Inc. fuel cell stack, Tokyo-based Mitsubishi
Motors said in a statement. Mitsubishi, which is trying to reduce debt
and return to profit in Japan and Europe amid slumping sales in the
U.S., needs to rely on its alliance with DaimlerChrysler for fuel-cell
technology as it can't afford to develop it alone. "Mitsubishi Motors
has other business issues that it probably needs to handle and needs to
make sure that the investment is worth it," said Akihide Kinugawa, who
helps manage the equivalent of $172 million at T&D Asset Management Co.
"The company probably feels it needs to make sure it's working on
environmentally friendly cars" to keep up with rivals.”
(Source: Bloomberg News)


Engineers Design What They Call a Safer, More Fuel-efficient SUV
Engineers say they have designed a safer, more fuel efficient SUV, one
that's based on the popular Ford Explorer and modified with readily
available technology. The Union of Concerned Scientists and the Center
for Auto Safety say their SUV, dubbed the "UCS Guardian," uses the same
amount of gas as a car and is significantly safer than the sport-utes
currently on the road, while maintaining the power and size that
motorists covet. Don't look for this SUV at your nearest Ford dealership
- it exists in concept form only. But the Guardian's designers say it
could be produced now if automakers wanted because the safety features
and fuel-efficient engine in the Guardian already exist. Automakers
insist that sport utility vehicles are safer than passenger cars in the
vast majority of crashes, and SUVs' popularity hasn't been dented a bit
by the critics: They now comprise up to 25 percent of total U.S. vehicle
sales. Industry spokesman Eron Shosteck derided the Guardian concept as
a one-size-fits-all approach, saying that some consumers want an SUV
with safety features and are willing to pay for them, while others
prefer less expensive models. The Alliance of Automobile Manufacturers,
a lobbying group that represents General Motors Corp., Ford Motor Co.,
DaimlerChrysler AG and others, says SUVs already offer plenty of safety
features. More than two-thirds of new SUVs are available with side air
bags, while one-third electronic stability control systems, the group
says.
(Source: The Associated Press)