December 8, 2011

Nissan Emerges as Likely UAW Organizing Focus
As the United Auto Workers ramps up efforts to organize internationally-owned auto factories in the United States, union leaders say they have decided not to name a target – at least not publicly. But a source told The Detroit News that members of the UAW's executive board voted Tuesday night to focus those efforts on Nissan Motor Co. And UAW President Bob King came out swinging Wednesday, accusing the Japanese automaker of unspecified human rights violations at its factories in Tennessee and Mississippi. Nissan said King had not contacted anyone in its North American operations, and called King's allegations baseless. "Mr. King's attempts to disparage Nissan are without merit. Over the last 28 years, Nissan's U.S. manufacturing operations have built a hard-earned reputation for job growth, quality, efficiency, paying competitive wages and benefits, and fostering a positive work environment," Nissan Vice President David Reuter told The Detroit News. This would not be the first time that the UAW and King have targeted Nissan. Earlier efforts to organize Nissan workers failed, including an effort to sign up workers at the company's assembly plant in Smyrna, Tenn., that King personally spearheaded. It represented his biggest defeat as a labor organizer. Read more about the UAW’s plans here.

Mitsubishi Pulls Forward U.S.-Wide Launch of i EV
Mitsubishi President Osamu Masuko, bullish about electric vehicles' prospects in the United States, is pulling forward the nationwide rollout of his company's tiny i battery-powered car by half a year. Automotive News reports that he also plans to add another small electric car in mid-2013. The i went on sale in a few U.S. markets in November. Mitsubishi is planning an initial rollout in California, Washington, Oregon, Hawaii, and Illinois, where the company has its only North American assembly plant. Deliveries of the car are scheduled to begin this month. Mitsubishi originally had aimed to sell the vehicle in all 50 states by December 2012. But it has bumped up the nationwide introduction to June, Masuko said at the Tokyo Motor Show. Masuko said he advanced the rollout after being besieged with requests for the car during last month's annual U.S. dealer conference. "We shifted the timing by six months, so we are preparing ourselves to launch for the entire country by June," Masuko said. "That must demonstrate our high expectations for this product." Mitsubishi's goal is to sell 10,000 units a year of the in the United States. Read more about Mitsubishi’s plans for its i electric vehicle here.

The Ugliest Cars of 2012
Automotive design is part art, part engineering, part manufacturing, part marketing. On rare occasions, all those parts come together to create a brilliant, transcendent car. This year, Forbes says that art, engineering, manufacturing, and marketing have collaborated to produce the vehicles on its list of the Ugliest Cars Of 2012. The publication polled a group of experts, and asked them to express their opinions on a list of vehicles available for sale in the United States for the 2012 model year. They also asked them to share their thoughts about the current state of automotive design. The experts Forbes tapped were: George Peterson, President and founder of Auto Pacific; Michelle Naranjo, managing editor at Autobytel.com; and Evan Gubernick, creative director of Antenna Magazine. Click here to see a slideshow of the list. “Ugly” is a matter of perspective, according to Naranjo: “What is ugly to some may be the high performance, luxury, or quirkiness that the driver feels suits their needs and expectations.” Gubernick concurs, concluding that “it’s a good time for car design” with a European sensibility emerging in American car design. Click here to read more from Forbes on the ugliest cars of 2012.

Possibility of Reorganization Being Thrown Out, Saab Has Days to Find Funding
With Spyker’s administrator looking to call an end to Saab’s reorganization, the pressure is on for the Swedish automaker yet again. A big obstacle to securing funds appears to be General Motors, reports Auto Remarketing. Saab’s former parent has balked at the possibility of Chinese investors taking majority stake, and since GM has a deal to continue supplying vital components, Saab proposed a new plan Wednesday, hoping to win over the bankruptcy court and the U.S. automaker. The catch? This new plan could take weeks to negotiate, time the automaker isn't sure it has. After the automaker revealed Wednesday that the administrator of its reorganization Guy Lofalk will apply for termination of the voluntary reorganization of Saab Automobile and two subsidiaries with the District Court in Vänersborg, Sweden, time is of the essence. As a result of Lofalk’s application, Saab is currently engaged in discussions with Zhejiang Youngman Lotus Automobile and a Chinese bank to secure loans that it needs in a few days to avoid bankruptcy. For the latest on Saab’s attempts to remain afloat, click here.

Incentives Reveal Lux Sales Title Ambitions
As BMW North America Inc. and Mercedes-Benz USA Inc. near the December 31 finish line with BMW holding about a 1,500-unit lead over Mercedes, the No. 2 brand is said to be pulling out a lot of stops in an attempt to usurp BMW. According to Edmunds Auto Observer, in November, Mercedes closed what appeared to be a nearly-insurmountable gap and by all accounts isn’t letting up. The automaker has been offering incentives on its products that are directly competing with Cadillac products that are $1,000 to $1,200 higher. And Ben Poore, general manager of the Infiniti Division, observed that “there is a fairly steep war going on between [BMW and Mercedes] and they’re spending money at incentive levels that I’ve never seen before.” Poore cited Mercedes-Benz lease pull-ahead programs that include an eight-month break for existing customers. “That’s a level of incentive spending that we’re just not going to chase," he said. Sales executives for both German brands explained a number of factors that created an intriguing picture for November and December sales – disregarding any particular sprint to the finish. Read about what both brands are doing to close out the year on a high note here.

Safeguard your Customers from “Shaky” Service Contract Programs
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