UAW Will Continue GM Strike Until Workers Ratify Deal

First Up 10/18/19

UAW Will Continue GM Strike Until Workers Ratify Deal
According to Automotive News, UAW leaders on Thursday voted to extend the union’s national strike against General Motors - now in its 32nd day - until members ratify a tentative agreement. Following a 6 1/2-hour meeting of the UAW’s GM national council here, union spokesman Brian Rothenberg said the council voted to send the deal for ratification and to keep members on picket lines until the deal is ratified. He said informational meetings and voting will begin on Saturday, and the process should be completed in eight days, or next Friday, Oct. 25. The union and automaker on Wednesday reached a tentative agreement that includes a total $9 billion in investments by GM, a commitment to keep open the Detroit-Hamtramck Assembly Plant and a path for temporary workers to gain full-time status, among other gains. Read more here. 

Auto Industry's D.C. Agenda Hinges on Trump-Pelosi Relationship
The Detroit News reports that automakers' hopes for congressional approval of President Donald Trump's proposed replacement for the North American Free Trade Agreement are resting on a Capitol gripped by a looming impeachment fight setting aside partisan bickering long enough to compromise on a trade pact. Democratic leaders have suggested that they can work with Trump on the trade pact, known as the United States-Mexico-Canada Agreement, or USMCA, even as they attempt to impeach him. “I can honestly say that I think every day we're becoming closer,” Speaker Nancy Pelosi, D-Calif., said during her weekly news conference on Thursday, referencing meetings on Wednesday and Thursday between Democratic negotiators and U.S. Trade Representative Robert Lighthizer. The resulting uncertainty has left automakers in lurch about the trade rules that will govern them at a time when Mexican production was front and center in fractious labor negotiations between the United Auto Workers and General Motors Co., sparking a month-long strike only now on the verge of concluding. Read more here. 

Station Wagons Struggle for a Comeback in the U.S. as European Automakers Add Luxury Touches
The wagon is a piece of automotive Americana, but these days it has almost entirely vanished from U.S. roads, reports CNBC. Some European automakers, however, still roll the dice on U.S. buyers with high-end wagons wrapped in leather and, in some cases, boasting big engines with more than 400 horsepower. The only wagon that really sells any meaningful volume is the Subaru Outback, which many people say has really become more of an SUV during its more than 20 year lifespan. But in terms of choice, most U.S. wagons are from European automakers, such as Audi, Mercedes-Benz, and Volvo. Wagons sell far better in Europe than they do in the U.S., where buyers value the combination of sedan-like driving dynamics and the added space. Read more here. 

Top Economic Advisers Warned Trump on Tariffs Before China Truce
President Trump’s top economic adviser last week arranged an Oval Office briefing with outside experts who warned the president that continued escalation of U.S.-China trade tensions could imperil the economy and hurt Mr. Trump’s chances for re-election, according to people familiar with the meeting. The Wall Street Journal reports that the Oct. 8 briefing, which came two days before trade talks between senior U.S. and Chinese officials, was arranged by Larry Kudlow, the director of the White House National Economic Council. The meeting included Stephen Moore, an economic commentator and a former candidate for the Federal Reserve Board, and Republican economist Lawrence Lindsey, the people said. “There was a general consensus that the economy was really strong, the best economy we’ve had in 30 years, and that what’s going to get him re-elected is the economy,” said Mr. Moore, who advised Mr. Trump during his 2016 campaign. Uncertainty over trade has kept financial markets on edge, and the views expressed by the economists in the Oval Office last week are shared widely on Wall Street. Read more here (subscription required). 

Renault's Profit Warning Sets Off Tremors Across Auto Industry
Renault SA set a gloomy tone for the European automotive sector by slashing its outlook for revenue and profit, saying weakening economies are weighing on car sales and tougher rules on emissions have increased costs. Yahoo! Finance reports that the French carmaker’s shares on Friday fell the most since the arrest last year of former boss Carlos Ghosn. Renault reduced its financial guidance for 2019, citing deteriorating results in markets including Turkey and Argentina, and spending on research and development. Standard & Poor’s on Friday put Nissan ratings on a negative watch, saying the global auto industry could face a challenging business environment for the next one or two years, with sales remaining sluggish in major markets like North America and China. Read more here. 

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