Detroit automakers

In this morning's news: Lansing debating surplus, hospital merger sacked, carmakers won't shutdown

Michigan Radio Newsroom — Wed, 22 May 2013 11:15:50 +0000

Policymakers debate how to spend surplus

The debate continues in Lansing over how the state should spend almost half a billion dollars in unexpected revenue this year. The Michigan League for Public Policy believes that because the state’s Earned Income Tax Credit is less than a third of what it was a couple years ago, legislators should restore the credit for the working poor.

"A spokesperson for state House Democrats says they support the idea of using some of the money to restore the Earned Income Tax Credit. However, Governor Rick Snyder says a similar tax credit from the federal government does enough to help working poor families in Michigan. He wants to use the extra cash to fix roads," Michigan Radio's Jake Neher reports.

Merger between Beaumont and Henry Ford sacked

The planned merger between Beaumont and Henry Ford health systems, two of southeast Michigan’s largest health care providers, has been scrapped. The leaders of each hospital signed a letter of intent to merge last fall, but negotiations didn’t work out so well. On Tuesday, Henry Ford CEO Nancy Schlichting sent a letter to employees, indicating they’ll end talks and let the agreement expire.

“It became apparent that two very different perspectives have emerged for the new organization between Henry Ford and Beaumont,” Schlichting wrote. Michigan Radio's Sarah Cwiek has more.

Rising car sales cut plant shutdowns

Summer vacation will be cut short for auto factory workers in Michigan this year, as carmakers try to keep up with heightened demand. Detroit automakers plan to reduce their annual shutdowns at dozens of North American plants that produce popular Ford and Chrysler models.

“This sends a strong signal that the industry is in a healthy place,” Jeff Schuster, senior vice president of forecasting at market researcher LMC Automotive, told The Detroit News.

Chinese automakers and businesses quietly move into Detroit

Michigan Radio Newsroom — Mon, 13 May 2013 15:08:42 +0000

This morning, the New York Times reported on the slow and steady increase of Chinese companies setting up in metro-Detroit.

The NYT's Bill Vlasic reports it has been a largely unannounced trend – and given the public opposition experienced by Japanese automakers – it is most likely an intentionally quiet entrance.

Chinese-owned companies are investing in American businesses and new vehicle technology, selling everything from seat belts to shock absorbers in retail stores, and hiring experienced engineers and designers in an effort to soak up the talent and expertise of domestic automakers and their suppliers.

Overall, most Chinese suppliers are interested in expanding their direct business with Detroit car companies. Many Detroit car companies rely on low-wage countries like Mexico to get common car parts. Chinese companies are trying to change that.

Stateside: A big event for the Big Three

Michigan Radio Newsroom — Wed, 14 Nov 2012 21:27:30 +0000

Being presented this week at the Henry Ford Museum is a case study called “The Big Three Roar Back." The aim of the event, organized by Harvard's Business School, is to examine the comeback of the American auto industry.

One of event's organizers is Harvard Business School professor, William George.

George spoke with Cyndy about the Big Three's revival and other industries of concern.

Listen to the segment in our podcast above.

UAW President: Relationship with Detroit automakers has improved

Tracy Samilton — Thu, 04 Aug 2011 10:39:00 +0000

United Auto Workers President Bob King says the relationship between the union and Detroit car companies has dramatically improved. That could help the two sides reach an agreement more quickly in ongoing contract talks. And King hopes it will help him sell the value of his union to foreign auto companies in the U.S.

The UAW is a third the size if was in 1979 mostly due to the downsizing of the Detroit Three. Future hiring by Detroit car companies will likely be modest. So the UAW wants to unionize foreign auto companies in the U.S.

Union President Bob King says most of the companies have agreed to meet with his group. He says the union needs to overcome strong anti-union sentiment, and convince the companies that the new UAW wants to help them be profitable.

“Probably the biggest question in their mind is, is this for real, is this a passing fancy with the UAW or is this for real?”

Prolonged and contentious contract talks could throw a monkey wrench in the unions’ plans to try to unionize a foreign automaker. But King and Detroit automakers say they’re negotiating in a spirit of cooperation.