Tagged: GM

A top GM executive said Thursday that the automaker wants to peg United Auto workers' pay to their job performance. Workers who turn out quality vehicles would benefit financially.

"We want to pay for the performance," GM North American President Mark Reuss told reporters at an industry conference.   “All of those things that I get measured on, I want everybody else measured on, too.”

That would be a big change at GM, where the current UAW contract expires Sept. 14.

General Motors made $2.5 billion in the second quarter. 

That’s slightly more than GM’s cross-town rival, Ford Motor Company made in the same period.    Ford made $2.4 billion.

But both companies are forecasting a dip in profitability in the second half of this year. 

Most of GM’s second quarter profit came from North America, as truck and Chevrolet brand car sales rebounded.  North American President Mark Reuss says the strong performance came despite the slow economy and some unexpected events.

“I didn’t think the debt ceiling crisis was going to happen, " Reuss told reporters at an annual auto industry conference in Traverse City.  "I didn’t think the tsunami was going to happen, all those things you don’t know what’s going to happen.  But if you’ve got a business and an operational model that can handle it and adapt quickly, then I think that’s the key."

General Motors may have beaten analysts’ expectations, but the company is not yet meeting investors’ expectations.

This is GM’s sixth quarterly profit in a row, a dramatic improvement compared to the years leading up to the bankruptcy.

Reports have swirled that GM plans to sell its European division, Opel, for more than a month:

The United Auto Workers formally kicked off negotiations today with Detroit automakers.

Current UAW contracts with Chrysler, GM, and Ford expire in mid-September.

Michigan Radio's Sarah Cwiek reports that Chrysler Group LLC management and the UAW emphasized unity at the press event today:

Scott Garberding is a Senior Vice President for Chrysler. He says the company and the UAW worked together to get Chrysler through bankruptcy. Garberding says it’s important for the new contract to recognize the sacrifices Chrysler workers have made.

"And at the same time, establishing a legacy for our organization to ensure that we remain competitive long-term. And I can’t think of a better team that could collectively come together and craft that type of arrangement. "

Last week, UAW President Bob King said he wanted workers to see the benefits of increased profit sharing. The UAW is also expected to seek wage increases for entry-level workers, and job guarantees. After huge layoffs, King said remaining workers want to count on their jobs:

“They want stability,” he said. “They want to know they’ll be working next week and next year, and that they will be able to send their kids to college.”

Talks are expected to take at least a month, and if things don't go well in negotiations with Chrysler and GM, the UAW is compelled to enter into binding arbitration. The UAW cannot strike under the terms of the government bailouts:

This year, for the first time, the UAW is bound by an agreement that it reached with Chrysler and General Motors in 2009 that requires the two sides to enter into binding arbitration if they reach an impasse.

King said Chrysler and the UAW have formed a committee to set up the ground rules for arbitration, even though he said that is a last resort.

“If arbitration happens … then I would say we haven’t done our job,” King said.

The UAW can, however, strike against Ford Motor Company. Analysts are curious to see if UAW negotiators are able to secure better terms with Ford.

General Motors will invest $328 million in its Flint Assembly Plant, to prepare the facility to build the next generation of Chevy and GMC full-size pickup trucks.

The plant just added a third shift earlier this year.

Joe Ashton is the UAW's GM Vice President.

He says the profitable trucks made at the Flint Assembly Plant are an important source of revenue for GM.

The UAW heads into contract negotiations next week with Ford, Chrysler and GM. 

Ashton says workers want a lot of different things from their new contract. 

A state board has approved tax incentives for projects connected to General Motors and other companies in Michigan.

The Michigan Economic Growth Authority on Tuesday approved an amended brownfield tax credit valued at $10 million for GM's Van Slyke complex in Flint. The new project is expected to retain up to 185 jobs.

HP Enterprise Services is a subsidiary of Hewlett-Packard and was awarded a tax credit valued at $3.5 million over the next seven years. The credit will support a project in Pontiac expected to create up to 250 jobs.

Magna Exteriors and Interiors USA will receive a $1.5 million tax credit over the next three years connected to facilities in Howell, Benzonia and St. Clair County's China Township. More than 300 new jobs are connected to the projects.

When a massive quake struck Japan on Friday, March 11th, Bill Hurles was up north with his sons on a snowmobiling trip.  Hurles is head of supply chain for General Motors. 

After he saw the first footage of the tsunami slamming into the northern coast, Hurles cut his trip short and returned to Warren.   By early Sunday morning, he and his team were in the War Room, desperately trying to get information.