Serves the Commercial Small Fleet Market of 10 – 50 Vehicles

UAW Talks Likely to Reshape Industry

July 5, 2007

Delphi Corp. workers recently agree to concessions that lower wages of the most senior workers at the parts supplier by at least a third, the Detroit Free Press reports.UAW leaders have said concessions are not guaranteed in the upcoming talks and warned a strike is an option if negotiations become one-sided. Delphi, a former GM parts division, had added leverage in its talks because the company is in bankruptcy court.But pressures are mounting for what industry experts say could be a transformational agreement for the Detroit automakers. Struggling to turn a profit in North America, GM, Ford and Chrysler are looking to close what they say is a $1,000-per-vehicle gap in labor costs compared to their Japanese counterparts.According to the Free Press, globalization is making it cheaper to make cars and parts overseas. Asian automakers are taking sales from the domestics. And while they may not be in bankruptcy court, the investment community is pressuring Ford, GM and Chrysler to turn things around soon.
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