Detroit Bureau on Twitter

Posts Tagged ‘auto profits’

Detroit Big Three to Hand Out Record Profit Sharing

Ford, GM and Chrysler employees getting average of $6,150 each.

by on Jan.06, 2014

UAW-represented employees are expected to get record-setting profit sharing checks, but not all of them are happy about it.

The Detroit Big Three are expected to hand out a record-setting $800 million in profit sharing checks to 130,000 hourly workers, providing an economic boost in states laden with UAW-represented workers. Last year, 125,000 workers shared in $780 million in profits, which was the previous record.

The economic impact in Michigan alone exceeds the combined impact of Super Bowl XL in 2006, Major League Baseball’s All-Star Game in 2005 and the National Hockey League’s recent Winter Classic: all events that metro Detroit has hosted in recent years, according to the Detroit News. Other states, such as Ohio and Texas, are also expected to see a significant uptick as well due to the significant number of UAW employees there.

Get a Free Subscription!

While individual amounts given to each worker are expected to exceed last year’s totals, not all employees are pleased with the results because the automakers’ earnings are expected to take a big jump this year compared with last year. (more…)

Clearing the Cliff: Automakers See Boom Ahead

Profits likely to reach record – even though sales will fall short of past highs.

by on Jan.02, 2013

Sign on the dotted line...dealers are seeing a steady increase in traffic, a trend expected to continue in 2013.

The last-minute Congressional compromise that kept the country from going off the so-called fiscal cliff is good news for the U.S. economy and great news for the auto industry, for as the old adage goes: when the economy catches cold the auto industry gets pneumonia.

The resolution in Washington sidestepped some key issues that must yet be worked out in the coming months. But barring some later hitch that generates a new crisis, most industry analysts and insiders are confident that the U.S. car market is finally back on track after its worst downturn since the Great Depression.

A new study by R.L. Polk is forecasting new vehicle registrations will reach 15.3 million in the U.S. this year and “We see it getting into the 16 million range by 2015,” Tom Libby, Polk’s lead analyst for North American forecasting, tells TheDetroitBureau.com.

News You Can Use!

That would be a roughly 50% increase in 2013 from the bottom of the automotive market collapse during the depths of the downturn, and a 6% to 7% rise from the anticipated final sales numbers for 2012 – which are likely to reach near 14.5 million when year-end figures are reported by the industry tomorrow.

(more…)

Autoworkers Plan Auto Show Protest

Disgruntled workers want bigger share of industry turnaround.

by on Jan.04, 2011

UAW activists want the newly-resilient Detroit automakers to share some of their wealth.

Disgruntled auto workers are planning to demonstrate outside the North American International Auto Show again this year just as United Auto Workers President Bob King is scheduled to launch a charm offensive the union’s top brass hope will coax workers from non-union plants into joining the UAW.

The demonstration is set for January 9, the day before the Detroit Auto Show’s official press days.

The disgruntled workers are demanding greater militancy from King and the rest of the union leadership, which has committed to finding a way to compromise with executives at General Motors, Ford and Chrysler as well as other automakers.  The UAW has made numerous concessions since 2007, when the last round of domestic contract negotiations took place – and the protests will argue that workers now deserve some of those concession back in light of the profits being rolled up by Detroit’s Big Three.

http://www.thedetroitbureau.com/about/subscribe

Your High-Performance News Source!

Automakers, on the other hand will be under pressure to protect their new profits in order to pay off debt and to satisfy investors, looking for their own share of the carmakers income.

The contrast on display at the auto show is very likely to shape the union’s approach to the negotiations with the domestic carmakers later this year. King is expected to ask for a larger share of company profits in an effort to appease his critics inside the union.

(more…)

Auto Industry to Recover But Woes to Continue

Small cars will represent half of global growth during the next decade, greatly challenging automaker profitability.

by on Aug.06, 2009

John Hoffecker of AlixPartners

Auto industry will rebound in 2013.

The auto industry is passing through a sweeping transition that will see it selling fewer and smaller cars for the foreseeable future, leaving profits squeezed.

John Hoffecker, a managing director of Alix Partners LLP, told the Center for Automotive Research annual Management Briefing Seminar in Traverse City, that sales of new vehicles are likely to recover relatively quickly.

However, sales are very likely to “plateau.” The U.S. market is a growing market but the old sales forecast of around 17 million to 18 million are likely to prove difficult to reach, even though the US population continues to expand and add new households.

“Because of well-known factors earlier this decade, like the housing and stock bubbles, the auto industry skipped what would probably have been a cyclical downturn around 2001 or so, and about 17 million units of sales were ‘pulled ahead,’ Hoffecker said.”

In the last two years, the industry has in turn given back about 7 million units, leaving 10 million units to be foregone before the industry gets back to zero.

“The good news is the indicators we’re looking at say the industry rebound will probably come earlier than some have been, around 2013. The bad news is, when the rebound comes it is quite likely that sales will plateau at 15 million to 16 million per year and that this ‘new normal’ level of demand will last until the peak of the next business cycle,” Hoffecker said.

(more…)