Chrysler: Town & Country Seats Recovered W/bed on 2040-cars

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Detroit Three autoworkers could get huge bonuses

For a long time, being a line worker for one of the Detroit Three has meant living with an uncertain future. With the health of American automakers on the rise, though, things are also starting to look up for the men and women building the cars. The latest sign that things aren't bad? Big profit-sharing checks.
According to The Detroit News, Ford, General Motors and Chrysler could end up paying over $800 million to 130,000 workers as part of a profit-sharing plan. According to The News, the economic impact of these profits in Michigan alone could exceed $400 million, besting the NFL's Super Bowl, MLB's All-Star Game and the NHL's Winter Classic for their economic impact.
This is the third straight year the Detroit Three have issued profit-sharing checks to UAW employees, and for many workers, the checks are as close as they'll get to a raise, due to the most recent contract between the union and the manufacturers. On average, employees at GM and Ford receive $1 for every $1 million in North American (not just the US) pre-tax profits. Chrysler, meanwhile, gets a similar deal, although the Auburn Hills-based company calculates profit sharing using 85 percent of the brand's global profits.

Rising aluminum costs cut into Ford's profit

When Ford reports fourth-quarter results on Wednesday afternoon, it is expected to fret that rising metals costs have cut into profits, even as rivals say they have the problem under control. Aluminum prices have risen 20 percent in the last year and nearly 11 percent since Dec. 11. Steel prices have risen just over 9 percent in the last year. Ford uses more aluminum in its vehicles than its rivals. Aluminum is lighter but far more expensive than steel, closing at $2,229 per tonne on Tuesday. U.S. steel futures closed at $677 per ton (0.91 metric tonnes). Republican U.S. President Donald Trump's administration is weighing whether to impose tariffs on imported steel and aluminum, which could push prices even higher. Ford gave a disappointing earnings estimate for 2017 and 2018 last week, saying the higher costs for steel, aluminum and other metals, as well as currency volatility, could cost the company $1.6 billion in 2018. Ford shares took a dive after the announcement. Ford Chief Financial Officer Bob Shanks told analysts at a conference in Detroit last week that while the company benefited from low commodity prices in 2016, rising steel prices were now the main cause of higher costs, followed by aluminum. Shanks said the automaker at times relies on foreign currencies as a "natural hedge" for some commodities but those are now going in the opposite direction, so they are not working. A Ford spokesman added that the automaker also uses a mix of contracts, hedges and indexed buying. Industry analysts point to the spike in aluminum versus steel prices as a plausible reason for Ford's problems, especially since it uses far more of the expensive metal than other major automakers. "When you look at Ford in the context of the other automakers, aluminum drives a lot of their volume and I think that is the cause" of their rising costs, said Jeff Schuster, senior vice president of forecasting at auto consultancy LMC Automotive. Other major automakers say rising commodity costs are not much of a problem. At last week's Detroit auto show, Fiat Chrysler Automobiles NV's Chief Executive Officer Sergio Marchionne reiterated its earnings guidance for 2018 and held forth on a number of topics, but did not mention metals prices. General Motors Co gave a well-received profit outlook last week and did not mention the subject. "We view changes in raw material costs as something that is manageable," a GM spokesman said in an email.

Weekly Recap: Obama reflects on the auto bailout's legacy

President Obama took a victory lap of sorts this week at the Detroit Auto Show, lauding the industry's progress and reflecting on the decision to bail out General Motors and Chrysler seven years ago. While the rescue was controversial at the time, historians will likely judge the president's actions to help save two of America's industrial symbols in a positive light. Much like Theodore Roosevelt's trust-busting tactics were controversial in the early 20th century, Obama's plan drew fire from critics who argued the free market should be left to its own devices. But providing financial aid and forcing the automakers to restructure had an enduring impact on the US economy. The auto industry has added more than 646,000 jobs since the companies emerged from bankruptcy, including manufacturing and retail positions. Make no mistake, GM and Chrysler were nearly dead in 2009. Now, GM is a powerhouse that's set to capitalize on a market that could see 18 million vehicles sold this year. Chrysler, which was renamed FCA US, survived as part of the Italian-American Fiat Chrysler Automobiles conglomerate. It's also performed well amid the strong industry conditions, though CEO Sergio Marchionne very publicly went looking for alliance partners last year, something from which he's since backed off. While Obama can claim a win, the bailout was actually started by George W. Bush, who provided short-term loans to GM and Chrysler in December 2008. Without that, they might not have made it much past Obama's inauguration. NEWS & ANALYSIS News: Spy Shooters captured the next-gen BMW Z4 during extreme cold weather testing. Analysis: The upcoming Z4 (which might be called the Z5) looks sharp. But the big deal is that BMW's much-anticipated sports-car project with Toyota is coming to fruition. Refresher: BMW and Toyota agreed to work together back in December 2011 and then announced an expansion of that deal to include sports cars in June 2012. Ultimately, it will provide BMW with a new Z4 and Toyota with another sports car, perhaps the Supra replacement. BMW is developing the platform, while Toyota is expected to chip in with hybrid technology. Big picture, this project is a good thing. It's providing enthusiasts with two modern sports cars that Toyota and BMW might not chose to develop on their own. This template has been shown to work, as the Fiat-Mazda alliance produced the MX-5 Miata and 124 Spider. News: The Jeep Grand Cherokee Hellcat was also spied, briefly.