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GM reports third straight sales drop in China in 2020

BEIJING — General Motors' vehicle sales in China fell 6.2% in 2020, as the U.S. automaker suffered a prolonged slowdown in the world's biggest auto market. GM, China's second biggest foreign automaker, delivered 2.9 million vehicles in the country last year, the company said on Wednesday, for a third straight decline in annual sales. But sales have been recovering in the second half of last year, up 12% between July and September and 14% in the final three months. GM has a Shanghai-based joint venture with SAIC Motor, in which the Buick, Chevrolet and Cadillac vehicle brands are made. It also has another Liuzhou-based venture, with SAIC and Guangxi Automobile Group, in which they make no-frills minivans and have started to make higher-end cars. Sales of its Buick brand grew 4% on the year and Wuling rose 9%, the statement said. Luxury brand Cadillac's sales increased 8%. Sales of GM's more affordable Baojun brand dropped 33% last year, while sales of its mass-market Chevrolet tumbled 30%. GM's delivery of 2.9 million vehicles in China follows 3.09 million vehicles in 2019, 3.65 million vehicles in 2018, and 4.04 million in 2017, for a three-year decrease of 28%.

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs

Vert-A-Pac train cars kept your Chevy Vega's price in check

Our apologies to those who've seen this before, but for the rest of the class, how awesome are these pictures of the Vert-A-Pac shipping system General Motors came up with to ship the Chevrolet Vega back in the 1970s? Developed along with Southern Pacific Railroad, GM was able to double the amount of Vega models it could ship by packing them into the unique storage cars vertically.
At the time, rail cars could fit 15 vehicles each, but Chevrolet was able to lower shipping costs by making it possible to ship 30 Vegas per rail car, in turn allowing the price of the Vega to remain as low as possible. Each rail car had 30 doors that would fold down so that a Vega could be strapped on, and then a forklift would come along and lift the door into place. All the cars were positioned nose down, and since they were shipped with all of their required fluids, certain aspects had to be designed specifically for this type of shipping, including an oil baffle in the engine, a special battery and even a repositioned windshield washer reservoir. See for yourself in our image gallery above.