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UAW rejects GM contract proposal but makes a counter offer

The United Auto Workers union said a new comprehensive offer made by General Motors Co late Monday to end a two-week-old strike was not acceptable and said it had made a new counterproposal. UAW vice president Terry Dittes said in a letter to members "there are many important issues that remain unresolved." The union is awaiting GM's next proposal. He said GM's offer came up short on many issues.  Dittes said GM made a "comprehensive proposal" at 9:40 p.m. Monday. "This proposal that the company provided to us on day 15 of the strike did not satisfy your contract demands or needs. There were many areas that came up short like health care, wages, temporary employees, skilled trades and job security to name a few." Dittes is the union's vice president for GM relations and the UAW's lead negotiator in these contract talks. "We have responded today with a counterproposal and are awaiting GM's next proposal to the union," he wrote. "Regardless of what is publicized in print or social media, etc., there are still many important issues that remain unresolved." The strike, in its third week, has cost GM more than $1 billion, according to J.P. Morgan analyst Ryan Brickman. He said the cost per day in potential profit is $82 million. However, another analysis, by East Lansing-based consultant Anderson Economic Group, put the losses at $25 million a day. And the effects of the strike are expanding. GM said Tuesday the strike has created a parts shortage that forced the automaker to halt production at its pickup and transmission plants in Silao, Mexico, temporarily laying off 6,000 workers. Silao is where GM builds its highly profitable four-door crew cab Chevy Silverado and GMC Sierra pickups. The strike has also forced GM to idle some Canadian workers, and many suppliers have been forced to halt operations. About 48,000 UAW members went on strike on Sept. 16 seeking higher pay, greater job security, a bigger share of the leading U.S. automaker’s profit and protection of their healthcare. 

GM faces possible class action lawsuit over 8-speed transmission

General Motors has been hit with a class-action lawsuit from owners who allege the eight-speed automatic transmission found in several rear-wheel-drive Chevrolet, Cadillac and GMC models between the 2015 and 2019 model years has a defect that causes the vehicles to hesitate and jerk when accelerating or slowing down. The lawsuit was posted to ClassAction.org and spotted by GM Authority. Problems with GM's Hydra-Matic 8L90 and 8L45 transmissions have been well-documented on Internet forums and via complaints filed with the National Highway Traffic Safety Administration, with many reporting damage to their vehicles. The lawsuit was first filed in December in U.S. District Court for the Southern District of Florida but appears to have been transferred recently to New York. Autoblog sought comment from Theodore Leopold, the lead attorney for the plaintiffs. "These transmissions have a common defect," the complaint reads. "Drivers attempting to accelerate or decelerate their cars feel a hesitation, followed by a significant shake, shudder, jerk, clunk, or 'hard shift' when the vehicle's automatic transmission changes gears." The problem also occurs when the vehicles accelerate in a single gear, without shifting, the plaintiffs allege. "Drivers have reported that the shift is sometimes so violent, they feel as though they have been hit by another vehicle." The problem is believed to center on the transmission, torque converter or both. The complaint says it causes undue friction, causing hydraulic systems and gears to function improperly and sometimes leaves metal shavings throughout the transmission, leading to costly repairs and replacement of parts or the entire transmission. It says GM has known about the problems since shortly after it introduced the transmissions, and has issued 13 technical service bulletins, none of which have resolved the problem. GM declined to comment on the lawsuit. The plaintiffs say GM should have warned consumers about the issues and covered repairs under each vehicle's three-year/36,000-mile bumper-to-bumper warranty. They're seeking statewide classes in at least six states: California, Florida, Illinois, New York, Oklahoma and Texas.

GM re-recalls 11k SUVs

General Motors is recalling a bunch of previously recalled SUVs because, well, they still aren't quite fixed. The latest repairs are necessary on 10,974 SUVs in North America, including 9,932 in only the US. Affected models include the 2006-2007 Buick Rainier, Chevrolet Trailblazer, and GMC Envoy; plus the 2006 Trailblazer EXT and Envoy XL. While not listed by NHTSA, a statement by GM to Autoblog says the 2006-2007 Saab 9-7X and Isuzu Ascender are also affected. In these SUVs, it's possible that liquid could get into the driver's door master power window switch module and cause a short circuit. This could potentially lead to a fire, and owners are urged to park the vehicles outside until repaired. GM has been trying to fix this issue for years. It started as an investigation into fires, and that led to a recall for about 250,000 vehicles in cold-weather states. A nationwide campaign came in 2013 for 193,000 of them in the US. Last year, the automaker decided to replace the whole module as a repair. However in a recent investigation of these recalls, GM discovered that this latest group of SUVs never received the new part. According to documents submitted to NHTSA (as a PDF), "Some dealers incorrectly used the labor code associated with module replacement when, instead of replacing the module, they only added a protective coating to the module." To fix things this time, the models finally get the correct component. Related Video: GM Statement General Motors is recalling 9,932 older midsize SUVs in the U.S. because they were mistakenly excluded from an earlier recall. Certain 2006 Chevrolet TrailBlazer EXT and GMC Envoy XL, and 2006-2007 TrailBlazer, Envoy, Buick Rainier, Saab 9-7X and Isuzu Ascender vehicles may continue to have a condition in which the printed circuit board inside the driver's door may corrode and short if exposed to certain fluids such as melted snow containing road salt. GM is aware of four fires but no crashes, injuries or fatalities associated with the expanded recall. The total number of vehicles being recalled, including Canada, Mexico and exports is 10.974. Customers are urged to park these vehicles outside until repairs have been made. GM reported this recall to the NHTSA on September 23.