Labor negotiations between Volkswagen and the UAW remain unresolved nearly a year after unionization at VW's Chattanooga plant, with key disagreements over wages and benefits. California faces legal battles over heavy truck emission standards, while global EV sales growth slows, largely due to China's reduction in incentives. Porsche struggles with declining sales and explores defense sector investments. Meanwhile, automakers in the US are rapidly increasing robot use in manufacturing, driven by rising labor costs and workforce challenges. Toyota expands childcare offerings to support workers, and BMW plans a luxury off-roader launch in 2029. Cadillac introduces a new high-end customization program inspired by the Celestic.
- VW and UAW Still Bargaining - Truck Makers Sue California - Global EV Growth Slows - Porsche Looks to Defense Sector for Growth - Chinese Automakers Still Dragging Out Supplier Payments - BMW Plans G-Wagon Competitor - Cadillac Launches Customization Program - Auto Industry Powers Robot Growth - Toyota Offers Childcare at Factories - Toyota's Mike Sweers to Retire
"...nds, the average transaction price for a Mercedes G Wagon is nearly two hundred and nine thousand dollars, ..."
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Speaker 1: This is Uderline Daily, the show dedicated to enthusiasts of the global automotive industry. Here we are a year later,
and Volkswagen and the UAW still haven't signed a labor deal.
Workers at VW's plant in Chattanooga, Tennessee, overwhelmingly voted to unionize in April twenty twenty four for the first time ever.
Contract negotiations kicked off last September, but now nearly a year later.
Speaker 2: The two sides still haven't come to an agreement.
Speaker 1: VW's latest offer includes a twenty percent pay raise over four years, cost of living adjustments, lowered healthcare costs, profit sharing, and an eight percent attendance bonus. The UAW wants a
twenty four point five percent pay increase over three years, uncapped cost of living adjustments, free healthcare, contributions to retirement accounts, and profit sharing, which would be similar to what the Detroit automakers receive. The UAW hasn't responded to VW's latest proposal,
but the automaker says it's reaching the limits of what it can offer. California is being sued by heavy truck
makers over stricter emission standards. Daimler Volvo, Packar and International
Motors are trying to block California from enforcing the standards under the argument that President Trump rescinded the EPA waiver that allows the state to set its own emission regulations.
The truck makers say they've been caught in the crossfire between the state and federal government, and the regulatory uncertainty has put them at harm because they can't make future plans without knowing what kinds of vehicles they can sell.
At the same time, California is suing the Trump administration for revoking that EPA waiver, so this is likely going to be a lengthy legal battle.
Speaker 2: And by the way, heavy.
Speaker 1: Trucks only account for about seven percent of greenhouse gas emissions in the US. Sales of evs and pea haves
have been on a tear all around the world for the last five years, but now the rate of growth is slowing. According to Romotion, automakers sold one point six
million evs and pheaves in July, which was up twenty one percent compared to a year ago. However, it's the
slowest rate since January, and it was down from the twenty five percent increase in June. Interestingly, China, which accounts
for more than half of global EV sales, was the main reason sales slowed. That's because China paused some government
incentives for purchasing a new EV or p have in July.
Portia is in trouble and it seems like it knows it.
The automaker counted heavily on the Chinese market but has seen sales plummet as Chinese enthusiasts turn to cars like the Shaomisu seven Ultra instead.
Speaker 2: In the US, it.
Speaker 1: Faces tariffs that are six times higher than they used to be an EVA. In Europe, Porsche's sales were down
nineteen percent for the first half of the year, just to show you how bad things are. Last quarter, Scota,
one of the bargain brands in the Volkswagen Group, turned in a profit that was higher than Porsche's. So the
board of directors is looking to the defense sector as a new source of growth. For now, it's investing in
defense related companies, but who knows, maybe it will go beyond that. Porsche has a rich history of designing military vehicles,
including artillery tractors in World War I and panzer and tiger tanks in World War II.
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Speaker 1: Back in June seventeen, Chinese automakers agreed to speed up payments to suppliers, but so far, most of the companies are not following through. Previously, some automakers were taking more
than one hundred days to pay suppliers, so the Chinese government stepped in to get them to commit to a sixty day payment period, but China state broadcaster CCTV reports that only faw gac Ian series have met the pledge so far. However, it does claim that the other companies
are working hard to meet the goal and official with the China Association of Automobile Manufacturers says new contracts with suppliers will be in compliance with the sixty day pledge, while outstanding ones will gradually be resolved. BMW is reportedly
coming out with a luxury off roter in the second half of twenty twenty nine, but we wonder what took it so long to get here. According to Edmunds, the
average transaction price for a Mercedes G Wagon is nearly two hundred and nine thousand dollars, second only to the portion nine to eleven amongst mainstream luxury models, so BMW has let Mercedes walk away with the segment. Automotive News
reports that the new off roter is expected to be based on a modified version of the X five's platform and will be produced at the company's US plant in South Carolina. If you're wondering why BMW is waiting until
twenty twenty nine to launch the vehicle, it seems to be timed up with the exit of the XMSUV, which goes out of production at the end of twenty twenty eight, according to Auto four Cast Solutions, and speaking of profits to be made, Cadillac says it took lessons learned from the handbuilt Celestic to create a new customization program called Curated by Cadillac. The first models to get the treatment
will be a limited number of twenty twenty six CT five V black Wings, which will also be handbuilt at the same artisan center in Michigan as the Celestic. Each
customer will have an expanded selection of colors, finishes, and materials to choose from, and will get their own personal concierge to help walk them through the entire process. Production
will start in the middle of next year, and prices will start at one hundred and fifty eight thousand dollars including destination charges, which is about sixty grand more than a regular CT five V black Wing. Automakers and suppliers
in the US are quickly adding more robots to their manufacturing operations. In the first half of the year, robot
sales in all industries were up just over four percent, but in the auto industry they were up thirty four percent, by far the most of any sector. Cobots or collaborative
robots now account for one out of four robot sales.
That's according to the Association of Advanced Automation and as the prices of robots and cobots continue to fall, and as labor costs go up, the cost benefit ratio is increasingly favoring automation, and as it becomes increasingly difficult to find people willing to work in factories, robot sales will almost undoubtedly continue to climb. And with that in mind,
Toyota is trying to make it more enticing for parents to work at its plans. It's gonna start offering childcare
at most of its sites. It has offered the service
in Kentucky since nineteen ninety three and in Indiana since two thousand and three. Budd It will also add centers
in North Carolina, Mississippi, Alabama, and West Virginia starting this year through twenty twenty seven.
Speaker 2: They'll be available to kids six.
Speaker 1: Weeks to five years old and have all the amenities you would expect from any modern child care facility. While
it's unclear if employees are offered discounted rates, the centers are open for multiple shifts and in some cases twenty four hours a day, so most parents can have childcare no matter what their schedule is.
Speaker 2: And speaking of Toyota.
Speaker 1: We'd like to wish a happy retirement to Mike Squeers, the guy in charge of all of the company's North American vehicle research and development and a multi time guest of aut a Line. We always enjoyed Mike's honesty and
enthusiasm for the projects he was working on. He'll be
replaced by Keita Mouritsu, Toyota's current senior executive for R and D in North America.
Speaker 2: Well, that brings us to the end of today's show.
Speaker 1: Thanks for making autoline a part of your day.
Speaker 4: Auto Line Daily is brought to you by Bridge Stone Solutions for your Journey CSP, the composites solution partner Intrepid Control Systems. Over the year engineering boost your game and
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Speaker 5: At CSP, we work with OEM engineers across the country on their journeys to lighter, safer, and more eco friendly vehicles.
Learn more at THECSP dot com. Making a life full
of memories, one road trip at a time, That's what really matters.
Speaker 3: Bridgetone weather Peak Tires with Speaker 2: A seventy thousand mile women at Warranty
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