Happy Friday, and welcome to today's edition of the Daily 5.
We begin today with a story about how contentious the contract negotiations between the UAW and Volkswagen could become. Experts say reaching a deal, even though it would cover only one plant instead of dozens, could be tricky because the two sides are starting fresh. UAW Vice President Chuck Browning, a veteran negotiator, suggested the negotiations would be tough. "You've seen a certain kind of battle, and you've seen the kind of fight Volkswagen can mount," he said Sept. 15, referencing the company previously waging aggressive anti-union campaigns. "Make no mistake, that fight is coming. It's going to take everything we've got." This one will be fascinating to watch.
Speaking of the UAW, its president, Shawn Fain, says it's not every day that the union and dealers are on the same side, but the two groups are united in their belief that Stellantis CEO Carlos Tavares is mismanaging the automaker. Dealers say "reckless short-term decision-making to secure record profits in 2023" has left them "anemic and diminished," piling up inventory as U.S. market share plummets. The UAW is incensed by job cuts and threatening to strike over what it says are broken promises by Stellantis, which disputes the claims. Meanwhile, numerous high-ranking executives have left in recent months, shareholders are suing over lower earnings in the first half of the year, and pricing disputes with several suppliers have turned into unusual legal battles.
General Motors' CarBravo online used-vehicle sales platform logged its best sales month in August — more than 5,500 certified used vehicles — and the automaker is working to build on that momentum. CarBravo, launched in 2022 with a pilot of about 12 dealers, has grown to 267 Chevrolet, Buick and GMC retailers in the U.S. as of September, GM said. A total of 586 dealerships have enrolled in CarBravo across 96 markets, and the footprint is expected to broaden.
And there are two other stories we want to flag for you: John Huetter's report about how the Federal Reserve reducing interest rates will impact the car business and Jamie Butters' column on pulling plastic from the ocean and recycling it into auto parts, a fascinating read.
That's it for our Sept. 20 report. Have a great weekend.
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— Wes Raynal, assistant web editor
