Eastern Railroad Discussion > No strike! Ford and UAW reach a deal

Ford and the United Auto Workers have apparently reached an agreement that avoids a strike. Ford will invest $6 billion in US factories as part of the deal.

Good news for the railroads that haul auto parts and finished vehicles.

https://www.nytimes.com/2019/10/30/business/ford-uaw-union-deal.html

Some additional details in this story from The Detroit News, which I continue to recommend to TO members as an excellent general audience source (no paywall) for auto industry news, including about current labor contract negotiations with GM, Ford and FCA: https://www.detroitnews.com/story/business/autos/ford/2019/10/30/uaw-reaches-tentative-agreement-ford/4099859002/

Subsequent to this story the news just broke about 30 minutes ago before this writing, that as part of the deal between the Ford and the UAW, Ford will close its smaller Romeo, Mich. engine plant, which employs abut 600 hourly workers. Employees there will be allowed to transfer to the Van Dyke Transmission plant, about 15 miles away, and no job losses are expected.: https://www.detroitnews.com/story/business/autos/ford/2019/10/31/ford-plans-close-romeo-engine-plant-part-new-uaw-deal/4110530002/. Impact to rail shipment, if any, is unknown.

In addition to the Ford - UAW tentative contract, it was a big day for auto industry news elsewhere as FCA (Chrysler) reported record third quarter earnings, even as it announced that it will merge in a 50-50 deal with Peugeot's Groupe PSA, creating the world's fourth largest automotive group. Groupe PSA is strong in Europe, has well-regarded management, and is ahead of FCA in what is generally being termed Auto 2.0 -- electric and autonomous vehicle production, a critical dimension in the business today. It was emphasized that synergies are expected NOT   to include plant closures, which seems reasonable given the fact that Peugeot has a small current U.S. footprint and no manufacturing facilities here that might be considered duplicative. Still, workers may be nervous about their jobs, as all of us who have been through mergers know from experience (myself included). This is all against the backdrop of UAW contract negotiations with FCA, which now becomes the UAW's focus after a new contract with GM, and a tentative one announced with Ford. Again, impact upon rail shipments is unknown at this time. Good article from The Detroit News: https://www.detroitnews.com/story/business/autos/chrysler/2019/10/30/fiat-chrysler-peugeot-merge/4100298002/

MC
Muskegon, Michigan



Edited 2 time(s). Last edit at 10/31/19 10:40 by ironmtn.

ironmtn Wrote:
-------------------------------------------------------
> Some additional details in this story from The
> Detroit News, which I continue to recommend to TO
> members as an excellent general audience source
> (no paywall) for auto industry news, including
> about current labor contract negotiations with GM,
> Ford and FCA:
> https://www.detroitnews.com/story/business/autos/f
> ord/2019/10/30/uaw-reaches-tentative-agreement-for
> d/4099859002/
>
> Subsequent to this story the news just broke about
> 30 minutes ago before this writing, that as part
> of the deal between the Ford and the UAW, Ford
> will close its smaller Romeo, Mich. engine plant,
> which employs abut 600 hourly workers. Employees
> there will be allowed to transfer to the Van Dyke
> Transmission plant, about 15 miles away, and no
> job losses are expected.:
> https://www.detroitnews.com/story/business/autos/f
> ord/2019/10/31/ford-plans-close-romeo-engine-plant
> -part-new-uaw-deal/4110530002/. Impact to rail
> shipment, if any, is unknown.
>
> In addition to the Ford - UAW tentative contract,
> it was a big day for auto industry news elsewhere
> as FCA (Chrysler) reported record third quarter
> earnings, even as it announced that it will merge
> in a 50-50 deal with Peugeot's Groupe PSA,
> creating the world's fourth largest automotive
> group. Groupe PSA is strong in Europe, has
> well-regarded management, and is ahead of FCA in
> what is generally being termed Auto 2.0 --
> electric and autonomous vehicle production, a
> critical dimension in the business today. It was
> emphasized that synergies are expected NOT   to
> include plant closures, which seems reasonable
> given the fact that Peugeot has a small current
> U.S. footprint and no manufacturing facilities
> here that might be considered duplicative. Still,
> workers may be nervous about their jobs, as all of
> us who have been through mergers know from
> experience (myself included). This is all against
> the backdrop of UAW contract negotiations with
> FCA, which now becomes the UAW's focus after a new
> contract with GM, and a tentative one announced
> with Ford. Again, impact upon rail shipments is
> unknown at this time. Good article from The
> Detroit News:
> https://www.detroitnews.com/story/business/autos/c
> hrysler/2019/10/30/fiat-chrysler-peugeot-merge/410
> 0298002/
>
> MC
> Muskegon, Michigan

Slow down a bit. FCA and PSA are discussing a merger. No agreement between the two much less shareholder and government approval.

Posted from Android

It would appear they have struck a deal if only a prelimenary one.....obviously relavent authorties and shareholders must approve.