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The United Auto Workers were on strike against General Motors despite the fact that the two parties are still in negotiation. The primary cause of the strike is job security specifically for GM plants located in Fairfax, Kansas; Spring Hill, Tennessee; and the Lordstown, Ohio---these are the very same plants without any future product planned that is according to Edmunds’ Auto Observer.

Senior Michelle Krebs, Edmunds’ Auto Observer Senior Editor also commented that: "A strike is good for no one: not for GM, the UAW, the Detroit area and other GM towns, nor the global economy. But, the economy and car market are relatively soft, and GM has a reasonable stockpile of inventory – companywide, the average is 87 days’ worth, above the industry norm of 60-65 days."

A strike is not something that GM needs right now especially with some of its models gaining sales momentum. Philip Reed, Consumer Advice Editor for Edmunds.com also said, "Those planning to buy a GM vehicle should act quickly before the inventory dwindles down and negotiations become challenging as demand exceeds supply."

The effect of the strike reaches Canada and Reuters has reported that there is the possibility that 100,000 Canadian workers could be laid off by the end of this week if the strike at General Motors’ US operations continues.

CAW President Buzz Hargrove said in a televised news conference that around 80,000 to 100,000 employees in the Canadian auto sector could be laid off and that includes 40,000 employees from parts manufacturers that supply GM.

Mr. Hargrove said, "To put it into perspective, we have about 80,000 workers in Canada that work in the automotive parts sector and General Motors buys about 50 percent of all automotive parts that are manufactured in Canada. You can expect up to 40,000 auto parts workers to be laid off in the next three days."

There would also be around 17,000 direct employees at General Motors in Canada that may be affected if the strike continues. He also added, "So, it's not inconceivable that by the end of this week, we could have between 80,000 to 100,000 people unemployed, mostly in Ontario, some in Quebec, as a result of the dispute between General Motors and the United Auto Workers in the United States."

Currently GM has two car plants and one truck plant in Oshawa, Ontario, a transmission plant in Windsor, Ontario, and engine and components plant in St. Catherines, Ontario, a parts and distribution plant in Woodstock, Ontario, and joint venture facility with Suzuki Motor Corp. in Ingersoll, Ontario---all these are to be affected by the strike as a matter of fact, the transmission plant in Windsor has closed down after the strike began.

China Business News has reported recently that GM plans of building a wholly owned research center in China and at the same time will tie up with FAW Group for the very first time to produce commercial vehicles.

Analysts see this move of General Motors as part of its aggressive development in China and also gives a hints of its strained relationship with its present sole Chinese partner, SAIC which is has recently rolled out its self-branded models.

If realized the new wholly owned engineering center of GM would become the sixth of its kind globally. The Shanghai-based newspaper also added that the Detroit-based automaker would benefit immensely from the lower research and development costs from the new engineering center.

The report further stated that it is also highly probable that a new venture would be formed with FAW Group, China’s leading commercial vehicle maker.

In an email sent by GM to China Business News, the automaker has stated: "Along these lines a number of different options are being explored, but at this stage we are not ready to make any announcement." However, Gao Yuan, a communications official from FAW Group has said that he is not aware of that.

An unnamed industrial analyst who used to work for GM was quoted by the China Business News as saying: "GM is not competitive in the commercial vehicle segment worldwide. A strategic alliance would help to speed up the development. But it is still hard to form one in a short period."

With regards to the R&D center, the analyst also said that it could help in growing GM’s ambition in China especially in growing sales volume. GM’s new venture is also regarded by the analyst as the automaker’s defensive move against its current Chinese partner that is already launching self-branded models.

SAIC has two ventures with GM and is now investing heavily in developing models that would carry its own name plate. The very first model of SAIC that was launched in the market has designs that were purchased from former British Rover Corp last 2005.

 

Chrysler LLC has recently unveiled its Jeep J8 multipurpose vehicle at the 2007 Defense Systems & Equipment International (DSEi) military trade show which simply goes to show that the iconic Jeep is once again available for enlistment in military service.

Thomas Hausch, Vice President-International Sales, Chrysler LLC was quoted at a press release at worldcarfans.com as saying: "Jeep vehicles made their original debut in 1941 for military duty, and have built their reputation with more than 65 years as the world’s benchmark for off-road capability and versatility for civilian and military vehicles. The new Jeep J8 marks the brand’s return to vehicle production for military and civilian government use – the same capability that makes the Jeep Wrangler and Wrangler Unlimited famous also makes the Jeep J8 a truly multipurpose vehicle."

Jeep engineers have made use of the all-new 2007 Jeep Wrangler Unlimited as its base for creating a Jeep with more capability and versatility. The structure of the Wrangler Unlimited was reinforced for increase off-road performance and to accommodate greater payloads up to a maximum of 1,339kg or 2,952 lbs.

Every components of the Jeep J8 including axles, brakes, and suspension are specifically designed to tackle demanding military and civilian government use. The J8’s Command-Trac® four-wheel drive system enables maximum versatility and performance both in on- and off- road conditions.

The Jeep J8 is powered by a 28 liter four-cylinder turbo-diesel engine mated to a five-speed automatic transmission that revs up 118kW or 158 hp and 400Nm of torque plus a towing capacity of up to 3,500kg or 7,716 lbs.

The new J8 also features a unique air-intake system with special filtration and a hood-mounted snorkel that allows this new Jeep to wade in water up to 762 mm deep and then withstand sandstorm conditions for up to five hours. Amazing!

The J8 is offered as a two-door with an extended pickup bed for personnel or equipment transport. It also comes as a four-door multipurpose vehicle produced with numerous vehicle-body and seating configurations in either right-hand or left-hand drive.

Despite the remarkable features and capabilities, the J8 is not designed for front-line combat operations although it is fully armored and excels in a variety of duties ranging from command vehicle to troop cargo carrier, ambulance, communications vehicle and other similar duties. It heavy duty bumpers with tow eyes enable the Jeep J8 to be transported by means of airplane or helicopter.

The J8 will be built in a Chrysler LLC joint-venture facility in Cairo Egypt and will be offered in spring of 2008.

General Motors has won the Corporate Energy Management of Year Award given by the Association of Energy Engineers. The said award is also being shared by the automaker with Detroit Edison through its Energy Partnership Program, General Motors was able to reduce its energy use at its manufacturing plants.

Detroit Edison’s Energy Partnership and Services Group has joined forces with GM for more than 10 years now in order to implement energy efficiency projects as well as to identify opportunities throughout the facilities of GM across the country.

Robert J. Buckler, Detroit Edison President and Chief Operating Officer was quoted by theautochannel.com as saying: "We are pleased that our partnership has helped GM achieve dramatic gains in energy efficiency and conservation, and we look forward to continuing to assist with future energy cost-saving initiatives. The Energy Partnership program not only helps GM and other major industrial customers save energy and money; it also benefits communities and the environment through lower emissions at power plants and at our partners' facilities."

The Partnership Program coverage includes:
•    Energy surveys, audits and customized energy efficiency plans.
•    Lighting system evaluations and recommendations.
•    Compressed air system evaluations and development of a leak repair program.
•    Heating, ventilation, and air conditioning systems evaluation and development of an optimization plans.
•    Chilled- and process-water system analysis and design enhancements.
•    Employee energy awareness programs.

General Motors is not the only automaker that was helped by Detroit Edison’s Energy Partnership to get an award. Last 2006 it has helped Ford Motors to obtain the Energy Star 2006 Partner of the Year Award from the US Environmental Protection Agency and US Department of Energy.