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Pay Cuts vs Bailouts (3/21/12)

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  1. dodge2:52
  2. GM0:29, 0:48, 1:53
  3. Fiat 5003:19
  4. Jessica Caldwell4:30
  5. Steven Rattner1:18
  6. tough guy3:15
  7. reduced compensation0:10
  8. Auto Workers Union1:37

Wed, 21 Mar 2012|

Canada urged to tie automaker aid to wage cuts, GM says consolidating global ad agencies will save billions, and automakers go on a man hunt.

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Automatically Generated Transcript (may not be 100% accurate)

We are arguing that there's some room there there's -- there for auto workers -- to provide more of the incentives for investment. In the form of reduced compensation. Waging war. A new perspective on the big auto bailouts. Hello everyone I'm Tom -- back. The 2009 rescues of GM and Chrysler. Not only fell on the American people but also -- taxpayers of Canada and the Ontario province. At a new report examining Canada's role in the side. May raise eyebrows among that nation's auto workers. It's is helping out GM and Chrysler was a good idea but any continuing support for the industry. Must come with that condition. Wage cuts at the plants. We do things that workers in the automotive industry are earning a significant premium above the competitive level and therefore there is some scope but there for them to make some concessions. The report by the institute for research on public policy. Is reminiscent of this comment last December but former US cars are Steven Rattner. You could make an argument we should try to -- -- a bit more we should've maybe asked the creditors give a bit more we should have maybe. Ask the UAW to give a bit more we did not ask one active UAW member to take it cut their cash wages. According to Toronto's globe and mail newspaper the Canadian Auto Workers Union is under pressure from the Detroit three. To eliminate annual wage increases and replace them with pay based on company profits. And GM says it will save. -- billion dollars over five years but sharply consolidating. Its marketing and advertising agencies worldwide. An amount would represent an average 400 million dollars a year or 10% of GM's annual ad budget. Not all of the savings from the consolidation will float to the bottom line -- some what will be plowed back into the marketing budget we managed. You know ten brands globally as part of an effort spearheaded by a marketing chief Jolie -- GM has been planning to consolidate nearly all creative -- duties for Chevrolet. To just a few major agencies. GM now expected to announce its decision within days. Here's a question for you when you think about medley vehicle what comes to mind. A Ford F 150. A Chevy Corvette. Few years back dodge aired this mess. It I'll put my underwear in the basket. And because I do this. You can even buy dodges grand caravan RT. A K eight the man band its website shows some tough guy checking email. But what about smaller cars like the Fiat 500. The brand is employed supermodel. Even bad boy actor Charlie Sheen racing through -- -- a 500 -- -- -- -- I love being under house arrest. Following it for good thing here. Fiat also featuring a new spot with two dude who gets stuck minding your baby because it was girls' night out. It's a great savings. This -- deal. In February Fiat had its best sales month since its launch. We can take it a step further with the UW's redesigned two door -- Since its launch in September. Bloomberg reports 43%. Of US buyers have bad man up from 29%. A year earlier. The car redesigned with a more angular sporty look to attract men. An ad shows a guy driving a vehicle getting lots of high fives including one from an attractive woman. But crafting a car that appeals to everyone can be a challenge. Jessica Caldwell of Edmunds dot com telling Bloomberg quote. Girls don't mind driving mass killing cars I don't think it works the other way around. When the car is labeled a chicks are a lot of guys don't feel comfortable drive. So women men what do you think does it matter if you're right it's perceived as more feminine or masculine. Please email -- he wore back Crain dot com we'll share your responses. -- a future show. Thanks so much for watching everyone. We'll see you back here tomorrow.

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    Eight polling that Tug of war what heavy duty YouTube has poured threatening to life. You're watching auto news now. Good to see you on this Monday. I'm Tom back for Ford and Chrysler the stakes couldn't be higher. According to true cart dot com heavy duty pickups represent 23%. Of all pick up sales in the US. In one of the main reasons to buy a big truck. Towing capability. a battle is raging between Ford and Chrysler's ram Brad. Over who can claim best in class Ford is threatening legal action if keeps claiming its pickups have besting class We're talking so called fifth wheel or goose neck trailer is connected in the pick up that. So here's the issue. Ford says 2015. F 454. By four crew cab can 31200. House. That's about 12100 pounds more than the highest capacity 3500. Which is rated at 30000. Pounds. But rim says the trucks are not even in the same class. It's is the F 450 is a class four pick up in fact the only class four pick up on the market. says the 3500. Actually competes against the F 350. In GM's 3500. Heavy duties. Reporter Larry tells us Ford does something no other automaker does when setting its maximum payload for the F series. It removes items like the radio. The spare tire the Jack. In the center console in order to produced the maximum number for its payload that's a questionable practice because a component truck over. Into another class. Larry says under the system used by other auto makers the F 450 would be considered class war. For more story in today's print and digital editions of Automotive News. Ford is raising prices on the new one in fifteen aluminum body F 150 pick up. Like 340 dollars to 3385. Bucks. The king ranch sees the biggest price increase over the 2014 model. Ford however has upped the standard equipment in all models of the truck for example to information screens are standard. Our Richard true it is also reporting the auto maker is trimming the number of F 150 models from eleven to five. With the new truck arrives this fall popular name plates such as the raptor in limited will be gone. Dealers started ordering the pick ups today. More business may be on the way to service based in GM dealerships. That's because the auto maker is offering buyers of its 2015 models for monthly vehicle diagnostic reports through OnStar. The move also allows customers to sign up to receive maintenance notifications from their stores. Both services will be offered at no charge for five years under a plan named OnStar basic. Previously. They were available only to paying OnStar subscribers. GM says that customers who are emailed me notifications from their dealerships. Come in for two additional service visits a year on average. Compared with customers who don't receive that. Cash for clunkers a phrase that was all the rage five years ago this month. Officially known as the car allowance rebate system clunkers was a lifeline at a desperate time in the US auto industry. US sales in June of 2009 dropped 28%. wasn't so lawful because every other month that your have been worse. But thanks to clunkers which provided consumers as much as 4500 bucks to trade in an old gas guzzler for a more fuel efficient new vehicle. July 2009 sales were off just 12%. In August sales that year were up 1%. In the end nearly 700000. Vehicles were traded in through the two point 85 billion dollar federal program. Have a great day everyone. We'll see you back here tomorrow.

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