Auto Industry News: UAW Strike Intensifies, September New Vehicle Sales Rise, and Mercedes First to Deliver Real Self-Driving

If you’re tired of hearing about the autoworkers strike, then we’re sorry to tell you there’s more drama on tap. Last week, the union expanded its walkouts again, citing a lack of meaningful progress in contract negotiations. This time, Stellantis escaped a stoppage thanks to some last-minute concessions during bargaining.

The Engine Block has a round-up of the details, so you can stay informed. Plus, learn what happened during two big political visits at the picket lines, and get the lowdown on September vehicle sales as well as recent big moves in the world of self-driving tech.

UAW Strike Update

A LOT happened on the strike front last week, so let’s skip the throat-clearing and jump right in.

On Monday…

Ford announced it was pressing pause on a $3.5 billion battery plant in Marshall, Michigan. Slated to open in 2026, the facility was meant to help with Ford’s EV transition by producing cheaper lithium iron phosphate (LFP) batteries, using technology from Chinese company CATL. It was set to employ some 2,500 American workers.

The automaker said “a number of considerations” led to the pause, including questions about whether it could “competitively operate” the plant. Such PR-speak did not land well with UAW President Shawn Fain, who called the move a “shameful, barely-veiled threat by Ford to cut jobs.”

“Closing 65 plants over the last 20 years wasn’t enough for the Big Three, now they want to threaten us with closing plants that aren’t even open yet,” he continued. “We are simply asking for a just transition to electric vehicles and Ford is instead doubling down on their race to the bottom.”

On Tuesday…

President Biden joined the picket lines in Michigan, echoing union chants for record contracts by telling autoworkers: “You deserve what you’ve earned, and you’ve earned a hell of a lot more than what you’re getting paid now.”

The White House said the president’s historic visit was a sign of how far he’s willing to go to cultivate union support as he runs for reelection. It is worth mentioning that the UAW continues to withhold an official presidential endorsement for 2024. Earlier last month, Fain told reporters that endorsements must be earned with actions, not words. What category this visit falls into is yet to be seen.

Also on Tuesday, U.S. auto supplier group MEMA appealed to the White House for federal assistance amid the ongoing strike. The work stoppages at automaking plants have reverberated to some suppliers’ doorsteps, causing them to cut production and lay off workers. The group urged the Biden administration to provide low-interest loans and consider loan forgiveness for smaller, struggling suppliers with revenue of less than $200 million.

On Wednesday…

Former president and 2024 candidate Donald Trump joined the conversation in Michigan. Speaking at Drake Enterprises, a nonunion engine and transmission parts supplier just outside Detroit, Trump told the crowd that the push for electric vehicles made autoworker contract negotiations pointless.

“It doesn’t make a damn bit of difference what you get, because in two years you’re all going to be out of business,” he said.

Trump, who skipped the second Republican debate to make his stump speech in Michigan, has made electric vehicle production and tightening emissions standards a cornerstone issue in his new campaign.

While the event drew between 400-500 people, there are debates circulating over how many striking autoworkers were actually in attendance. A former local autoworker who organizes an Auto Workers for Trump Facebook group and helped drum up attendees for the event told NBC reporters that there were “few strikers” at the event, noting “I don’t know where they’re at. But there are several — a handful.”

On Thursday…

Things grew more tense when UAW President Fain accused General Motors and Stellantis of “enabling” violence and intimidation at the picket lines by “hiring scab contractors” to break up the strikes. In a video message posted to social media on Thursday, Fain referred to three specific events, including a hit-and-run outside a GM parts depot in Michigan that injured five people and sent two to the hospital.

GM said it identified the driver as a third-party housekeeping contractor and was working with police. The automaker obliquely implied picketers may have intentionally blocked the exit by saying it was holding safety talks “to reinforce the expectation and requirement that any employees who experience picketers blockading entry or exit to our property contact site security to help them safely proceed past the picketing employees.”

Stellantis had harsher words. In a statement, the automaker said it witnessed UAW picketers “slashing truck tires, jumping on vehicles, following people home and hurling racial slurs” at Stellantis employees who must cross the picket line to get to work. It went on to say that Stellantis did not hire any outside replacement workers. “Only current employees who are protecting our business and third parties making pickups and deliveries as they normally would are entering our facilities.”

On Friday…

UAW President Fain said the union was preparing to expand its strike, staging walkouts at Ford’s Chicago assembly plant (which produces the Ford Explorer and Lincoln Aviator), and at a GM factory near Lansing, Michigan (which assembles the Chevrolet Traverse and Buick Enclave).

Despite the accusations it flung at Stellantis just one day earlier, the union said productive contract talks would keep the automaker from seeing any strikes this round. According to Reuters, the company’s proposal “moved closer to UAW demands on cost-of-living adjustments, outsourcing, and the right to strike over plant shutdowns.”

The addition of 7,000 new picketers to the line takes the total number of striking UAW members to over 25,000.

Did you know…?

In a different kind of labor drama, California governor Gavin Newsom vetoed Assembly Bill 316 last week, a piece of legislation that would have mandated human backup drivers inside autonomous trucks weighing over 10,000 pounds.

The bill, which was backed by the International Brotherhood of Teamsters, sailed through both the state assembly and state senate with a level of bipartisan support rarely seen these days. However, Newsom sided with Big Tech on the issue, calling the bill “unnecessary for the regulation and oversight” of self-driving trucks.

His decision was loudly condemned by Teamsters General President Sean M. O’Brien, who said Newsom didn’t have the “guts” to face working people. “Any politician who turns their back on workers to curry campaign contributions from Corporate America and Big Tech better square up. Teamsters will not walk away from this fight.”

September New Vehicle Sales Up, Up, & Away

It seems dealers did a good job shoring up for the UAW work stoppage, as September new vehicle sales stayed largely unaffected. In fact, a joint forecast from J.D. Power and GlobalData shows total new-vehicle sales for September 2023 reaching a projected 1,309,900 units — a 13.8% increase over last year.

While still well below pre-pandemic levels, the double-digit increase in sales is heartening, considering the higher retail prices, conservative inventory, and painful interest rates that buyers must contend with. However, as the UAW strike enters its third week (and third round of expansions), it is likely some disruptions will be felt in October.

A few other interesting bits of data you may be interested to learn from the September report:

• Average new-vehicle retail transaction prices are improving – minimally, and at a bit of a glacier’s pace. They’re down about $94 (or 0.2%) from September 2022.
• Admittedly, elevated interest rates are biting into any savings consumers might see on sticker price. The average interest rate for new-vehicle loans is around 7.3%, translating to an average monthly finance payment of $726. (Ouch.)
• While used-vehicle prices dropped slightly compared to last year, they remain close to all-time highs – helping buyers offset those high upfront vehicle costs. Average trade-in equity for September 2023 is trending toward $9,082, the report indicates, which is down $327 from a year ago.

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In Case You Missed It…

Ford will be the first automaker to offer its customers digital license plates. As part of an agreement with Reviver, the manufacturer of the RPlate Digital License Plate, Ford will offer the upgrade in its official accessory catalog. For now, the plates will only be available at select dealers in Michigan, California, and Arizona, as those are the only states where the technology has been approved for consumer use.

According to Reviver, the plates are more than just a cosmetic upgrade, offering features like “personalized displays with custom messaging, location tracking, effortless registration renewal through a user-friendly mobile app, real-time alerts when the vehicle is moved, tamper-proof mounting, and robust anti-theft measures.”

It’ll cost ya, though. Pricing starts at $599, plus a subscription-model service plan of $8/month or $75/year for battery-powered RPlates and $10/month or $95/year for wired ones. For us, this one feels like it can very firmly be placed in the “novelty” category, but to each his own.

Mercedes Gets Serious On Self-Driving

In a big move last week, Mercedes officially announced that American car buyers will be able to purchase the company’s Level 3 automated driving system, Drive Pilot, by the end of this year. Available on a small number of EQS sedans, and only in California and Nevada, the technology not only allows drivers to take their hands off the wheel, but also their eyes off the road.

While other automakers (cough-TESLA-cough) have suggested they offer vehicles with this level of self-driving capability, they do not. All other systems currently available for consumer purchase are Level 2. And make no mistake — Mercedes’ Drive Pilot is a big leap up.

Level 2 systems are categorized as advanced driver support features, whereas Level 3 enters the realm of “conditional” autonomous driving. This means drivers are legally allowed to let their attention waver – say, to read a book or deeply contemplate human-robot coexistence – but only when specific conditions are met.

In this case, that includes things like: the vehicle must be traveling on mapped, approved freeways during the daytime and at speeds less than 40 mph. Additionally, the weather must be clear of precipitation, the road must be dry, and lane lines must be present and clearly visible. You can’t be in a construction zone, there must be a vehicle in front of your car, the lanes must be wide enough – you get the idea. There are a lot of parameters. And rightfully so, since theoretically, if you get in a fender bender while Drive Pilot is in control, you’re not liable.

Mercedes has had a successful roll-out in Germany, noting zero accidents in over a year. Whether or not the same experience will hold true in America is anyone’s guess.

What Else You Need To Know This Week

It’s been a big couple months for labor movements. Below are a few other notable happenings you should be aware of.

• Unifor, which represents Canadian autoworkers, has picked General Motors Canada as its next bargaining target. The union recently ratified a three-year collective agreement with Ford, though only by a very narrow, 54% approval margin. Seeking similar wage gains and benefit improvements, Unifor set an Oct. 9 deadline for contract negotiations with GM.

• Speaking of unions and General Motors… the Teamsters is urging NHTSA to deny GM’s safety exemption request for its Cruise Origin autonomous vehicle. The automaker’s petition seeks permission from federal safety regulators to deploy up to 2,500 self-driving vehicles a year that lack manual driver controls like steering wheels and pedals. Citing the “chaos” caused by self-driving Cruise and Waymo robotaxis, Teamsters General President Sean M. O’Brien called on NHTSA to deny the request, calling it “dangerous for other motorists, for pedestrians, and for middle-class jobs.”

• It hasn’t all been contentious walkouts over at UAW. The union announced today that it reached a tentative five-year contract agreement with Mack Trucks. According to Mack President Stephen Roy, the terms of the deal deliver “significantly increased wages and continue first-class benefits” for 4,000 UAW members at Mack Truck plants in Pennsylvania, Maryland, and Florida. The UAW said more details will be available once members review the terms.

The Engine Block is your one-stop source for any and all auto industry news. Keep an eye on our weekly round-up of enthusiast coverage, product reviews, vehicle spotlights, auto show/expo features, and more. Check back Wednesday for a primer on racing oil and then come back around on Friday when we countdown the best engines we love to hate.