Friday, March 18, 2011

Ford's Alan Mulally worth every penny of 33 million dollar pay package.

According to the Automotive News: "After taxes, Mulally received $33.4 million."  My opinion, he's earned it. 

"Ford earned $6.56 billion in 2010, the most since 1999. New models such as the Fiesta and redesigned Taurus sedan helped 2010 U.S. sales rise 17 percent, outpacing the industrywide gain of 11 percent"

Thursday, March 17, 2011

Allied car haulers strike.

From the Winston-Salem Journal: 
Union workers at Allied Systems Ltd. in Walkertown are expected to go on strike this morning.
"They are planning to walk out at 6 a.m.," Ricky Stone, the manager of Allied Systems, said Wednesday, declining to say how many local employees work at Allied Systems, a division of Allied Systems Holdings that delivers new cars to dealerships.

For rest of article, click here. 

The word on the street is that management lowered effective pay by about 20% and said "take it or leave it."  Have not confirmed this, but something must be pissing off the teamsters, because I'm pretty sure those guys have bills to pay.

Wonder what would happen to load rates if everybody else joined the strike for a week or two?  It'll never happen, but it's fun to think about it.

UPDATE:  5PM Eastern DST
  • Chrysler announced they have been affected by labor disruption as well.
  • GM switching carriers

Wednesday, March 16, 2011

Japan vs The Mideast: what affects American car-buyers the most?

Looks like most Japanese auto makers are spinning up their parts and assembly factories this week or next.  Toyota to start shipping parts to auto assemblers in U.S. next Monday, according to Automotive News.  That's going to come in handy, I think, because as soon as gas gets above $4.00 per gallon, there aren't going to be enough Ford Focuses (Foci?) and Fiestas to go around.  The problems in Japan are compelling news, but the turmoil in the Mideast... and its knock-on effects on fuel price are the more compelling story for the car and transport industry.  The good news in this?  If you're hauling for Hyundai or Kia, you'll probably be getting some overtime this year!