The Monday Rundown: UAW Strike Over (?) and More
GM and Honda break up, GM’s Cruise AV unit whirs to a stop, Ford BlueCruise rated tops, Tesla under range-claim investigation
Hi there, and welcome to Driving American, the automotive publication focused on the cars, trucks, SUVs, and vans that are made in America by Americans.
Each issue of the Monday Rundown summarizes the latest new vehicle news and reporting related to U.S. automotive manufacturing so that you know what’s going on and can learn more if you’d like to.
UAW makes deals with Ford, GM, and Stellantis
As of this morning, it appears the United Auto Workers union and Ford, General Motors, and Stellantis have reached deals. The agreements are tentative until ratified by UAW members but reflect a compromise between all parties, which is the way the world works. In any negotiation, you get some of what you want but not everything.
Ford’s agreement provides a 25-percent increase in wages over four years, accelerates new-hire wage growth to the top tier within three years, and gives cost-of-living adjustments, which the previous contract between the automaker and the UAW lacked.
Stellantis matched Ford’s 25-percent wage increase over four years and agreed to re-open the shuttered Belvidere, Illinois, assembly plant that built the Jeep Cherokee until February 2023, cancel plans to close two facilities in Michigan and Ohio, and add 5,000 jobs. Stellantis also promised $19 billion in U.S. investment.
As of this writing, it is unknown what the GM deal includes
Last week, Ford reported the strike had cost it $1.3 billion, and its deal with the UAW would cost up to $900 per vehicle. GM said it was $800 million in the hole and that each week the strike continued, it would cost the automaker $200 million.
GM and Honda cancel plans to co-develop small electric vehicles
Honda needed a shortcut to building electric vehicles and partnered with GM to make it happen. The result is the 2024 Acura ZDX (made in Spring Hill, Tennessee, with the Cadillac Lyriq) and the 2024 Honda Prologue (built in Ramos Arizpe, Mexico, alongside the Chevy Blazer EV).
From the outset, the two automakers planned a short, open marriage of convenience because Honda is developing its own EV platform and is also engaged in a dalliance with Sony to build electrics under the Afeela brand. (Seriously, are ya feelin’ it?)
Now, however, it looks like GM and Honda are breaking up early, at least when it comes to their plans to develop a more affordable lineup of small electric crossovers. The decision doesn’t impact the upcoming ZDX and Prologue electric SUVs but don’t expect any further Acura and Honda models based on GM’s Ultium EV tech.
GM’s Cruise robotaxi business halts the “robo” part of its operations
After losing its permit to operate fully autonomous vehicles on California roads, GM’s Cruise robotaxi business unit has halted driverless operations across the country. The tiny self-driving cabs, based on the Chevrolet Bolt EV, will continue autonomous operation but only with a backup driver aboard to take control when necessary.
Cruise has suffered a series of embarrassing operational snafus, ranging from its car driving through crime scenes and through wet cement to colliding with fire trucks and snarling traffic due to connectivity issues. One even trapped a pedestrian underneath following a collision not caused by the robotaxi.
So, yeah. The whole self-driving utopia everyone thinks is right around the corner? Umm, it’s not.
Ford BlueCruise tops a Consumer Reports list of hands-free driver assist systems
What’s available to consumers today are Level 2+ hands-free driving assistance systems. Several automakers offer this technology, but it requires you to pay attention and take control under a variety of driving scenarios, and the tech will stop working if you’re not paying attention. So you can’t text message or scroll your socials while driving.
Among the available systems, Consumer Reports says Ford BlueCruise is the best, followed by GM Super Cruise. Tesla, accused of misleading consumers with its Autopilot and Full Self-Driving systems, ranks 8 out of 17 systems the publication tested.
I agree that Ford and GM are leading the pack with regard to this technology, though Mercedes is just now rolling out its Level 3 Drive Pilot system. However, based on my most recent testing of the latest BlueCruise 1.2 (in a Mustang Mach-E) and Super Cruise (in a Cadillac CT5-V) systems, my favorite is Super Cruise. However, I did not evaluate them on the same roads under the same conditions, so maybe it doesn’t really matter what I think.
What I can tell you is they’re both impressive, but the futuristic novelty of the tech fades quickly, replaced by added stress as you constantly second-guess what the tech is doing without your input. No thanks. I’ll pass.
Learn more in the Driving American guide to self-driving technologies.
Tesla subpoenaed by the Department of Justice because, of course
Poor Tesla. It just can’t catch a break, can it? Competition is forcing a price war, chewing into profits and tanking the stock price. The existing Model S3XY lineup isn’t so sexy anymore. The $40,000 Cybertruck is vaporware, just like Full Self Driving. A major lawsuit is underway regarding the company’s Autopilot driving assistance tech and whether the automaker is culpable for a death.
And now the U.S. Justice Department has issued subpoenas related to Tesla’s self-driving tech and driving range estimates. C’mon, would you put it past them to artificially inflate how far you can drive on a fully charged battery?
So unfair that billionaires can’t just do whatever they want.
What’s new on Driving American?
This past week my driveway has been full of cars that are NOT made in America (because I write reviews for several publications that are NOT this one).
Lemme see: there was the downright thrilling Audi RS 5 Coupe (built in Germany), the amusing Chrysler 300C with its final-year-only 6.4-liter Hemi V8 (made in Canada), and the excellent Volvo XC90 Recharge plug-in hybrid (assembled in Sweden).
Hybrids and plug-in hybrids (PHEVs) are having a moment. Consumers are responding to numerous factors related to gas prices, changes in weather, the price of electric vehicles, and the uncertainty associated with owning one. Some automakers skipped plug-ins to go straight to electric (Acura and Honda), while others have been cautious about moving too fast (Lexus and Toyota).
It seems like the cautious route is paying off. Stellantis and Toyota both recently reported record PHEV sales, doubling in 2023 compared to 2022. In addition, some automakers are making hybrid powertrains standard by model (Toyota) or trim level (Honda), and improvements in hybrid and PHEV technology allow them to deliver both performance and efficiency simultaneously. Yes, even in the latest versions of the Prius.
That Volvo XC90 Recharge I drove was a perfect example. In Hybrid mode, it had enough power to push me back into the driver’s seat while accelerating onto a freeway. In Electric mode, it had more than 30 miles of juice for shuttling kids and running errands. And, when my family took a day trip to Santa Barbara, we didn’t need to worry about finding a charging station, so there wasn’t any range anxiety.
I’m a big believer in plug-in hybrids. It’s too bad so few of them are made in the U.S.A.
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