September 29, 2023 • 30 mins
Tune in as we unravel the complex tapestry of the automotive industry with Robert Hanfield, the Bank of America University Distinguished Professor of Supply Chain Management at North Carolina State University. You'll learn about the economic implications of the UAW strike and how it impacts not only the automotive giants but also the smaller Tier 2 and 3 suppliers. A single part can bring an entire assembly to a halt, and we’ll discuss the potential timeline and resolution of this strike, particularly regarding Ford.
The ripple effects of this strike extend far beyond the manufacturing plants, affecting dealerships, logistics, and warehouse distribution throughout the automotive industry. We'll also touch on the effects of this strike on UAW workers and the potential repercussions if the big three move production to Mexico.
Simultaneously, we spin an entertaining yarn about the unique intersection of cars and personalities, discussing how legendary figures such as Jimi Hendrix have left their mark on the industry.
So buckle up, and prepare for an insightful journey into the world of automobiles.
Be sure to subscribe for more In Wheel Time Car Talk!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:03):
Welcome to another In Wheel Time Podcast, a 30 minute
mini version of the In WheelTime car show that airs live
every Saturday morning 8 to 11amcentral.
It's the In Wheel Time car talkshow Coming up.
We talk with Robert Hanfield toget his thoughts on the current
(00:23):
UAW strike.
Conrad has this week in AutoHistory and we'll get you caught
up on the stories making carnews this week.
Howdy along with Mike out ofthis world, Mars King, Conrad
along, we always need more.
Jeff Zekin, I'm Don Armstrong.
Glad you could join us on thisSaturday as our show comes to
its last 30 minutes for the week.
(00:45):
The equinoxes today it's thefirst day of fall.
Today A tumble equinox.
The days and the nights areequal length.
The sunsets be at the equator.
Yes, we're at the equator.
Yeah, that's good, because it'sonly going to get 97, so it's
got to be the fall, it's got tobe Yep, I'm thinking it's
(01:05):
cooling off already.
It's already.
I mean, it's a cool, betteroperated socks.
The first week of the UAWstrike against the Detroit 3 is
projected to result in $1.6billion in economic losses,
according to estimates by EastLansing based Anderson Economic
Group.
This story from Automotive News, but with 38 more parts
distribution centers joining thestrike yesterday across the US,
(01:28):
that amount is expected to growexponentially.
So far, the losses have beenconcentrated in Michigan,
indiana, alabama, kansas,missouri and Ohio where plants
are shuttered over the strike.
Uaw Sean Fain announced newlocations walking off the job in
20 different states on Friday,including six GM facilities and
(01:50):
seven Stalantas centers.
In Michigan, ford Motor Companywas spared as negotiations, I
guess, have progressed there.
Some 5,600 additional workershave now joined the strike, on
top of the 13,000 of the 146,000members who began the strike a
week ago.
The new GM sites employ roughly3,400 workers, including 1,600
(02:10):
near Flint.
The Stalantas sites employabout 2,100 workers.
Rob Hanfield is the Bank ofAmerica University,
distinguished Professor ofSupply Chain Management at North
Carolina State University andExecutive Director of the Supply
Chain Resource Cooperative, andhe's considered a thought
leader in the field of supplychain management.
And, sir, we certainly welcomeyou to the show and thank you
(02:33):
very much for joining us from, Iguess, here in the Carolinas.
Speaker 2 (02:38):
Yeah, I'm in Raleigh, that's right.
So, yeah, it's a pleasure to beon the show again.
I was on, I think, last month,and it's great to be here with
this gang of rogues that youhave.
Speaker 3 (02:49):
We've been here before.
Speaker 1 (02:52):
We haven't figured out well, we're representing now
.
Yeah, we are, we're representing, that's it.
So I have said from the verybeginning, when this is all
start, we heard rumors that thiswas going to take place and
then it came to fruition and nowthey're out on strike and all I
could think of is notnecessarily, at least in my age
(03:13):
group.
We always think of assemblyplants as manufacturing plants,
and all they really are today isa symbol of parts and pieces
that are made from companies allover the world, basically to
put together the car that you goout and buy.
And my concern has really beenwith those little companies that
are down on the food chain thatmay have 100, 200, 300
(03:35):
employees at the most, and thoseguys are going to be affected
the worst, aren't they?
Robert?
Speaker 2 (03:41):
Well, that's absolutely right.
And the way, there's a lot ofcomponents in any vehicle, as
you know, and a lot of thedirect shipments to the assembly
facilities are what they callTier 1 suppliers, and those are
the big ones like Magma, lear,jci and so forth, and so they
(04:06):
manage a whole hundreds, morethan hundreds thousands of Tier
2 and Tier 3 suppliers and thoseare the ones that produce the
tooling, the jigs, the nuts andthe bolts and the screws and the
plastic injection molds.
All of those components areproduced by these small, really
(04:29):
mum and pop shops that reallyrely on the automotive companies
for their business.
And, yeah, they're going to bethe ones that are going to shut
down because the tier ones areon it what they call it just in
time system, where they'redelivering directly to the
assembly line.
So when the assembly line shutsdown, that that just in time
(04:51):
system shuts down and they stopbuying parts.
So, yeah, it's little guys aregoing to get really hurt.
Speaker 1 (04:57):
And all it takes is really I mean, we learned this
particularly with the microchipshortage that happened, you know
, as some little plastic partthat may go on the dashboard.
Well, doesn't that shut downthe factory, just like an engine
component does, because theycan't complete the entire car?
Speaker 2 (05:15):
Well, that's absolutely right.
Yeah, you only need one part toshut down an assembly.
And you know the problem is.
You know these, these smallcompanies, you know they're
there.
Some of them are living hand tomouth.
You know they're.
They don't have a lot of cashflow.
You know they don't have a lotof working capital.
So you know, when they stopgetting paid or they stop having
(05:37):
orders come in, they got to layoff workers.
And when they start laying offworkers, it's really hard, you
know, to start them back upagain.
It's easy to shut down but it'sreally difficult to get all the
people back and and you knowthe machine reading, the
equipment moving again.
Speaker 1 (05:55):
How long do you see this dry classic?
Speaker 2 (05:59):
You know it's, I can tell you.
I think it depends.
You know, I think Ford, fromwhat I hear, ford is going to be
the first one.
They may be very close to anagreement with Ford and the
reason with that?
Ford Ford, of the big three,probably has the best
relationship with the UAW.
You know they're the biggestemployer over the years.
(06:23):
You know they've they've reallydeveloped a good relationship
with the UAW, believe it or not.
William Ford actually playshockey with the UAW workers.
Can you imagine that?
I wonder if he gets a few bodychecks and boards right?
Just a few.
But you know they do.
They do try to maintain goodrelations.
(06:43):
Fine has actually, if younotice he hasn't said a lot of
bad things about Ford.
So you know, I think I thinkthey're pretty close to an
agreement with Ford.
Speaker 3 (06:54):
And historically Ford and the UAW have been more
friendly towards each other asopposed to GM, who can be quite
combative with the UAW.
Speaker 2 (07:05):
Yeah, you're absolutely right.
And of the three, the worst,the worst of the three, is
Stellantis.
And the reason is they've got aguy.
You know, their CEO, tavares,is European, he's Portugal, he
is used to dealing with theunions in Europe, he lives in
Europe and he's a hard nosenegotiator.
(07:26):
He doesn't want to giveanything to the unions and he's
he's proposed the least amountin terms of pay raises.
And you know he's.
He's a union buster.
He doesn't like working withthe unions.
So they're probably thefurthest away.
And what's interesting is,you'll find, was also an
(07:47):
electrician on a Chryslerassembly line in Cochabal years
ago.
So you know he's, he's closestto Chrysler big three.
Speaker 3 (07:56):
And it seems like the UAW is looking for the weak
links in the supply chain to tryand impact those.
That's going to spread theirstrike force to a great extent,
To a greater degree.
You know we did a story earlierabout the, the ZF plant, the
axle plant, going on strike andhow that's going to impact
(08:18):
Mercedes Benz, who's not a UAWassembly facility, but how it's
going to affect their ability todeliver vehicles.
So you know they're trying tospread their tentacles beyond
just the UAW assembly plants,outside of the big three.
Speaker 2 (08:35):
Yep, yep, that's exactly right, and so they want
to create as much damage aspossible.
You know they're also strikingat the truck and SUV plants
Because that's where the bigthree really make their their
money right.
Suvs and trucks are their big,big time sellers.
(08:56):
They make the biggest profitmargins on those platforms and
that's exactly where they're.
They're hitting them rightwhere it hurts.
Speaker 1 (09:04):
What are the questions that you are getting
now?
What are the most of thequestions that you're getting
now regarding the strike and thesupply chain?
Speaker 2 (09:12):
Well, you know, I think you know people are asking
how long is it going to lastand what's going to be the
impact on the economy.
Impact on the economy could,could be bad.
You know the big three.
They have about 60 to 70 daysof finished goods inventory.
So they've been, they've beenloading up on inventory knowing
(09:33):
that the strike was coming.
So the dealers are probablygoing to be OK, for you know,
four or five weeks out, you knowthey'll, they'll have product
on the lot Once they get outthere, then you're going to
start to see shortages and whatyou'll then see is dealers are
going to start raising prices byas much as 10.
I've heard even 20 percent.
(09:54):
So you're going to see moreinflation in the automotive
sector and that means used carprices are also going to go up.
The other big thing that youmentioned earlier is you know
the distributors.
If you're not distributingparts, then all the dealers are
going to get hit because of the,they're not going to be able to
(10:15):
service cars.
You know, if your car is in theshop and they don't have a part
for it, you're out of luck.
Speaker 3 (10:21):
You, you know you're gonna be driving a rental for a
while and I'm seeing that forwhat I do right now is some of
the dealers, because If you lookat the industry, you know GM
distributes to dealerships butyou've always got in each of
these big towns You've got one,two or three dealerships that
become the distributor forGeneral Motors.
(10:43):
You know they're the big partsplayer in town and there's three
or four of them here in Houstonthat are kind of the big parts
players here in town and theyare starting to pull back on
Allowing other dealers to selectfrom their inventory because
they want to retain what partsthey do have For their customers
and they don't want to run outtoo early for their customers.
(11:06):
So it's it's impacting even atthe parts level, far greater
than just the UAW.
It's impacting at the dealerlevel as well.
Speaker 2 (11:16):
Well, not just at the dealer level.
But think about it.
Think about how many trucks areon the road.
How many 4gm Chrysler trucksare on the road.
And If you start, you know,putting those those warranty
parts, they're now unavailableand you have trucks that break
down and they can't get parts.
You know you're gonna havelogistics and warehouse
(11:37):
distribution problems as well,now too.
So you know the automotivesector.
People don't realize how itreally impacts every part of the
economy and you know thisstrike is is is Really hurting a
lot of different people, notjust, not just the big three and
some of the people are gonna goout.
Speaker 3 (11:58):
As you spoke earlier, they're gonna shut down and
they're never going to come back, and and that's gonna be very
impactful because the widgetthat they built May never come
back into production and andthat that's going to have a
long-term effect on the businessand those people are gonna find
another job.
Speaker 1 (12:19):
I talked about that with his part.
Yeah, let me ask you.
You know we're going into thelast quarter of the year in a
week and do you think that theholidays coming up are going to
play a part and maybe perhapsEnding the strike?
Hey, it's getting close toChristmas.
I need my job back.
I need to have some income.
(12:39):
We need to settle this thingbefore Christmas.
Speaker 2 (12:43):
Well, you know that that that may may be a factor.
You know the other people thatare impacted, believe or not,
are UAW workers themselves.
You know they.
They they're getting a littlecheck, you know, from UAW.
It's not their full paycheck,they're not getting any overtime
pay, that's for sure, and soyou know they're gonna start
(13:05):
scrimping as well, and theydon't want to go into Christmas,
you know, being broke.
A lot of one of those workersyou know really rely on that.
That.
You know that that monthlypaycheck, the.
The other thing that you knowpeople have to realize is the
big three have other options.
You know, if you start putting40% wage increases and a 32-hour
(13:32):
work week, imagine what that'sgonna do to the price of
vehicles in general if they justcave in and give them all that.
And you know what?
There's some really bigmanufacturing sites in Mexico.
I've been down there to Saltyoand Pueblo, and so I, like
Stellantis has extra capacitydown there, and so it's.
(13:54):
You know, in the longer termthey could turn around and say,
yeah, we'll give you what wewant, but we're gonna, we're
gonna move these jobs to Mexico,and that's.
That's a distinct possibilitythat the union needs to be
thinking about and start payinghim and pay, so's well.
Speaker 1 (14:09):
And he also said the, the head of Stellantis is is a
hard negotiator.
So that's yeah, it's very, verypossible.
Speaker 2 (14:16):
It is very possible and and I've been to those,
those sites down there, andPeople work hard, they work for
less money, there's no unionsand they're happy for the work.
So and and they're very good.
I mean I might, the vehicle Idrive is is assembled in Mexico,
works great.
So you know, we got they got tobe careful about what they're
looking at here.
Speaker 3 (14:37):
Yeah, because not only are they trying to get more
for the UAW, they're going todamage America and, in turn,
damage themselves, as they thebig three start Offsuring more
and more production.
Speaker 2 (14:51):
Yeah, and I, you know , I've been looking at, you know
, the demands, the way W ismaking.
You know, yeah, I think thatthe big three is offering them
20%, you know, which I think isgood.
They're also offering them acost of living adjustment which
says you know, we're gonna,we're gonna, you know, map it to
the consumer price index.
If the CPI goes up, then we'llgive you a raise, and you know
(15:17):
this.
This 32 hour work week, whatplanet are you on?
This is the United States.
No one works 32 hours, right,we all work 40, 50, 60.
Speaker 3 (15:29):
Yeah, my view of that is they want a 32 hour work
week so they can continue towork 40 hours and get an
additional Eight hours over timeat time and a half.
So you know that's.
The compounding cost of laboris Is is impossible to recover
on the price of the vehicle atGeneral Motors and Ford and
Stalantis.
(15:49):
You know this is gonna reallypush the price of cars Way, way
up.
You know, if you think ahundred thousand dollars
suburban is expensive today,what are you gonna think in
three years if they give in andall of a sudden the cost of a
suburb, the average cost of aSuburbans, now a hundred fifty
thousand dollars.
You know that's.
You know how.
(16:10):
And people start Moving awayand this is I said this last
week as well you know when, whenthe inventory wanes at the
dealerships, people are gonna gostart buying other brands and
my personal opinion they'renever going to come back to the
big three if they try some ofthese other brands in that are
(16:31):
available on the market that arenot being impacted by the UAW
strike.
Speaker 1 (16:36):
I would Rob.
Rob, do you think that the UAWis kind of Really at the end of
its era, that?
Do you think that that is it?
The end is near for the UAW.
Speaker 2 (16:50):
Well, I think what happened is the UPS caved in to
the Teamsters, gave themeverything they wanted.
So UAW looked at that and says,hey, why can't we do that?
We want ours, yeah.
And so they were very muchencouraged by the Teamsters.
Some of the things they'relooking for they want a defined
(17:11):
pension plan.
They haven't had pensionsaround since the 40s or 50s.
You know the big three areoffering 401k contributions,
which is what everybody else inthe country gets.
You know why are they different?
Why do they get a guaranteedpension?
Those guaranteed pensions?
They go bankrupt.
(17:32):
Usually People you know.
You look at CalPERS, look atsome of the ones that are out
there.
They're not doing so good.
Speaker 1 (17:40):
Well, I don't know, it just seems.
I mean, I understand the UAW, Imean we studied it, we know all
about it and the power thatthey have, but that was back in
the day when General Motors,chrysler and Ford were pretty
much the only car makers in theUnited States.
(18:01):
That's not the case today and alot of these foreign car
manufacturers they're not.
They're not part of the unionat all at any place.
They manufacture them overseasor, like you said, down in
Mexico.
Speaker 2 (18:15):
Yeah, and you know I've also spent time studying
some of these other automotivemanufacturers.
I spent time with Honda andToyota.
You know even Kia and BMW,mercedes.
One of the things these guys dois, in all of those countries
there are very strongrelationships between management
(18:35):
and union.
You know they don't let it getto this point.
They spend a lot of timetalking to the union.
The unions are allowed to be ontheir board, they're allowed to
have a say on what's going on.
They have feedback sessionsfrom the unions.
And if you look at it thesecompanies they pay almost the
(18:57):
same wages as the Big Three.
They have the same workconditions as a union.
They just don't have a union.
They have a workerrepresentative council.
So I think that's thedifference is, you know, the Big
Three have kind of putthemselves into this position
because of the acrimoniousrelationship that they've had
(19:17):
with the union over the years.
Speaker 3 (19:18):
Yeah, the only time the negotiations happen with
them is when they go on strikeor just before they go on strike
, and then it's all.
Everybody shows up to themeeting room with baseball bats,
katie.
Speaker 2 (19:27):
Barthador.
They're the only two that theylike to have each other.
Yeah, yeah, and you know ShelfFine isn't making it easier.
He's no one's.
Usually these negotiations aresort of, you know, back room
kind of more secretive.
He comes right out and he'sblasting them in public, which
you know talk about losing face.
(19:47):
That's not a great, that'sreally.
You know that doesn't help.
Speaker 3 (19:51):
Well, the other thing I see is the unions complaining
about what their currentcontract is.
Hey, fine's the one whonegotiated that for you four or
five years ago.
You don't hold him accountablefor it either.
Speaker 2 (20:02):
Yeah, I mean today they're making.
You know, the average unionworker is making 60 bucks an
hour.
I don't know about you, butthat's not a bad wage, you know,
for no education.
Speaker 1 (20:13):
I could live on that, yeah, plus medical dental
optical all that, yeah, allright 401k contribution.
Speaker 3 (20:20):
That's a great wage and a discount in purchasing
cars.
Yeah, rob, it's great to talkto you.
Speaker 1 (20:25):
We thank you so much for taking the time out of your
lunch here at the noon hour upthere in the Carolinas, and best
of luck to you.
Thanks so much for sharing yourknowledge with us on all of
this.
Speaker 2 (20:37):
My pleasure have a great day, guys.
Thank you.
Rob Hanfield is his name, Bankof.
Speaker 1 (20:40):
America University the smartest person on the show
today.
Speaker 3 (20:45):
There's no doubt about that.
Hey, hey, hey.
Speaker 1 (20:49):
I wanted to tell you that Hyundai is sweetening the
deal for car shoppers,considering swapping for an all
electric lifestyle for buyers incertain markets who elect to
purchase or lease a new, as youcall it.
How do you call it Ionik?
Ionic, you call it Ionic, Icall it Ionik, whatever Ionic 5,
(21:09):
ionic 6 or Kona Electric.
Through its captive finance arm, hyundai will include a free
Charge Point Level 2 homecharger valued at $549 and a
credit of $600 towardinstallation.
Msimp.
Electric vehicle adoption hasbeen growing, but plateaued in
the first half of this year.
According to new vehicleregistration data from Experian,
(21:31):
ev's share of the market rosesteadily in 21 and 22, but has
run consistently around 7% thisyear.
Cooled demand suggestsconsumers are still hesitant to
make the change.
Ev's require a high upfrontcost compared with
gasoline-powered vehicles, andmacroeconomic factors such as
(21:52):
higher interest rates coupledwith tighter lending have
sidelined many buyers.
Alright time now for this Weekin Auto History, and Conrad has
that.
Speaker 3 (22:02):
In 1920 the first Lincoln automobile was built.
Henry Leland who foundedLincoln Motor Company in 1917 to
produce Liberty V-12 aircraftfor the US World War I.
He got a $10 million governmentcontract to produce those
engines and he went on andstarted Lincoln Motor Company.
(22:25):
You gotta remember Henry Lelandwas also the one who founded
Cadillac in 1903, as he leftFord and took a floundering
version of Ford and built itinto Cadillac brand and didn't
go on strike.
And didn't go on strike In 1959.
The valiant for all was.
Speaker 2 (22:44):
I like that car.
Speaker 3 (22:45):
That is me, it's you.
Speaker 1 (22:47):
That is such a cool car.
Tub it out, and Mr Peabody.
Speaker 3 (22:52):
I tub it out and put a hemi in it.
It was the entry level into thecompact car market that was at
the time dominated by the VWBeetle.
It's even my color and theoriginal project name for that
was the Falcon.
But Ford beat Chrysler to thename by releasing the Falcon in
1959, ahead of them giving it avaliant.
Speaker 1 (23:17):
That car is ugly.
Speaker 3 (23:17):
Well, that car is ugly and actually it didn't get
the name valiant until 1961.
Speaker 1 (23:23):
It's a valiant idea.
Speaker 3 (23:27):
And the car was kind of the end of an arrow, with the
tail fins and the quadheadlights and stuff.
It kind of went overboard on thefins.
It ended the arrow before thatIn 1970.
More than 50 years after hispassing, jimi Hendrix remains
one of the most influential rockand roll musicians to have ever
(23:47):
shredded a guitar.
Star Spangled Banner.
He purchased a ChevroletCorvette as soon as his musical
talents began to pay off.
The story goes that he orderedthe Corvette the international
blue Corvette from a Clevelanddealership in 1968.
And when he took delivery of ithe didn't even have a driver's
license.
And that car, to this day, isstill unaccounted for.
(24:11):
So somewhere where it is,somewhere, somebody has a blue
Corvette in their garage.
That used to be Henry JimiHendrix Corvette.
In a 1979, leia Koka, who wasthe elected as chairman of
Chrysler.
Lee's career began at FordMotor Company and would lead him
to the top of Chrysler as vicepresident of Ford.
(24:31):
He led Ford through what I callthe pony car era.
You know, they had the Mustang,they had the Bronco, they had
the Maverick, they had the Pinto, so Leia Koka.
And then he's gone on tohosting the rebuild of the
Statue of Liberty.
In 2006, ford GT productionends.
(25:01):
The Ford GT was originally aconcept car shown by Ford in
2002 and in 2004 when it beganproduction.
That was one of the quickestconcept of production cars ever
out there and has proven to beone of the best investment cars
to make in the 2000s.
Speaker 1 (25:21):
Alright, thank you, sir.
We're going to take a quickbreak here and we are going to
be right back to wrap up today'sshow.
You're on the time car talkshow on iHeart Radio.
The original group of loopytortilla restaurants will have
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(25:44):
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Welcome to another In Wheel Time Podcast, a 30 minute
mini version of the In WheelTime car show that airs live
every Saturday morning 8 to 11amcentral.
It's the In Wheel Time car talkshow Coming up.
We talk with Robert Hanfield toget his thoughts on the current
(00:23):
UAW strike.
Conrad has this week in AutoHistory and we'll get you caught
up on the stories making carnews this week.
Howdy along with Mike out ofthis world, Mars King, Conrad
along, we always need more.
Jeff Zekin, I'm Don Armstrong.
Glad you could join us on thisSaturday as our show comes to
its last 30 minutes for the week.
(00:45):
The equinoxes today it's thefirst day of fall.
Today A tumble equinox.
The days and the nights areequal length.
The sunsets be at the equator.
Yes, we're at the equator.
Yeah, that's good, because it'sonly going to get 97, so it's
got to be the fall, it's got tobe Yep, I'm thinking it's
(01:05):
cooling off already.
It's already.
I mean, it's a cool, betteroperated socks.
The first week of the UAWstrike against the Detroit 3 is
projected to result in $1.6billion in economic losses,
according to estimates by EastLansing based Anderson Economic
Group.
This story from Automotive News, but with 38 more parts
distribution centers joining thestrike yesterday across the US,
(01:28):
that amount is expected to growexponentially.
So far, the losses have beenconcentrated in Michigan,
indiana, alabama, kansas,missouri and Ohio where plants
are shuttered over the strike.
Uaw Sean Fain announced newlocations walking off the job in
20 different states on Friday,including six GM facilities and
(01:50):
seven Stalantas centers.
In Michigan, ford Motor Companywas spared as negotiations, I
guess, have progressed there.
Some 5,600 additional workershave now joined the strike, on
top of the 13,000 of the 146,000members who began the strike a
week ago.
The new GM sites employ roughly3,400 workers, including 1,600
(02:10):
near Flint.
The Stalantas sites employabout 2,100 workers.
Rob Hanfield is the Bank ofAmerica University,
distinguished Professor ofSupply Chain Management at North
Carolina State University andExecutive Director of the Supply
Chain Resource Cooperative, andhe's considered a thought
leader in the field of supplychain management.
And, sir, we certainly welcomeyou to the show and thank you
(02:33):
very much for joining us from, Iguess, here in the Carolinas.
Speaker 2 (02:38):
Yeah, I'm in Raleigh, that's right.
So, yeah, it's a pleasure to beon the show again.
I was on, I think, last month,and it's great to be here with
this gang of rogues that youhave.
Speaker 3 (02:49):
We've been here before.
Speaker 1 (02:52):
We haven't figured out well, we're representing now
.
Yeah, we are, we're representing, that's it.
So I have said from the verybeginning, when this is all
start, we heard rumors that thiswas going to take place and
then it came to fruition and nowthey're out on strike and all I
could think of is notnecessarily, at least in my age
(03:13):
group.
We always think of assemblyplants as manufacturing plants,
and all they really are today isa symbol of parts and pieces
that are made from companies allover the world, basically to
put together the car that you goout and buy.
And my concern has really beenwith those little companies that
are down on the food chain thatmay have 100, 200, 300
(03:35):
employees at the most, and thoseguys are going to be affected
the worst, aren't they?
Robert?
Speaker 2 (03:41):
Well, that's absolutely right.
And the way, there's a lot ofcomponents in any vehicle, as
you know, and a lot of thedirect shipments to the assembly
facilities are what they callTier 1 suppliers, and those are
the big ones like Magma, lear,jci and so forth, and so they
(04:06):
manage a whole hundreds, morethan hundreds thousands of Tier
2 and Tier 3 suppliers and thoseare the ones that produce the
tooling, the jigs, the nuts andthe bolts and the screws and the
plastic injection molds.
All of those components areproduced by these small, really
(04:29):
mum and pop shops that reallyrely on the automotive companies
for their business.
And, yeah, they're going to bethe ones that are going to shut
down because the tier ones areon it what they call it just in
time system, where they'redelivering directly to the
assembly line.
So when the assembly line shutsdown, that that just in time
(04:51):
system shuts down and they stopbuying parts.
So, yeah, it's little guys aregoing to get really hurt.
Speaker 1 (04:57):
And all it takes is really I mean, we learned this
particularly with the microchipshortage that happened, you know
, as some little plastic partthat may go on the dashboard.
Well, doesn't that shut downthe factory, just like an engine
component does, because theycan't complete the entire car?
Speaker 2 (05:15):
Well, that's absolutely right.
Yeah, you only need one part toshut down an assembly.
And you know the problem is.
You know these, these smallcompanies, you know they're
there.
Some of them are living hand tomouth.
You know they're.
They don't have a lot of cashflow.
You know they don't have a lotof working capital.
So you know, when they stopgetting paid or they stop having
(05:37):
orders come in, they got to layoff workers.
And when they start laying offworkers, it's really hard, you
know, to start them back upagain.
It's easy to shut down but it'sreally difficult to get all the
people back and and you knowthe machine reading, the
equipment moving again.
Speaker 1 (05:55):
How long do you see this dry classic?
Speaker 2 (05:59):
You know it's, I can tell you.
I think it depends.
You know, I think Ford, fromwhat I hear, ford is going to be
the first one.
They may be very close to anagreement with Ford and the
reason with that?
Ford Ford, of the big three,probably has the best
relationship with the UAW.
You know they're the biggestemployer over the years.
(06:23):
You know they've they've reallydeveloped a good relationship
with the UAW, believe it or not.
William Ford actually playshockey with the UAW workers.
Can you imagine that?
I wonder if he gets a few bodychecks and boards right?
Just a few.
But you know they do.
They do try to maintain goodrelations.
(06:43):
Fine has actually, if younotice he hasn't said a lot of
bad things about Ford.
So you know, I think I thinkthey're pretty close to an
agreement with Ford.
Speaker 3 (06:54):
And historically Ford and the UAW have been more
friendly towards each other asopposed to GM, who can be quite
combative with the UAW.
Speaker 2 (07:05):
Yeah, you're absolutely right.
And of the three, the worst,the worst of the three, is
Stellantis.
And the reason is they've got aguy.
You know, their CEO, tavares,is European, he's Portugal, he
is used to dealing with theunions in Europe, he lives in
Europe and he's a hard nosenegotiator.
(07:26):
He doesn't want to giveanything to the unions and he's
he's proposed the least amountin terms of pay raises.
And you know he's.
He's a union buster.
He doesn't like working withthe unions.
So they're probably thefurthest away.
And what's interesting is,you'll find, was also an
(07:47):
electrician on a Chryslerassembly line in Cochabal years
ago.
So you know he's, he's closestto Chrysler big three.
Speaker 3 (07:56):
And it seems like the UAW is looking for the weak
links in the supply chain to tryand impact those.
That's going to spread theirstrike force to a great extent,
To a greater degree.
You know we did a story earlierabout the, the ZF plant, the
axle plant, going on strike andhow that's going to impact
(08:18):
Mercedes Benz, who's not a UAWassembly facility, but how it's
going to affect their ability todeliver vehicles.
So you know they're trying tospread their tentacles beyond
just the UAW assembly plants,outside of the big three.
Speaker 2 (08:35):
Yep, yep, that's exactly right, and so they want
to create as much damage aspossible.
You know they're also strikingat the truck and SUV plants
Because that's where the bigthree really make their their
money right.
Suvs and trucks are their big,big time sellers.
(08:56):
They make the biggest profitmargins on those platforms and
that's exactly where they're.
They're hitting them rightwhere it hurts.
Speaker 1 (09:04):
What are the questions that you are getting
now?
What are the most of thequestions that you're getting
now regarding the strike and thesupply chain?
Speaker 2 (09:12):
Well, you know, I think you know people are asking
how long is it going to lastand what's going to be the
impact on the economy.
Impact on the economy could,could be bad.
You know the big three.
They have about 60 to 70 daysof finished goods inventory.
So they've been, they've beenloading up on inventory knowing
(09:33):
that the strike was coming.
So the dealers are probablygoing to be OK, for you know,
four or five weeks out, you knowthey'll, they'll have product
on the lot Once they get outthere, then you're going to
start to see shortages and whatyou'll then see is dealers are
going to start raising prices byas much as 10.
I've heard even 20 percent.
(09:54):
So you're going to see moreinflation in the automotive
sector and that means used carprices are also going to go up.
The other big thing that youmentioned earlier is you know
the distributors.
If you're not distributingparts, then all the dealers are
going to get hit because of the,they're not going to be able to
(10:15):
service cars.
You know, if your car is in theshop and they don't have a part
for it, you're out of luck.
Speaker 3 (10:21):
You, you know you're gonna be driving a rental for a
while and I'm seeing that forwhat I do right now is some of
the dealers, because If you lookat the industry, you know GM
distributes to dealerships butyou've always got in each of
these big towns You've got one,two or three dealerships that
become the distributor forGeneral Motors.
(10:43):
You know they're the big partsplayer in town and there's three
or four of them here in Houstonthat are kind of the big parts
players here in town and theyare starting to pull back on
Allowing other dealers to selectfrom their inventory because
they want to retain what partsthey do have For their customers
and they don't want to run outtoo early for their customers.
(11:06):
So it's it's impacting even atthe parts level, far greater
than just the UAW.
It's impacting at the dealerlevel as well.
Speaker 2 (11:16):
Well, not just at the dealer level.
But think about it.
Think about how many trucks areon the road.
How many 4gm Chrysler trucksare on the road.
And If you start, you know,putting those those warranty
parts, they're now unavailableand you have trucks that break
down and they can't get parts.
You know you're gonna havelogistics and warehouse
(11:37):
distribution problems as well,now too.
So you know the automotivesector.
People don't realize how itreally impacts every part of the
economy and you know thisstrike is is is Really hurting a
lot of different people, notjust, not just the big three and
some of the people are gonna goout.
Speaker 3 (11:58):
As you spoke earlier, they're gonna shut down and
they're never going to come back, and and that's gonna be very
impactful because the widgetthat they built May never come
back into production and andthat that's going to have a
long-term effect on the businessand those people are gonna find
another job.
Speaker 1 (12:19):
I talked about that with his part.
Yeah, let me ask you.
You know we're going into thelast quarter of the year in a
week and do you think that theholidays coming up are going to
play a part and maybe perhapsEnding the strike?
Hey, it's getting close toChristmas.
I need my job back.
I need to have some income.
(12:39):
We need to settle this thingbefore Christmas.
Speaker 2 (12:43):
Well, you know that that that may may be a factor.
You know the other people thatare impacted, believe or not,
are UAW workers themselves.
You know they.
They they're getting a littlecheck, you know, from UAW.
It's not their full paycheck,they're not getting any overtime
pay, that's for sure, and soyou know they're gonna start
(13:05):
scrimping as well, and theydon't want to go into Christmas,
you know, being broke.
A lot of one of those workersyou know really rely on that.
That.
You know that that monthlypaycheck, the.
The other thing that you knowpeople have to realize is the
big three have other options.
You know, if you start putting40% wage increases and a 32-hour
(13:32):
work week, imagine what that'sgonna do to the price of
vehicles in general if they justcave in and give them all that.
And you know what?
There's some really bigmanufacturing sites in Mexico.
I've been down there to Saltyoand Pueblo, and so I, like
Stellantis has extra capacitydown there, and so it's.
(13:54):
You know, in the longer termthey could turn around and say,
yeah, we'll give you what wewant, but we're gonna, we're
gonna move these jobs to Mexico,and that's.
That's a distinct possibilitythat the union needs to be
thinking about and start payinghim and pay, so's well.
Speaker 1 (14:09):
And he also said the, the head of Stellantis is is a
hard negotiator.
So that's yeah, it's very, verypossible.
Speaker 2 (14:16):
It is very possible and and I've been to those,
those sites down there, andPeople work hard, they work for
less money, there's no unionsand they're happy for the work.
So and and they're very good.
I mean I might, the vehicle Idrive is is assembled in Mexico,
works great.
So you know, we got they got tobe careful about what they're
looking at here.
Speaker 3 (14:37):
Yeah, because not only are they trying to get more
for the UAW, they're going todamage America and, in turn,
damage themselves, as they thebig three start Offsuring more
and more production.
Speaker 2 (14:51):
Yeah, and I, you know , I've been looking at, you know
, the demands, the way W ismaking.
You know, yeah, I think thatthe big three is offering them
20%, you know, which I think isgood.
They're also offering them acost of living adjustment which
says you know, we're gonna,we're gonna, you know, map it to
the consumer price index.
If the CPI goes up, then we'llgive you a raise, and you know
(15:17):
this.
This 32 hour work week, whatplanet are you on?
This is the United States.
No one works 32 hours, right,we all work 40, 50, 60.
Speaker 3 (15:29):
Yeah, my view of that is they want a 32 hour work
week so they can continue towork 40 hours and get an
additional Eight hours over timeat time and a half.
So you know that's.
The compounding cost of laboris Is is impossible to recover
on the price of the vehicle atGeneral Motors and Ford and
Stalantis.
(15:49):
You know this is gonna reallypush the price of cars Way, way
up.
You know, if you think ahundred thousand dollars
suburban is expensive today,what are you gonna think in
three years if they give in andall of a sudden the cost of a
suburb, the average cost of aSuburbans, now a hundred fifty
thousand dollars.
You know that's.
You know how.
(16:10):
And people start Moving awayand this is I said this last
week as well you know when, whenthe inventory wanes at the
dealerships, people are gonna gostart buying other brands and
my personal opinion they'renever going to come back to the
big three if they try some ofthese other brands in that are
(16:31):
available on the market that arenot being impacted by the UAW
strike.
Speaker 1 (16:36):
I would Rob.
Rob, do you think that the UAWis kind of Really at the end of
its era, that?
Do you think that that is it?
The end is near for the UAW.
Speaker 2 (16:50):
Well, I think what happened is the UPS caved in to
the Teamsters, gave themeverything they wanted.
So UAW looked at that and says,hey, why can't we do that?
We want ours, yeah.
And so they were very muchencouraged by the Teamsters.
Some of the things they'relooking for they want a defined
(17:11):
pension plan.
They haven't had pensionsaround since the 40s or 50s.
You know the big three areoffering 401k contributions,
which is what everybody else inthe country gets.
You know why are they different?
Why do they get a guaranteedpension?
Those guaranteed pensions?
They go bankrupt.
(17:32):
Usually People you know.
You look at CalPERS, look atsome of the ones that are out
there.
They're not doing so good.
Speaker 1 (17:40):
Well, I don't know, it just seems.
I mean, I understand the UAW, Imean we studied it, we know all
about it and the power thatthey have, but that was back in
the day when General Motors,chrysler and Ford were pretty
much the only car makers in theUnited States.
(18:01):
That's not the case today and alot of these foreign car
manufacturers they're not.
They're not part of the unionat all at any place.
They manufacture them overseasor, like you said, down in
Mexico.
Speaker 2 (18:15):
Yeah, and you know I've also spent time studying
some of these other automotivemanufacturers.
I spent time with Honda andToyota.
You know even Kia and BMW,mercedes.
One of the things these guys dois, in all of those countries
there are very strongrelationships between management
(18:35):
and union.
You know they don't let it getto this point.
They spend a lot of timetalking to the union.
The unions are allowed to be ontheir board, they're allowed to
have a say on what's going on.
They have feedback sessionsfrom the unions.
And if you look at it thesecompanies they pay almost the
(18:57):
same wages as the Big Three.
They have the same workconditions as a union.
They just don't have a union.
They have a workerrepresentative council.
So I think that's thedifference is, you know, the Big
Three have kind of putthemselves into this position
because of the acrimoniousrelationship that they've had
(19:17):
with the union over the years.
Speaker 3 (19:18):
Yeah, the only time the negotiations happen with
them is when they go on strikeor just before they go on strike
, and then it's all.
Everybody shows up to themeeting room with baseball bats,
katie.
Speaker 2 (19:27):
Barthador.
They're the only two that theylike to have each other.
Yeah, yeah, and you know ShelfFine isn't making it easier.
He's no one's.
Usually these negotiations aresort of, you know, back room
kind of more secretive.
He comes right out and he'sblasting them in public, which
you know talk about losing face.
(19:47):
That's not a great, that'sreally.
You know that doesn't help.
Speaker 3 (19:51):
Well, the other thing I see is the unions complaining
about what their currentcontract is.
Hey, fine's the one whonegotiated that for you four or
five years ago.
You don't hold him accountablefor it either.
Speaker 2 (20:02):
Yeah, I mean today they're making.
You know, the average unionworker is making 60 bucks an
hour.
I don't know about you, butthat's not a bad wage, you know,
for no education.
Speaker 1 (20:13):
I could live on that, yeah, plus medical dental
optical all that, yeah, allright 401k contribution.
Speaker 3 (20:20):
That's a great wage and a discount in purchasing
cars.
Yeah, rob, it's great to talkto you.
Speaker 1 (20:25):
We thank you so much for taking the time out of your
lunch here at the noon hour upthere in the Carolinas, and best
of luck to you.
Thanks so much for sharing yourknowledge with us on all of
this.
Speaker 2 (20:37):
My pleasure have a great day, guys.
Thank you.
Rob Hanfield is his name, Bankof.
Speaker 1 (20:40):
America University the smartest person on the show
today.
Speaker 3 (20:45):
There's no doubt about that.
Hey, hey, hey.
Speaker 1 (20:49):
I wanted to tell you that Hyundai is sweetening the
deal for car shoppers,considering swapping for an all
electric lifestyle for buyers incertain markets who elect to
purchase or lease a new, as youcall it.
How do you call it Ionik?
Ionic, you call it Ionic, Icall it Ionik, whatever Ionic 5,
(21:09):
ionic 6 or Kona Electric.
Through its captive finance arm, hyundai will include a free
Charge Point Level 2 homecharger valued at $549 and a
credit of $600 towardinstallation.
Msimp.
Electric vehicle adoption hasbeen growing, but plateaued in
the first half of this year.
According to new vehicleregistration data from Experian,
(21:31):
ev's share of the market rosesteadily in 21 and 22, but has
run consistently around 7% thisyear.
Cooled demand suggestsconsumers are still hesitant to
make the change.
Ev's require a high upfrontcost compared with
gasoline-powered vehicles, andmacroeconomic factors such as
(21:52):
higher interest rates coupledwith tighter lending have
sidelined many buyers.
Alright time now for this Weekin Auto History, and Conrad has
that.
Speaker 3 (22:02):
In 1920 the first Lincoln automobile was built.
Henry Leland who foundedLincoln Motor Company in 1917 to
produce Liberty V-12 aircraftfor the US World War I.
He got a $10 million governmentcontract to produce those
engines and he went on andstarted Lincoln Motor Company.
(22:25):
You gotta remember Henry Lelandwas also the one who founded
Cadillac in 1903, as he leftFord and took a floundering
version of Ford and built itinto Cadillac brand and didn't
go on strike.
And didn't go on strike In 1959.
The valiant for all was.
Speaker 2 (22:44):
I like that car.
Speaker 3 (22:45):
That is me, it's you.
Speaker 1 (22:47):
That is such a cool car.
Tub it out, and Mr Peabody.
Speaker 3 (22:52):
I tub it out and put a hemi in it.
It was the entry level into thecompact car market that was at
the time dominated by the VWBeetle.
It's even my color and theoriginal project name for that
was the Falcon.
But Ford beat Chrysler to thename by releasing the Falcon in
1959, ahead of them giving it avaliant.
Speaker 1 (23:17):
That car is ugly.
Speaker 3 (23:17):
Well, that car is ugly and actually it didn't get
the name valiant until 1961.
Speaker 1 (23:23):
It's a valiant idea.
Speaker 3 (23:27):
And the car was kind of the end of an arrow, with the
tail fins and the quadheadlights and stuff.
It kind of went overboard on thefins.
It ended the arrow before thatIn 1970.
More than 50 years after hispassing, jimi Hendrix remains
one of the most influential rockand roll musicians to have ever
(23:47):
shredded a guitar.
Star Spangled Banner.
He purchased a ChevroletCorvette as soon as his musical
talents began to pay off.
The story goes that he orderedthe Corvette the international
blue Corvette from a Clevelanddealership in 1968.
And when he took delivery of ithe didn't even have a driver's
license.
And that car, to this day, isstill unaccounted for.
(24:11):
So somewhere where it is,somewhere, somebody has a blue
Corvette in their garage.
That used to be Henry JimiHendrix Corvette.
In a 1979, leia Koka, who wasthe elected as chairman of
Chrysler.
Lee's career began at FordMotor Company and would lead him
to the top of Chrysler as vicepresident of Ford.
(24:31):
He led Ford through what I callthe pony car era.
You know, they had the Mustang,they had the Bronco, they had
the Maverick, they had the Pinto, so Leia Koka.
And then he's gone on tohosting the rebuild of the
Statue of Liberty.
In 2006, ford GT productionends.
(25:01):
The Ford GT was originally aconcept car shown by Ford in
2002 and in 2004 when it beganproduction.
That was one of the quickestconcept of production cars ever
out there and has proven to beone of the best investment cars
to make in the 2000s.
Speaker 1 (25:21):
Alright, thank you, sir.
We're going to take a quickbreak here and we are going to
be right back to wrap up today'sshow.
You're on the time car talkshow on iHeart Radio.
The original group of loopytortilla restaurants will have
you telling your family andfriends just what the original
recipes mean when it comes tothe best fajitas in southeast
Texas.
Founders Stan Holt invite youto visit the original loopy
(25:44):
tortilla near I-10 and Highway 6.
Here's the original house thatinspired the design of all the
rest and the original charm thathelped make loopy tortilla the
go-to destination for HoustonTex-Mex.
Speaking of original, nothingcan compete with the original
lime pepper marinade.
That everyone will agree makesloopy tortilla award-winning
beef fajitas the best anywhere.
Loopy tortilla Katie is anotherlocation that gives you the same
(26:06):
quality and service Houstonianshave come to expect at loopies.
It's located just off I-10 ofthe Grand Parkway.
At Kingsland Boulevard in Katie, find yourself an Aggie land.
Head to the loopy tortilla inCollege Station, located just
around the corner from KyleField.
It's a great place to enjoythose famous frozen margaritas
before or after the game.
Head to the east, to Louisiana.
Stop in at the loopy tortillain Beaumont.
It twos on I-10, you can't missit.
(26:28):
The original group of loopytortilla restaurants invites you
in for the best Tex-Mex.
Anywhere you own a car you love,why not let Gulf Coast Auto
Shield protect it?
Houstonian John Gray invitesyou to his state-of-the-art
facility to introduce you to hisspecialist team of auto
enthusiasts.
We promise you'll be impressed.
Whether you're looking tomassage your original paint to a
like-new appearance, apply aceramic coating, install a paint
(26:51):
protection film, nanoceramicwindow tint or new windshield
protection called ExoShield,gulf Coast Auto Shield is where
Houston's car people go.
Curb your wheels Instead ofbuying new one.
I'd have them repaired.
How about a professionallyinstalled radar detector?
Gulf Coast Auto Shield doesthat too.
Get a peek inside the shop andlook at the services offered by
getting online and heading toGCAutoShieldcom.
(27:13):
Better yet, stop by theirfacility at 11275 South Sam
Houston Tullway, just south ofthe Southwest Freeway, and get a
personal tour.
Gulf Coast Auto Shield is yourplace to go for all things
exterior.
Call them today, 832-930-5655,or GCAutoShieldcom.
The award-winning In Wheel Timecar talk show is available on
the most popular podcastchannels out there in 30-minute
(27:36):
episodes.
We realize our 3-hour live showcan be difficult to catch in
its entirety, so now you canlisten every day to a convenient
, fresh 30-minute episode.
Check us out on Apple Podcasts,spotify, google Podcasts,
amazon Music and Audible, alongwith a dozen more.
In Wheel Time has the mostinformative automotive guest
interviews and new car reviews,along with popular features,
(27:56):
including Conrad's car clinicand this Week in Auto History,
along with automotive newsheadlines.
Our live broadcast airs everySaturday 8-11 central on
InWheelTimecom, the iHeart appand on YouTube.
Be sure to say hello when we'rebroadcasting from the Tailpipes
and Tacos cruise in AutoRamaand the Houston Auto Show, among
others.
Now it's easier than ever tohear about all things automotive
(28:17):
all week long.
You're invited to join fellowcar enthusiasts in becoming part
of the ever-growing In WheelTime car talk family.
Don't forget those 30-minutepodcast episodes on your
favorite podcast channel.
Well, that's it for this week'sIn Wheel Time car talk show.
If you haven't already, here'syour invitation to follow us on
Facebook.
Give us a like, tell yourfriends about us and share us
(28:39):
stuff, if you would please.
We'll keep you posted on allthings automotive all week long,
including new car reviews,upcoming events, cruise in
racing events, car truck and SUVgoodies and more.
You can find the In Wheel Timecar talk show 24-7 through the
iHeart radio app.
We live video stream this showon Facebook, youtube and
(29:00):
InWheelTimecom every Saturday8-11 central, if you so dare
choose our live stream Daily30-minute podcasts available
from your favorite podcastsupplier.
The In Wheel Time chiefengineer is David Ainsley.
Our marketing advertisingadvisor and video technical
director is all.
We always need more.
(29:20):
Jeff Zeekin, the booking agent,zoom manipulator, mike Mars, mr
Know-it-all and Facebook fiendis royalty King Conrad DeLong.
I'm Don Armstrong.
We hope you join us for anotherlive award-winning production
of the In Wheel Time car talkshow next Saturday when we'll be
at Woody's Waterfront car showin San Leon, texas, and it will
(29:43):
be on all of our In Wheel Timecar talk outlets right here on
the Fabulous Smoke and MirrorsNetwork.
Have a great weekend and we'llsee you next week.
Notify Stitcher iHeart podcastpodcast addict.
(30:23):
Tune in Pandora.
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