Ford to Save $850 Million in New Health Care Pact

Auto union officials said yesterday that they had approved the Ford Motor Company's demands for lower annual health care costs, saying the agreement would save the automaker $850 million annually. The decision paves the way for a ratification vote by union-represented factory workers. The union expects to announce ratification vote results on Dec. 22. The accord will help lower a health care bill that Ford estimates will reach $3.5 billion this year. Ford pays health expenses for 550,000 active and retired hourly workers and dependents in the United States. The company is trying to revive profits after its North American auto unit lost money in four of five quarters, including a $1.2 billion third-quarter pretax loss. Ford also committed to investing $900 million over five years in technology for new products, the union said. The health care accord parallels a similar agreement between General Motors and its unions that was ratified by members last month. ''We're pleased to have reached a tentative agreement with the U.A.W. on health care,'' Tom Hoyt, a Ford spokesman, said. He declined to comment on specifics of the accord.
(Source: The New York Times)
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Mercedes to Lose Crown in Luxury Cars to BMW

DaimlerChrysler AG's Mercedes-Benz division is set to lose the title of world's best-selling premium brand. With less than three weeks left in 2005, the auto maker is on track to cede its global premium-brand sales crown to archrival BMW AG's core BMW brand, in what would be the first year BMW has outsold Mercedes on an annual basis since 1993. In the first 11 months of 2005, Mercedes-Benz has sold 961,600 vehicles world-wide, compared with 1,020,156 for BMW, according to the companies. The shift in the two auto makers' standings is the latest illustration of broader problems at DaimlerChrysler's luxury division, and of the increasing competitiveness of the premium-car market. DaimlerChrysler spokesmen play down the significance of losing the global sales crown to BMW, noting that Mercedes-Benz sales globally are again rising after a slow start. With four models launched in 2005 -- a record for the brand -- Mercedes officials hope to continue their momentum next year when the new version of the brand's flagship model, the S-Class sedan, goes on sale in the U.S. following a big rollout at the North American International Auto Show in January.
(Source: The Wall Street Journal) [return to top]

Consumer Prices Drop by Largest Amount in 56 Years

Consumer prices plunged by the largest amount in more than a half-century in November as gasoline prices fell by a record amount. The Labor Department reported Thursday that its closely watched Consumer Price Index dropped by 0.6 percent last month, the biggest monthly decline since a 0.9 percent fall in July 1949. The decline was better than the 0.4 percent drop that analysts had been expecting. Outside of the volatile food and energy categories, prices were up 0.2 percent, a modest gain that should help relieve fears that this year's surge in energy costs could evolve into more widespread inflation problems. In other economic news, the number of people who have lost jobs because of the string of devastating Gulf Coast hurricanes climbed to 602,200 last week. Energy prices were down a record 8 percent, reflecting not only the fall in gasoline but also declines of 6.1 percent for home heating oil and 0.5 percent for natural gas.
(Source: The Associated Press)

[Footnote: NADA Chief Economist Paul Taylor notes that gasoline prices fell 16 percent to contribute to the dramatic drop in the CPI in November.  Light vehicle prices also came down in November, as manufacturers re-instated customer sales incentives after trying to cut back drastically on them in October (with a sharp drop in vehicle sales resulting that month).  New vehicle prices fell 0.1 percent in November from the previous month. Used car and truck prices fell a dramatic 0.9 percent, because these prices were suppressed by the lagging impact of the run-up in gasoline prices in previous months. Used car and truck prices are currently recovering, according to data from the N.A.D.A. Official Used Car Guide and NADA's AuctionNet database on wholesale vehicle trades, as the economy continues to grow.  New car prices in November were up 0.1 percent over November 2004, and used car prices up 2 percent over November 2004, suggesting the economic strength in used car demand.] [return to top]

California Auto Dealer and State Chairman to be Honored at 10th Annual Multicultural Prism Awards Gala

The California Motor Car Dealers Association (CMCDA) is pleased to announce that Minorities in Business Magazine Inc. (MIB) has selected Ed Fitzpatrick, chairman of CMCDA and a Modesto and Oakland auto dealer, to receive the MIB Entrepreneurial Spirit Award at the 10th Annual Multicultural Prism Awards Gala tonight in Universal City, Calif. The awards gala will celebrate and honor outstanding artists, celebrities, entrepreneurs, business leaders and corporations who set trends, make history and act as ambassadors to encourage positive change in their businesses and communities.  "It is an honor to be selected for this prestigious award that serves to acknowledge my career and contributions to the auto industry," said Ed Fitzpatrick. "Auto dealers are among the finest people in the world. They are committed to their associates, customers, communities and the United States of America. I'm proud to be a dealer and wouldn't want to be anything else."  This year's 10th Annual Multicultural Prism Awards Gala reaches a milestone, and will benefit displaced children through the Katrina Missing Childrenšs Coalition.
(Source:  California Motor Car Dealers Association) [return to top]