We understand your frustration Mr. Bernero, but jeez-o-pete, lay off the campaign tactics and Red Bull for a minute and answer the kind Fox News anchor's questions. Of course, we've also heard he's a bit of a hot-head — Wert knows him from his days working for Michigan Governor Granholm in Lansing, and here's what he had to say:

My favorite Virg story is from back in 2003 when he was still in the State Senate. Virg cornered me next to one of the stairwells in the Capitol building in Lansing at some lobbyist luncheon. Virg knew I worked for the Governor, knew I was a senior staff member and decided I was a great target to bitch about some funding measure the Governor was pushing — despite the fact I wasn't in legislative affairs, nor was I going to lobby on his behalf to them. Regardless, he decided he wanted to play "hardball" with me, so he got in my face, blustering, gesturing wildly and bitching about the funding decision. The only problem is that I'm like a foot taller than him. So in order to get in my face, he needed to stand on the tips of his toes. So there we were, him bitching and yelling, pointing his finger in my face, me trying not to laugh at this little guy trying to intimidate me, when I realized that I could help him out. I stopped him in mid-sentence saying "Hold on a second," grabbed him, spun him around and stepped down one step so that I was now eye-to-eye with him, finishing with a "There, that's better — you looked like you were going to topple over. Please, continue your bitching." His face red with anger, Virg started to say something, then spun around and stalked off. I only smiled, put on my jacket and walked back over to my office in the Romney Building across the street."

[via dailykos]

The company reported a net loss of $5.9 billion for the fourth quarter of 2008, compared with a loss of $2.8 billion a year earlier, capping a third straight year without a profit.

The pre-tax operating loss, excluding special items, was $3.7 billion, compared with a loss of $620 million during the same period in 2007.

Ford finished the year with cash reserves of $13.4 billion on hand, but claims it is immediately pulling in $10.1 billion from available credit lines due to concerns about the instability of the capital markets and the uncertain economy. Probably a good idea.

Pulling in the $10.1 billion would give Ford overall liquidity of $23.5 billion, minus the amount of cash been used thus far in January. Based on the companies' current assumptions, Ford continues to say it has adequate liquidity to fund its business plan. But Ford executives have said they may ask for government help if industry sales don't start to recover this year. So assume, as we've said before, that this'll happen because this market ain't getting any better any time soon.

Full press release below:

FORD REPORTS 4TH QUARTER 2008 NET LOSS OF $5.9 BILLION; GAINED MARKET SHARE IN U.S., EUROPE, ACHIEVED COST TARGET

* Net loss of $5.9 billion, or $2.46 per share, for the fourth quarter of 2008 amid a sharp global decline in vehicle demand; pre-tax loss of $3.7 billion from continuing operations, excluding special items.
* Reduced Automotive costs by $1.4 billion in fourth quarter and $4.4 billion in 2008 versus year-ago levels. Achieved $5.1 billion in North America cost reductions at year-end 2008 compared with 2005, excluding favorable impact of depreciation and amortization from asset impairment at the end of the second quarter.
* Decisively reduced global dealer stocks by more than 50,000 vehicles compared with the third quarter. Ford now has among the lowest days’ supply in the industry.
* Product transformation continues to gain strength, helping the company to gain market share in Europe for fourth quarter and full year, and in the U.S. in the fourth quarter.
* Total liquidity of $24 billion, including Automotive gross cash of $13.4 billion, at Dec. 31, 2008. +++
* Ford is drawing its available credit lines due to concerns about the instability of the capital markets with the uncertain state of the economy. The $10.1 billion will be added to company cash for the first quarter 2009.
* The United Auto Workers union has agreed to end the “jobs bank” at Ford. The company and the union are presently working out the details of implementation.
* Based on current planning assumptions, Ford has sufficient Automotive liquidity to fund its business plan and product investments and does not need a bridge loan from the U.S. government.
* Ford remains on track for both its overall and its North American Automotive pre-tax results to be at or above breakeven in 2011, excluding special items.

The UAW could be heard heaving a sigh of disappointment as we're stopped by mini-Shaft just before we would've mowed down Senator Bob "Nissan" Corker. Oh well, maybe next time.

David Edgar, a Chrysler employee working at the Warren Stamping Plant, is not happy. He's sick of "our race to the bottom." He's sick of "what a working man has to go through to make a livable wage." He's sick of "free trade," so he and his UAW local friends are going to fix it. Through protests and rallies, this sizable cadre of autoworkers from a variety of local factories hopes to turn the tide. Being on the inside of the show and looking out, it's a lot like the movie Airheads, but without the rock. Also, no Chris Farley. Ford marketing maven Jim Farley, yes, but he's just his cousin.

The leaders of the protest believe that pressures have been mounting since 1980 to "pull the rug out from under the UAW." One protester stated that he has shrunk his standard of living by selling his boat - and buying a smaller one. God, save us all.

While the Carpocalypse looms over the heads of many in the Detroit area and beyond, the UAW apparently isn’t feeling the same kind of heat. While companies are struggling to survive and cutting costs wherever possible, the UAW is spending millions to maintain their golf resort in Black Lake, Michigan.

The $6.4 million golf course is merely a small piece of the larger $33 million retreat center that is costing the UAW millions of dollars every year, totaling $23 million in the last five years. According to the UAW, the Reuther Family Education Center hosts important seminars and classes on leadership and political action, but we’re guessing they’re spending a lot of time on that finely trimmed grass on the 5th tee.

According to Justin Wilson of the Center for Union Facts, a union "watchdog group" (we're not entirely certain where funding for such a group comes from, but we're assuming it's from some sort of biased source):

“It’s their members’ money that they’re spending on this thing. The union has bigger issues at hand than managing a golf course.”

The attached golf course at the Reuther Family Education Center was designed in 2000 by famous course architect Rees Jones for a paltry $6 million. UAW members receive a 20% discount off of the normal green fee of $85, though we don’t think many of them will have the money to play golf in the upcoming season.

[via SportsbyBrooks]

UAW President Ron Gettelfinger read an e-mail he claimed was from Senate GOP staffers indicating the Senate GOP was trying to deliver a blow to organized labor and the UAW. The alleged e-mail states:

"Republicans should stand firm and take their first blow against organized labor rather than from it...again, the hardest thing for the Democrats to do is get 60 votes. If we can hold the Republicans, we can beat this."

Later in the press conference, Gettelfinger claimed the Republican minority in the Senate voted against cloture on the Senate bill as an attack on the UAW due to their political effectiveness against their membership.

Alex Taylor on CNBC put this whole debate over UAW wages, whatever they may be, into perspective as he said labor cost per car are really only about $800 per car, so even if the UAW were to work for free, it wouldn't save GM from failing in the month of December.

Thank you Senate Republicans, for putting politics in front of staving off Carpocalypse Now. [via CNBC]

The S&P said a month ago that if the credit crunch wasn't taken care of, by 2009 the world would be facing global automaker liquidation. That's what we call the Carpocalypse and it's getting much closer to reality after Senate Republicans killed the House bailout bill without brokering a compromise, hung up on an attempt to strong-arm the UAW into a wage reduction for current workers that apparently isn't factually based.

Meanwhile, Toyota poised for its first U.S. sales decline in 13 years, canceled its 2009 annual dealer meeting in Las Vegas to trim expenses as consumer demand for new cars plummets. Additionally, the Japanese automaker released a statement saying a bankruptcy among the not-so-Big Three would "exacerbate an already difficult environment" for itself and the industry as a whole. On those comments, and thanks to the Senate Republicans, shares were off 10% in Nikkei trading today.

In response, the White House just moments ago claimed "all options are on the table" including, apparently, looking to breaking off a chunk of the $700 billion in TARP financing set aside for the financial industry. Toyota stock recovered after this news, down now just over 1.5%.

Fears of a bankruptcy of any of the not-so-Big Three also hit Honda today, who we just heard will now be cutting output in North America by 119,000 between now and the end of March at plants in Alliston, Ont., Ohio, Alabama and a new factory in Indiana that began producing cars just last month.. Run for the hills, folks!

[via MSN, Globe and Mail]

Although UAW officials and their allies counter the banks have been an effective way to keep a flexible job pool available and allow the companies to implement new technology while reducing overall numbers responsibly. More view that as complete hogwash.

Not much is known as of yet about specifics on the discussions. As of now we've only got a wire service report from the Journal telling us:

"The United Auto Workers union is in talks with some of Detroit's Big Three auto makers to stop a program that pays idled workers - WSJ"

Guess we'll have to wait for more. You'll hear it as soon as we hear it.

[via WSJ]

1.) Both carry a bunch of signs at all their get-togethers. UAW workers, picket signs. Congressmen, re-election signs.
2.) Both have exorbitant pensions and will receive health care for life upon retirement.
3.) Both have work stoppages for months at a time during summer, winter and around all federal holidays.
4.) Both take credit for creating the middle class.
5.) Both have a historical reputation for shoddy quality of work product.
6.) Both like pork. One likes it in "rind" form, the other in "spending" form.
7.) Both live well beyond their means. UAW workers with boats on Lake Superior. Congress gets junkets and fact-finding trips to the Cayman Islands.
8.) Both are paid the same regardless of how much work they do.
9.) Both have a national approval rating of under 10%.
10.) Both are seemingly out-classed by their foreign counterparts.
11.) Both get to take election day off.

See, there you have it, they're like ebony and ivory — and really, they've got to figure out a way to live together in perfect harmony.

While the overtones of protectionism are strong, the nuts n' bolts of the ad are all about whether McCain's just a no-good dirty flip-flopper. Gettelfinger claims a recent article by Newsweek's Keith Naughton contradicts McCain's statement that he has proudly bought American-made cars all his life. Registration records show among McCain's 13 vehicles are a Honda sedan, a drop-top Volkswagen and Cindy's personal Lexus, while his campaign also states that the Republican presidential nominee is a proud Buick Cadillac owner. We assume McCain meant that he's proudly bought American cars all his life, but not just American cars. After all, that's a lot of years to have never taken a dip in the import pool. McCain's also been questioned by reporters about whether a Toyota Prius his daughter owns was purchased by her or by Daddy McCain. McCain responded by first saying he purchased it, and then later saying he could not remember whether he'd bought the car himself.

Gettelfinger reiterated "Americans are free to buy whatever they choose," presumably clearing his throat while saying "as long as it's made in the USA by union workers and you're not a presidential candidate pandering for votes in the rust belt." Democratic presidential candidate Sen. Barack Obama and his wife currently share a Ford Escape Hybrid, which, along with the Obama's previous Jeep Grand Cherokee, and HEMI-powered Chrysler 300C apparently receive an approving wink and touch of the nose from the UAW. And in Michigan, that's all you normally need. [Detroit News; Photo Credit: PoliticsUSA]

Considering that buyout incentives ranged from $45,000 to $140,000, depending upon seniority and job description, a sociologist might visualize tens of thousands of factory workers taking their new-found cash cushions, re-educating themselves, and re-entering the workforce in a few years' time trained for new, high-demand jobs. A cynic, on the other hand, might visualize jet-ski and snowmobile sales spiking during the next six months, followed by a wave of repossessions and unemployment claims as ex-assembly workers deplete their savings and sober up. Thank God we're sociologists. Oh, wait...
[Automotive News (Sub. Req.)]

General Motors and the UAW Reach Agreement on Comprehensive Special Attrition Program

DETROIT - General Motors Corp. (NYSE: GM) and the United Auto Workers (UAW) union have reached an agreement on a comprehensive special attrition program that will be offered to all of GM's 74,000 UAW-represented employees.

The special attrition program offers a choice of several pension and buyout incentives. GM is offering retirement pension incentives of $45,000 for production employees or $62,500 for skilled trades. Eligible employees can select from a variety of ways to receive their incentive:

* One time, lump-sum cash payment
* Direct rollover into their GM 401(k) or into an Individual Retirement Account (IRA)
* Monthly annuity
* Combination of partial lump-sum payment and direct rollover into their GM 401(k) or an IRA

The other retirement and buyout options available are similar to those offered to employees in 2006. These options include:

* Mutually Satisfactory Retirement (MSR) for employees who are at least 50 years old with 10 or more years of service. This option provides a pension payment with full benefits.
* Pre-Retirement Program in which employees with 26, 27, 28 or 29 years of service can grow into a full "30 and out" retirement. Until they reach 30 years of credited service, participating employees would receive a fixed monthly payment with full benefits.
* Cash Buyout for employees who agree to voluntarily quit and sever all ties with GM.
o $140,000 buyout incentive is offered to employees with 10 or more years of credited service or seniority
o $70,000 buyout incentive to employees with less than 10 years of credited service or seniority

In December 2007, GM and the UAW reached an agreement on what the company was calling the first phase of a comprehensive special attrition program. Details of this program were rolled out to employees at select locations last month. Those employees are now eligible for the enhanced provisions of this new agreement.

"We've worked with our UAW partners to ensure our employees have a variety of attractive options to consider," said Rick Wagoner, GM Chairman and CEO. "The special attrition program is an important initiative that will help us transform the workforce."

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the annual global industry sales leader for 77 years. Founded in 1908, GM today employs about 266,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

MEDIA ADVISORY: UAW-FORD NATIONAL LABOR AGREEMENT RATIFIED BY MEMBERS

DEARBORN, Mich., Nov. 14, 2007 - Ford Motor Company today confirmed that its new four-year national labor agreement, tentatively reached on Nov. 3, has been ratified by UAW-represented employees. The now-final agreement covers approximately 54,000 employees in the United States.

"We are pleased that our employees have voted to accept and finalize our new Collective Bargaining Agreement," said Alan Mulally, Ford Motor Company president and CEO. "This agreement is proof that by working together with our UAW partners, it is possible to find solutions that collectively benefit our employees, retirees and the company. This contract will provide significant opportunities for the company's long-term competitiveness, and that is good for all of us."

STATEMENT: UAW-FORD REACH TENTATIVE AGREEMENT ON NEW NATIONAL LABOR AGREEMENT

Note: The following statement is attributable to Joe Laymon, group vice president, Human Resources and Labor Affairs, Ford Motor Company.

DEARBORN, Mich., Nov. 3 — The United Auto Workers union (UAW) and Ford have reached a tentative agreement on a four-year national labor contract covering approximately 54,000 represented employees in the United States.

I'd like to take this opportunity to thank UAW President Ron Gettelfinger, UAW Vice President Bob King and the entire UAW national bargaining committee for all of their hard work and professionalism over the past several months. I would also like to thank the Ford bargaining team for its skill and dedication during this complex and challenging set of negotiations.

The agreement is subject to ratification by UAW members. It includes a memorandum of understanding to establish an independent retiree health care trust. Following ratification, implementation of the memorandum of understanding is subject to approval by the courts and satisfactory review of accounting treatment with the Securities and Exchange Commission.

Though we will not discuss the specifics of the tentative agreement until after it becomes final, we believe it is fair to our employees and retirees, and paves the way for Ford to increase its competitiveness in the United States.

Chrysler LLC Confirms the United Auto Workers Ratification of the 2007 National Labor Agreement Agreement includes independent retiree health care trust Future competitiveness heightened by constructive agreement Auburn Hills, Mich. - Chrysler LLC today confirmed a new Chrysler-UAW 2007 national labor agreement, in response to the UAW's ratification results. Chrysler and the UAW reached a tentative agreement on Wednesday, October 10, after three months of bargaining. "We are pleased that our UAW employees recognize that the new agreement meets the needs of the company and its employees by providing a framework to improve our long-term manufacturing competitiveness," said Tom LaSorda, Vice Chairman and President, Chrysler LLC. Chrysler LLC, headquartered in Auburn Hills, Mich., produces Chrysler, Jeep® , Dodge and Mopar ® brand vehicles and products. Total sales worldwide in 2006 were 2.7 million vehicles. Sales outside of North America were the highest in a decade with an increase of 15 percent over 2005. On the heels of the company's record product launch year (Chrysler launched 10 all-new vehicles in 2006), the company extended that streak with eight all-new products in 2007. Its produce lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Commander and Dodge Charger. Chrysler is a unit of Cerberus Capital Management.