January 4, 2012

 By Bryce G. Hoffman and David Shepardson -The Detroit News

Auto sales remained strong in December as Detroit's Big Three collectively reported a 12 percent sales increase amid growing confidence about the economy.

Most automakers reported sales increases for 2011 and in December. But two of the seven largest automakers — Toyota Motor Corp. and Honda Motor Co. — reported overall sales declines in 2011 of 7 percent in the United States amid fallout from the March earthquakes and tsunamis in Japan and flooding in Thailand.

Ford Motor Co. said its Ford brand sales were up 17 percent in 2011. Overall, the automaker's total U.S. sales added up to more than 2.1 million vehicles in 2011, a year-over-year gain of 11 percent. In December, Ford's sales were up 10 percent.

Chrysler Group LLC sold 26 percent more cars and trucks last year than it did in 2010, the largest gain of any major automaker, the company said.

Detroit-based GM said its sales were up 14 percent for 2011, but up just 5 percent in December.

U.S. automakers were buoyed by having higher inventories than their rivals, said Paul Taylor, chief economist with the National Automobile Dealers Association. Japanese automakers have been hampered by supply problems in the wake of the Japanese tsunami in March, while European automakers are worried about slow growth there.

"The Detroit Three dealers had nearly 50 percent of the inventory available for sale during December, and collectively enjoyed sales increases of more than 12 percent," Taylor said.

Automakers have reasons for optimism in 2012. The nation's auto fleet is now the oldest it has ever been — with the average vehicle being 10.7 years old — and affordable credit and low interest rates has made financing a new vehicle easier.

We received a good number of phone calls at the local regarding the October 1, 2011 contract expiration and also on the progress of the national negotiations between the UAW and the cleaning companies at Ford Motor Company. The UAW and the cleaning companies have all agreed to contract extensions. That means that you will continue to work under the old agreement until a new contract agreement is reached. We were informed that they do not plan to negotiate the new contract until after the Christmas shut down.

Please feel free to contact the local if you have questions: (313)561-7500

In Solidarity,

Keith W. Brown

President

UAW Local 245

The results of the ratification vote on the tentative contract agreement at the Henry Ford are as follows:

55% voted YES

The agreement is ratified.

Thank you for participating in the contract ratification process.