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UAW Strike Pending:
Nearly 150,000 autoworkers may strike by the end of this week if negotiations between the union and three of Detroit’s biggest OEMs—Stellantis, Ford, and General Motors, or the “Detroit Three”—continue at its current impasse. The work stoppage might be felt in as little as a month, according to Fortune, as the companies collectively have enough inventory for up to 70 days. The parties have through 11:59 p.m. on Thursday to come to an agreement on a new four-year contract. On the table are salary bumps, increased security and worker protections, the return of defined benefit pensions over 401(k)s for new hires, fast-tracking of so-called temporary workers to permanent, and a 32-hour workweek with overtime pay after 40 hours. According to union officials, members are already working more than 60 hours per week to make ends meet, although OEM spokespeople have said that permanent workers’ salaries regularly top six figures with overtime and profit sharing. If they strike, the US Chamber of Commerce estimates that the Detroit Three could lose nearly $1 billion collectively over 10 days. Either way, expect reduced supply to lead to increased prices, especially if the strike drags on and production can’t return quickly enough.
Sources: Reuters, Fortune, Wall Street Journal, US Chamber of Commerce
EV Sales Cross Critical Threshold:
Sales of electric vehicles represented 7.2 percent of all new vehicles purchases in Q2 2023, a new record and one that might portend a critical benchmark for future sales. According to Bloomberg, the 5 percent sales threshold is a significant one, as it “signals the start of mass adoption when technological preferences rapidly flip.” Vehicle sales aside, the EV industry is still in its tempestuous adolescence, as dealers and manufacturers try to find the balance between demand and production (some dealers are stuck with units they can’t sell while others can’t get them in quickly enough), pricing matches consumer tolerance and tax credits (prices have been falling), and—the elephant in the room—the infrastructure needed to handle the influx of these vehicles. Even Secretary of Energy Jennifer Grandholm had her own bad experience with EV charging during a recent road trip. However, with faster adoption comes more innovation, which could help drive the production of more facilities. It’s still not great if you’re a renter or don’t have a garage, but faster charging is coming.
Sources: Kelley Blue Book, Bloomberg, NPR
Economy Might Be Leveling Off: According to the National Federation of Independent Business (NFIB), an organization that focuses on small businesses, optimism among small business owners declined slightly (0.6 of a percent) last month, driven primarily by the continued inflation and longstanding job openings, according to the NFIB’s Small Business Optimism Index. Eight percent of owners cited labor costs as their top business problem, down two points from July, and 24 percent said that labor quality was their top business problem. While this news is disappointing, major economists are more hopeful that the overall economy will avoid a significant recession, which has been predicted for the past few years. Consumer spending has dipped a bit over the summer, but it remains strong post-COVID. Prices driven up by inflation in recent years remain high, although inflation is not causing them to rise as quickly as they did in 2021. Of course, the economy is a mixed bag of indicators and factors, and it will vary based on region and industry, but it’s a bearing for planning and saving for the future.
Source: NFIB
Mercedes to Debut New Charging Facilities This Fall:
Mercedes-Benz says it’s opening its first high-power charging stations this fall as part of its long-term plan to expand global charging infrastructure. Charging hubs will go into operation in Atlanta, Chengdu (China), and Mannheim (Germany) by the end of next month, with the goal of increasing that to more than 2,000 high-power charging points by the end of 2024, and more than 10,000 by the end of the decade. While the stations will be open to drivers of all brands, the company says that Mercedes drivers will be able to reserve a spot and will be given priority. Facilities will primarily be at Mercedes dealerships, and waiting drivers will have access to refreshments and restroom facilities.
Source: Mercedes-Benz Media
[09.12.23]
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- Category: Industry News
L to R: Michael Zlotkowski of Aces Limousine, David Bastian of Towne Livery Vehicles, James Barwell and Kevin Barwell of Giorgio's Limousine Service, and Jo DiDomenico of American Limousine Service
On Wednesday, September 6, the Limousine, Bus, Taxi Operators of Upstate New York (LBTOUNY) held their annual membership meeting/baseball outing at Shalen Field in Buffalo, N.Y. Sponsored by Towne Livery Vehicles, the event welcomed 20 members, along with family and friends, to watch minor leaguers the Buffalo Bisons take on the Lehigh Valley Iron Pigs. Guests at the event included Incoming Transportation Alliance President Bill Yuhnke and Black Car Fund Executive Director Ira Goldstein.
Legislative Chair David Bastian of Towne Livery Vehicles
Prior to the opening pitch, LBTOUNY members held a meeting to discuss state legislation. Chief of the issues discussed were Assembly Bills A03102 and A03103, also known as Sunset Laws. In the wake of the Schoharie crash of 2018, lawmakers have moved to advance a law that removes any stretch limousine off the streets after 10 years or 350,000 miles. LBTOUNY has been fighting this proposed legislation since it was introduced as it will likely eliminate all limousines from the market in short shrift. They have succeeded in seeing it not passed for the time being.
President Kevin Barwell of Giorgio’s Limousine
“The State Assembly and Senate are creating bills without any understanding of the industry. They have limited knowledge of how vehicles are used in the industry, including how many miles are being put on the vehicles, their hours of use, and the number legally operating on the road,” says LBTOUNY Legislative Chair David Bastian, Jr. of Towne Livery Vehicles. “It’s detrimental to ground transportation operators.”
Bastian added that while the association is pleased that the bill did not pass this year, it will likely be reintroduced in 2024.
“We are actively discussing this with the Senate to find some common ground,” he says. “It is our intention to educate the lawmakers so it won’t come up again in January.”
Vice President David Brown of Premiere Transportation
In the meantime, LBTOUNY is supportive of Bills that deal with trip safety. Case in point is recently passed Assembly Bill A06513, which requires that stretch limousines are equipped with window-break tools and operational fire extinguishers.
Bastian says that the association is proud of the ground LBTOUNY has made with the state legislature.
Buster Bison surprised the members and guests at the annual LBTOUNY baseball meeting
“We’re a small association, but we’ve learned to be citizen lobbyists to represent our industry when issues arise. The industry’s been under attack from the Senate and Assembly since 2009. We’ve been fighting for 14 years.”
Meeting speakers included LBTOUNY President Kevin Barwell of Giorgio's Limousine Service, Vice President David Brown of Premiere Transportation, Board Member Mark Crisafulli of Haylor, Freyer & Coon, as well as Bastian. Other matters discussed at the meeting include insurance reform and working to get sales tax exemptions for the industry.
“We’ve had discussions with the state for alternative ways to come at this from different directions,” states Bastian.
Visit lbtouny.com for more information.
[09.12.23]
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- Category: Industry News
Hey, are you snoozing on the CD/NLA Show Early Bird Rate?The discounted price ends this Friday, September 8, so that leaves you with just two days left to save considerable coin on the registration for our Orlando show on October 22-25. Take advantage today to get your full show pass for only $449. And don’t forget, NLA members save an additional $75 off the already reduced rate. Click here now to register.
Once you register, you can start planning your educational programming for the event. The CD/NLA Educational Committee has assembled more than 16 hours of sessions and roundtables designed to bring immediate ROI to your business. Whether you have one car or 100, you’re bound to find some intriguing and useful content.
Speaker Ken Lucci of Driving Transactions
For example, on Monday morning, October 23, at 9:30, Financial Expert Ken Lucci of Driving Transactions takes the wheel for From Chaos to Clarity: Taking Control of Your Financials. In this classroom-style session, you’ll be empowered to make informed decisions that optimize your company's performance and bottom line. This seminar will take you through what you need to know to get your financial house in order. You’ll discover why you need orderly records, how you know your finances are on track, and what your chart of accounts should look like for a great P&L. You’ll also learn how a P&L connects to the balance sheet along with solid hints and tricks peppered throughout.
“Driving Transactions has reviewed financial information from over 250 transportation companies, and there is quite a bit of chaos—which is why we developed this session,” says Lucci. “Chaos is not being able to produce monthly financials and not tracking critical financial metrics while having low profits, high expenses, and high debts. Simply put—flying financially blind. On the flipside, clarity is having the complete financial picture of your business, comparing trends, managing critical metrics, and knowing your profit margins so when you need to make major financial decisions you have all the data at your fingertips.”
Moderator Karl Guenther of Statement Limousine
Moderator Tiffany Hinton of MOTEV
For a different approach to learning, join us on Tuesday, October 24, at 10 a.m. for an engaging and interactive roundtable entitled Building Bridges to Enhance Organizational Success. Moderators Karl Guenther of Statement Limousine and Tiffany Hinton of MOTEV will cultivate an environment where operators can thrive. Discover the keys to nurturing a workplace that celebrates individuality, bolsters team involvement, and supports enduring careers. Connect with fellow operators from various backgrounds to collaborate, learn from one another, and collectively build a more engaged and inspired team. In this open roundtable format, you’ll have the opportunity to ask questions about how DEI impacts your business, while each table will discuss and share with the room and provide expert feedback.
“I am really looking forward to taking a deeper look into what makes up our company DNA, and how we can truly build a company culture and network that embodies who we truly are,” says Guenther. “I am looking forward to collaborating with each and everyone of you at this can’t miss session!”
For a full schedule of all the CD/NLA educational sessions, click here.
Visit cdnlashow.com for more information.
[09.06.23]