Auto Industry News: Detroit Manufacturing Gets a Boost as UAW Corruption Investigation Dishes Up More Dirt, and the Case of the Mysterious 2020 Chevy Corvette C8 Gets New Clue

Today, we head straight to the Motor City. From new business to new corruption charges, there’s a whole lot happening for the auto industry in the Big D. GM invests big in its Orion Township assembly plant to produce a new Chevy EV, as Ford expands production at Flat Rock for its own electric endeavors. Three auto supply companies get the green light to expand their operations in and around the city as well, further ramping up Detroit manufacturing. Coincidentally, all this new job creation comes just as federal investigators dig up new dirt in the UAW corruption scandal. And in lighter news, the ever-elusive unicorn that is the 2020 Chevy Corvette C8 takes shape, as the dealership order guide is reportedly leaked online.

Detroit Manufacturing Ramps Up Production

As automakers pledge to electrify their vehicle lineups, Detroit manufacturing gets a fresh look. From plant retooling to parts development, it’s out with the old and in with the new.

Ford announced last week its intentions to expand production capacity at its Flat Rock assembly plant just outside Detroit. As part of the company’s $11.1 billion investment in global EVs, the facility will produce vehicles according to Ford’s new electric architecture—including the next-gen Mustang. The interest in Flat Rock is part of a $900 million investment in Ford’s Detroit manufacturing footprint, focusing on both electric and autonomous vehicle technology.

On its heels is GM, which, despite recently shutting factories and laying off thousands of workers, announced an investment of $300 million in its Orion Township plant—adding 400 jobs and a battle plan for a new electric Chevy. This comes after President Trump spent the previous weekend blasting the automaker on Twitter and telling GM Chairman and CEO Mary Barra to either “get that big, beautiful plant in Ohio open now” or sell it to someone who will. Ohio was a key victory on Trump’s trip to the White House—one he’ll want to keep for 2020.

Detroit manufacturing set to ramp up thanks to new investments by automakers and part suppliers.
Source: CNBC, Bill Pugliano | Getty Images

Two weeks ago, we reported that Fiat-Chrysler is also expanding its grip on Detroit manufacturing. The company is making moves to upgrade its Michigan facilities with a $4.5 billion investment, as well as building a new assembly plant in the Motor City. The Detroit News reports that “the clock is ticking” for the city to put together a pretty little incentive deal for FCA, as the proposed plan involves “acquiring 200 acres of land, closing a street, and demolishing an old power plant.”

Nothing for nothing, eh? The city has until April 27 to finalize details.

Business development isn’t only for the big guys, though.

Michigan state officials say that three auto supply companies—Erae AMS USA Manufacturing LLC, Concord Tool and Manufacturing Inc., and Ventra Evart LLC—have the green light to expand operations in Detroit. Receiving financial support from the Michigan Strategic Fund in the form of performance-based grants and tax abatement, the state’s economic development corporation claims the companies will invest a total $29.6 million, creating 262 new jobs.

Erae, a subsidiary of Korean company AMS Co. Ltd., manufactures driveline systems, chassis, and electronic systems. Concord is a metal forming supplier for every Toyota facility in North America. The company manufactures seating components, brake covers, bumper brackets, door hinges, engine components, among other products. And Ventra offers painting and assembly of plastics molding products, as well as metals, lighting, and mechanical assemblies.

Union Exec’s Misuse of ‘Flower Funds’ Unearths More Dirt in Federal UAW Corruption Investigation

All of this exciting job creation comes just as the newest rock is overturned in the garden of UAW corruption. As part of a three-year investigation, federal agents are now looking into the alleged misuse of flower funds by union execs. What are flower funds, you ask? “Voluntary” contributions made by union members to supply funeral flowers to deceased fellow workers.

Oh, and to finance union election campaigns.

If you’re thinking it seems fishy for two incredibly different activities to share the same slush fund, you’re not alone. Investigators have long criticized their existence, with scrutiny dating back to the 1950s. In fact, this is not the first time the UAW’s potential misuse has come under the federal microscope. In 1989, the Labor Department issued 24 subpoenas in the hunt for a paper trail. No criminal charges were filed then.

However, with seven UAW officials already seeing prison this time around, the birds are singing—loudly. In exchange for lighter sentencing, several execs have filled in the feds on UAW corruption, including siphoning money earmarked for worker training to purchase vacations, dinners, lavish gifts, and big-budget parties, as well as accepting bribes from automakers to essentially “buy” labor peace.

While the main charges revolve around these violations, new ones may be filed if investigators find hard evidence proving that union members were forced to contribute to these funds under fear of job loss and whether or not UAW execs then pocketed the cash.

Clue or Red Herring? Leaked 2020 Chevy Corvette C8 Order Guide

On a lighter note, the new 2020 Chevy Corvette C8 might really be arriving this summer as promised. Like—really, really. A string of development issues, including rumored electrical problems and chassis flex, pushed the new ‘Vette’s debut several times. Expected at the Detroit Auto Show and then hoped for in Chicago or Geneva or even a Chevy-special event, the newest iteration of America’s sports car has continued to remain a mystery. (Not to mention, a few weeks ago, the camouflaged beauty was spotted broken down at a gas station outside Detroit. Ouch.)

Autoblog reports that a CorvetteForum user leaked photos of the order guide for the new 2020 Chevy Corvette C8.
Source: Hagerty

However, Autoblog reports that a user on enthusiast site, CorvetteForum, posted snapshots of the “computer screen configurator pages and a printout of the final vehicle spec,” leading fans to believe the 2020 Chevy Corvette C8 will actually be arriving on dealerships sooner than later. Fellow users aren’t 100% convinced though, arguing that this is likely information on the outgoing C7.

It is worth noting that the National Corvette Museum will be celebrating its 25th anniversary this August. A perfect place to debut the much-anticipated new mid-engine model, no?

Around the Circuit

Upcoming Auto Show

The Denver Auto Show kicks off this Wednesday, March 27 at the Colorado Convention Center, sporting over 300 vehicles from 36 car lines. With hot models, sneak peeks, and fan-favorites, there’s plenty of fun for the whole family. Rub elbows with racing veterans at the Race Car Pit Stop and war veterans at Military Trail. Be sure to check out the vintage, one-of-a-kind rides over at the Antique Road Show and snap a selfie with MAXX—the 9ft tall robot displaying revolutionary future technology. The show runs through Sunday, March 31.

Higher Hopes for Ferrari at Next F1

The next F1 race, the Bahrain Grand Prix, takes place Sunday, March 31 and racing pundits hope it will yield better results for Ferrari. The team had a surprisingly poor start to the season in Australia, especially as its cars were the ones to beat after excellent testing results in Spain.

According to ESPN, Ferrari’s lap time suffered in medium-speed corners and on the straights, per F1 data. Compared to Barcelona, the majority of corners at Albert Park are medium-speed and five of Melbourne’s six straights are preceded by them, “meaning a poor exit results in lost time all the way until the next braking zone.”

Additionally, the sports network reports that pavement surface varies widely between the two tracks. Spain’s was freshly laid for pre-season testing, while Australia’s use as a public road for most of the year creates a bumpier, lower-grip surface. The track in Bahrain is supposedly more abrasive and less bumpy, featuring straights largely preceded by low-speed corners, meaning the Italian team should fair far better.

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