plus 1, Oshkosh Corp. workers applaud $3B Army contract - Oshkosh Northwestern

Oshkosh Corp. workers applaud $3B Army contract - Oshkosh Northwestern

Posted: 14 Feb 2010 06:35 AM PST

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OSHKOSH — The roar of applause at the news Oshkosh Corp. will produce the U.S. Army's Family of Medium Tactical Vehicles for the next five years covered a sigh of relief Friday night on Oregon Street.

The cheer didn't come from the company's executive offices, but from the United Auto Workers Local 578 members gathered at their headquarters across the street from the factories where much of the Army's ground fleet is manufactured.

"We've been holding our breaths for two months now," 32-year maintenance journeyworker Fred Rothe said Saturday. "This is going to secure a lot of jobs. I don't know how many it will create, but it will secure a lot that are not secure now."

Confidence in the product they produce convinced Local 578 members, gathered at their monthly meeting Saturday, that the contract would stay with Oshkosh Corp. But a thread of doubt lingered from five years ago. The prevailing feeling was that the company should've gotten the FMTV then, but political forces kept the work and the jobs at BAE Systems' Sealy, Texas, plant.

"We feel we make the best trucks and made the best offer," said Michael Orth, who has worked for Oshkosh for three years.

Orth served in the Army in Iraq before coming to work for Oshkosh at a time when sandbags were used to reinforce vehicles not armored like mine-resistant all-terrain M-ATVs and other vehicles in service now.

"It's a good feeling when you hear the stories about IED attacks that everyone survived. IEDs are not very fun," Orth said.

Beneath the pride and confidence, though, Local 578 members couldn't help but worry during the 60-day re-evaluation period the U.S. Government Accountability Office mandated after it upheld narrow elements of protests filed by BAE Systems and Navistar.

Harrison Street worker Mike Galle had to reassure several linemates that work still would be available for union members even if the FMTV award didn't stay with the company.

"This contract puts their fears to rest," said Galle, whose father-in-law Karl Kimple worked for Oshkosh for 21 years.

The prospect of retained jobs and the possibility of adding more has Local 578 members optimistic that Oshkosh's manufacturing and retail firms will grow.

"There's a lot of people out there without jobs and I hope we'll be hiring some new ones," South Plant tubing bench worker Kim Sprotte said.

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Suzuki reaffirms plans for US market - YAHOO!

Posted: 11 Feb 2010 02:53 PM PST

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CHICAGO (AFP) – Japanese carmaker Suzuki said Thursday it remains committed to the US market despite steep declines in sales, and expressed confidence that a new vehicle launch will help it regain traction.

"We are here to stay," Gene Brown, vice president for automotive marketing and public relations for American Suzuki Corp., said at the Chicago Auto Show, when asked about speculation the company may halt US car sales.

Brown said Suzuki will soon launch a new advertising campaign to show off the new mid-sized Kizashi, which will help elevate the brand's profile in the US.

Suzuki has been battling speculation in the US and Japan about its demise in the US market amid a sharp slump in sales. In January, it sold just 2,040 cars and light trucks in the US, for a market share of 0.3 percent, according to research firm Autodata.

In 2009, its sales amounted to 38,695, or 0.4 percent of the market and a drop of 54 percent from a year earlier, Autodata figures showed.

Jeff Holland, director of communication for America Suzuki, said of the rumors: "I know there is a lot speculation but it's not based on facts."

Speculation intensified after a senior Suzuki executive was quoted by the trade publication Automotive News as saying it was "difficult" to retail cars in the United States.

Suggestions that Suzuki was thinking of pulling out of the US also escalated after General Motors bought out Suzuki's stake in the CAMMI joint venture in Ingersoll, Canada.

Isuzu, another Japanese automaker, announced it was pulling out of the US in January 2008 as sales faltered. There also has been speculation that Mitsubishi might abandon the US in favor of selling cars in Russia and other potentially more lucrative market in the developing world.

Brown, however, said Suzuki is working on moving image away from the emphasis on value that has characterized the company's approach to the market over the past 25 years.

He said Suzuki will emphasize a sportier image that ties back to its other products such as motorcycles, all-terrain vehicles and marine products that already appeal to younger more active buyers.

The sporty look of the Karachi and the compact SX4 sedan as well as the Grand Vitara's off road appeal fit well into the strategy, he added. Suzuki's Equator pickup truck also fits nicely into a strategy that appeal to buyers of other types of Suzuki's recreational products such as motorcycles and ATVs.

Brown noted Suzuki is a very successful car company in other parts of the world. He said it has 40 percent or more of the market in India and it also makes the single best-selling car in Japan.

Suzuki has recently entered into a new alliance with Volkswagen AG, giving it new access to diesel powertrains, Brown said.

Moreover, while Suzuki was hit by the recession, it was still profitable in 2009 and has now posted profits for more than 40 consecutive years.

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