UAW and the Big 3, Dealer Attitude Study Findings, and Prime Day Mess

July 13, 2023
You never know who you will stumble upon in the morning pod! Welcome Ben Hadley to the show! Today we break down the UAW negotiations, check out the top OEMs according to dealers, and have spasms over Amazon’s design theory.
Listen On
Apple Podcasts IconSpotify Icon

Show Notes with links:

“Confrontational,” “costly,” “critical,” “unprecedented” and a “s---show," are not words you want to hear as the United Auto Workers union enters into negotiations with GM, Ford and Stellantis. But the stakes are high as talks begin this week over contracts of 150,000 UAW workers, with current contracts set to expire on September 14.

  • The UAW is led by Shawn Fain, who rose through the ranks of the union at Stellantis. He has promised to do things differently and do “whatever it takes” to get members their “fair share,” including work stoppages and strikes.
  • Big issues on the table include cost of living adjustments, platinum health-care package and the end of a “grow-in”, or tiered, pay system.
  • The estimated weekly effect of a union strike by Bank of America Securities: GM $770 million, Ford: $620 million, Stellantis: $470 million.
  • The UAW union declined to participate in the traditional handshake opening negotiations.
  • An added complexity is that the contracts for 18K Canadian employees represented by the Unifor union also expire in September.
  • The 2019 negotiations stalled, leading to a 40-day strike.

If brand is a feeling (and it is), then Lexus and Toyota are in excellent position, placing first and second in the most recent NADA Dealer Attitude Survey.

  • The survey is put out every 6 months and measures how dealers are feeling about the brands they represent, rates their satisfaction with the OEM’s performance and asks about their willingness to listen to their dealer’s feedback and suggestions.
  • The complete list from Winter 2023: 1. Lexus, 2. Toyota, 3. BMW, 4. Porsche, 5. Honda, 6. Subaru, 7. Kia, 8. Mazda, 9. Acura, 10. Cadillac.
  • Cadillac joined the list, replacing Audi.
  • The top 5 are unchanged from Summer 2022.

Is it just us or is it really hard to find what you’re looking for on Amazon? It turns out that it might be that way by design.

  • Some common categories seen on Amazon: “Deals inspired by your recent history”, “Deals related to your views”, “Recommended deals for you”, “Deals related to your wishlists.”
  • Despite the negative user experience, Amazon's strategy is effective. The company has seen a six-fold increase in customer engagement with personalized deal offerings.
  • Designers noted that the flow is not rooted in consumer experience, rather in driving the highest engagement and sales volume.
  • Alex Khmelevsky, director of user experience at UX/UI design and branding agency Clay described it as “”They try to recreate that joy of stumbling onto a great find. It’s a digital treasure hunt! It can also induce a sense of FOMO, nudging people to explore more for the fear of possibly missing a great deal.”

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.