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Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs

Recharge Wrap-up: BMW's electric truck, London's electric double-decker bus

BMW and transport and logistics company Scherm Group have put an electric transport truck into service in Munich, Germany. The 40-ton truck, made by Dutch manufacturer Terberg, will be used to move vehicle components between BMW's Munich plant and Scherm's logistics center cleanly and quietly on public roads. Using the electric vehicle saves 11.8 tons of CO2 per year. It charges in about four hours, and has a range of about 62 miles — enough to make the trip between the two facilities eight times a day. The truck will be powered completely by electricity from renewable sources. With this project, BMW "is showing that you can succeed on the global market with sustainable products made by innovative companies," says Bavaria's Minister for Economic Affairs, Ilse Aigner. Read more in the press release below. Discount supermarket chain Aldi is offering free charging in Germany. The company has installed fast-charging stations at 50 locations for customers to use while they shop. IKEA also has plans to install free charging at its stores in Germany, and other retailers will likely do the same. While offering free e-juice helps businesses garner the attention of its EV-driving customers, it could also help encourage people to buy electric vehicles. Many are disappointed by Germany's lack of EV incentives, despite the country's goal of having 1 million EVs in operation by 2020. Read more at Automotive News Europe. London will put an all-electric double-decker bus into service this year. London Mayor Boris Johnson announced the electric bus trial at the first ever Clean Bus Summit. The bus, made by BYD, will begin service in October. London has already deployed over 1,300 hybrid buses and retrofitted over 1,400 buses to reduce emissions since 2008. Mayor Johnson's goal is to cut buses' NOx emissions in half by the end of his term in 2016 compared to 2008 levels. Also at the Clean Bus Summit, a number of bus makers and banks committed to helping cities roll out fleets of ultra-low emission buses. Read more in the press release from London, and from BYD. The US Department of Energy (DOE) is funding biofuel projects to the tune of $18 million. The DOE will award the funds to six projects in an effort to reduce the price of algae-based biofuels to less than $5 per gasoline gallon equivalent (gge). The DOE has a goal to get the price of algal biofuels to less than $3 per gge by 2030.

Consumer Reports no longer recommends Honda Civic

Consumer Reports annual Car Reliability Survey is out, and yes, there are some big surprises. First and foremost? The venerable publication no longer recommends the Honda Civic. In fact, aside from the walking-dead CR-Z and limited-release Clarity fuel-cell car, the Civic is the only Honda to miss out on CR's prestigious nod. At the opposite end there's a surprise as well – Toyota and Lexus remain the most reliable brands on the market, but Buick cracked the top three. That's up from seventh last year, and the first time for an American brand to stand on the Consumer Reports podium. Mazda's entire lineup earned Recommended checks as well. Consumer Reports dinged the Civic for its "infuriating" touch-screen radio, lack of driver lumbar adjustability, the limited selection of cars on dealer lots fitted with Honda's popular Sensing system, and the company's decision to offer LaneWatch instead of a full-tilt blind-spot monitoring system. Its score? A lowly 58. The Civic isn't the only surprise drop from CR's Recommended ranks. The Audi A3, Ford F-150, Subaru WRX/STI, and Volkswagen Jetta, GTI, and Passat all lost the Consumer Reports' checkmark. On the flipside, a number of popular vehicles graduated to the Recommended ranks, including the BMW X5, Chevrolet Camaro, Corvette, and Cruze, Hyundai Santa Fe, Porsche Macan, and Tesla Model S. Perhaps the biggest surprise is the hilariously recall-prone Ford Escape getting a Recommended check – considering the popularity of Ford's small crossover, this is likely a coup for the brand, as it puts the Escape on a level playing field with the Recommended Toyota RAV4, Honda CR-V, and Nissan Rogue. While Ford is probably happy to see CR promote the Escape, the list wasn't as kind for every brand. For example, of the entire Fiat Chrysler Automobiles catalog, the ancient Chrysler 300 was the only car to score a check – there wasn't a single Dodge, Fiat, Jeep, Maserati, or Ram on the list. That hurts. FCA isn't alone at the low end, either. GMC, Jaguar Land Rover, Mini, and Mitsubishi don't have a vehicle on CR's list between them, while brands like Mercedes-Benz, Volvo, Nissan, Lincoln, Infiniti, and Cadillac only have a few models each. You can check out Consumer Reports entire reliability roundup, even without a subscription, here.