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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

Chairman says BMW will make 100,000 electric vehicles a year by 2020

We know demand for the BMW i3 has been high, both in the US and Europe. It appears that BMW's crystal ball is showing a steady increase in interest between now and 2020. By that year, according to Norbert Reithofer, chairman of the board of management for BMW AG, the company expects to build 100,000 units a year. That's not quite as EVs many as Tesla is talking about for 2020 (500,000), but it would represent quite an increase from the roughly 20,000 units that the best-selling plug-in vehicles moved in 2013. Reithofer told Automotive News that plug-in vehicle production would steadily increase by 2018 before hitting full stride at the end of the decade. He also made sure to clarify that there was external pressure to make 100,000 EVs a year: "we will be forced to build them in a six digits figure to comply with stricter emission rules." The plug-in electric vehicles are just one part of BMW's effort to reduce emissions. In prepared remarks delivered at the company's annual accounts press conference (available in full below), Reithofer said, "Customer demand [for i3] is exceeding our expectations. ... We believe the electric motor is a future technology for zero-emission driving in urban areas. Battery technology will continue to progress. ... When it comes to emission-free long-distance driving, however, electric cars featuring hydrogen fuel cell technology offer great potential." He didn't say how many fuel cell cars BMW expects to make and sell in 2020, but BMW's collaboration with Daimler and Renault-Nissan is supposed to launch the "world's first affordable, mass-market fuel cell electric vehicles as early as 2017." Statement and presentation by Dr. Norbert Reithofer, Chairman of the Board of Management of BMW AG, Annual Accounts Press Conference 2014 19.03.2014 Good morning, Ladies and Gentlemen! The core task of a company is to safeguard its future. This means we must ensure that our products and services are always inspiring our customers. We need to think ahead and continually take our business model to the next level. We also have to remain profitable so we can invest and bring new ideas to life. Our ambition of the BMW Group is: Always to consider the long term in all our planning, to follow our own path successfully, and to be a pioneer in our industry. Our business model is clear: Individual mobility in the premium segment.

BMW to launch loaner program to avoid range anxiety on i models

BMW is looking to stave off electric vehicle range anxiety with a new program that offers buyers a free gasoline loaner with every i3 purchase. Ward's Auto reports BMW is confident that the EV will give buyers the kind of transportation they need for 90 percent of their trips. The loaners, meanwhile, will be available for those few occasions when drivers need to cover more ground than the machine's batteries will allow. The i3 gets around with help from a 180-horsepower electric motor paired with a lithium-ion battery pack.
The combo is good for trips of between 80 and 100 miles depending on driving habits and weather conditions, though BMW also plans to offer a model with a small two-cylinder range-extending gasoline engine as well. That option will likely set you back an additional $4,000. When the machine bows in 2014, it will likely come with a charge time of four to six hours when suckling from a 220-volt outlet.
As far as the conventionally powered loaner car goes, the cost of the program is included in the i3's purchase price, though BMW has yet to figure out how many free loans will be offered, or what happens after that threshold is reached.