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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

Trump reportedly says he wants to wipe German cars off the U.S. map

BERLIN/FRANKFURT — A report that U.S. President Donald Trump has threatened to pursue German carmakers until there are no Mercedes-Benz rolling down New York's Fifth Avenue dented shares in the luxury car manufacturers on Thursday. An excerpt from German magazine Wirtschaftswoche's article, which cited several unnamed European and U.S. diplomats but did not include any direct quotes, could not be independently verified, while a U.S. Embassy spokesman in Berlin referred questions to Washington. The news and current affairs magazine said Trump had told French President Emmanuel Macron in April that he aimed to push German carmakers out of the United States altogether. Macron's administration in Paris declined to comment on the report. The Trump administration last week opened a so-called Section 232 trade investigation into vehicle imports, which could result in a 25 percent tariff on cars on the same "national security" grounds Washington used to impose metals duties in March. This could destroy exports by German carmakers, which control 90 percent of the U.S. premium market and are the biggest European Union exporters of cars to the United States. BMW owns Rolls-Royce, while Daimler has Mercedes-Benz, and Volkswagen controls Bentley, Bugatti, Porsche and Audi. Daimler, BMW and Audi declined comment. Porsche was not immediately available for comment. BMW shares were trading 0.5 percent lower at 0939 GMT, while Daimler and VW's shares were down 1 percent and 1.6 percent respectively, underperforming Germany's blue-chip DAX. Trump has railed against German carmakers before. And in early 2017, in an interview with German newspaper Bild, he said he would impose 35 percent tariffs on imported cars. At the time, the president called Germany a great car producer but said that the business relationship with the United States was an unfair one-way street. Germany's auto industry association VDA says its members exported 657,000 vehicles to North America last year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totaling 31.2 billion euros in 2016. Imports from the United States to Germany amounted to 7.4 billion euros, meaning a trade deficit of 23.8 billion euros the VDA's latest available figures show. However, German brands also have huge factories in the United States, where they built 804,000 cars last year, VDA said, providing jobs for U.S. workers. Berlin has reacted angrily to the U.S.

Recharge Wrap-up: Renault ZOE wins Zenn Monte-Carlo Rally, BC revives EV rebates

Renault ZOE EVs took the top four places in the 2015 ZENN Monte-Carlo Rally. Renault's cars finished first in consumption, regularity and overall standings. ZOEs took the top four spots overall and in the regularity tests, and the top five places for consumption. Renault entered four teams - two with professional drivers (finishing first and second), one piloted by journalists (placing third) and another by bloggers (taking seventh place). Another individual team entered the race with their own ZOE and finished fourth overall. The electric vehicle race took place over 130 miles and seven and a half hours. Read more in the press release from Renault below. British Columbia has reinstated its Clean Energy Vehicle Incentive Program. Phase two of the program, which starts April 1, is expected to put another 1,700 plug-in cars on BC roads. It's funded by the province's Innovative Clean Energy Fund, which gets its money from carbon taxes. Customers can receive rebates of up to C$5,000 for EVs, while fuel cell vehicle customers could get back up to C$6,000. Drivers can also get up to $C3,250 for scrapping cars built before 2000. BC is also investing in more charging infrastructure, EV fleets and outreach. See the video above, and read more from British Columbia government website and at Green Car Reports. BMW is noticing increased sales of its i3 EV tied to government incentives for electric cars. "We can see a clear connection between sales figures and political initiatives," says BMW Group CEO Norbert Reithofer. "Wherever governments offer tangible incentives for e-mobility, the registration figures for the BMW i3 soar." Last year, BMW sold about 2,000 i3s in Norway and 3,000 in California. In Germany, where BMW only sold about 2,100 i3s, Riethofer suggests the government needs to do more to support clean cars. "The German carmakers have delivered their part of the bargain. The ball is in now in the court of policymakers," he says. Read more at Automotive News Europe. Renault ZOE takes the top four places in the 6th ZENN Monte-Carlo Rally Following a sparkling victory last year, Renault ZOE has put in yet another remarkable performance at the 2015 ZENN Monte-Carlo Rally with four ZOE models taking the top four spots.