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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

Tesla in talks with BMW about batteries, charging collaborations

With Toyota and Daimler no longer holding Tesla shares, the electric vehicle company might be looking for a new partner – possibly a Bavarian one. In a new interview with Germany's Der Spiegel, CEO Elon Musk confirmed that he has had talks with BMW execs about future collaboration. "We are talking about whether we can collaborate in battery technology or charging stations," Musk said in the interview, according to Reuters. However, a Tesla spokesperson has tempered things by saying no formal agreements are in place at the moment. In the same interview, Musk reportedly praised BMW's use of carbon-fiber-reinforced plastic in its i sub-brand offerings, and said he would like to have a battery factory in Germany in the next five or six years. The possibility of technological cooperation between Tesla and BMW has been a hot topic this year. In June, Musk reportedly met with BMW execs, and the two companies were also rumored to have met with Nissan to discuss charging technology. When Daimler sold off its shares, there was talk of it opening the way for possible collaboration between the two automakers, as well.

2014 BMW 5 Series starts at $50,425* and gets a new diesel, 5 Series GT starts at $60,925* [w/video]

BMW itself says it is making "Precise modifications to the design" of the facelifted, sixth-generation 5 Series, and this is the result. The 2014 5 Series will come in four flavors - sedan, Touring, Gran Turismo and ActiveHybrid 5 - the biggest news probably the addition of a diesel engine for the US market.
When they go on sale in August, the 528i sedan will start at $50,425, a $1,700 increase over the 2013 model, and if you want xDrive that adds $2,300 to the price across the model range. The 535d employs a 3.0-liter twin-turbo inline six-cylinder diesel with 255 horsepower and 413 pound-feet of torque and starts at $56,025. BMW portends "substantial fuel efficiency gains over its gasoline-fueled counterpart," but the exact numbers won't come until closer to the on-sale date. The $64,825, top-dog 550i holds pat with 4.4-liter, twin turbo V8, with output upped to 445 hp and 480 lb-ft - an increase of 45 hp and 30 lb-ft of torque. The outputs haven't changed on the twin-turbo four-cylinder in the 528 nor the 3.0-liter six-cylinder gasoline engine in the 535, and *all prices include the $925 destination charge. The engines are also fitted with a coasting mode that uncouples the powertrain when rolling downhill.
Outside there are new "contour lines" for the grille and air intakes, slimmer taillights and elements that accentuate the car's width - as if that were necessary. Xenon adaptive headlights will be standard along with side indicator lights on the rearview mirrors, the options list adds LED headlights, the Luxury Line and Modern Line packages. The former package adds chrome trim to certain exterior elements, the latter adds matte chrome trim.