2003 Chevrolet Corvette Base on 2040-cars

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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

China's rise, global restructuring wither GM's Korea division

An article in the Daily Kanban suggests the sun is setting on GM Korea, and it could already be well into dusk. GM Korea came about when General Motors, along with co-investors SAIC and Suzuki, bought Daewoo Motors from parent company Daewoo Group in 2001; it had a previous tie-up with GM, a joint venture that ended in 1992, although Daewoo cars were based on GM cars until 1996. Over the decade following the purchase, it became such an important part of operations that it was renamed GM Korea in 2011, "to reflect its heightened status in [the] global operations of GM." Just two years later, the printed rumors were that the subsidiary responsible for a fifth of Chevrolet's global production could be shutting down. The division's sales were down almost 21 percent through November of last year, counting domestic South Korean sales, exports, and CKD – Complete Knock Down – products. That makes the labor strife, already an issue for four years, even more acute, reports say the subsidiary will lose $36 million a year if it can't get the job and wage cuts it wants, and government concessions can't make up for the losses. And it gets worse, so head over to Daily Kanban to read the rest of the story.

Recharge Wrap-up: Batty battery covers, Mercedes at Silvretta, new Hyundai Sonata Hybrid available in 2015

Apparently, Chevrolet Volt battery covers make suitable homes for bats. As part of an Eagle Scout project, Matthew Netherland created 30 bat houses out of scrapped Volt battery covers donated by Chevy. 22 of the bat houses will be set up near hydroelectric dams in Michigan. Each bat house will accommodate 100 bats, and divert the scrapped materials from the landfill. The battery covers also make great nesting boxes for wood ducks, which General Motors has previously set up at its Milford, Michigan Proving Ground. Last weekend was the Silvretta E-Auto Rally, which saw emissions-free vehicles cross the Montafon Mountains in Austria, including cars from Mercedes-Benz. These cars included the B-Class Electric Drive, B-Class F-Cell, SLS AMG Electric Drive and even the Smart Fortwo Electric Drive. Also on hand for the Silvretta Classic Rally was a V8-powered C111, a 1978 Mercedes-Benz 450 SLC and 300 SL Roadster. Read more in the press release, below. BMW has finalized pricing for the i8 in the US at $135,700 (plus $925 in destination charges). In addition to the base price tag, which we've known for a while, BMW Blog has the complete pricing guide with options and packages. Most of the i8 orders were the Pure Impulse World package, which includes various aesthetic upgrades. It also provides membership to the BMW i Pure Impulse Program, which allows you to "to enjoy innovative ideas and trends in a variety of areas, including home styling, culture, gourmet gastronomy, design and many more." Head over to BMW Blog for more information. The new generation of the Hyundai Sonata Hybrid will arrive later than the rest of the model lineup, confirms Car and Driver. While the gas-powered Sonatas get updated now for the 2015 model year, the Hybrid remains unchanged until late this year or early 2015, when it will arrive as a 2016 model. Hyundai is offering a 2015 Sonata Eco edition, but with 28 miles per gallon in the city and 38 mpg highway (32 combined), it's not quite as appealing as the current Sonata Hybrid's 36/40/38 figures. Read more here. In June, average US fuel economy was 25.5 miles per gallon, making it the fifth straight month above 25 mpg, according to University of Michigan. The average window sticker ratings from vehicles sold in June dropped slightly from 25.6 mpg in May. The year started at 24.9 mpg in January, and hasn't dropped below 25 mpg since.