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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

Two More Recalls Push GM Total To 4.8 Million In A Month

General Motors announced two more recalls late Friday, bringing to 4.8 million the number of cars, trucks and SUVs the automaker has called back for repairs in the past month. The string of recalls, topped by an ignition switch problem in compact cars now linked to 13 crash deaths, has embarrassed the company and sidetracked its new CEO, who started work just over two months ago. GM has admitted knowing about the switch problem a decade ago, yet it didn't recall any cars until February. The recall delay has brought two congressional investigations and probes by the Justice Department and the National Highway Traffic Safety Administration. Late Friday night, GM announced it would recall 490,000 late-model pickup trucks and SUVs because transmission oil cooling lines weren't secured properly in their fittings. Transmission oil can leak from a fitting and hit hot surfaces, causing fires, the company said in a statement. GM said it knows of three fires and no injuries. The recall affects Chevrolet Silverado and GMC Sierra 1500 pickup trucks from the 2014 model year, as well as 2015 Chevrolet Suburban and Tahoe SUVs and the GMC Yukon and Yukon XL SUVs. All have six-speed automatic transmissions. The Silverado is GM's top-selling vehicle and an important profit center for the company. The GMC Sierra also is among GM's top sellers. Dealers will inspect the transmission oil cooling line fittings and make sure they're securely seated, at no cost to owners. Also Friday night, GM announced the recall of 172,000 Chevrolet Cruze compact cars because the right front axle shaft can fracture and separate while being driven. The recall affects cars from the 2013 and 2014 model years equipped with 1.4-liter turbocharged four-cylinder gasoline engines. If a shaft fractures, the wheels would lose power without warning and the cars would coast to a stop. GM says it has warranty reports of several dozen shaft fractures. It is not aware of any crashes or injuries. Dealers will replace the shafts free of charge. The recall allows dealers to resume selling affected Cruzes. GM issued a stop sale order on the cars Thursday night. The recall also covers about 2,500 replacement shafts used to fix manual transmission Cruzes that were recalled last September. In all, GM has recalled 4.8 million vehicles since last month, two million more than the company sold last year in the U.S.

Recharge Wrap-up: BMW cars to share i tech, Jordan to build solar EV charging network

Jordan is looking to promote EVs and build a solar charging network. The country is waiving import tariffs on electric cars, and is spending $120 million on solar chargers. It plans to build 3,000 charging stations, along with 30 MW of solar power. Some chargers will be powered by solar canopies, while others will get electricity from nearby solar farms. Jordan's solar plan should also help to lessen the amount of energy it needs to import from nearby countries. Read more from Navigant Research, or at Green Car Reports. BMW's mainstream cars will benefit from technology borrowed from the i3 and i8, according to BMW sales head Ian Robertson. In an interview with Automotive News, Robertson said that next-generation cars will use carbon fiber more extensively, and that more cars will get plug-in technology. He said that about half of i3 buyers opt for the range extender and added that it is incorrect to refer to a range-extended electric vehicle as a plug-in hybrid. Read more at Automotive News. The ethanol market should remain healthy despite falling oil prices. While cheap oil could drive down ethanol prices, demand still remains due to the federal biofuels standard. Additionally, ethanol producers may find it cheaper to ship their products as domestic oil production drops and railroad shipping opens up. Ethanol byproducts like distillers grains continue to sell, and foreign demand continues as other countries impose their own renewable fuel standards. Read more at Yahoo News. Via Motors will launch the production of an electric Chevrolet Silverado. The company will convert the pickups into range-extended EVs at its assembly line in Mexico, near GM's Silverado plant. Via has the capacity to produce 10,000 vehicles per year at its Mexico facility. Via Motors Chairman (and former GM Vice Chairman during the early days of the Chevrolet Volt project) Bob Lutz wants to help make EVs mainstream in America, and believes that requires electrifying pickups and SUVs. Read more in the press release below. Bob Lutz to Announce Production Launch of the Electrified Chevy Silverado BY VIA Motors Media access to Bob Lutz, former Vice-Chairman of General Motors and father of the Chevy Volt Bob Lutz is now Chairman of VIA Motors who builds the "Volt Style" extended range electric drive system for the Silverado, the Express Van and is working on the SUV's (Tahoe, Suburban) 5 years in development. Now production Launch and Consumer Sales in 2015.