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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

Motor Trend reveals 2016 Chevy Camaro as Car of the Year

The 2016 Chevrolet Camaro beat some very steep competition to earn the Golden Calipers as Motor Trend's Car of the Year. The magazine praised the sixth generation's fantastic engines, great handling, and lighter platform. "Our 2016 Car of the Year, the Chevrolet Camaro, is one of the finest driving vehicles in the world at any price," editor-in-chief Edward Loh said, "though its price is well within reach of the average consumer." The Camaro conquered some high-performance challengers to take the victory, including the Audi TT, Mazda MX-5 Miata, and Mercedes AMG GT S. It also bested technologically cutting-edge vehicles like the BMW 7 Series and Toyota Mirai. The latest Honda Civic rounded out the competition. To earn the prestigious award, nine judges evaluated the finalists in six categories: advancement in design, engineering excellence, safety, efficiency, value, and performance of intended function. The Volkswagen Golf won last year. In an engaging story on Motor Trend's website, it explains what a revelation the new coupe is and that they consider the model the best production pony car ever. The piece is well worth a read. Motor Trend also handed out the Person of the Year honor to Subaru of America President and Chief Operating Officer Thomas Doll. It praised him for the Japanese brand's massive success in the US like tripling deliveries since 2007. "By any measure, the business Tom Doll leads is an outstanding success," editor-at-large Angus MacKenzie said. "And he is the person whose unique vision and quiet leadership made it happen." Related Video: MOTOR TREND Announces 2016 "Of The Year" Winners Car of the Year, Truck of the Year, SUV of the Year, and Person of the Year announced during live ceremony and webcast in Los Angeles LOS ANGELES, Nov. 16, 2015 /PRNewswire/ -- Today, for the first time in the brand's 66-year history, MOTOR TREND announced winners of the Golden Calipers for Car of the Year, Truck of the Year, SUV of the Year, and Person of the Year at a red-carpet gala in front of an audience of industry insiders and celebrity guests. The awards show was also streamed live on the MOTOR TREND Channel on YouTube, with 3.5 million subscribers the world's largest automotive video channel, and on MOTOR TREND OnDemand, the brand's new subscription video on demand (SVOD) channel. A replay of the event broadcast is available for free at motortrendondemand.com. "What an amazing evening!

Survey says $25k barrier is a problem for EVs

The majority of consumers are more or less priced out of the market.
Electric cars are gaining popularity with the general public, but are they still too expensive? According to a survey 1,084 consumers by Navigant Research, a consulting firm located in Boulder, CO, 71 percent want their next car to cost under $25,000, while 41 percent won't go a cent above $20K. Looks like people are even thriftier than we'd originally thought.