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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

Ford Focus ST checks into Jay Leno's Garage

In a change of pace from the high-end vehicles that often appear in Jay Leno's Garage, Ford sends its hottest hatchback (in the US, at least), the 252-horsepower Focus ST, to be featured on Leno's show. Accompanying the five-door hatch is its chief engineer, Jamal Hameedi.
Riding on stylish 18-inch wheels with summer tires and with a spoiler that doubles as a lunch tray, Hameedi and Leno walk us through the finer points of what makes the ST special, which also includes bigger brakes, torque vectoring, a manual transmission and, of course, 252 hp and 270 pound-feet of torque from the 2.0-liter EcoBoost four-cylinder engine, which is made possible by 21 psi of turbocharged boost.
Watch the video below to see what Leno thinks of the global Focus ST.

Ford Explorer, Expedition next to go aluminum?

Ford made some serious waves when it unveiled the latest F-150. Instead of making its bodywork out of steel, like just about every other truck on the market, Ford went with aluminum. And you can bet the F-150 won't be the last Ford model to go with the lightweight alloy construction, either.
Our compatriots at Edmunds report that Dearborn is considering replacing two of its most popular SUVs with aluminum versions. One candidate is the Expedition, which would make sense considering that the current model (like the two preceding generations and the fullsize Bronco before it) is based on the F-150's underpinnings. Another is the Explorer, which was traditionally based on the Ranger pickup but went with a car-like unibody chassis in its current iteration. If the Explorer does go the way of aluminum, don't expect it to be a part of its very next update, which is likely due too soon for such major changes.
It would stand to reason that, if the Expedition were to go aluminum, so would the next-generation Lincoln Navigator. Ditto the MKT together with the Explorer. But those aren't likely to be the only models in contention for aluminum construction. Like any other automaker, Ford is under pressure to steadily reduce its carbon emissions and improve its fuel economy figures, prompting it to look at a whole range of measures - including more efficient engines, lower rolling-resistance tires, active aerodynamics and lightweight construction. Expect aluminum to play a big part in that equation moving forward.