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Ford Transit is America's new best-selling van

The Ford Motor Company's sales in December ticked up 1.2 percent in the US, and the automaker was down 0.5 percent for 2014. But the Blue Oval looks like it might have a real winner on its hands when it comes to its new Transit van. The recently introduced line nearly doubled its numbers during the month by delivering 10,030 units for an annual total of 20,488 examples sold. It also gave the fullsize model the title of America's bestselling van for December. Those 10,000 sales put the Transit head and shoulders above all of its competitors in the crowded commercial van market. Second place went to the Chevrolet Express with 5,611 sales in December, and the ancient Ford E-Series was third with 5,256 moved. The rest of the segment was somewhat lower, with the Mercedes-Benz Sprinter at 3,288 units for the month, Ram ProMaster at 3,036, GMC Savana with 1,725 and Nissan NV at 1,554. December also marked the second month in a row for the Transit to beat out the E-Series in sales. However, its predecessor still won overall for the year with 103,263 units moved in 2014, but it enjoyed a full calendar year of sales. According to Ford spokesperson Mike Levine, the smaller Transit Connect had its best sales month ever for December too, and the automaker has been among the sales leaders in the van segment for the last 36 years. "Clearly, sales show we're best at meeting our customers' needs," said Levine to Autoblog, who touted the model's results on Twitter and cited the Transit's numerous configurations as its biggest selling point. Ford's latest van has other plusses, too, say analysts. "The one thing the Transit has going for it is a low base price relative to the competition. Compare the base price of the Sprinter to the Transit and it is hands-down a Transit win," said Dave Sullivan, auto industry analyst at AutoPacific, to Autoblog. Purely by model name, the Transit was also the bestselling van in November, with 4,851 deliveries. However, the Chevy Express had 4,478 sales, plus 716 more from the GMC Savana. Since these two are the same model beneath the skin, as a platform, they arguably took the title for that month. With a new year already here, the Transit has a new challenge to face. "2015 will be the year that the Transit has to leave the nest, because E-Series inventories will be close to zero and Transit will have to carry all the weight," said Sullivan.

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 earnings take a dive on investment, slowing sales; workers get $6,900 in profit sharing

Ford Motor Company's pre-tax profits for 2014 took a beating, falling to $6.3 billion, a $2.3-billion drop from 2013, while overall revenues fell from $139.4 billion to $135.8 billion. Net income for 2014, meanwhile, plunged 56 percent, from $7.18 billion to $3.19 billion. Yeah, those aren't great numbers. While Ford's figures are largely down across the board, some of the weaker numbers aren't too difficult to explain away. The company launched 24 vehicles across the globe in 2014, including some of its biggest and most important volume models, like the 2015 F-150, as well as iconic offerings like the new Mustang. The result of this is both increased investment as well as a drop in total sales – US market numbers were down 164,000 units compared to 2013. Recall claims and high warranty costs also did a number on the Blue Oval. "2014 was a solid yet challenging year for Ford - with our investments and a record number of new products launched around the world positioning us for strong growth this year and beyond," Ford CEO Mark Fields said in a statement. Ford's 50,180 UAW workers in the United States will receive profit-sharing checks of $6,900. In some markets, Ford's fortunes were impacted by outside factors. Europe, for example, recorded more sales (up 70,000 units) and higher revenues (up $2.2 billion), but still reported a $443-million pre-tax loss. Blame was placed on the crumbling Russian economy, which has suffered from sanctions and slumping oil prices. Despite its troubles last year, the company still seems bullish on 2015. Ford's pre-tax outlook remains unchanged, as the company expects to make anywhere from $8.5 to $9.5 billion on the back of higher revenue from the company's automotive operations. We expect strong growth and improved financial performance in 2015 driven by our investments in new products and capacity," Ford CFO Bob Shanks said of the company's future.