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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

Honda reveals Concept D crossover in China

Honda has, as promised, rolled in to the Shanghai Motor Show with the Concept D. Looking like a cross between an HR-V and a Decepticon, the Concept D previews a future crossover to be offered exclusively as the Japanese automaker's flagship model in China. The styling is certainly not for the faint of heart, with more angles than a geometry set, more vents than an air conditioner, a proliferation of LED lighting, gold spokes to match the bodywork and a sharply raked rear window with a giant wing at its peak. Details released with the trio of images remain scarce, but the production version of the concept you see here is slated to be offered in China through two of the company's local joint ventures, Guangqi Honda and Dongfeng Honda – albeit sure to be toned down some on the road from show stand to showroom. Honda Exhibits World Premiere of Concept D at Auto Shanghai 2015 BEIJING, China, April 20, 2015 – Honda Motor (China) Investment Co., Ltd. (HMCI), a wholly-owned Honda subsidiary in China, today exhibited at Auto Shanghai 2015* the world premiere of the Concept D, a concept model for a new SUV model under development. *The 16th International Automobile & Manufacturing Technology Exhibition, Venue: National (Shanghai) Center for Exhibition and Convention Press days: April 20-21, 2015, public days: April 22-29, 2015 The Concept D shows the direction of a mass-production SUV model which is currently being developed exclusively for the China domestic market as a top-end SUV model that offers high-quality driving and a spacious cabin. Equipped with advanced safety technologies and other advanced features, a Concept D-based SUV model will go on sale from both Guangqi Honda and Dongfeng Honda, positioned as a new flagship model of Honda in China. ?Comment by Seiji Kuraishi, President of HMCI "Including this Concept D, which is a proposal for a new value that only Honda can provide as the pioneer of the SUV market in China. We would like to continue providing attractive products equipped with our advanced technologies to our customers in China. Toward this end, we will accelerate the localization of our business in China."

Autoblog Minute: New Civic, FCA UAW Agreement, Frankfurt

FCA reaches a tentative agreement with the UAW, Honda reveals the all-new 2016 Civic, and the Frankfurt Motor Show dazzles us again. Autoblog senior editor Greg Migliore reports on the Weekly Recap edition of Autoblog Minute. Show full video transcript text [00:00:00] FCA reaches a tentative agreement with the UAW, Honda reveals the all-new 2016 Civic, and the Frankfurt Motor Show dazzles us again. I'm senior editor Greg Migliore and this is your Autoblog Minute Weekly Recap. FCA reached a tentative labor agreement with UAW leadership. The major focus of the new deal reportedly includes: the eventual elimination of the two-tier pay scale [00:00:30] and pooling worker health care. Now that a leadership agreement is in place, the deal will be sent to FCA's rank-and-file. FCA has about 36,000 hourly employees. We got a first look at the interior and exterior of the 10th-generation Civic. Honda expects the new sedan to dominate the C-segment when it hits dealerships later this fall. Civic coupe, five-door hatchback, Si and Type R will all come later. The 2015 Frankfurt Motor Show is in the books and there was a lot of news to get excited about. [00:01:00] Porsche introduced a fully electric concept car in the Mission E. If they make this car, Porsche could give Tesla nightmares. We also saw SUVs from Jaguar and Bentley. There were two beautiful Italian convertibles from Ferrari and Lamborghini. Meanwhile, Mercedes introduced a concept of their own in the IAA - a vehicle that experiments with adaptable aerodynamics. Those are the highlights from the week that was. Be sure to check out my full recap this Saturday. Plus we'll have some added insight on General Motors' deal to [00:01:30] avoid federal prosecution. For Autoblog, I'm Greg Migliore. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals. UAW/Unions Frankfurt Motor Show Bentley Chrysler Ferrari Honda Jaguar Lamborghini Mercedes-Benz Porsche Rolls-Royce Tesla Convertible SUV Concept Cars Electric Supercars Autoblog Minute Videos Original Video porsche mission e concept