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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

Recharge Wrap-up: Honda FCV Concept comes to Detroit, Toyota seeks young green energy fellows

Honda will bring its FCV Concept to the 2015 North American International Auto Show in Detroit in January. The hydrogen-powered concept made its Japanese debut in November, and will now make its way to North America for the first time. The FCV concept improves upon the design of the FCX Clarity with a more striking appearance and roomier interior. Its smaller powertrain packaging means more space for people, and the FCV Concept seats five passengers. Honda also expects the next-generation fuel-cell car, which is scheduled to go on sale in Japan in March 2016, to cost less and have a range of over 300 miles. Read more in the press release below. The Mercedes-Benz B-Class Electric Drive has been awarded an environmental certificate from the TUV Sud technical inspection authority. The certificate is based not just on the vehicle's operation, but the entire lifecycle of the car, including production and recycling. The B-Class Electric Drive produces 24 percent less CO2 over its lifecycle than the Mercedes-Benz B180 when using the EU electricity mix, and 64 percent less when powered by hydroelectricity. Mercedes credits not just the use of electricity, but also the car's energy management system - such as its radar-based regenerative braking - for its carbon reductions. Read more in the press release below. Scania will test a wirelessly charged plug-in hybrid bus in Sweden. Beginning in June 2016, the bus will be put to daily use in Sodertalje. One of its stops will have a wireless charging station where the bus will recharge for six to seven minutes before continuing on its route again. The charger is located under the road surface and the bus positions itself above it to charge inductively. About $1.3 million will come from the Swedish Energy Agency to fund the test project, which could save up to 90 percent of fuel costs. If expanded to a fleet of 2,000 buses, it could save up to 13 million gallons of fuel each year. Read more at Green Car Congress, and in the press release below. Sandia National Laboratories and Linde are teaming up to expand hydrogen fueling infrastructure. The two groups have signed an agreement to research and develop new hydrogen stations, as well as ways to make fuel cell vehicles more desirable for consumers. They are looking at ways to incorporate hydrogen into existing fuel stations where possible, and make sure that it is able to be done safely.

Honda reveals IndyCar aero kit

The IndyCar Series is stepping into a new era of competition that won't quite see manufacturers building their own chassis like they do in Formula One, but it's inching closer. This season, participating automakers will provide their customer teams not only with engines as they have in the past, but with complete aerodynamic packages. Chevy revealed its new aero kit last month, and now Honda – the only other automaker currently in the series – has followed suit with its own. Like Chevy's package, the new Honda kit is designed specifically for road courses and short ovals with a high degree of downforce that would hamper high-speed running around super speedways. The lower-drag package will likely be revealed sometime before the Indy 500 that will be the first speedway race on the calendar when it kicks off in May. The design of the package is a result of what Honda describes as an exhaustive development process that borrowed from the company's experience with Le Mans prototypes. It started out using CAD and CFD software before being validated on simulators, tested in wind tunnels and run on track with participation from Andretti Autosport. The aerodynamic appendages will be affixed to the existing Dallara chassis and powered by Honda's V6 engines, allowing individual teams to tweak the elements to their own requirements. With the manufacturers now allowed a greater degree of participation, series organizers will undoubtedly be hoping for more of them to join in on the action. The last time there were more than two automakers participating was in 2005, before Toyota pulled out. Ford was the sole engine supplier in the Champ Car series from 2003 until the series reunited with the Indy Racing League to form the current IndyCar Series. Honda Unveils 2015 IndyCar Series Aero Kits Mar 9, 2015 - TORRANCE, Calif. - Road Course/Short Oval package shown - Efficient development utilized CFD and multiple simulation tools - Wide range of aerodynamic tuning options available to teams Honda today debuted the package of aerodynamic upgrades and components its teams will use in the 2015 Verizon IndyCar Series, as the manufacturer seeks to add to an already impressive list of accomplishments in American open-wheel racing. The 2015 Honda Indy car "aero kit", produced by Honda Performance Development, Honda's racing arm in North America, includes nearly 200 individual pieces that can be fitted to the existing Honda-powered Dallara Indy car chassis.