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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 thumbs nose at fleet sales, claims it leads in key vehicle segments

Fleet sales are a way of life in the automotive industry. There are many non-retail customers that need vehicles, but going too far can reduce brand image and vehicle resale value. While some of its competitors have fleet sale that account for up to 20 or 30 of overall sales, Honda is bragging that it has the lowest fleet sales of all mainstream automakers for the first five months of 2013.
After calculating new-car registration data from R.L. Polk, Honda says that just two percent of its sales through went to fleet customers compared to an industry average of 19 percent. Even though this means Honda leaves plenty of sales on the table each month, it also claims to have the highest resale value and lowest cost of ownership among its competitors. In terms of retail sales, Honda says that the Civic, Accord, CR-V and Odyssey all lead their respective segments, and it breaks down/brags about its retail sales success in the press release, which is posted below.

Red Bull F1 denied access to Honda engines

There are four engine manufacturers in Formula 1: Ferrari, Honda, Mercedes-Benz, and Renault. Infiniti Red Bull Racing ended its marriage to Renault, got to the altar with Mercedes and then Mercedes backed out, couldn't even agree on a pre-nup with Ferrari, and Honda flat-out said, "No." At the moment that has left the four-time World Champions without an engine for next year, owner Dieter Mateschitz threatening to take his two teams and four cars out of the sport, and F1 honcho Bernie Ecclestone threatening to sue Mateschitz if he does. The Japanese company had turned down the idea because after a first year with some poor performances and a few public sour notes, it wants to get McLaren's cars running properly before it expands its operation. Now it seems some behind-the-scenes action of late has opened up channels between Red Bull and Honda, and the two are at least talking. Honda, though, still says such a deal is highly unlikely at best, and Red Bull says it will have something to say when something is done. It appears that McLaren chief Ron Dennis, however, has vetoed the idea. Ecclestone says Honda made a deal with the FIA that would allow Honda to supply two teams in its second year, but Honda gave Dennis veto rights over who the second team would be. For the same reason that Mercedes backed out and Ferrari only wanted to sell Red Bull year-old engines, Ecclestone says Dennis might view Red Bull as a competitor and doesn't want to risk two more cars getting in front of his own. If that's the case and Red Bull is going to remain in the sport, it might need to hit the flower shop and book a trip to Renault headquarters. Soon. Related Video: