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Former Honda CEOs chide current boss about quality

Taking charge of a major corporation will never be without its challenges, and one of those - as Honda CEO Takanobu Ito is finding out - is filling the big shoes of those that came before. Ito's predecessors are apparently not pleased with what he's doing to the company, and are wasting no time in telling him so.
According to Reuters, two former Honda chiefs have recently visited Ito (pictured above with his predecessor Takeo Fukui) to talk to him about the Japanese automaker's quality issues, which they apparently regard as eroding the company's image. Nobuhiko Kawamoto, who served as CEO from 1990-98, reportedly came to Honda headquarters in Tokyo to deliver "stern words" to Ito last month. Kawamoto's immediate successor, Hiroyuki Yoshino, reportedly met with Ito under similar circumstances earlier this year.
Kawamoto and Yoshino are part of a larger group of former Honda executives who are concerned with the declining quality of the company's products under Ito's leadership. Where Honda once focused more on quality, collaborating more closely with parts suppliers,more recently the company has, in the eyes of those former executives at least, shifted its focus to quantity and to new technologies. That's what, the report alleges, has led to Honda recalling so many of its vehicles in recent years.

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

Japan's government gives hydrogen vehicles a big boost

The Japanese government is really paving the way for hydrogen fuel cell technology on its roads. Japan's Ministry of Economy, Trade, and Industry is changing regulations on fuel tanks to make hydrogen cars more appealing to drivers, which should help put the country ahead of others in the race to develop a viable H2 fleet. Japan is raising the allowed pressure of hydrogen tanks from 700 atmospheres to 875, which has the effect of increasing driving range by 20 percent. This move puts the country in line with others with high-pressure fueling regulations. Japan is also in talks with the United Nations and the European Union to streamline inspection rules to make it easier to export Japan's fuel-cell vehicles. Toyota premiered its hydrogen-powered FCV Concept at the Tokyo Motor Show last year and plans to release a production version as early as next year. Honda also plans to build its own fuel-cell cars for 2015, and it debuted its FCEV Concept at last year's Los Angeles Auto Show. Nissan is sending mixed messages on hydrogen, both questioning the availability of a refueling infrastructure and working on developing the vehicles. In Japan, a relatively small country, increasing the range of fuel-cell vehicles makes creating a usable infrastructure a bit less daunting. Will hydrogen-fueled electric cars see the same sort of success as Toyota's Prius hybrid or battery-powered EVs? Only time will tell, but we can keep our fingers crossed that it will, and that the popularity spills over beyond Asia. Featured Gallery Toyota FCV (Fuel Cell Vehicle) Hydrogen Concept View 24 Photos News Source: Nikkei via Green Car Reports Government/Legal Green Honda Toyota Hydrogen Cars charging station infrastructure fcev fcv