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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 spinning off Acura as stand-alone division in bid to wake up brand

Every major automaker has a different way of relating between its various divisions and brands. At Volkswagen, for example, the individual brands seem to operate with a large degree of autonomy. Under the Renault-Nissan Alliance, the two units share a common chief executive, but little else. The relationship between Honda and its luxury division Acura has always been rather close, but that's all about to change.
American Honda Motor Company has always handled sales and marketing in the North American market for both the Honda and Acura divisions, but new reorganization plans call for the two units to be separated under their own direction. Leading the Acura division will be Michael Accavitti, who moves into the position from his role as Senior Vice President for Auto Operations at American Honda. The Honda division will meanwhile be taken over by the current head of Acura sales, Jeff Conrad.
Both will report to John Mendel, the current executive vice president of the Automobile Sales Division that is being rebranded as the American Honda Auto Division. Unlike rivals Lexus and Infiniti - two brands that Acura beat to the market - Honda barely markets its luxury brand outside of North America. Its overseas presence is felt only in China, though we've yet to receive word on how the reorganization might effect that market - or for that matter, any potential of expanding into others.

Inside Honda's ghost town for testing autonomous cars

On the edge of the San Francisco suburb of Concord, California sits a ghost town. Dilapidated buildings and cracked roads are framed by overgrowth and slightly askew street signs. The decommissioned five acre portion of the Concord Naval Weapons Station that once housed military personnel and their families is now home to squirrels, jack rabbits, wild turkeys and Honda's mysterious testing lab for autonomous vehicles. This former town within a Naval base – now dubbed "GoMentum Station" – is the perfect testing ground for Honda's self-driving cars. An almost turn-key solution to the problem of finding somewhere to experiment with autonomous vehicle inside an urban area. Thanks to the GoMentum Station, the automaker has access to 20 miles of various road types, intersections and infrastructure exactly like those found in the real world. Just, you know, without all the people getting in the way. While the faded lane markers and cracked asphalt might initially make it difficult for the car to figure out what's going on around it, that's exactly what you want when training a self-driving system. Many roads in the real world are also in dire need of upkeep. Just because autonomous vehicles are hitting the streets doesn't mean the funding needed to fix all the potholes and faded lane markers will magically appear. The real world doesn't work that way and the robot cars that will eventually make our commutes less of a headache will need to be aware of that. Plus, it's tougher to train a car to drive downtown than to barrel down the highway at 80 miles per hour. A company is going to want to get as much practice as possible. While semi-autonomous driving on the everyone-going-the-same-way-at-a-constant-speed freeway is already a reality, navigating in an urban environment is far more complex. If you've driven on the streets of Los Angeles, San Francisco, New York, Chicago or Seattle you know that driving downtown takes far more concentration than cruising down the interstate. With all that in mind, Honda's tricked out Acura RLX did a good job during an (admittedly very controlled) hands-free demo. It didn't hit either of the pedestrians walking across its path. It stopped at stop signs and even maneuvered around a mannequin situated in the middle of the road. The reality is, watching a car drive around the block and safely avoid stuff is boring. Not to metion, Google has been doing this for a while in the real world.