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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

Why Acura should build a hybrid Integra successor using NSX tech

Yes, it sounds like a heresy. Yes, the Honda CR-Z was not a good hybrid sports car. Yes, we know the RSX officially replaced the Integra here (but was called the Integra in Japan). But, no, we're not crazy. Well, maybe a little bit. But hear us out. At the moment Acura is a bit of an unfocused mess. Its line-up is thoroughly uninspiring, save for its $200,000 NSX supercar – a great mid-engined supercar with an impressive, performance-oriented hybrid AWD system. And yet few people would draw a line connecting Acura's other SH-AWD hybrids, the RLX Sport Hybrid and MDX Sport Hybrid, to the NSX. The first NSX told the world that Acura built cars with world-class technology and performance, and the Integra carried it to people with normal pocketbooks. Since the new NSX communicates a similar message as its forbearer, so too would a new Integra. Now making an entry-level sports car with hybrid technology is tricky business. As we already established, the Honda CR-Z was a colossal flop. It's balance was all off: heavy, expensive, and not very sporty – and it didn't even get very good fuel economy. However, Honda and Acura can learn from these mistakes. First, to keep costs in check, Acura can borrow from Honda's ever-improving parts bin. It would logical to borrow the excellent Civic coupe platform – something the old Integra did as well. It could also attach the proposed hybrid powertrain to the upcoming Si turbocharged four-cylinder. Some added cost will be unavoidable, since the batteries and motors will have to go somewhere. That will cost some engineering dollars, and inflate the price tag a bit. However, since Acura is a premium brand, it has some wiggle room to bump up the price without losing buyers. Weight is another potential issue this hypothetical hybrid will face, and was one of the chief complaints with the CR-Z. Looking at the RLX and the RLX Sport Hybrid, the hybrid bits weigh about an extra 340 pounds. That's not insignificant, but added to the turbocharged Civic EX-T coupe's 2,900 pound curb weight, you would have a car that would weigh 3,240 pounds. That's comparable to the very fun Mustang EcoBoost. As long as Acura keeps the weight under 3,500 pounds, the brand should have an entertaining coupe on its hands. The final piece of the puzzle is to make sure it isn't compromised. Every bit of hybrid tech in the NSX is there for performance. It helps eliminate turbo lag, and it improves acceleration and handling.

Honda may recall up to 1M vehicles for airbag issue, following Toyota's lead

It seems Toyota won't be the only one recalling the faulty Takata airbag inflators for long. Honda insiders in Japan claim that the company is getting close to announcing its own worldwide campaign that would begin before the end of June.
Unnamed sources close to Honda in Japan tell Automotive News that the company is pursuing an internal investigation into possibly affected models and is working with Takata to gather more information. They claim that it could involve even more than the 1.14 million cars worldwide that the automaker covered under the first recall for the problem in April 2013, including 561,000 vehicles in the US.
Toyota jumpstarted this process last week when it recalled over 2 million cars worldwide, including 844,277 in the US. Soon after, the National Highway Traffic Safety Administration began a preliminary evaluation into the issue following six reported incidents, and started assembling data about potentially affected models from Toyota, Honda, Mazda, Nissan, Chrysler. NHTSA also began investigating Takata itself.