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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

Maybach and Aston Martin alliance talks fall apart

If you have, like us, been salivating at the notion of a new generation of Maybach and Lagonda ultra-luxury crafts built by Aston Martin, we've got some bad news: According to reports emanating from Germany, talks between AML and Daimler have broken down.
The proposal under negotiation would have seen Daimler outsourcing production of the next family of Maybach models to Aston Martin, which in return would benefit from Mercedes-Benz platforms and engines - not only for its svelte GTs, but also for its own future Lagonda line of limousines and luxury SUVs. That, and a boatload of money - or at least that's what AML was reportedly seeking, an issue that served as the stumbling block over which the deal reportedly collapsed.
That's not to say the two parties couldn't still reach some sort of a compromise, but short of that, Daimler may opt to either shut down Maybach altogether, find another partner, or take another stab at building new models internally.

2014 Mercedes-Benz S-Class revealed again in 1:18 scale

There is plenty to look forward to when it comes to the 2014 Mercedes-Benz S-Class, but it could end up being a fairly anticlimactic reveal thanks to fully exposed spy shots, a leaked press photo and now images of a diecast version of the luxury sedan. Autoweek.nl has images showing a highly detailed 1:18 scale model of the redesigned S-Class that matches up with everything we've seen so far.
This isn't the first time a model car spoiled a new vehicle's reveal, as the 2014 Mercedes-Benz CLA-Class and 2013 SRT Viper were both unceremoniously revealed in toy form first. World Car Fans is reporting that the car 2014 S-Class will be officially unveiled on May 15, but at this point, all that's left to wonder about is the official on-sale date and what will be under the hood.