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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

Weekly Recap: Takeaways from the Frankfurt Motor Show

We obsessively covered the 2015 Frankfurt Motor Show, and naturally, we selected our favorites from this fall's biggest automotive event. Now that the dust has settled, we're looking ahead to what it all means. Here are three takeaways from the floor in Frankfurt. The Germans are serious about electric vehicles: It's a bit cliche to say BMW, Mercedes, and Audi have downplayed electrics in favor of other technologies, like diesels. For a time that may have been true, but those three companies, along with Porsche and Volkswagen, are emerging as leaders in EV development. That was on display in Frankfurt, when all of them revealed either all-electric or plug-in hybrid models. Gas prices are relatively low in the United States, but clearly the Germans are thinking long-term and globally. Everyone is serious about SUVs: You gotta have one, even if you're Bentley or Jaguar. It's 2015 and it's what consumers want. As Jaguar design director Ian Callum put it, "Not to be in the sector would be a little naive for the sake of purity." It's not just the flashy exotic luxury makers. Nissan showed the Gripz concept, which is rakish, radical, and meant to blend traits of SUVs and sports cars into a vehicle that really crosses over. Look for more, especially in the luxury sector, as Rolls-Royce, Lamborghini, and Aston Martin ramp up their own SUV efforts. There's no ceiling to the luxury market: Speaking of high-end cars, companies are continuing to invest in extravagant wares beyond just SUVs. Even during the recession, ultra-luxury makers remained relevant, and now they're back at full stride. In Frankfurt, that was illustrated by yet another S-Class model, the cabriolet, which will come in S550 and S63 AMG variants in the United States. Ferrari also showed off the 488 Spider, and Lamborghini opened up the Huracan LP 610-4 Spyder. Meanwhile, Bugatti's Vision Grand Turismo concept reminded enthusiasts that it's plotting life after the Veyron. European auto shows always draw the glitziest reveals from luxury makers, and this year didn't disappoint. OTHER NEWS & NOTES 2016 Honda Civic redesigned with snazzier style, turbo power The 10th-generation of the Honda Civic debuted this week at events in Los Angeles and Detroit ahead of its launch in the United States this fall as a 2016 model. Honda fortified the Civic with LED lights, an available turbo engine, and a more tech-laden cabin.

Lamborghini, Aston Martin, Mercedes-AMG, Porsche and Koenigsegg Lego sets coming this summer

Lego has announced a slew of new automotive-themed sets. As is typical fashion for brand of building toys, the subject matter leans toward ultra-exotic, ultra-expensive vehicles, ranging from a $139,000 Mercedes SL63 on the low end to a $3 million Koenigsegg Jesko Absolut on the high end. If you can't afford those cars in real life, soon you'll be able to build your own plastic models of them. Some of the real-world counterparts aren't obtainable no matter what the cost. Take the Lamborghini Lambo V12 Vision Gran Turismo, for example. The one-off concept was designed by Lamborghini exclusively for Gran Turismo, the PlayStation racing simulator. However, Lamborghini did build a 1:1 version for the physical world, with the 808-horsepoewer hybrid V12 from the Sian FKP 37 beneath its bodywork. The Lego version is part of the company's Speed Champions line, which measure about 6 inches long. It does an excellent job of capturing the original's insectoid look and Y-shaped taillights. The set is made up of 230 pieces and will retail for $26.99. This is Lego's first Vision Gran Turismo car but we hope to see more.  Also joining the Speed Champions line are two 2-car sets. An Aston Martin-themed set pairs a Vantage safety car with an AMR23 Formula 1 racer. Both are finished in AMR's bright green with actual sponsor logos. The set contains 564 pieces and will cost $44.99. Also arriving as a 2-car set are a pair of Mercedes-AMGs. A black G 63 and yellow SL 63 Roadster, along with a pair of sunglasses-clad bros, make up the 808-piece set. It also retails for $44.99. All three Speed Champions sets arrive on June 1, 2024. If you're looking for something a bit more advanced and detailed, Lego also offers the Technic line. First up is a Porsche GT4 e-Performance, a 1,000-horsepower race car based on the 718 Cayman. This set can also function as a remote controlled car that moves forward, backward, and steers via a downloadable smartphone app. The 834-piece set costs $169.99. Last but not least, there's the Koenigsegg Jesko Absolut, a model of the Swedish supercar that is said to have a top speed of over 300 mph. The model does an admirable job of capturing the car's 0.278 Cd drag coefficient, considering it's comprised of 801 individual plastic bricks. This set will retail for $49.99 and, along with the Porsche, comes out August 1, 2024. Related Video LEGO Speed Champion Build: 1968 Ford Mustang Fastback