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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 lost upwards of $500k on each vehicle sold

Daimler is shuttering Maybach in 2013 after seven years of production. In that time, the company's ultra-ultra-luxury arm managed to sell just 3,000 units, and CAR reports Daimler lost somewhere around $500,000 on each and every one of them.
Even with a ludicrous price tag of over $370,000 for an "entry" Maybach 57, the brand couldn't quite recoup the dizzying $1.33 billion Daimler poured into it since its (re)inception. Rumors ignited over a possible tie up with Aston Martin that would have resulted in a range of new and attractive models, but Daimler has instead decided to snuff out Maybach altogether.
We can hardly blame them.

Mercedes raises the roof on new CLA Shooting Brake [UPDATE]

UPDATE: As we feared, the CLA Shooting Brake is not currently slated for US availability. The text below has been adjusted accordingly. Of all the variants in Mercedes' smallest line, only one doesn't have a liftgate, and that's the CLA-Class. But don't worry, the German automaker is out to fix that too with the reveal of the new CLA Shooting Brake you see here. Based on the same platform that underpins the CLA four-door coupe, the A-Class hatchback, B-Class minivan and GLA crossover, the new Shooting Brake applies a similar formula we've already seen on the bigger CLS Shooting Brake but in a much smaller form – which is to say, it's a wagon, but a shapely one. The revised roofline means more headroom in the back seat and significantly more cargo capacity than the four-door's trunk. Mercedes will offer the CLA with a variety of engine choices, including a 2.1-liter turbodiesel with either 136 or 177 horsepower, a 1.6-liter four with 122, 156 or 211 horsepower. That last model will even be available with 4Matic all-wheel drive for those not enamored by the idea of a front-drive Benz, but the top of the range, of course, is the CLA45 AMG Shooting Brake that carries the same 2.0-liter turbo four – all 360 horsepower of it – as the four-door CLA45 as well as the A45 and GLA45. Driving once again to all four wheels, Daimler says it'll reach 62 in 4.7 seconds (even quicker than the crossover) and top out at the usual 155 miles per hour. Of course those options only apply to markets where the new Shooting Brake will be offered. And unfortunately, Mercedes-Benz USA confirmed to Autoblog that (like the CLS wagon) the CLA Shooting Brake won't be making the transatlantic voyage to US showrooms (where the E-Class is the only low-slung Benz wagon on offer). That leaves the four-door CLA and the GLA crossover still holding down the pint-sized fort for Mercedes. THE NEW MERCEDES-BENZ CLA SHOOTING BRAKE: SPACE FOR SOMETHING NEW Stuttgart. Breathtakingly sporty proportions and a powerfully dynamic design idiom with sensuously shaped surfaces already made the CLA unmistakable in its four-door Coupe guise. It is now followed by a further design icon, the CLA Shooting Brake, with a unique look all of its own. The lower overall height and the elongated coupe-style roof contour line, the low greenhouse and the sweep of the high beltline are the key design features of its distinctive profile.