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Mercedes calling in CLS, E-Class over rubber seal fire risk

Mercedes-Benz has discovered a problem with certain E-Class and CLS-Class models and has notified the National Highway Traffic Safety Administration of a recall it's undertaking to resolve the issue. The problem is with the rubber seal at the back of the engine bay, which according to the statement below "may temporarily stick to the hood when it is opened and then may fall into the engine bay when the hood is closed." If it then comes into contact with the exhaust system, it could start a fire. And fires in the engine bay are never a good thing, unless they're contained entirely within the combustion chamber. The issue affects an estimated total of 147,224 E-Class and CLS-Class vehicles, all told, across America – including four-doors, wagons, hybrids and AMG performance models (but no E-Class coupes or convertibles) from the 2013-15 model years. To fix the problem, Benz dealers will simply need to attach four additional clips to keep the seal in place, and will start doing so midway through next month. RECALL Subject : Rubber Seal may Dislodge and Contact Exhaust Report Receipt Date: FEB 13, 2015 NHTSA Campaign Number: 15V088000 Component(s): STRUCTURE Potential Number of Units Affected: 147,224 Manufacturer: Mercedes-Benz USA, LLC. SUMMARY: Mercedes-Benz USA, LLC. (MBUSA) is recalling certain model year 2013-2015 E350 Sedan, E350 4Matic Sedan, E350 4Matic Station Wagon, E400 Hybrid Sedan, CLS 550 CGI, and CLS550 4Matic, 2013-2014 E550 4Matic Sedan, 2013 E63 Sedan, E63 Station Wagon and CLS63, 2014-2015 CLS63 4Matic, E63 4Matic Sedan, E63 4Matic Sedan "S", and E63 4Matic Station Wagon, 2015 CLS400, 2015 E400 Sedan, E400 4Matic Sedan and CLS400 4Matic and 2014 CLS63 "S". The affected vehicles have a rubber seal at the back of the engine bay that may temporarily stick to the hood when it is opened and then may fall into the engine bay when the hood is closed. CONSEQUENCE: If the rubber seal falls into the engine compartment, it may contact parts of the exhaust system, increasing the risk of a fire. REMEDY: MBUSA will notify owners, and dealers will attach four additional retaining clips to the rubber seal, free of charge. The recall is expected to begin by mid-March 2015. Owners may contact MBUSA customer service at 1-201-573-5339. MBUSA's number for this recall is 2015020001. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

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

Automakers suspend some business in Russia following invasion

These Russian GAZ Tigr infantry mobility vehicles were destroyed by Ukrainian fighters in Kharkiv on Monday. (Getty Images)   Global auto and truck makers, including Sweden's Volvo Cars and Germany's Daimler Truck, on Monday suspended some business in Russia following that country's invasion of Ukraine. Russian forces invaded Ukraine last week, marking the biggest attack by one state against another in Europe since World War II. Many firms have idled operations in Russia following Western sanctions against Russia. Energy giant BP Plc, Russia's biggest foreign investor, abruptly announced over the weekend it was abandoning its 20% stake in state-controlled Rosneft at a cost of up to $25 billion. On Monday, Swedish automaker Volvo Cars said it would suspend car shipments to the Russian market until further notice, becoming the first international automaker to do so as sanctions over the invasion continue to bite. In a statement, the company said it had made the decision because of "potential risks associated with trading material with Russia, including the sanctions imposed by the EU and US." "Volvo Cars will not deliver any cars to the Russian market until further notice," it said. A Volvo spokesman said the carmaker exports vehicles to Russia from plants in Sweden, China and the United States. This came as Russia warned Sweden and Finland not to join NATO or risk facing “serious military-political consequences." Volvo sold around 9,000 cars in Russia in 2021, based on industry data. Earlier on Monday, RIA news agency reported Volkswagen had temporarily suspended deliveries of cars already in Russia to local dealerships, citing a company statement. VW had no immediate comment when contacted by Reuters. VW previously said it would halt production for a few days this week at two German factories after a delay in getting parts made in Ukraine. Daimler Truck said on Monday it would freeze its business activities in Russia with immediate effect, including its cooperation with Russian truck maker Kamaz. Mercedes-Benz Group is also looking into legal options to divest its 15% stake in Kamaz as quickly as possible, the Handelsblatt newspaper reported. A Mercedes spokesperson told Reuters business activities would have to be re-evaluated in light of the current events. Mercedes-Benz Group, formerly Daimler AG, was the parent company of Daimler Truck before the truck maker was spun off.