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Total auto recalls already on record pace in 2014

If you've noticed that there have been more recalls than usual this year, you may be on to something. According to a report from the National Highway Traffic Safety Administration, the US market is on pace to break a record for recalls. In 2013, 22 million cars were recalled. We're only a third of the way through 2014, though, and we've already halved that figure, with 11 million units recalled. That's wild.
Considering the past few months, it shouldn't be a surprise that General Motors is leading the charge, with six million of the 11 million units recalled coming from one of the General's four brands. Between truck recalls, CUV recalls and the ignition switch recall, 2014 hasn't been a great year for GM.
Other recall leaders include Nissan (one million Sentra and Altima sedans), Honda (900,000 Odyssey minivans), Toyota (over one million units in a few recalls), Volkswagen (150,000 Passat sedans), Chrysler (644,000 Dodge Durango and Jeep Grand Cherokee SUVs) and most recently, Ford (434,000 units, the bulk of which were early Ford Escape CUVs). So while it's been a bad year for GM so far, its competitors aren't doing too well, either.

2014 Toyota Prius crash test rating drops to four stars

If nothing has changed, then how come something changed? That's the question behind the recent drop from five to four stars in the crash test rating for the Toyota Prius. As you can see on the National Highway Traffic Safety Administration (NHTSA) website, the 2014 Prius gets four stars overall while the 2013 got five. The two cars are basically identical, so what gives? Toyota says it is not sure why NHTSA rated the Prius a four this time. Starting with the 2011 model year, NHTSA updated its rating system and says in a FAQ that vehicles that had four- or five-star ratings could get lower ratings "even if no changes have been made to the vehicle." Green Car Reports says that the issue is a new set of frontal barrier tests that were conducted on the 2014 Prius last month and that resulted in the first new bits of crash test data for the car in years. The 2012 and 2013 Prius models were rated based on tests done in February 2011 on a 2011 Prius. All of these are variants of the third-generation model. The next-gen Prius is expected in 2015. Jana Hartline, environmental communication manager at Toyota Motor Sales, USA, told AutoblogGreen that the company doesn't quite know what's going on with the drop in crash test scores: There have been no changes in the test standards and no changes in the car, other than minor reinforcement for small overlap crash test which we believe did not compromise integrity. We are not sure why it rated a 4 this time. We are looking at the test results and we are confident the new generation will move back to 5 stars. 2014 Prius still has a five-star rating for the side crash test and four in the rollover test. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

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