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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

Heavily updated 2015 Toyota Camry to bow in New York

Looks like the new, "more emotional" Toyota Camry designer Kevin Hunter talked about back in January is going to arrive very soon, with news that Toyota's bread-and-butter sedan will be getting an update in just a few weeks time at the 2014 New York Auto Show.
"On April 16 at the New York International Auto Show, we will make an important announcement about America's best-selling car, the Toyota Camry," said Curt McAllister, Toyota product news manager, in an emailed statement. Considering the high-profile nature of the NYAS - not to mention the competition that will be shown there - it makes sense that Toyota would choose to unveil something as significant as a major refresh at the Javits Center.
We wish we had more to tell you than this, but unfortunately, that's about all we've got to go on at this time. Of course, we'll have much more for you during the lead up to NYAS, including any leaks of the refreshed Camry. Stay tuned.

Stellantis and Toyota expand partnership with large commercial van

Stellantis said on Monday it would expand its partnership with Toyota Motor Europe (TME) with a new large commercial van, including an electric version. Stellantis will supply TME, a unit of Japan's Toyota Motor Corp, with the new vehicle for sale in Europe under the Toyota brand, it said. The van will be produced at Stellantis plants in Gliwice, Poland, and Atessa, Italy. "Planned for mid-2024, the new large-size commercial van marks TME's first entry into the large-size commercial vehicle segment," Stellantis added in a statement. The deal widens the partnership between the two companies and allows a better optimization of Stellantis' Atessa plant, which currently makes large vans sold under the Peugeot, Citroen and Fiat marques. "It represents an important addition and completes our light commercial line-up for Toyota's European customers," Stellantis said. Paris-listed shares in Stellantis were up 1.6% by 0941 GMT. Carmakers have increasingly been agreeing cross-manufacturing deals to reduce costs in vans, which due to a boom in parcel delivery are seeing large demand — and where electric vehicle versions are also seeing rising sales to carry out "last-mile" deliveries in city centers. Green Fiat Toyota Citroen Peugeot Minivan/Van Commercial Vehicles Electric