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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

Toyota Recalling Millions Of Cars Over Multiple Concerns

Toyota Motor Corp. is recalling nearly 1.8 million vehicles in the U.S. for various safety problems, including air bags that may fail to deploy. The Japanese automaker announced the U.S. recall Wednesday as part of a broader recall of 6.39 million vehicles - and 27 Toyota models - globally. In the U.S., the recall includes: - 1.3 million vehicles with faulty electrical connections that could cause the air bags to deactivate. Included are the 2009-2010 Corolla, 2009-2010 Matrix, 2008-2010 Highlander, 2009-2010 Tacoma, 2006-2008 RAV4, 2006-2010 Yaris and 2009-2010 Pontiac Vibe. If the air bags deactivate, they could fail to deploy after a crash. - 472,500 small cars with defective springs in the front seat rails, which could prevent the seats from locking in place. Included are the 2006-2010 Yaris hatchback, 2007-2010 Yaris sedan and the 2008-2010 Scion XD. Toyota said it is currently working on remedies for the problems. Dealers will replace the defective parts for free when replacement parts are available. The Pontiac Vibe, which is made by General Motors Co., is included in the recall because Toyota designed and engineered it for GM when the two companies shared a factory in California. GM says 40,500 Vibes will be recalled, and says GM dealers will make repairs when Toyota sends them the parts. The air bag issue is unrelated to a separate GM recall of 2.6 million vehicles for an ignition switch defect that can also deactivate the air bags. The Vibe isn't included in that recall. Toyota said no injuries or crashes have been reported related to the recalls. By region, the recall affects 2.3 million vehicles in North America, 1.09 million vehicles in Japan and 810,000 vehicles in Europe. Other regions affected by the recall include Africa, South America and the Middle East. The recall is one of Toyota's largest since 2009 and 2010, when the company issued a series of recalls totaling more than 10 million vehicles for various problems including faulty brakes, sticky gas pedals and ill-fitting floor mats. Toyota is under pressure to announce recalls quickly after a U.S. government investigation found it hid information about past defects. Last month, the company agreed to pay $1.2 billion to settle that investigation. It also paid fines totaling $66 million to the U.S. government for delays in reporting unintended acceleration problems.

Renault Scenic EV takes first place as (European) Car of the Year

The automobile awards season may not be over, but two of the more prestigious annual races came closer to a climax this week. One might need a scorecard to keep track. We’re focused here on two events: the World Car of 2024, now reduced to three finalists in six categories. Then thereÂ’s the Car of the Year, known in some quarters as the European Car of the Year. Except that the car doesnÂ’t have to be European to win, only sold there. Got that? Winners out of the way first: At the Geneva Motor Show on Monday, the Renault Scenic E-Tech all-electric has been voted Car of the Year 2024. The Scenic is a fairly compact, somewhat stylish SUV for Europe only, and is the seventh vehicle from the French brand to win the award. It sells in the United Kingdom for about $47,500. The other six finalists that had made the first cut of voting in November were the BMW 5 Series, BYD Seal, Kia EV9, Peugeot E-3008/3008, Toyota C-HR, and Volvo EX30. The trophy winner was chosen by a jury of 59 motoring journalists from 22 countries. Scenic came in first place with 329 points. The Seal was the first Chinese-made car to make this awardÂ’s shortlist; it finished sixth out of seven, just up from the Toyota. One judge explained his decision to grant the Seal zero votes. Writing in Top Gear, Paul Horrell wrote this entertaining critique: “It looks good and is well specified, so makes a strong market entry. The advanced electric system and cobalt-free battery are commendable too, and it's enjoyable enough to drive quickly. That's undermined by an agitated ride over bumps, and the logic of screens and switches is pretty eccentric.” Recapping the World Car of the Year 2024 update, the sponsors shared the stage at Geneva on Monday with the Europeans as well, although they revealed only the top three finalists in six categories. For the ultimate prize, they are the Kia EV9, the Volvo EX30 and the BYD Seal. The winners will be announced March 27 at the New York International Auto Show. Here's more on the World Car finalists. By the Numbers Geneva Motor Show New York Auto Show BMW Kia Toyota Volvo Peugeot Renault Green Automakers Best Cars