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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 Tells Dealers To Stop Selling Six Models

Toyota has told North American dealers to stop selling six popular models with heated seats because the fabric doesn't meet flammability standards. One soft material beneath the seat covers does not comply with U.S. safety standards, company spokesman John Hanson said. No fires or injuries have been reported, but Toyota can't legally sell cars that don't comply with U.S. safety codes, Hanson said. The company is still totaling how many vehicles are affected, but it will be in the thousands, according to the spokesman. The stop-sale order could mean trouble for Toyota and its dealers because it covers the company's top-selling vehicles. Dealers can no longer sell certain Camry, Avalon, Sienna and Tacoma models from the 2013 and 2014 model years, as well as Corollas and Tundras from 2014. The Camry, for instance, is the top-selling car in the U.S. with more than 408,000 sales last year. It depends on how long the repairs will take. Hanson said the company already has a new material that's being installed at factories and will be put in cars that are on dealer lots. "We don't think it will take long to get the parts and make the changes," Hanson said, without getting more specific. As for vehicles already on the road, Hanson says Toyota has reported the problem to the U.S. National Highway Traffic Safety Administration, which will decide if the sold vehicles should be recalled. A NHTSA spokesman said he would check into the matter. "We don't believe that there is a safety issue here because there have been no reports of any problems," Hanson said. The stop-sale order affects cars and trucks distributed to dealers in the U.S., Canada and Mexico. In addition, some vehicles were exported outside North America, Hanson said. The problem was discovered by safety regulators in South Korea, who disassembled seats and tested individual fabrics, Hanson said. U.S. safety standards require fabrics to resist flames at a certain rate, but the one fabric didn't meet the standard, Hanson said. Toyota spokesman Naoki Sumino in Japan said the affected vehicles were sold since August of 2012, when the fabric supplier was changed. Toyota has been struggling to regain its once sterling reputation for quality after announcing massive recalls over several years, starting in 2009, for a variety of defects including braking, accelerators and floor mats. The company was fined for being slow on recalls, which affected more than 14 million vehicles, and faces lawsuits.

Toyota Supra, Rolls-Royces, dozens of BMWs recalled for backup camera issue

Weeks after Nissan and Infiniti recalled more than 1.2 million vehicles for a potentially dangerous programming oversight in the backup camera settings, BMW has issued a recall for similar problems. The recall, which covers 257,481 vehicles, includes numerous BMWs, as well as two Rolls-Royce models, and the 2020 Toyota Supra.  In total, the recall potentially affects 51 different products. This includes the 2018 BMW 540D, 2018–2019 BMW 640I, Rolls-Royce Phantom, 2018–2020 BMW 530e, 530i, 540i, M5, M550i, X3, 2019 Rolls-Royce Cullinan, 2019–2020 BMW 330I, 740Le, 740Li, 745Le, 750Li, 840i, M340i, M850i, X4, X5, X6, X7, Z4, and 2020 Toyota Supra. On certain BMW models, xDrive variants are also included. According to NHTSA campaign No. 19V684000, "The back-up camera and display settings can be adjusted such that the rearview image is no longer visible and the system will retain that setting the next time the vehicle is placed in reverse." If there is no display image when backing up, drivers can't properly see, and the car no longer meets modern safety regulations. Specifically, Federal Motor Vehicle Safety Standard (FMVSS) number 111, "Rearview Mirrors."  The recall was filed on September 27, 2019, and BMW plans to begin notifying affected owners in November. BMW, Toyota, and Rolls-Royce dealers will update the vehicles' software, which should fix the problem.