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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

Lexus Eco Challenge rewards schools for clean water, briquette press projects

Teams from one New Jersey high school and one Michigan middle school reversed the old adage by thinking locally and acting globally. And that strategy won them the grand prizes in the most recent edition of the Lexus Eco Challenge. The future is indeed bright. The Toyota luxury-vehicle division gave out a half-million dollars in this year's contest. One $30,000 grand prize was awarded to the Pinelands Eco Scienteers from Little Egg Harbor, NJ, which produced and distributed low-cost briquette presses to rural villages beset by deforestation. The other grand prize went to the E.T. Electrical Team from Byron Center West Middle School in Michigan. That middle-school group raised money to send water filters to Haiti, Kenya and the Philippines. Lexus also awarded eight $15,000 first-place awards, with the winners including high schools from California, Florida, Missouri and Pennsylvania as well as middle schools from Arizona, Michigan, North Carolina and Texas. A special shout out goes to Daniel Boone Area High School in Birdsboro, PA, where students created an educational and public-relations campaign to publicize algae-based biofuels. In all, Lexus has doled out more than $4 million in Eco Challenge awards in seven years. Check out Lexus's press release below. Students Get Dollars and Sense in Lexus Eco Challenge - $500,000 Awarded to Teams Who Learn About Environment and Community Empowerment Two Grand Prize Teams Earn $30,000 Eight $15,000 First Place Awards Given to Innovative High School and Middle School Teams Students Bring Ideas to a Larger Audience and Make a Positive Impact on the World TORRANCE, Calif., (Feb. 24, 2014) – It's a win, win situation! Communities become a better place, and students, teachers and schools have the chance to share $500,000 in scholarships and grants through the Lexus Eco Challenge. This year, the $30,000 Grand Prize winners are the Pinelands Eco Scienteers from Little Egg Harbor, New Jersey, and the E.T. Electrical Team from Byron Center, Michigan. The Lexus Eco Challenge is an educational program and contest that inspires and empowers young people to learn about the environment and take action to improve it. High school and middle school teams nationwide define an environmental issue that is important to them, develop an action plan to address the issue, implement the plan, and report on the results.

What would you drive in 1985?

Bereft of live baseball games to watch, I've turned to the good ship YouTube to watch classic games. While watching the 1985 American League Championship Series last night, several of the broadcast's commercials made its way into the original VHS recording, including those for cars. "Only 8.8% financing on a 1985 Ford Tempo!" What a deal! That got me thinking: what would I drive in 1985?  It sure wouldn't be a Tempo. Or an IROC-Z, for that matter, despite what my Photoshopped 1980s self would indicate in the picture above. I posed this question to my fellow Autobloggists. Only one could actually drive back then, I was only 2 and a few editors weren't even close to being born. Here are our choices, which were simply made with the edict of "Come on, man, be realistic."  West Coast Editor James Riswick: OK, I started this, I'll go first. I like coupes today, so I'm pretty sure I'd drive one back then. I definitely don't see myself driving some badge-engineered GM thing from 1985, and although a Honda Prelude has a certain appeal, I must admit that something European would likely be in order. A BMW maybe? No, I'm too much a contrarian for that. The answer is therefore a 1985 Saab 900 Turbo 3-Door, which is not only a coupe but a hatchback, too. If I could scrounge up enough Reagan-era bucks for the ultra-cool SPG model, that would be rad. The 900 Turbo pictured, which was for auction on Bring a Trailer a few years ago, came with plum-colored Bokhara Red, and you're damn sure I would've had me one of those. Nevermind 1985, I'd probably drive this thing today.   Associate Editor Byron Hurd: I'm going to go with the 1985.5 Ford Mustang SVO, AKA the turbocharged Fox Body that everybody remembers but nobody drives. The mid-year update to the SVO bumped the power up from 175 ponies (yeah, yeah) to 205, making it almost as powerful (on paper, anyway) as the V8-powered GT models offered in the same time frame. I chose this particular car because it's a bit of a time capsule and, simultaneously, a reminder that all things are cyclical. Here we are, 35 years later, and 2.3-liter turbocharged Mustangs are a thing again. Who would have guessed?