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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

US-built Corollas will soon be exported to Latin America, Caribbean

Toyota has announced plans to export the American-made Corolla south, to 18 countries in Latin America and the Caribbean by 2014. The move follows statements made to The Wall Street Journal by Toyota's South American leader, Steve St. Angelo, that spoke to Toyota's resolve in emerging American markets.
Toyota is expected to begin export production in April, with initial production of 7,500 Corollas in the first year, courtesy of its Tupelo, Mississippi assembly plant. Years of unpredictable swings in the value of the Japanese yen has seen Toyota push its manufacturing operations in other countries, particularly the US, where its builds ten different models.
Scroll down to read the full press release from Toyota.

Toyota says freezing temps pose zero problems for fuel cell vehicles

Hydrogen-powered fuel cell electric vehicles are not afraid of one thing – freezing cold weather. That's the latest from two companies that have been driving the cars in frostbite temperatures in the Northeast recently. Proton Onsite runs a fleet of 10 Toyota FCHV-adv fuel cell vehicles out of its Connecticut headquarters and discovered that the snow and three-degree temperature didn't restrict range. Mark Schiller, Proton vice president of business development, said in a statement that, "I went out to my Toyota FCHV-adv and brushed off a foot of snow before starting the car right up. No problem." While electric vehicles can have their driving range reduced in extreme temperatures (but not always), Proton Onsite hasn't seen that happen in the Polar Vortex. They're performing flawlessly in freezing temperatures even with the heaters blasting, and are continuing to hit their range of about 300 miles, Schiller said. Air Products, based on Allentown, PA, has had a similar experience. The FCHV-adv has had great performance under harsh conditions, according to Nick Mittica, commercial manager, hydrogen energy systems. Employees drove the fuel cell vehicle during one of Pennsylvania's worst winters in recent memory and, you guessed it, "No problem." Toyota says that has put its fuel cell fleet through the wringer, logging millions of miles over the last decade, to make sure performance can be delivered within extreme weather conditions. Toyota engineers spent weeks testing cold weather start up, performance and durability up in Yellowknife, Canada. Temperature can reach -30 degrees Celsius (-22 degrees Fahrenheit) at that location. On other end of the scale, Toyota was able to verify that its FCVs can handle driving through heat in Death Valley national park. We heard the same from Mercedes the other day, too. Extreme weather functionality is apparently something automakers want to make absolutely sure the public doesn't worry about. Jan. 30, 2014 – Record low temperatures have stranded many East Coast drivers, but not those driving a Toyota fuel cell hybrid vehicle. Connecticut-based Proton Onsite, which operates a fleet of ten Toyota FCHV-adv fuel cell vehicles, says that even in single digit temperatures, the FCHV-adv shows no signs of frostbite. "We had another snow storm Tuesday night and this morning the temperature was 3 degrees," says Mark Schiller, Proton vice president of business development.