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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

Audi CEO's Dieselgate arrest threatens fragile truce among VW stakeholders

FRANKFURT — The arrest and detention of Audi's chief executive forces Volkswagen Group's competing stakeholders to renegotiate the delicate balance of power that has helped keep Audi CEO Rupert Stadler in office. Volkswagen's directors are discussing how to run Audi, its most profitable division, following the arrest of the brand's long-time boss on Monday as part of Germany's investigations into the carmaker's emissions cheating scandal. The supervisory board of Audi, meanwhile, has suspended Stadler and appointed Dutchman Bram Schot as an interim replacement, a source familiar with the matter said on Tuesday. Schot joined the Volkswagen Group in 2011 after having worked as president and CEO of Mercedes-Benz Italia. He has been Audi's board member for sales and marketing since last September. The discussions risk reigniting tensions among VW's controlling Piech and Porsche families, its powerful labor representatives and its home region of Lower Saxony. VW has insisted the development of illegal software, also known as "defeat devices," installed in millions of cars was the work of low-level employees, and that no management board members were involved. U.S. prosecutors have challenged this by indicting VW's former chief executive Martin Winterkorn. Stadler's arrest raises further questions. Audi and VW said on Monday that Stadler was presumed innocent unless proved otherwise. Munich prosecutors detained Stadler to prevent him from obstructing a probe into Audi's emissions cheating, they said on Monday. Stadler is being investigated for suspected fraud and false advertising. Here are the main factors deciding the fate of Audi. Background: Audi's role in Dieselgate Volkswagen Group was plunged into crisis in 2015 after U.S. regulators found Europe's biggest carmaker had equipped cars with software to cheat emissions tests on diesel engines. The technique of using software to detect a pollution test procedure, and to increase the effectiveness of emissions filters to mask pollution levels only during tests, was first developed at Audi. "In designing the defeat device, VW engineers borrowed the original concept of the dual-mode, emissions cycle-beating software from Audi," VW said in its plea agreement with U.S. authorities in January 2017, in which the company agreed to pay a $4.3 billion fine to reach a settlement with U.S. regulators.

VW decides against active-cooling system for e-Golf lithium battery

When the 2015 VW e-Golf was introduced at the LA Auto Show last year, VW said it would come with a water-cooled battery. During the Detroit Auto Show, when the car was trotted out again, VW released a new press release that stripped out the "water-cooled" language, but this change went unnoticed. During a recent VW event in Germany, a friend from Green Car Reports realized that the battery on display did not seem to have any water-cooling mechanisms. That set us off on a bit of a sleuthing and we have now learned that VW is not going to include any active cooling in the upcoming e-Golf. In fact, the company is entirely confident that this car - because of what it's designed to do - doesn't need it. "The need for a cooling system wasn't there" - VW's Darryll Harrison VW has been working on an electrified Golf for ages now, and so changes to the plan are to be expected. But battery cooling is vitally important not just to keep the car operating properly but because when things get too hot, there can be serious public relations problems. Nissan began testing a new battery chemistry for the Leaf in 2013 after an uproar from warm-weather EV drivers in Arizona who were experiencing worse-than-expected battery performance. The Leaf has always used an air-cooled battery, which is another way to say that there is no active cooling system (more details here). Tesla CEO Elon Musk once said this approach is "primitive." So, why is VW following the same path? We asked Darryll Harrison, VW US's manager of brand public relations west, for more information, and he told AutoblogGreen that VW engineers discovered through a lot of testing of the Golf Mk6 EV prototypes, that battery performance was not impacted by temperatures when using the right battery chemistry. That chemistry, it turns out, is lithium nickel manganese cobalt oxide (NMC) in cells from Panasonic. These cells had "the lowest self-warming tendency and the lowest memory effect of all cells tested," Harrison said. He added that VW engineers tested the NMC cells in places like Death Valley and Arizona and found they didn't warm very quickly either through operation, charging (including during fast charging) or through high ambient temps. "The need for a cooling system wasn't there," Harrison said.