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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

GM recalls 740,000 vehicles over daytime running light issue

General Motors is recalling over 740,000 vehicles due to a daytime running light issue that causes all of the affected cars to run afoul of Federal Motor Vehicle Safety Standards. Vehicles affected by this recall are spread across many of GM’s brands. Models include the 2020-2023 Cadillac CT4 and CT5, 2021-2023 Buick Envision, 2022-2023 Cadillac Escalade and Escalade ESV, 2022-2023 Chevrolet Silverado 1500, Suburban, Tahoe and 2022-2023 GMC Sierra 1500, Yukon, and Yukon XL. GM says that the daytime running lights may remain on in these cars when the headlights are activated. This is a problem, because FMVSS rules require that the daytime running lights deactivate once the headlights turn on. If the DRLs remain on, GM says that could result in additional glare, thereby increasing the risk of an accident. The cause of this failure to deactivate the DRLs comes from body control module software that “under a combination of certain pre-conditions, could fail to deactivate the DRLs,” according to GM. Other GM vehicles were tested, but due to a difference in software or hardware, they remain unaffected. If this is reminding you of another recent GM recall, youÂ’d be right, as GM recalled another 340,000 vehicles for the same issue last month. After that original issue was found within GM, the company began looking into its other cars to determine if the population was larger than originally thought. GM found the additional vehicles included in todayÂ’s recall have the problem. The fix will either be via an over-the-air update or it will require you to bring the vehicle into a dealer for a software update, depending on which vehicle you have. Owner notification letters letting folks know what is necessary are currently scheduled to go out on January 23, 2023. Related video: Cadillac Escalade Infotainment Review

GM resumes production of its 3.0-liter turbodiesel straight-six

General Motors temporarily stopped taking orders for trucks and SUVs equipped with the 3.0-liter Duramax turbodiesel six-cylinder engine in August 2021 due to a supplier shortage. Reports claimed the pause would last through 2021, but the engine is already back in production. Enthusiast website GM Authority learned from sources inside General Motors that the straight-six is once again coming off the assembly line at the Flint Engine Plant in Flint, Michigan. There's no official word on precisely what the problem was linked to and whether it was related to the on-going chip shortage that's wreaking havoc across the automotive industry. All we know is that the pause lasted for about two weeks. Called LM2 internally, the six is available in Chevrolet's Tahoe, Suburban, and Silverado 1500 and in GMC's version of these trucks. It's also an option in the Cadillac Escalade. It develops 277 horsepower at 3,750 rpm and a V8-like 460 pound-feet of torque at 1,500 rpm in every application, and it allows these big behemoths to post surprising fuel economy numbers. Fitted to a rear-wheel-drive Tahoe, the Duramax returns 21 mpg in the city, 28 mpg on the highway, and 24 mpg in a combined cycle, figures that make it more efficient than a Blazer. Demand for the diesel-powered trucks is relatively high. While the shortage undoubtedly took a toll on sales, the Duramax represented 8% of Suburban sales and 6% of Tahoe sales in May 2021. There are no other diesel-burning full-size SUVs available new so they have the market to themselves. On the truck side, Ram still makes the EcoDiesel available on some 1500 trims but Ford abandoned the segment. Related Video: Featured Gallery 2021 Chevrolet Tahoe RST View 24 Photos Chevrolet GMC Truck SUV Diesel Vehicles