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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 cutting Chevy Sonic, Buick Verano production [UPDATE]

UPDATE: A previous version of this story indicated that Orion Assembly would be idled for seven weeks, from February 16 through April 6. This was incorrect. The factory will instead only be idled for the weeks of February 16 and April 6. The story has been edited to reflect this. General Motors has announced that the factory responsible for the Buick Verano and Chevrolet Sonic will be idled for the weeks of February 16 and April 6, with blame being placed on excess supply. The Orion Assembly plant, about 45 minutes north of GM's Renaissance Center headquarters, employs about 1,800 people, but they'll be given a pair of furloughs as inventories of the sub-compact Sonic and premium compact Verano reach 127 days and 84 days, respectively. That works out to 26,600 Chevys and 9,800 Buicks waiting for buyers. According to Automotive News, the compact Chevy sales bested the industry average in 2014, jumping up nine percent versus the the overall segment's eight-percent gain, while the Buick sedan's sales were down four percent. When asked about the shutdown, a GM spokesman told AN that it will "build to market demand," while also pointing out that the company did not comment on production plans. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing Buick Chevrolet GM buick encore orion assembly

How GM engineers are using diaper 'snow' to keep you warm

Testing how snow affects General Motors' vehicles isn't really a problem right now for the company's engineers, but in the dog days of summer the process isn't exactly easy. The only real option is for them to book time at the automaker's climatic wind tunnel. However, a flash of brilliance from an engineer allows snow to be simulated regardless of the temperature outside, and the discovery is all because of his daughter's wet diaper. The realization came to GM Thermal Systems engineer Nicholas Jahn while he was swimming with his daughter and noticed how her diaper ballooned in size in the water. He found out the substance that makes this possible is called sodium polyacrylate. When the material gets wet it grows and forms fluffy flakes that are a close imitation of snow. Best of all, the stuff can be prepared easily any time of the year, and it's reusable. The engineering team uses the material to test the effectiveness of the heating systems of GM's vehicles. They spread the sodium polyacrylate over the inlets at the base of the windshield to obstruct the airflow and then crank the heater. After some time, they can see how much is being sucked into the system and design more efficient systems in the future. See how the process works in the video above and read about the diaper discovery in GM's press release below. Diapers Change Chevy Cruze Winter Warm-up Time GM validation engineer uses diaper material "snow" to reduce frigid drives 2015-01-06 DETROIT – An item commonly found on an infant's changing table is helping General Motors' engineers simulate snow year round, ensuring heating systems in cars like the 2015 Chevrolet Cruze can quickly and efficiently warm its interior. Packed snow can prevent air from entering the inlet panel at the bottom of the windshield, obstructing the flow of air into the heating system and reducing the amount of air it can push out. This can lead to less efficient warming of the car's interior and windshield defrosting. "The last thing anyone wants to do when it's freezing cold out is scrape their windshield," said Nicholas Jahn, GM Vehicle Thermal Systems engineer. "The testing we perform on the Chevrolet Cruze with the diaper material allows us to maximize the car's heating capabilities." Ironically, Jahn stumbled upon his diaper-based testing method in the middle of summer. During a swim with his daughter, he noticed her diaper multiplied in size when it came into contact with water.