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Detroit 3 and UAW set for showdown over tiered wages

This week, thousands of United Auto Workers will converge on Cobo Center in Detroit for the Special Convention on Collective Bargaining, an every-four-year event that lets members tell UAW leaders what the negotiating priorities should be during contract negotiations. This is where a lot of sand and a lot of lines start coming together in preparation for contract negotiations between the UAW and the Detroit 3 automakers, which will happen later this year. Number one on the UAW agenda is the end of the two-tier wage system created in 2007 to help the automakers get through bankruptcy; veteran workers are paid the Tier 1 rate of around $29.00 per hour, new hires are paid the Tier 2 rate of between $15 and $20 and get about half the benefits of Tier 1. Tier 2 hiring has been an undoubted success for the automakers, allowing them to keep factories in the US and hire more workers. By agreement, it is capped at a certain percentage of each automaker's workforce, and while the union's ultimate position is to get rid of the dual-scale system entirely; one leader said Ford could easily afford the $335 million it would take to convert all its workers to Tier 1 out of its $6.9 billion in 2014 North American profit, and General Motors could do the same out of the $5 billion it is handing to investors through the (admittedly forced) share buyback. Other delegates say that at the very least they'd be happy with enforcement of the current caps in the new contract. The automakers, conversely, would welcome expansion of the Tier 2 ranks. Including benefits, import automakers pay workers "in the high $40 range" per hour, according to an analyst, while Ford and GM pay about $59 in wages and benefits per hour. More Tier 2 workers on the rolls would let those two companies get labor cost parity with the competition. Fiat-Chrysler pays wages closer to the imports because of special exceptions in its UAW contract that allow unlimited Tier 2 hiring; those exceptions will end on September 14 and bring FCA into line with the other domestics, unless the new contract maintains them. FCA CEO Sergio Marchionne is opposed to the two-tier system, having called it "almost offensive." One analyst says the UAW might win a sizable pay raise for Tier 2 and a small increase for Tier 1, but the keystone issue will be how the hiring matrix can help the automakers keep overall wages in line with the imports.

NHTSA investigating 500k Ford and Mercury cars for lighting failures

The Ford Crown Victoria and Mercury Grand Marquis might be long gone as new models in showrooms, but the National Highway Traffic Safety Administration might check them out yet again for a potential problem. At the urging of North Carolina Consumers Council, the agency may open another investigation into the front lighting control module on vehicles from the 2003-2005 model years, and NHTSA estimates the issue could affect 517,945 vehicles. If the module stops working, it can cause a complete failure of all forward lighting, including the headlights. NHTSA previously investigated the issue in 2008 and 2009 but found no need for a recall, according to Bloomberg. Ford also extended the warranty on the part to 15 years or 250,000 miles. To prompt this new request, the North Carolina Consumers Council received a letter from a woman experiencing the module's failure. Upon further investigation, the council found 604 complaints of this problem on NHTSA's website, including seven crashes. Furthermore, the group has alleged that dealers told customers that the parts to perform the replacement weren't available, despite the extended warranty. According to the government agency, "A defect petition has been opened to evaluate the issue and make a grant or deny decision." Ford spokesperson Kelli Felker tells Autoblog via email, "We will cooperate with NHTSA, as we always do." You can read the council's complete letter to the Feds in PDF format, here. INVESTIGATION Subject : Loss of headlamp/exterior lighting Date Investigation Opened: APR 01, 2015 Date Investigation Closed: Open NHTSA Action Number: DP15002 Component(s): EXTERIOR LIGHTING All Products Associated with this Investigation Vehicle Make Model Model Year(s) FORD CROWN VICTORIA 2003-2005 MERCURY GRAND MARQUIS 2003-2005 Details Manufacturer: Ford Motor Company SUMMARY: The Office of Defects Investigation (ODI) has received a petition from the North Carolina Consumers Council, Inc. requesting a defect investigation of an alleged defect condition resulting in headlight and/or exterior lighting failure on 2003-2005 Ford Crown Victoria and Mercury Grand Marquis vehicles. The petition letter is attached for review. The petitioner alleges a defect in the lighting control module that powers the headlights which can result in the loss of vehicle headlights and/or all exterior lighting while driving. ODI has previously investigated this issue under PE08-066 which was closed without a defect finding.

Ford begins testing right-hand-drive Mustang

Ford has officially kicked off testing of the right-hand-drive variant of its sixth-generation, 2015 Mustang, according to a statement issued by the company, which came with the above photo.
According to Ford, this will mark the first time a right-hand-drive 'Stang has traveled down the company's assembly line alongside its LHD brethren. It is far from the first of the legendary pony cars to feature its wheel on the wrong side, though, as converters in RHD markets across the globe have been making swaps for years.
Ford is planning on using the white, droptop Mustang for RHD development ahead of the car's arrival in the UK, Australia and South Africa, among other markets. Scroll down for the official press blast.