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Auto blog

Ford recalls 600,000 older-model sedans for braking issue

Ford is recalling 600,166 older-model Ford, Lincoln and Mercury vehicles over an issue that could affect braking and increase the risk of a crash. The safety recall covers certain Ford Fusion, Mercury Milan and Lincoln MKZ sedans from the 2006 through 2010 model years that were built at Ford’s Hermosillo Assembly Plant in Mexico between Feb. 22, 2006, and July 15, 2009. Ford says a valve that is normally closed inside the hydraulic control unit may get stuck in the open position or be slow to close, which could make it harder to engage the brakes and increase risk of a crash. Ford says itÂ’s aware of 15 reports of accidents and two injuries possibly related to the issue. Dealers will inspect the hydraulic control unit for signs of the problem and replace it, if necessary. The dealers will pressure-flush the system with brake fluid and replace the reservoir cap with a new one. Ford is also issuing a small recall of 33 of its 2020 F-150 trucks in the U.S. and 51 in Canada over potentially damaged spare tires. It says the bead area on the tires may have been damaged when it was mounted onto the wheel assembly, leaving it vulnerable to corrosion, separation of the bead wire and ultimately a rapid loss of air pressure and detachment from the wheel. Dealers will replace the spare tire. Affected vehicles were built at the Dearborn Truck Plant from Nov. 10-21 of this year.

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.

Toyota Camry, Honda Civic inventories mounting as US automakers make inroads

Two of the hottest-selling cars in America aren't quite as hot as they used to be. The Toyota Camry and Honda Civic are both seeing dealer supplies increase in the face of renewed competition from the much-improved Detroit Three.
According to a report from The Detroit News, the Camry's dealer inventory is 15 days higher than its seasonal average, while the Civic is 25 days above average. Things aren't expected to get better for Toyota and Honda, as RBC Capital Markets analyst Joseph Spak marked the two Japanese offerings as "at risk for reduced output."
The Detroit Three, meanwhile, are seeing supplies dwindle as demand increases, especially for the Ford Fusion, which has seen an 18-percent increase in 2013 sales, and the Chevrolet Cruze, which was second only to the Camry in June 2013 sales.