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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

Ford Mustang, F-150, Expedition, and Lincoln Navigator recalled

The Basics: Ford will recall 201,900 examples of the 2011-2012 F-150, 2012 Expedition, 2012 Mustang, and 2012 Lincoln Navigator. The affected vehicles have the 6R80 transmission. Of the total, there are 84,000 of them in the United States and 17,900 in Canada. The Problem: The output speed sensor on the vehicle's transmission lead frame can force the gearbox to downshift into first gear. If this happens at high speed, it could cause the rear tires to slide or lock up. Injuries/Deaths: There are no reported injuries, but Ford know of three accidents related to this problem. The Fix: Dealers will update the powertrain control module software to eliminate the problem, and they'll also replace the transmission lead frame. If You Own One: Ford will begin notifying affected customers by mail on May 23. Related Video: FORD MOTOR COMPANY ISSUES THREE SAFETY RECALLS AND TWO SAFETY COMPLIANCE RECALLS IN NORTH AMERICA DEARBORN, Mich., April 27, 2016 – Ford Motor Company is issuing three safety recalls and two safety compliance recalls in North America. Details are as follows: Ford issues safety recall and customer satisfaction program for certain 2011-2012 Ford F-150, and 2012 Ford Expedition, Ford Mustang and Lincoln Navigator vehicles in North America to update powertrain control module software and inspect for certain diagnostic trouble codes Ford is issuing a safety recall for approximately 202,000 2011-2012 Ford F-150, and 2012 Ford Expedition, Ford Mustang and Lincoln Navigator vehicles for a potential issue with the output speed sensor on the vehicle's transmission lead frame. Under certain conditions, the transmission controls could force a temporary downshift into first gear. Depending on the speed of the vehicle at the time of the downshift, the driver could experience an abrupt speed reduction that could cause the rear tires to slide or lock up. This condition could result in loss of vehicle control, increasing the risk of a crash. Ford is aware of three reports of accidents and no injuries related to this condition. Affected vehicles are equipped with a 6R80 transmission and include certain 2011-2012 Ford F-150 vehicles built at Dearborn Truck Plant and Kansas City Assembly Plant, Aug. 19, 2011 through March 9, 2012; 2012 Ford Expedition vehicles built at Kentucky Truck Plant, Aug. 19, 2011 through Dec. 19, 2011; Ford Mustang vehicles built at Flat Rock Assembly Plant, Aug. 19, 2011 through Feb.

Ford wins second consecutive Engine of the Year with 1.0L EcoBoost [UPDATE]

For the second year in a row, Ford has taken top honors in International Engine of the Year voting. As was the case last year, it is Ford's 1.0-liter EcoBoost engine that earns the automaker the accolade, achieving the highest-ever accumulated score in the 15 years that the award has been handed out.
A panel of 87 automotive journalists from 35 countries are responsible for choosing the world's best engines, and this is only the third time an automaker has managed back-to-back victories. Voters were impressed by the "Baby EcoBoost" engine's power output - 123 horsepower between 1,400 and 4,500 rpm, 148 pound-feet of torque from 1,400 to 4,000 rpm - and its compact size; Ford has demonstrated that the package is small enough to fit in the overhead bin of a passenger airplane.
Currently, the 1.0-liter EcoBoost is offered in the European Fiesta, B-MAX, Focus, C-MAX and Grand C-MAX, and Ford plans to put the engine in the Transit Connect, Transit Courier, Tourneo Connect, Tourneo Courier, Mondeo and EcoSport in short order. In North America, the Fiesta will be the first vehicle to offer the 1.0L EcoBoost later this year.