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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 announces two recalls, 442k vehicles affected in North America

Ford is announcing two recalls for North American that affect a total of 442,300 vehicles and multiple model lines. The larger campaign covers the possibility of electric power steering systems that can fail in the 2011-2013 Ford Flex, Taurus, Lincoln MKS, and MKT; the 2011-2012 Ford Fusion and Lincoln MKZ; and the 2011 Mercury Milan. This recall affects 422,814 vehicles in North America, including 393,622 in the United States, 25,195 in Canada, and 3,997 in Mexico. According to the company, an intermittent electrical connection can cause the power steering to cut out, although manual steering would still work. Ford knows of four minor accidents from this issue, but there are no injuries. Depending on trouble codes from the vehicle, dealers will either upgrade software for the power steering control module or replace the steering gear. The second recall covers 19,486 examples of the 2015 Ford Mustang with the 2.3-liter EcoBoost turbocharged four-cylinder engine with a production date between February 14, 2014, and February 10, 2015 at the Flat Rock Assembly Plant. Specifically, there are 19,095 of these in the US and 391 in Canada. These pony cars can show elevated underbody temperatures, which can lead to degradation of the fuel tank, fuel vapor lines, and parking brake cable seals. There are no reports of accidents, injuries or fires from this, though. To fix things, dealers will install a better-insulated fuel tank shield, add thermal patches around the tank and parking brake cable, and put thermal wraps around the fuel vapor lines. You can read the specific build dates and locations for the models affected by the power steering issue in Ford's press release below the video. Related Video: FORD ISSUES TWO SAFETY RECALLS IN NORTH AMERICA DEARBORN, Mich., May 27, 2015 – Ford is issuing two safety recalls in North America. Four minor accidents and no injuries are attributed to one of these conditions.

Ford F-150 EcoBoost in NHTSA probe for acceleration issue

According to Automotive News, the National Highway Traffic Safety Administration is launching a probe into 400,000 Ford F-150 models over possible acceleration problems. According to the article, NHTSA has received 95 reports "alleging incidents of reduced engine power during hard accelerations" on 2011 to 2013 F-150 models equipped with the company's 3.5-liter EcoBoost V6 engine.
Automotive News reports that Ford has issued three technical service bulletins "related to intermittent stumble/misfire on acceleration from highway cruise in humid or damp conditions," according to the government agency's documents. About one third of the 95 reports NHTSA has received cited humid or rainy conditions when these problems allegedly occurred.
These technical service bulletins have allowed dealers to address a "condition related to moisture accumulation in the charge air cooler during extended highway cruising at constant throttle in humid or damp conditions," AN reports, citing NHTSA documents. Furthermore, the TSB outlines details for "reprogramming the powertrain control module with the latest calibration and installing a new CAC and air deflector plate."