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Foreign automakers pay from $38 to $65 per hour to non-union workers

Sun, Mar 29 2015

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

Top 10 small cars with the longest total driving range

Thu, Mar 19 2015

Editor's Note: Since this article was originally posted in the spring of 2015, much has changed in the automotive landscape, especially among those shopping for small car economy. With thanks to Volkswagen for their blatant cheating – and subsequent cover-up – on diesel emissions, the largest player in the diesel passenger car segment isn't playing – they're paying; billions are going for both car buybacks and federally-imposed penalties. And for a few VW execs there exists the very real possibility of jail. With the absence of a big player and the abrupt entrance – via Chevy's new Bolt – of an affordable EV with 200+ miles of range, we've limited the diesel listings to Jaguar's new XE. And for those wanting an updated look at efficiency and range, Autoblog has it – or the EPA has it. Long before electric vehicles were part of the mainstream conversation, car lovers and skinflints alike would boast about the total range of their vehicles. There's something about getting farther down the road on one tank of gas that inflames the competitive spirit, almost as much as horsepower output or top speed. Of course, the vehicles with the very best range on today's market are almost all big trucks and SUVs; virtually all have the ability to carry massive reserves of fuel. Top up a standard Chevy Suburban and you can expect to travel almost 700 miles (you'll need to stop before the Suburban stops...), while a diesel-fed Jeep Grand Cherokee manages almost as many. But what about vehicles that are smaller? The EPA has, essentially, three classifications for 'small' vehicles: Minicompact, Subcompact and Compact. All three are measured based on interior volume, meaning that some cars with rather large exterior dimensions and engines slot in next to traditional small cars. But even though impressive GT coupes from Porsche, Bentley and Mercedes-Benz may have much larger gas tanks to feed their powerful engines, that capacity is offset by higher rates of consumption... in most cases. We used the EPA's Fuel Economy Guide for model year 2017 cars as a start, calculating the official highway miles per gallon rating with each vehicle's tank capacity. The resulting numbers aren't necessarily real world, but they do offer a spectrum for total theoretical range. The eventual top ten surprised me on a few occasions, and comprised quite a varied list of vehicles. 10.

2015 Australian Grand Prix all about grooves and trenches [spoilers]

Sun, Mar 15 2015

We can't remember the last time 90 percent of the action in Formula One had nothing to do with cars setting timed laps. Yet that's was the situation at the Australian Grand Prix, continuing the antics from a scarcely believable off-season with blow-ups, driver and team absences, a lawsuit, and a clear need for some teams to get down and give us 50 pit stops. Nothing much has changed from a regulation standpoint, and at the front of the field nothing has changed at all. Lewis Hamilton in the Mercedes-AMG Petronas claimed the first position on the grid like someone put a sign on it that read, "Reserved for Mr. Hamilton;" teammate Nico Rosberg was 0.6 behind in second, Felipe Massa in the Williams was 1.4 seconds back in third. Sebastian Vettel proved that Ferrari didn't do another Groundhog Day routine this off-season, slotting into fourth. His teammate Kimi Raikkonen was not even four-hundredths of a second behind, ahead of Valtteri Bottas in the second Williams, Daniel Ricciardo in the first Infiniti Red Bull Racing, and rookie Carlos Sainz, Jr. in the first Toro Rosso. Lotus, now powered by Mercedes, got both cars into the top ten with Romain Grosjean in ninth, Pastor Maldonado in the final spot. However, even though the regulations are almost all carryover, in actual fact, everything has changed this year. Mercedes is even faster. Renault is even worse. Ferrari and Lotus are a lot better. Toro Rosso is looking like anything but a junior team. And McLaren is – well, let's not even get into that yet. Furthermore, this weekend was shambles: 15 cars started the race, the smallest naturally-occurring grid since 1963. Manor couldn't get its cars ready before qualifying. Bottas had to pull out after qualifying when he tore a disc in his back and couldn't pass the medical clearance tests. The gearbox in Daniil Kvyat's Red Bull gave out on the lap from the pit to the grid, and to give misery some company, the Honda in Kevin Magnussen's McLaren blew up on the same lap. When the lights went out, Hamilton ran away and was more than a second ahead of his teammate at the end of Lap 1. The advantage disappeared, though, because behind him, at the first corner, we got our first pile-up. As Raikkonen drove around the outside of Vettel at the right-hand Turn 1 it looked like Vettel, going over the kerbing, hopped to his left and bounced into Raikkonen.

Weekly Recap: Car-pedestrian crashes remained elevated in 2014

Sat, Feb 28 2015

The death of American Horror Story: Freak Show star Ben Woolf served as a reminder this week that car crashes involving pedestrians remain a problem, and a new study issued on Thursday reinforced that the situation isn't really getting better. The Governors Highway Safety Association found a slight decline, 2.8 percent, in the number of pedestrian deaths in the first six months of 2014. Fatalities dropped from 2,141 to 2,125 compared with the same period in 2013, though the association says it's a statistical wash when factoring in undercounting. Deaths are still 15-percent higher than in 2009. "The number of deaths remains relatively high and is cause for concern," wrote Allan Williams, who compiled the report and is the former chief scientist at the Insurance Institute for Highway Safety. This is the first look at data from last year, and the National Highway Traffic Safety Administration will issue its full-year results later. The GHSA found some progress on the roadways, as 24 states and the District of Columbia reported drops in pedestrian deaths. In some states, the problem isn't even a problem at all: Nebraska and Wyoming reported one fatality apiece, though large population centers in urban areas are where most accidents occur. "This is a clearly a good news, bad news scenario," Jonathan Adkins, GHSA executive director, said in a statement. "While we're encouraged that pedestrian fatalities haven't increased over the past two years, progress has been slow." Other News & Notes Cadillac previews CT6 during Oscars Cadillac previewed its upcoming flagship sedan, the CT6, in commercials that aired Sunday during the Oscars. As expected, the creased sedan carries on Cadillac's recent design language, and the car in the commercial looks like a larger version of the CTS and ATS sedans. The CT6 will be revealed this spring at the New York Auto Show and launch late this year. It will be assembled at General Motors' Detroit-Hamtramck factory on a rear-wheel-drive chassis, and the CT6 is the first car to use Cadillac's revised alpha-numeric naming scheme. The commercials also kicked off Cadillac's "Dare Greatly" campaign, which is the first with its new advertising agency, Publicis Worldwide. Honda unexpectedly changes CEOs Honda unexpectedly announced this week that it will change CEOs. Current chief Takanobu Ito will step down in June and be replaced by company veteran Takahiro Hachigo.

Honda slowing US production due to ports dispute

Thu, Feb 19 2015

The labor dispute that idled 29 ports on the West Coast last the weekend, including Los Angeles and Long Beach, CA, is about to make its effects felt on the showroom floor, according to Reuters. Honda, Toyota and Subaru have been trying to work around the labor disagreement, cutting overtime and airlifting parts to factories, but Honda says parts shortages at plants in Indiana, Ohio and Ontario, Canada, are now severe enough to impede production. The lack of transmissions and some electronic components will slow output of the Honda Accord, Civic, and CR-V – as well as unnamed Acuras. The three affected factories will rework their production schedules from Feb. 16-23. The ports have reopened this week, and US Labor Secretary Tom Perez has flown to San Francisco to mediate a new agreement between the 20,000 dockworkers represented by the International Longshore and Warehouse Union and the Pacific Maritime Association, which represents the terminals and shipping companies. Talks have been going on for almost nine months and the issues aren't settled; meanwhile, the West Coast ports that handle half the nation's maritime cargo and 70 percent of cargo from Asia are putting all kinds of industries on the ropes, and it's estimated to cost the economy $2 billion a day. Related Video: News Source: ReutersImage Credit: MARK RALSTON/AFP/Getty Images Government/Legal Plants/Manufacturing UAW/Unions Acura Honda Crossover Sedan

Honda trademarks 'CDX' nameplate

Wed, Feb 18 2015

Less than two weeks ago, we discussed the possibility of an Acura-badged version of the sure-to-be popular Honda HR-V. Now, Acura has gone ahead and registered a new trademark that fits in perfectly with its two other crossovers, the RDX and MDX. Our friends at Auto Guide report the company has reserved the name "CDX" with the US Patent and Trademark Office, with the trademark covering "automobiles and their structural parts." While it's true that these kinds of trademarks are filed regularly, the timing in this case is indicative of something more than simply covering bases. After all, it seems very, very unlikely that we'd have comments from Acura on a premium version of the HR-V on February 5 and a trademark filing for a name that fits the brand's CUV nomenclature less than two weeks later, only for it to not go ahead and build an actual vehicle. Adding to that logic is the simple fact that the compact CUV market, both on the premium and mainstream level, is arguably the hottest in the auto industry right now, and it seems like a virtual guarantee that we'll see an HR-V wearing the Acura CDX name in the not-so-distant future. Should that come to pass, look for the CDX to challenge the near-premium Buick Encore, as well as a potential compact CUV from Infiniti. Featured Gallery 2016 Honda HR-V View 25 Photos News Source: Auto GuideImage Credit: Honda Government/Legal Acura Honda Crossover Economy Cars Luxury trademark honda hr-v

West Coast labor dispute hampers Japanese automakers' US plants

Wed, Feb 18 2015

The ongoing labor dispute between the International Longshore and Warehouse Union and port owners along the West Coast is starting to affect more Japanese automakers building vehicles in the US. The issue already forced Honda and Subaru to take the expensive option of airlifting some parts into the US weeks ago, and according to USA Today, Toyota and Nissan have begun doing so, as well. The choice hasn't been cheap, though, and Subaru's chief financial officer estimated that the decision cost around $60 million more per month than sending components by cargo ship. The effects continue to radiate, according to USA Today, and shortages of some models are possible. Honda is slowing production at its factories in Ohio, Indiana and Canada because the automaker doesn't have enough transmissions and electronics for some vehicles. Toyota already cut back on overtime at some factories. Nissan has only seen a small effect from the issue, though, because of its local suppliers. Dock workers and port owners have been negotiating on a new contract since last year, and the union has organized work slowdowns in response. According to USA Today, the automakers could move shipments to Canada or Mexico, but it would take longer for parts to arrive. News Source: USA TodayImage Credit: Mark Ralston / AFP / Getty Images Earnings/Financials Plants/Manufacturing UAW/Unions Honda Nissan Subaru Toyota shipping port labor dispute

Alonso and Button try out Honda's Uni-Cub mobility scooter

Thu, Feb 12 2015

As two of the best racing drivers in the world, Fernando Alonso and Jenson Button have some pretty serious wheels at their disposal. They'll both be driving the latest McLaren-Honda MP4-30 on the track this year, will likely have access to supercars like the new Acura NSX or McLaren 650S for toying around with when they're not working, and probably each have an enviable motor pool of their own at home. This, then, must have been quite a change of pace for them both. As you can see from this video tweeted by McLaren, the two highly accomplished F1 drivers hopped on a very different set of wheels recently: namely, Honda's Uni-Cub "personal mobility device." The experimental electric motorized bar stool is controlled by shifting your weight to and fro (like a Segway), but stands just two feet tall and tops out at less than four miles per hour. At that rate, it would take them almost an hour to take one lap around the Circuit of the Americas in Austin, TX, where the 2015 United States Grand Prix will be held in October. In that same time span, for perspective's sake, they'd be lapped more than 30 times by their rivals... so they'd better stick to the racing machinery once the championship gets under way. What happened when @alo_oficial and @JensonButton got hold of a UNI-CUBAcA?AĤ https://t.co/YP8r9z1OsG - McLaren (@McLarenF1) February 10, 2015

Formula One speeds towards radical thousand-horsepower shakeup

Wed, Feb 11 2015

The teams, the drivers, the fans, the circuits... few, if any, were satisfied with how Formula One has shaped up since the current regulations took hold last year. But that doesn't mean they aren't working on it. At a recent meeting of the F1 Strategy Group, the leading parties in the sport outlined a new framework that would radically shake up the cars themselves while keeping costs in check. And the biggest change could see the engines producing around 1,000 horsepower. Although a proposal put forth by Ferrari to ditch the current V6 hybrid engines in favor of new twin-turbocharged units was rejected by Honda and Mercedes, the members of the group approved in principal to increase the fuel flow in the existing engines to dramatically boost output. As it stands, the current 1.6-liter turbocharged V6 engines develop around 600 horsepower, with an additional 160 or so kicked in by the electric Energy Recovery System, for a combined output of about 760 hp. What's not clear at the moment is whether the increased fuel flow would necessitate either the return of mid-race refueling (currently banned) or the installation of larger fuel tanks. Red Bull and McLaren also submitted proposals to radically redesign the shape of the cars as well, however a more evolutionary approach was adopted instead. Though far from finalized, the new design would keep the same basic form of the current chassis, but with adjustments to make them more aesthetically pleasing while producing more downforce. Wider tires are also said to be part of the mix. With more power and more grip from the tires and aero, the resulting cars would most certainly end up going much faster than the current ones, which are already starting to nudge the lap records at some of the circuits, many of which were set during the V10 era. The F1 Strategy Group is made up of representatives of the FIA, Formula One Management and six leading teams. The next step will be for the teams' technical directors to iron out how to implement what their bosses have agreed to. If they settle the details fast enough, the revised regulations could be pushed through in time for next season. News Source: AutosportImage Credit: Mark Thompson/Getty Motorsports Ferrari Honda Infiniti McLaren Mercedes-Benz F1

Acura ILX Type S could get 300-hp turbo four

Wed, Feb 11 2015

There's good news and bad news when it comes to the new Honda Civic Type R. The good news is that after more than a year of prototypes and concepts, the Japanese automaker's new hot hatch is about to make its production debut next month. The bad news is that it's not coming here, but there is a silver lining in even that dark rain cloud – namely, that Honda plans on slotting its 2.0-liter VTEC turbo four into something that it will actually offer Stateside. Earlier rumors suggested the US donor vehicle would also be a Civic, but the latest intel indicates it could be something different, albeit related. According to Car and Driver, which spoke recently with Acura product planning manager Gary Robinson, Honda's luxury division could be gearing up to shoehorn the engine into the recently updated ILX – which itself is based on the Civic. "Acura is always going to get the best engines Honda makes," said Robinson. "Obviously a 2.0-liter turbo is more of a must-have in the luxury world than it is in the mainstream" market, suggesting that an ILX Type S could be in the works with upwards of 300 horsepower. Getting it to fit, though, could prove a rather large challenge – and could mean the engine swap would have to wait until the next-generation model comes around. Considering that the ILX was just updated for 2016, C/D doesn't expect the full redesign to come until 2018 at the earliest. Here's hoping that if it takes that long, Honda will slot the engine into something else for US showrooms in the meantime. The revival of the Type S badge in and of itself, however, makes for an enticing prospect. The last time we saw it used was on the larger TL sedan, which upgraded the 3.2-liter V6 from the 225 horsepower to 260. Before that, the RSX jumped from 160 horsepower in the base model to 200 in the first Type S, 210 in the second and 217 in the ultimate Type R. As it stands, the new ILX (after dropping the hybrid and base 2.0 models, is powered exclusively by a 2.4-liter inline four with 201 hp on tap.