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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

Acura organizes new business division to confront falling sedan sales

Honda and Acura North America have announced a major restructuring of operations in hopes of turning around Acura's flagging business. For 2013, sales for Acura's sedans dropped 10.4 percent, while its CUV sales grew by 21 percent. The newly formed Acura Business Planning Office will attempt to right the ship.
As part of the restructuring, Acura is promoting Erik Berkman from President of Honda R&D Americas to lead a new division called the Acura Business Planning Office. Berkman has been with Honda since 1982 and led development of the 2006 Accord. He was also the first US engineer to head North American research and development and has been head of Honda Performance Development since 2008. "Erik's appointment to the new Acura Business Planning Office is a clear indication of the high priority we place on Acura," said Honda spokesperson Jeffrey Smith to Automotive News.
American Honda Motor President and CEO Tetsuo Iwamura is also going to be working to improve the business. He has been elected chairman of American Honda's board, and has simultaneously taken the new position of Corporate Brand Officer to improve the management of the company's brands.

Honda working on 'power exporter' to go with fuel-cell vehicle

The bad news, as we've previously reported, is that Honda's first production hydrogen fuel-cell vehicle won't debut until 2016, a bit later than expected. The good news is that the automaker may produce a device that will let that FCV's motor power up other devices as well. So it's a tradeoff of sorts. The company is producing what it calls the Power Exporter Concept. Put simply, it's a device that can connects to the fuel-cell vehicle and produce AC power (the picture makes it look fairly small, but dimensions weren't disclosed). The device has a maximum output of 9 kilowatts. Honda isn't saying much else about the device, which was announced along with further details of the company's upcoming fuel-cell concept vehicle. Still, it's heady yet not terribly surprising stuff from a company that's long been a big player on the portable power generator industry. Honda recently said its first production fuel-cell vehicle would see the light of day in early 2016 instead of 2015. The futuristic-looking vehicle will have a power output of about 130 horsepower and will be able to have its hydrogen tank filled up in less than five minutes. Take a look at Honda's press release below. Honda Unveils All-New FCV CONCEPT Fuel-Cell Vehicle - Striving to Realize a CO2-free Society by Combining FCV with an external power feeding device and Smart Hydrogen Station - TOKYO, Japan, November 17, 2014 - Honda Motor Co., Ltd. today unveiled, for the first time in the world, the Honda FCV CONCEPT, a concept car for an all-new fuel-cell vehicle (FCV), and the Honda Power Exporter CONCEPT, a concept model for an external power feeding device that enables AC power output from the FCV with maximum output of 9 kW*1. The all-new FCV that will be based on this concept model is scheduled to go on sale in Japan by the end of March, 2016 and subsequently in the U.S. and Europe. In addition to the FCV and external power feeding device, Honda will further promote the application of the Smart Hydrogen Station (SHS), a packaged hydrogen station unit that adopts Honda's original high-differential-pressure electrolyzer. In this way, Honda will work toward the forthcoming hydrogen society under three key concepts – "generate," "use" and "get connected" – and strive for the early realization of a CO2-free society.