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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

Honda thumbs nose at fleet sales, claims it leads in key vehicle segments

Fleet sales are a way of life in the automotive industry. There are many non-retail customers that need vehicles, but going too far can reduce brand image and vehicle resale value. While some of its competitors have fleet sale that account for up to 20 or 30 of overall sales, Honda is bragging that it has the lowest fleet sales of all mainstream automakers for the first five months of 2013.
After calculating new-car registration data from R.L. Polk, Honda says that just two percent of its sales through went to fleet customers compared to an industry average of 19 percent. Even though this means Honda leaves plenty of sales on the table each month, it also claims to have the highest resale value and lowest cost of ownership among its competitors. In terms of retail sales, Honda says that the Civic, Accord, CR-V and Odyssey all lead their respective segments, and it breaks down/brags about its retail sales success in the press release, which is posted below.

NSX, S660, and a 4-motor CR-Z EV that goes like hell

AutoblogGreen Editor-in-Chief Sebastian Blanco was my road dog while visiting Honda's R&D center in Tochigi. Over the course of a long day of briefings, driving demonstrations, and a variety of strange-flavored candies, we saw quite a lot of what the company is planning for the next generation and beyond. Of course, Sebastian and I see the world through very different eyes. So, while he was busy getting details about the FCV Clarity successor, and asking tough questions about electrification (in other words, the important stuff), I was fixating on a tiny, two-seat sports car that will never come to America. Oh, there was an NSX, too. Honda's pre-Tokyo Motor Show meeting really did have plenty to offer for all kinds of auto enthusiasts, be they focused on fast driving or environmentally friendly powertrains. Seb's attendance let me focus on the stuff that's great for the former, while he wrote up high points of the latter. View 15 Photos S660 I joke about salivating over the S660, but honestly I was at least as excited to take a few laps in Honda's Beat encore, as I was to sample the Acura supercar. Conditions for the test drive weren't ideal, however. Two laps of a four-kilometer banked oval is not exactly nirvana for a 1,800-pound, 63-horsepower roadster. Still, I folded all six feet and five inches of my body behind the tiny wheel determined to wring it out. The immersion of the driving experience was enough to make it feel fast, at least. I shifted up just before redline in first gear with the last quarter of the pit lane rollout lane still in front of me. The 658cc inline-three buzzed like a mad thing behind my ear, vastly more stirring than you'd expect while traveling about 30 miles per hour. The S660 is limited to just around 87 mph, but the immersion of the driving experience (note: I was over the windscreen from the forehead up) was enough to make it feel fast, at least. Even after just a few laps, and precious little steering, I could tell that everything I grew up loving about Honda was in play here. The six-speed manual offered tight, quick throws, the engine seemed happiest over 5,000 rpm, and the car moved over the earth with direct action and a feeling of lightness. Sure proof that you don't need high performance – the S600 runs to 60 mph in about 13 seconds – to build a driver's car. I could have used 200 miles more, and some mountain roads, to really enjoy the roadster (though I would have wanted a hat).