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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

Autoblog Podcast #317

Mitsubishi Mirage, Toyota thinks of beefing up US production, Marchionne on Alfa, Dart and minivans, Ford Atlas concept, Honda Gear concept
Episode #317 of the Autoblog Podcast is here, and this week, Dan Roth, Jeff Ross and Michael Harley bookend the other podcast topics with a pair from the Montreal Auto Show, the Mitsubishi Mirage and Honda Gear concept, and in between we talk about Toyota building all its US-market cars stateside, Hyundai building a Nurburgring test facility, Sergio Marchionne's latest words about Alfa Romeo, Dodge Dart powertrains and the future of Chrysler vans. Some chatter about the Ford Atlas concept finishes up the meat of the 'cast and then we wrap with your questions. For those of you who hung with us live on our UStream channel, thanks for taking the time. Keep reading for our Q&A module for you to scroll through and follow along, too. Thanks for listening!
Autoblog Podcast #317:

2014 Honda HPD CR-Z

Honda invited us to its Southern California North American headquarters last week to take a spin in a very special CR-Z - one modified with a full complement of Honda Performance Development (HPD) components. While the company has been racing with HPD parts for years, this is the first time the automaker has offered them for its street-legal vehicles, and it has chosen this year's SEMA Show in Las Vegas to be the launch venue. Last year, Honda introduced the HPD Supercharged CR-Z Concept at SEMA - this is the slightly modified production version.
The complete transformation gives the normally placid hybrid hatchback a serious shot of adrenaline thanks to a bolt-on supercharger combined with suspension, tire, brake and exhaust upgrades. In addition to the blower (detailed in a bullet point below), new HPD suspension components lower the car by about half an inch, and firmer spring rates stiffen the ride. Stock 16- or 17-inch wheels are then replaced with HPD 18-inch alloys wrapped in sticky Michelin Pilot Super Sport tires (215/40ZR18 at all corners). The clutch is upgraded, a limited-slip differential is installed and new HPD monobloc four-piston calipers are fitted over slotted and ventilated iron rotors up front (the single-pistons over solid discs on the back axle are unchanged). In the rear, the stock hidden single exhaust pipe is replaced by a free-flow twin-tip exhaust that peers out of a new HPD lower diffuser. Other cosmetic enhancements include an HPD front lip spoiler, rear deck lid spoiler and an HPD emblem kit for each side. To say the CR-Z is transformed by the complete HPD package is an understatement.
Driving Notes