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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

Hyundai previews new infotainment system ahead of CES

One of the most common refrains in the world of automotive infotainment is that soon, smartphone-enabled infotainment systems would come to dominate the industry. We've seen some progress in this regard, with a number of automakers offering apps and services that take advantage of a driver's smartphone data plan, but few that have gone whole hog and offered a system that genuinely relied on a cellular service. At the 2015 Consumer Electronics Show, Hyundai will offer up its take on smartphone-enabled infotainment, with a new, seven-inch-touchscreen Display Audio system. Designed specifically to work with Apple CarPlay or Android Auto, the system will first be rolled out to Hyundai's more affordable 2016 offerings before rolling out to the brand's entire entry-level lineup. Once mated with the car, both systems will offer access to a plethora of third-party apps, in addition to the typical satellite navigation and text message services. Apple CarPlay users will build on the standard suite of stuff with Siri Eyes Free. Overall, whichever phone you're loyal to, this new Hyundai system sounds remarkably interesting. Of course, expect to hear plenty about the new Display Audio system in the coming months. Until then, let us know what you think in Comments. Should automakers just stick to traditional infotainment systems, or do you support the idea of relying on a smartphone inside the car? Scroll down for the full press release. HYUNDAI TO DEBUT DISPLAY AUDIO SYSTEM AT 2015 CONSUMER ELECTRONICS SHOW All-New Infotainment Unit to Be Offered in Select 2016 Models Brings Android Auto™, which extends the Android™ platform in a way that is purpose built for driving Brings Apple CarPlay™, the smarter, safer and best iPhone experience, on four wheels Features the next generation Blue Link system with Connected Care, a suite of safety and car care features and remote engine start with climate control Incorporates the latest smartphone-enabled technologies and the next generation Blue Link® system into more lower price Hyundai models without embedded navigation systems The Display Audio system includes a large color touch-screen display that has been optimized for smartphone integration Fountain valley, Calif., Dec. 17, 2014 – Hyundai is doing the unthinkable at the 2015 Consumer Electronics Show (CES®) by showing a new Display Audio system with no CD player or embedded navigation system.

Hyundai-Kia fuel-economy errors trigger $300M in federal penalties [w/video]

This amount includes $100-million in civil penalties, the largest such fines in EPA history.
Hyundai and Kia are getting more than a slap on the wrist for overstating the fuel economy of an estimated 1.2-million vehicles in their 2011-2013 model ranges. The Environmental Protection Agency, the Department of Justice and the California Air Resources Board are hitting the automakers with collective penalties valued at around $300 million for Clean Air Act violations. This amount includes $100-million in civil penalties, the largest such fines in EPA history. Specifically, Hyundai is paying a $56.8 million penalty and relinquishing 2.7-million greenhouse gas emissions credits. Kia is paying $43.2 million in penalties and giving up 2.05-million credits.