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Tesla exec calls rival EVs 'little more than appliances'

Tesla's Vice President of Business Development Diarmuid O'Connell called the company's competition "little more than appliances" at the Center for Automotive Research's Management Briefing Seminars in Traverse City, MI yesterday. "In essence, [mainstream automakers] delivered little more than appliances," O' Connell said. "Now, appliances are useful. But they tend to be white. They tend to be unemotional." According to Automotive News, O'Connell's main critique is that vehicles like the Nissan Leaf and BMW i3 don't deliver enough performance or range to draw the attention of consumers outside of a small group. The solution, in O'Connell's mind, is more power, more range, more excitement and a lower price – that last point is particularly rich coming from an automaker whose cheapest current offering, the Model S 60, costs $66,000 – although the cheaper Model 3 is on the horizon, way out there, somewhere. But some EVs are better than none, O'Connell added. "On balance, I'm happier that [traditional automakers are] doing these cars than not," O'Connell said. "I just wish they would do them better and faster." O'Connell also used his appearance at the Management Briefing Seminars to launch a volley at the Michigan legislature, blaming its opposition to Tesla's direct-sales model for the lack of available EVs in the Wolverine State. "I think if the Michigan Legislature would allow Tesla to sell cars in Michigan, we could probably address [the lack of available electric cars]," O'Connell said. Related Video:

Cut the Cute: The 2017 Kia Rio grows up

The last time the Kia Rio got a ground-up redesign was for the 2012 model year. That gave the Rio a crisp, modern look, but was also extremely cute-sy. For the 2017 model year, Kia tweaked the Rio with a leaner, meaner look. Relatively speaking, anyway. The South Korean automaker previously released design renderings of the Rio, and now come official photos of the car. Kia claims that much of the styling changes were made to emphasize width inside and out. The headlights are slimmer and more aggressive than the wide-eyed lamps of the previous model, and much of the gently curving sheetmetal has been removed in favor of more flat planes. Not only that, but the new Rio is slightly longer, wider, and shorter than its predecessor. Inside, Kia has spruced things up with what looks like a nicer mix of materials. The most unusual part of the interior is the infotainment system, which Kia describes as "floating." The infotainment system extends up and off the dashboard, a bit like the screen on the Honda Civic. The good news is that Kia kept physical buttons part of the interface. The bad news is that the design looks a bit odd, as some of the buttons extend up with the screen and make it look a little like Kia used a stereo that didn't quite fit in the dash. Kia didn't reveal any other specs on the car, but those details will likely come during the Paris Motor Show. This updated Rio is an important model for Kia, as last year it sold 473,000 units worldwide. While it isn't Kia's biggest seller in the US, it did have a slight increase in sales this year. Related Video: Featured Gallery 2017 Kia Rio: Paris 2016 View 15 Photos Related Gallery 2017 Kia Rio Image Credit: Live photos copyright 2016 Drew Phillips / Autoblog Design/Style Paris Motor Show Kia Hatchback Economy Cars kia rio

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