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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

Race Recap: 2015 Hungarian Grand Prix is Magyar for 'What a race!'

Every driver on the Formula 1 grid dreams of taking home the silverware, but only one driver each year can do it. Barring disaster in 2015 it looks like it's going to be Lewis Hamilton. The Brit has been so dominating at the front of the grid on Saturday, we can't see how he'll miss out on winning the second annual FIA Pole Position Trophy. That's the accolade introduced last season in another manufactured attempt to give drivers something to work for on Saturday, since the FIA felt leading into the first corner didn't have the pull it used to. Hamilton took his ninth pole of the season in Hungary for Mercedes-AMG Petronas with a crushing lap that put him almost six tenths ahead of his teammate Nico Rosberg in second. All Hamilton needs is one more spot at the top of the grid this season, and he's the Pole Position trophy winner. Thrilling stuff. Behind Rosberg the gaps stayed smaller, Sebastian Vettel in the Ferrari a little more than a tenth behind Rosberg, Daniel Ricciardo in the Infiniti Red Bull Racing less than four one-hundredths behind Vettel. We feel almost as vexed watching Kimi Raikkonen as he feels driving – he's finally got a good Ferrari, now he can't get a good weekend. The front wing broke on his car in Free Practice 1, then a water leak in Free Practice 3 robbed him of setup time on the soft tire. He lines up in fifth about two tenths behind Ricciardo. The slow, tight Hungaroring didn't agree with the Williams chassis, Valtteri Bottas the first of the Grove team drivers in sixth, his teammate Felipe Massa two places back. Between them is Daniil Kvyat in the second Red Bull in seventh. Teenager Max Verstappen put in a good showing in the Toro Rosso to grab ninth, while Romain Grosjean in a wriggling, squishy, sliding Lotus classified his appearance in Q3 at all as "a miracle." As for the race that followed, we don't expect to see another like it for a long time – it was the real thrilling stuff, one shock after another. The drama began after the first parade lap, when Felipe Massa lined up out of position and the start was aborted. The drivers did another parade lap, then lined up with everyone in place. Mercedes got swamped as soon as the lights went out. Vettel ran around both of them and led the race into the first turn, Raikkonen had come from fifth to third by Turn 1, then got the inside line on Rosberg through Turn 2 to take second place.

Recharge Wrap-up: Toyota FCV Rally Car To Compete, Barra bullish on Chevy Volt

The Toyota FCV will compete in the last stage of the 2014 Japanese Rally Championship. The sport-tuned hydrogen-powered car will tackle the 177-mile Shinshiro Rally on November 1 and 2, emitting no greenhouse gases in the process. The rally course will help prove the safety of the vehicle before it goes on sale in Japan in the next several months. The Toyota FCV, rumored to be called "Mirai" in Japan, will begin sales there before April, according to Toyota, and in the summer in the US and Europe. Read more in the press release below. Carsharing is becoming more popular, and more visible, throughout the world, including the US. According to WardsAuto columnist John McElroy, 18 percent of US drivers have used some sort of carsharing service. Additionally, he says 60 percent of Americans are familiar with Zipcar and Uber. Mercedes' Harald Kroeger says promotions like free parking for carshares in Stuttgart are encouraging growth for Daimler's carsharing service, Car2go. Read more at WardsAuto. Ethanol is being help up by rail transport, according to ethanol producer Green Plains. More and more stations are carrying E15 blend gasoline, but grain producers have complained that crude oil is given higher priority by the rail lines shipping it, which rail companies deny. Union Pacific and BNSF Railway say they are stepping up service to make sure that ethanol can be shipped reliably to customers. Read more at Omaha World-Herald. General Motors "has placed a significant bet [on] the electrification of the automobile," says CEO Mary Barra. In a speech to the Detroit Economic Club this week, she spoke about the Chevrolet Volt, and its importance to GM's future. While Barra admits the Volt's success has been "not everything we wanted," it has provided experience, and shows that EVs have "an important role in the future of GM." The new Volt is more refined, stores more energy, has longer range, uses less fuel and is a big investment for Michigan. She announced that the new Volt's electric drive system will be built in Warren, and that all of its major components will be made in Michigan. "Silicon Valley doesn't have a corner on the market for innovation, creativity and drive," says Barra. "These qualities exist here – in this region – as well." See the speech's highlight video and read more in the transcript below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.