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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

2016 Mercedes-Benz C450 AMG Sport bridges the gap between C300 and C63

Mercedes-Benz is looking to its new C-Class for the second member of its new AMG Sport line, unveiling the C450 AMG 4Matic at today's 2015 Detroit Auto Show. Like the GLE450 AMG Coupe that debuted in early December, this particular C-Class bridges the gap between the standard C300 and the new Mercedes-AMG C63. Considering this, the C450 builds on the standard C400's 3.0-liter, twin-turbocharged V6, rather than getting a bespoke, high-performance engine. Output is up from 329 horsepower to 362 ponies, while torque is turned up from 354 pound-feet to 384 lb-ft. The result of these upgrades is a zippy 0-60-mile-per-hour sprint of 4.9 seconds and an electronically limited top speed of 155 mph. Those figures are identical to the Audi S4, while the BMW 335i xDrive is just a smidge quicker to 60, getting there in 4.8 seconds (the Bimmer is, however, limited to just 130 mph). Shuffling the 3.0-liter's grunt to a 4Matic all-wheel-drive system is the responsibility of Mercedes 7G-Tronic automatic gearbox that, despite not being a member of AMG's Speedshift dual-clutch family, still has its own mind for performance. Along with a quick-shifting, automatic Sport Plus mode, the C450 has a full manual shifting mode that, notably, will not automatically upshift, even when the engine is bouncing off the rev limiter. The C450 AMG hasn't only had its straight-line abilities boosted. Mercedes saw fit to include an AMG adaptive sport suspension with three-stage adjustable dampers, which have been pilfered from the C63 AMG. Paired with the aforementioned all-wheel-drive system, which can send up to two-thirds of its power to the rear axle, it's a fair to say this particular sedan should be one of the brand's more agile and entertaining. Beyond the mechanical bits, Mercedes has beefed up the exterior and interior aesthetics for its second AMG Sport model. The exterior has been touched up with new, staggered 18-inch, five-spoke wheels (or optional 19s), a more aggressive front fascia, a new rear bumper with a matte iridium diffuser, distinctive AMG badges and plenty of chrome and gloss-black elements. The cabin, meanwhile, is home to black MB Tex upholstery with red contrast stitching on the dash and doors, while AMG-specific upholstery lines the sport seats. The flat-bottomed, three-spokes steering wheel, meanwhile, is finished in Nappa leather. We'll have more on the 2016 C450 AMG Sport, including live images, coming soon from the floor of the 2015 Detroit Auto Show.

Mercedes mulling Renault-based entry-level X-Class?

Somewhere in between the Smart brand and the all-new A-Class (pictured above), Daimler is said to be readying a smaller entry-level product for the Mercedes-Benz brand to compete with models like the Audi A1. According to AutoBild, Mercedes-Benz will get a new hatchback based on a platform from its recent partnership with Renault-Nissan, and it could be called the X-Class.
Expected to debut by 2018, the Mercedes-Benz X-Class could be offered in sedan, hatchback and crossover variants, and it would likely have a starting price below the $20,000-euro mark. Power would come from either a 1.0-liter inline three-cylinder engine or a 1.5-liter inline-four, and the car would likely be built in a low-cost nation in order to make the financials work. Wearing the Mercedes-Benz name, the X-Class would have to exhibit more distinguishable luxury and styling to set itself apart from the models that helped provide its underpinnings.