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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

Nissan Sentra, Buick LaCrosse to headline LA Auto Show

We're less than a month away from the start of the Los Angeles Auto Show, and automakers have been lining up their debuts for the upcoming left-coast expo. The latest announcement comes from the show's organizers who are eager to tout the global debuts slated for next month. Chief among them will be new versions of the Buick LaCrosse and Nissan Sentra. So far all we've seen of the 2017 LaCrosse is a glimpse at the front grille, but it's already promising to bring elements of the Avenir concept to the street. The original LaCrosse was launched in 2004 and was replaced in 2010 with the current model. The Sentra nameplate has been around much longer, but the current model was launched more recently in 2013. The new version spied recently while undergoing testing is promised to be a substantial update on that model, not a complete replacement, bringing it up to speed with the latest equipment and revised styling. This represents the first official confirmation we've received of when Nissan will be unveiling the new Sentra. Mitsubishi will also be on hand with its new Outlander Sport, as well as the redesigned Mirage. They'll be joined as well by new versions of a couple of high-end models that promise to resonate with the local crowds in tinseltown. Land Rover has chosen the LA show as a suitable venue to unveil the production Range Rover Evoque Convertible that will drop the top on one of the most stylish luxury crossovers on the market. And Porsche, as we know, is gearing up to hit the track with the new Cayman GT4 Clubsport - a customer racing version of the company's little two-seat, mid-engined sports car that's been lightly modified for motorsport competition. Of course these won't be the only new metal on display at the Californian auto expo. They'll be joined as well by the likes of the new Infiniti QX30, Hyundai Elantra, Kia Sportage, and Jaguar F-Pace - many of which we've already seen. Meanwhile companies like Fiat, Ford, Mazda, Mercedes, Subaru, Volvo, Volkswagen, and Elio Motors are keeping their plans under wraps for the time being. But with mere weeks to go, it won't be long before we see what they've got in store as well.

Interest in an Infiniti EV is muted, to say the least

More than a quarter-million people have bought an electric vehicle from the Renault-Nissan Alliance. When it comes to Nissan's Infiniti luxury nameplate, though, there's not a lot of confidence. The Alliance doesn't have much hope that the badge will add to that total anytime soon. So says Emirates 24/7 in its report that Infiniti is planning on opening two showrooms in Abu Dhabi. Models such as the QX80 SUV, the Q70 sedan, and the Q50 will be shown off to those looking to live the high life, Infiniti style. But company executives told the publication that no battery-electric Infiniti models would be in the works until at least the end of the decade? The reason? Lack of demand. It's a far cry from three years ago, when a concept version of the Infiniti LE electric vehicle was shown off at the New York Auto Show. The model boasted 134 horsepower and 240 pound-feet of torque as well as wireless-charging capabilities. It was about the size of the Infiniti G sedan. At the time, the automaker's executives were estimating that car would hit the market by 2014. Those plans didn't come to fruition, obviously. As for the Alliance, Renault and Nissan celebrated the sale of their 250,000th electric vehicle this past summer. And while the lion's share of those were in the form of the Nissan Leaf, the 250,000th vehicle was actually a Renault Zoe that was bought by a computer engineer in Bordeaux, France. That's a long way from the UAE, and a long way from an Infiniti EV.