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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

2014 Nissan Leaf EVs recalled for missing welds

The Nissan Leaf has been recalled before, for problems with the passenger-side airbags. Early models of the car has also had start-up issues, but those did not lead to a recall. Today, we're learning about another problem with the world's most popular electric vehicle. In April, the National Highway Traffic Safety Administration issued a recall of a small number of 2014 model year Leaf EVs - just 211 units that were made between February 28 and March 12 of this year – and reminded the world about it this morning with a Tweet. The problem, NHTSA says, is that, "the front structural member assembly may be missing welds," and that means that the car's structural integrity could be compromised in a crash. You don't say. Starting in the middle of June, Nissan will look at the vehicles that could be missing welds and offer replacements for free. If you have a potentially affected vehicle, Nissan should be contacting you soon, or you can call the automaker at the number listed below. Report Receipt Date: APR 16, 2014 NHTSA Campaign Number: 14V192000 Component(s): Potential Number of Units Affected: 211 Manufacturer: Nissan North America, Inc. SUMMARY: Nissan North America, Inc. (Nissan) is recalling certain model year 2014 LEAF vehicles manufactured February 28, 2014, through March 12, 2014. The front structural member assembly may be missing welds, which could reduce the structural integrity of the vehicle if the vehicle is involved in a crash. As such, these vehicles fail to meet the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 208, "Occupant Crash Protection," and 305, "Electric-Powered Vehicles: Electrolyte Spillage and Electrical Shock Protection." CONSEQUENCE: Missing welds may effect the vehicle's integrity in the event of a crash, increasing the risk of injury to the vehicle's occupants. REMEDY: Nissan will notify owners, and dealers will inspect to see if any of the welds are missing. Any vehicle missing welds will be replaced, free of charge. The recall is expected to begin by mid-June 2014. Owners may contact Nissan at 1-800-647-7261. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Nissan Canada to end Versa sales with Micra launch

There's plenty of space in Canada. In fact, with the second largest land mass of any country in the world, Canada has a population density of just nine people per square mile. But apparently there isn't enough room for more than one cheap Nissan in the True North, Strong and Free.
As you may recall, Nissan Canada recently announced it would begin offering the Micra hatchback with a starting price of less than ten thousand Canadian dollars - significantly less than the nearly $12k it charges for the Versa sedan. As a result, Nissan will reportedly cease offering the Versa sedan in new home of the olympic gold medal for hockey.
Apparently the Versa was a slow seller in Canada, a country in which European tastes tend to prevail - particularly in the Eastern provinces - more than they do in the United States to the south. Nissan evidently hopes that the Micra (a model created principally for the European market) will do better than the American-centric Versa ever did there. According to sales numbers cited by Automotive News, Nissan sold barely more than 12,000 Versa sedans and hatchbacks in Canada last year, but over 117,000 in the United States.