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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

Volkswagen Group previews its wares on eve of Geneva show

The Volkswagen Group is comprised of 11 brands producing 240 vehicles across 49 factories throughout the world. So the best way to show off the range of the VW family is to cram a few thousand journalists and VIPs into a massive makeshift stand to outline the Group's goals, what's in the pipeline and what you'll be able to buy later this year.
To that end, VW pulled out all the stops on the eve of the 2012 Geneva Motor Show, bringing along 10 vehicles from across the range. We'll be delving into the details of each over the next two days of show coverage, but before that happens, you can read all about what we saw tonight from the cheap seats after the break.

Volkswagen adding R-Line trim to Touareg, Tiguan for 2014

Volkswagen introduced its aggressive R-Line appearance package on the CC and Beetle last year, but later this year, this treatment will also be applied to VW's crossovers, the Tiguan and Touareg. Both sporty-looking utility vehicles will be unveiled next week at the Detroit Auto Show.
The 2014 Tiguan R-Line comes standard with bi-xenon headlights and LED daytime running lights, and the package adds 19-inch wheels, grey fender extensions, body-color side skirts and a liftgate spoiler. Inside, the R-Line adds a flat-bottom sport steering wheel with paddle shifters, a black headliner and numerous metallic trim accents such as the stainless scuff plates, the aluminum pedals and metallic finish on the instrument and door panels. The Tiguan R-Line will be offered in front- and all-wheel drive configurations.
As for the 2014 Touareg R-Line (shown above), this model gets an ever more distinctive look with an aggressive front fascia, 20-inch wheels and dual oval-shaped exhaust outlets in addition to the painted side skirts and LED taillights. Similar metallic interior trim pieces found inside the Tiguan R-Line will also make their way into the Touareg as well as gloss black accents on the instrument panel and center stack.