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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

Did Lexus make a BMW? Or did BMW make a Lexus? This and other 2017 surprises

It's that time of year again. The calendar is about to reach its end, Star Trek Cats 2018 is about to take its place, and I'm reflecting about all the cars that graced my driveway this year or summoned me to exotic places. You know, like Stuttgart or Phoenix. In 2017, I drove at least 57, and as I perused the list of them, I started to notice a common refrain: "This car surprised me." Most were pleasant surprises, but there were a few head scratchers and facepalms for good measure. In both cases, it was generally the result of car companies seemingly trying to break out of an existing mold. Nowhere was that more apparent than the pair of Lexuses slathered in Infrared paint: The LS 500 that left me this week and the LC 500 that was my favorite car of 2017. Though Lexus has been trying to shake its crusty, gold-packaged reputation for some time now, its efforts always seemed like an old man choosing Hollister to redo his wardrobe after realizing it hasn't been updated since 1987. I fell in love with the LC, genuinely floored by its near-perfect take on the GT. It's characterful in sound, appearance and tactility. It was at home in the city, in the mountain and on the open road. It was both comfortable and thrilling, and after driving the mechanically related LS 500, I can report that the LC's talents aren't an outlier. The LS 500's turbo V6 may make different noises than the LC's naturally aspirated V8, but it nevertheless invigorates the cabin when the car is placed in Sport+ mode. The steering is truly communicative, body motions are kept in miraculous check, and I absolutely forgot I was in an enormous luxury limo ... and a Lexus one at that. It was everything that the BMW 530e was not. I drove that on the exact same roads and was utterly bored the entire time. Generally doughy, lifeless steering, more distant than Planet 9. And no, the plug-in hybrid powertrain had nothing to do with that. At least it shouldn't. The Porsche Panamera S e-Hybrid I also drove this year proves that, as do the Hyundai Ioniqs, which are surprisingly adept and fun little cars regardless of what powers their wheels (Hyundai + hybrid = fun really blew me away). I would drive that Lexus LS F Sport over the BMW 5 Series any day of the week, which seems like a shocking thing to say in relation to either car. While Lexus is seemingly breaking out of its old crusty mold, BMW seems to be climbing into one.

Lexus tops JD Power Vehicle Dependability Study again, Buick bests Toyota

It shouldn't surprise anyone, but Lexus has once again taken the top spot in JD Power's Vehicle Dependability Study. That'd be the Japanese luxury brand's fourth straight year at the top of table. The big news, though, is the rise of Buick. General Motor's near-premium brand beat out Toyota to take second place, with 110 problems per 100 vehicles compared to Toyota's 111 problems. Lexus owners only reported 89 problems per 100 vehicles. Besides Buick's three-position jump, Scion enjoyed a major improvement, jumping 13 positions from 2014. Ram and Mitsubishi made big gains, as well, moving up 11 and 10 positions, respectively. In terms of individual segments, GM and Toyota both excelled, taking home seven segment awards each. The study wasn't good news for all involved, though. A number of popular automakers finished below the industry average of 147 problems per 100 vehicles, including Subaru, (157PP100), Volkswagen (165PP100), Ford/Hyundai (188PP100 each) and Mini (193PP100). The biggest losers (by a tremendous margin, we might add) were Land Rover and Fiat, recording 258 and 273 problems per 100 vehicles. The next closest brand was Jeep, with 197PP100. While the Vehicle Dependability Study uses the same measurement system as the Initial Quality Survey, the two metrics analyze very different things. The VDS looks at problems experienced by original owners of model year 2012 vehicles over the past 12 months, while the oft-quoted IQS focuses on problems in the first 90 days of new-vehicle ownership. Like the IQS, though, the VDS has a rather broad definition of what a problem is. Because of that, a low score from JD Power is no guarantee of extreme unreliability, so much as just poor design. In this most recent study, the two most reported problems focused on Bluetooth connectivity and the voice-command systems. The former leaves plenty of room for user error due to poor design (particularly true of the Bluetooth systems on the low-scoring Fords, Volkswagens and Subarus), while the second is something JD Power has already confirmed as being universally terrible. That makes means that while these studies are important, they shouldn't be taken as gospel when it comes to automotive reliability. News Source: JD PowerImage Credit: Copyright 2015 Jeremy Korzeniewski / AOL Buick Fiat Ford GM Hyundai Jeep Land Rover Lexus MINI Mitsubishi RAM Scion Subaru Toyota Volkswagen Auto Repair Ownership study