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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

Audi buys Ballard fuel cell patents for $80 million

While some auto companies (e.g., Toyota and Hyundai) are giving away some hydrogen fuel cell patents, others are paying a pretty penny to gain access to the H2 tech. Audi announced today that it has purchased a suite of fuel-cell patent from Ballard Power Systems. The deal between Volkswagen Group and the Canadian fuel cell pioneer is worth over $80 million US. Unsurprisingly, the value of Ballard's stock shot up about a dollar (to $2.61 as of this writing) on the announcement. VW and Ballard will also extend their development agreement, originally scheduled to end in 2017, to March 2019, and possibly another two years after that. Thus far, the deal – which revolves around the "design and manufacture of next-generation fuel cell stacks" for VW's H2 demonstration program – and Ballard says it is a leader in "critical areas of fuel cell product design – including the membrane electrode assembly (MEA), plate and stack components – along with certain testing and integration work." At the LA Auto Show last fall, VW showed off a Golf SportWagen and a Passat with a hydrogen hybrid HyMotion powertrain as well as a Audi A7 Sportback H-Tron Quattro. Audi buys fuel-cell patents from Ballard Power Systems Development agreement with Ballard extended until 2019 Audi's Head of Development Prof. Hackenberg: "The entire VW Group will use these patents." Ingolstadt/Burnaby, February 11, 2015 – AUDI AG has acquired a package of patents relating to fuel-cell technology from Ballard Power Systems Inc. In addition, the Volkswagen Group has extended its cooperation with the Canadian clean energy company until 2019. The purchase of these patents will provide new impetus for the development of fuel-cell drive systems at Audi, VW and the Volkswagen Group. As explained by Prof. Dr. Ulrich Hackenberg, Member of the Board of Management for Technical Development at AUDI AG and responsible for the steering of the development departments of all brands in the VW Group: "Audi is acquiring these strategically important patents for the entire group and will make them available to all the brands. In this way, we are securing crucial expertise that will provide new impetus for the further development of this technology." Ballard Power Systems Inc. is based in Burnaby, Canada, and is one of the world's leading companies in the technology of proton exchange membrane fuel cells.

Editors' Picks March 2022 | Acura RDX, VW GLI and a Rolls-Royce

This month's Editors' Picks offer a little something at every budget. We call out a performance car as cheap as the Volkswagen GLI, but the Rolls-Royce Ghost also manages to make its way on to the list. Of course, very few folks can afford a Ghost, but that doesn't change the fact that it's an engineering master class. In addition to these options, we also dive into the compact luxury SUV market, one that is bursting with choices. In case you missed our previous Editors' Picks posts, here’s a quick refresher on whatÂ’s going on here. We rate all the new cars we drive with a 1-10 score. Cars that are exemplary in their respective segments get EditorsÂ’ Pick status. Those are the ones weÂ’d recommend to our friends, family and anybody whoÂ’s curious and asks the question. The list that youÂ’ll find below consists of every car we rated in March that earned an EditorsÂ’ Pick. 2022 Acura RDX Quick take: The RDX ticks a lot of boxes for a great price. It drives better than expected, offers excellent tech, has plenty of room and even looks the part. Score: 7.0 What it competes with: Mercedes-Benz GLC-Class, BMW X3, Volvo XC60, Audi Q5, Lexus NX, Infiniti QX50, Alfa Romeo Stelvio, Genesis GV70, Porsche Macan, Jaguar F-Pace, Lincoln Corsair Pros: Value, driving dynamics, space Cons: Infotainment is polarizing, midgrade interior From the editors Road Test Editor Zac Palmer — "The RDX is a bit of a sleeper in this segment. It drives far better than many of its competitors, and it doesn't let you down in any particular area. If you were thinking of buying an entry-level option from one of the Germans, make sure you take the RDX into account, because you'll likely end up with more tech and features for an even lower price. News Editor Joel Stocksdale — "The Acura RDX is an impressive value in the small luxury SUV segment. It starts in the low $40,000 price range, and provides loads of standard convenience and safety features. Everything is packaged in a sharp and surprisingly spacious package, too. It's also nimble and has a punchy engine that makes it fun to drive. You may find some competitors that surpass it in some areas, but the Acura offers about the most for the money of anything in the segment." In-depth analysis: 2022 Acura RDX Review | Value-packed and surprisingly sporty   2022 Volkswagen Jetta GLI Quick take: The GLI offers excellent driving dynamics and great styling for someone who doesn't want a hatchback. It's pricey, but it's worth it.