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BMW to pay $1.6M, rehire workers in discrimination settlement

A BMW subsidiary is on the hook for $1.6 million and must rehire workers as part of a settlement for a race discrimination lawsuit with the US Equal Employment Opportunity Commission. A change in BMW Manufacturing's criminal background check policy at the Spartanburg, SC, factory disproportionately affected African American workers, according to the EEOC, and it cost many people their jobs. The automaker has since changed the policy. According to Automotive News, the suit stemmed from BMW switching logistics contractors at the plant in 2008. As a result, 645 existing workers had to submit revised criminal background checks to keep their jobs. About 100 people didn't meet the new guidelines, according to the EEOC, and they lost their jobs. Around 80 percent of those affected were African American. According to the government agency's complaint, the altered procedures only took into account the category of a crime, not factors like when it occurred or whether the infraction was a misdemeanor or felony. With the settlement accepted by US District Court, BMW must offer work to the affected employees in this case and as many as 90 African American applicants that the contractor didn't hire because of the rules. The automaker also must offer training in the proper manner for criminal background checks. While there's nothing inherently wrong with investigating workers, "when a criminal background screen results in the disproportionate exclusion of African-Americans from job opportunities, the employer must evaluate whether the policy is job related and consistent with a business necessity," P. David Lopez, the EEOC's General Counsel, said in the agency's release, which you can read below. BMW to Pay $1.6 Million and Offer Jobs to Settle Federal Race Discrimination Lawsuit Company's Criminal Background Policy Disproportionately Affected African-American Logistics Workers, EEOC Charged GREENVILLE, S.C. - The U.S. District Court for the District of South Carolina today entered a consent decree ordering BMW Manufacturing Co., LLC (BMW) to pay $1.6 million and provide job opportunities to alleged victims of race discrimination as part of the resolution of a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC).

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

Autoblog Podcast #387

Episode #387 of the Autoblog podcast is here, and this week, Dan Roth, Steven Ewing and Michael Zak talk about more General Motors recalls, upgrades and a diesel for the 2015 Ford Focus ST, and the BMW M235i scoring ahead of the Porsche 911 and Chevrolet Corvette Stingray in Consumer Reports testing. We start with what's in the garage and finish up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the new rundown below with times for topics, and you can follow along down below with our Q&A. Thanks for listening! Autoblog Podcast #387: The video meant to be presented here is no longer available. Sorry for the inconvenience. Topics: GM recalls 8.4M more cars in North America Ford Focus ST upgrades and diesel CR says M235i is better than 911 In the Autoblog Garage: 2014 Jeep Grand Cherokee EcoDiesel 2014 Honda Accord Coupe V6 6MT Long-Term 2015 Subaru WRX 2014 Subaru XV Crosstrek Hybrid Hosts: Dan Roth, Steven Ewing, Michael Zak Runtime: 01:35:26 Rundown: Intro & Garage - 00:00 GM Recalls - 26:26 2015 Ford Focus ST - 41:56 BMW M235i - 50:24 Q&A - 59:16 Get the podcast: [UStream] Listen live on Mondays at 10 PM Eastern at UStream [iTunes] Subscribe to the Autoblog Podcast in iTunes [RSS] Add the Autoblog Podcast feed to your RSS aggregator [MP3] Download the MP3 directly Feedback: Email: Podcast at Autoblog dot com Review the show in iTunes Government/Legal Podcasts BMW Ford GM Honda Jeep Subaru Safety Diesel Vehicles Performance bmw m235i