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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

NHTSA closes 4-year GM investigation, issues common sense advisory [w/video]

Since January 2011, the National Highway Traffic Safety Administration has been investigating a possible problem with corroding brake lines in General Motors' GMT800-platform models, like the Chevrolet Silverado and Suburban and GMC Sierra, in states with salt on their roads in the winter. However, as opposed to launching a full recall of millions of vehicles, the government is issuing a common-sense safety advisory to all drivers in snowy states to keep their vehicle's undercarriage clean. It even has a video explaining things. "Older-model vehicles, often driven in harsh conditions, are subject to corrosion over long periods of time, and we need owners to be vigilant about ensuring they, their passengers, and others on the roads are safe," said NHTSA Administrator Mark Rosekind in the announcement of the end of the investigation. The agency was clear in its report that "brake line corrosion seen in the GM vehicles was not unique," and the government "has not identified a defect that would initiate a recall order." Instead NHTSA is advising drivers, especially those of vehicles from before 2007, to wash their vehicle's undercarriage in the winter and spring to remove salt or other de-icing chemicals. It also recommends regular checks by a mechanic to make sure everything is in proper order. According to the investigation documents, for just the GMT800 platform models, NHTSA found 3,645 complaints of brake line corrosion, which included allegations of 107 crashes and 40 injuries. The issue was found to be more common in vehicles over 10 years old. GM has released a statement (embedded below) that the company "supports the consumer advisory from NHTSA urging regular maintenance and care of brake lines on older vehicles." NHTSA Closes Investigation into Brake-Line Failures NHTSA 13-15 Thursday, April 9, 2015 Agency issues safety advisory on preventing undercarriage corrosion WASHINGTON – The Department of Transportation's National Highway Traffic Safety Administration (NHTSA) today issued a Safety Advisory and consumer video encouraging owners of model year 2007 and older trucks, SUVs and passenger cars to inspect brake lines and thoroughly wash the underside of their vehicles to remove corrosive salt after the long winter in order to prevent brake-line failures that increase the risk of a crash.

GM marks 500 million vehicles

General Motors is marking a major global milestone, as 500 million vehicles have rolled off its assembly lines since the company's founding in 1908. To mark the occasion, the automaker is continuing to invest in production and offering a one-time discount to some customers. GM North America boss Alan Batey used the festivities to announce the Fairfax Assembly factory in Kansas as one of the sites earmarked for the company's $5.4 billion in upcoming investments. The plant will get $174 million of that money for new equipment and technology to build the 2016 Chevrolet Malibu. Among the upgrades will be a shake-and-rattle booth that will simulate road conditions to find squeaks. To commemorate both the production milestone and the Fairfax plant, Batey and company CEO Mary Barra also gave away a 2016 Malibu to a wounded Iraqi war veteran, and the two execs announced that in the third week in May all GM employees can share a one-time customer appreciation discount with friends to help get them into the automaker's products. Barra also gave a speech to the workers there about some of the other milestone's in the company's history, which you can read below. Innovation on the Line: GM Manufacturing Milestones Many of General Motors' most important innovations have occurred behind the scenes, in its manufacturing facilities. Concepts such as changeover, flexible assembly, automation, computer simulation, machine vision and robotics were developed at GM. Over the decades these innovations have helped enable improvements in vehicle quality, efficiency and competitiveness. 1901: Ransom Olds' famous Curved Dash Oldsmobile, designed with simplicity, reliability and value in mind, was the first American car built in a factory designed specifically for automobiles and in standardized volume production. GM acquired Oldsmobile in 1908. 1908: Cadillac wins the Dewar Trophy, Europe's most prestigious award for precision and excellence in manufacturing, by demonstrating the auto industry's highest standards for precision and interchangeability of parts by disassembling three Cadillacs and mixing the parts randomly before reassembling and driving them before a contingent of judges. 1922: GM hires William Knudsen to lead Chevrolet's turnaround. Knudsen implements flexible mass production, which helps Chevrolet incorporate annual styling changes and take market share from Ford.