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Ford updates Transit lineup for 2016

We have a strange affection for vans here at Autoblog, perhaps due to all that free candy we ate as kids. So when Ford announces some minor updates to the Transit and Transit Connect, we deliver the news that every plumber, electrician, and airport shuttle driver across the nation (and Canada) needs. The biggest item for 2016 is an optional passenger side sliding door on medium- and high-roof models, improving access to the Transit's cavernous interior. Ford's rollout of the much-improved Sync 3 infotainment system also expands to the to large van. And a reverse backup camera is now standard across the lineup. The little Ford Transit Connect is also tweaked for the next model year, right after we spent some time in the 2015 version. Titanium trim on the long-wheelbase wagon model brings second row bucket seats that fold flat. With XLT trim, you can swap out a bench seat for the buckets at no extra charge. Read on the for the full press release. FORD TRANSIT, TRANSIT CONNECT AND TRANSIT CONNECT WAGON EVEN SMARTER, MORE FLEXIBLE FOR 2016 MODEL YEAR SYNC® 3, Ford's new communications and entertainment system, is available for 2016 Ford Transit – making America's best-selling van even smarter Ford Transit built more than 100,000 vehicles in the 2015 model year Ford Transit Connect compact commercial van equipped with 2.5-liter I-4 engine gains flex-fuel capability for 2016 DEARBORN, Mich., June 4, 2015 – America's best-selling van is even better for the 2016 model year, with the addition of available SYNC 3, rearview camera technology and new customization options. "These and other updates make the 2016 Ford Transit the smartest, most flexible van ever offered by Ford," says Yaro Hetman, Ford brand manager for Transit, Transit Connect and E-Series. "Transit replaces America's best-selling van for 35 years, E-Series, first sold in 1961 as Ford Econoline, and we look forward to continuing our leadership in this important segment." Transit quickly took over the best-selling commercial van title in November 2014, having been available beginning in June at U.S. and Canadian dealerships for the first time. Ford has produced more than 100,000 Transit vans and wagons at Kansas City Assembly Plant during the 2015 model year.

Ford invests $682 million in Edge-producing Canadian facility

Ford announced that it's investing $682 million in its Oakville assembly plant in Ontario, Canada, to make it a global manufacturing plant, which the automaker also says secures 2,800 jobs there. Including this injection of cash, Ford has invested over $2 billion in Canada in the last decade, starting with nearly $1 billion for Oakville in 2004, and over $570 million for its Essex Engine Plant in 2010.
The move to make Oakville a global manufacturer of Ford vehicles means, "If consumers suddenly shift their buying habits, we can seamlessly change our production mix without having to idle a plant," says Joe Hinrichs, Ford's president of the Americas.
Ford says that the latest investment will help it meet North American demand for the Oakville-produced Edge crossover, which is on track this year to beat 2007's US sales record of 130,000 Edges. The Ford Flex and Lincoln MKX and MKT are also manufactured at the plant.

Detroit 3 and UAW set for showdown over tiered wages

This week, thousands of United Auto Workers will converge on Cobo Center in Detroit for the Special Convention on Collective Bargaining, an every-four-year event that lets members tell UAW leaders what the negotiating priorities should be during contract negotiations. This is where a lot of sand and a lot of lines start coming together in preparation for contract negotiations between the UAW and the Detroit 3 automakers, which will happen later this year. Number one on the UAW agenda is the end of the two-tier wage system created in 2007 to help the automakers get through bankruptcy; veteran workers are paid the Tier 1 rate of around $29.00 per hour, new hires are paid the Tier 2 rate of between $15 and $20 and get about half the benefits of Tier 1. Tier 2 hiring has been an undoubted success for the automakers, allowing them to keep factories in the US and hire more workers. By agreement, it is capped at a certain percentage of each automaker's workforce, and while the union's ultimate position is to get rid of the dual-scale system entirely; one leader said Ford could easily afford the $335 million it would take to convert all its workers to Tier 1 out of its $6.9 billion in 2014 North American profit, and General Motors could do the same out of the $5 billion it is handing to investors through the (admittedly forced) share buyback. Other delegates say that at the very least they'd be happy with enforcement of the current caps in the new contract. The automakers, conversely, would welcome expansion of the Tier 2 ranks. Including benefits, import automakers pay workers "in the high $40 range" per hour, according to an analyst, while Ford and GM pay about $59 in wages and benefits per hour. More Tier 2 workers on the rolls would let those two companies get labor cost parity with the competition. Fiat-Chrysler pays wages closer to the imports because of special exceptions in its UAW contract that allow unlimited Tier 2 hiring; those exceptions will end on September 14 and bring FCA into line with the other domestics, unless the new contract maintains them. FCA CEO Sergio Marchionne is opposed to the two-tier system, having called it "almost offensive." One analyst says the UAW might win a sizable pay raise for Tier 2 and a small increase for Tier 1, but the keystone issue will be how the hiring matrix can help the automakers keep overall wages in line with the imports.