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Second-tier UAW workers promoted for first time after Ford hits quota

The United Auto Workers put out a statement on Friday that 55 Ford workers chosen by seniority would be moved from the Tier 2, entry-level pay rate of around $19 per hour to the Tier 1, non-entry-level rate of about $28 per hour. One of the stipulations in the 2011 UAW-Ford agreement was that only 20-percent of the total hourly workforce could be paid the Tier 2 wages agreed upon in 2007; after that, those workers had to be moved to Tier 1. Even so, the new Tier 1 status makes them less expensive to Ford than veteran Tier 1 workers because they receive fewer benefits. However, Automotive News had reported that same day that Ford was 69 workers shy of the limit, and when AN asked Ford about the situation Ford said it had "some room" on the entry-level roster. If workers do move to the higher pay grade, it will be the first time that's happened since the two-tier system was agreed. But it sounds like there's going to be some haggling between the UAW and Ford before that happens. Ford is the only one of the Detroit 3 automakers to have to work with a cap, since it didn't go through bankruptcy proceedings during The Great Recession; General Motors and Chrysler jettisoned the cap in 2009. GM is said to have 16 percent of its hourly workers at Tier 2 while Chrysler has 42 percent, but Fiat-Chrysler CEO Sergio Marchionne has long been opposed to the two-wage system. The UAW is preparing for its 2015 negotiations with the US automakers. It wants to eliminate the difference in pay by going to the higher scale, if there is a consensus among automakers it seems to be that they also want a single wage, but less than the higher scale, with the addition of profit-based bonuses. The recent statement from the labor union is below. UAW President Dennis Williams and UAW-Ford Vice President Jimmy Settles announced today that the union is delivering on its promise to convert workers DETROIT, Jan. 30, 2015 /PRNewswire/ -- UAW President Dennis Williams and UAW-Ford Vice President Jimmy Settles announced today that the union is delivering on its promise to convert workers making entry-level wages to traditional employees. "The 2011 UAW-Ford agreement allows for a contractual limit of entry-level employees. Once that threshold is surpassed, entry-level employees convert by seniority to 'regular, non-entry level employment.' At this time, fifty-five UAW-Ford workers will receive the wage increases, which put them in the category of non entry-level employment.

Detroit Three's lucrative pickup war intensifies as Ram makes big gains

DETROIT — The battle for profits from sales of large pickup trucks is intensifying among the Detroit Three automakers as sales of small cars in the United States shrivel. For decades Ford has had the single best-selling truck brand in its F-Series trucks. General Motors' Chevrolet brand was a solid No. 2, and Fiat Chrysler Automobiles' Ram was a distant third. Now, that hierarchy may be in flux. Sales figures for December and the fourth quarter released on Thursday show Ram tied with GM's Chevy for the No. 2 spot, as sales of the redesigned Ram pickup surged, fueled in part by demand for an optional 12-inch (30.48 cm) dashboard screen. Chevy not long ago held second place to Ford by a wide margin. GM executives said on Thursday they are bullish on their new GMC and Chevy trucks for 2019.Related: How the Detroit Three's pickups compare on paper 2019 Ram 1500 Laramie review 2019 Chevy Silverado 2.7L four-cylinder review 2019 Ford F-150 2.7L EcoBoost review "There's no doubt this segment (pickup trucks) is one of the epicenters of the auto wars," said Sandor Piszar, director of marketing for Chevrolet at GM. "It's been that way forever, and we wouldn't have it any other way." On Wall Street, investors give electric car leader Tesla a higher valuation than any of the Detroit automakers. But in the nation's heartland, big pickups remain far more popular and profitable than any electric car — and most other consumer vehicles of any kind. Large pickups generate at least $17,000 a vehicle in pretax profit for GM, the company has indicated in disclosures to investors. By contrast, many Detroit Three sedans are so unprofitable, their manufacturers have decided not to build them anymore. 'Hotly contested' Sustaining sales and pricing in the large-pickup segment will be critical in a year when most forecasters expect overall U.S. car and light truck sales to fall. Ford's U.S. sales chief, Mark LaNeve, on Thursday called the F Series "the backbone of our franchise" during a conference call, and added the "segment will continue to be strong, but hotly contested" in 2019. Automakers are banking on pickup truck sales to stay strong even if U.S. interest rates continue to rise. Rising interest rates translate into higher monthly car payments and are expected to deter some buyers in 2019. GM has said 27 percent of Chevrolet and GMC trucks — which can haul trailers by day and substitute for a luxury sedan by night — sell for more than $55,000.

Chinese market Ford Taurus will be unveiled at Shanghai Motor Show

A new Ford Taurus is on the way, at least for some markets. As part of a huge unveiling of seven models for the Asia Pacific market at the Shanghai Motor Show, Ford is announcing the debut of the company's next-gen large sedan on April 18 just before the event in China begins. Unfortunately, the Taurus that we see in Shanghai might not signal too much about the future version in the US. Ford spokesperson Monique Brentley tells Autoblog that this debut is specifically for the Chinese market, and the Blue Oval isn't saying whether any of this updated look will come across the Pacific. We got a tiny preview of the new Taurus earlier this year when one was spotted wearing heavy camouflage while testing in China. That one retained the sedan's hexagonal grille but added more horizontal chrome slats. It also featured reshaped headlights and a broad, lower air dam. Previous reports have indicated the next-gen model might be built around a stretched and widened version of the Fusion platform, and a major goal during development was shedding as many pounds as possible. With little time before the official unveiling, it won't be long until we'll know much of this for sure. Related Video: NEW FORD TAURUS, FORD GT TO LEAD FORD LINEUP AT AUTO CHINA 2015 Ford to unveil seven new vehicles for Asia Pacific at Auto Shanghai 2015, underscoring its commitment to expanding world-class showrooms across the region New Ford Taurus will bring the historic nameplate to China for the first time with sophisticated design, roomy space and advanced technology Ford GT supercar will lead Ford Performance lineup in Asia Pacific debut; Focus RS, Focus ST and Fiesta ST highlight Ford's passion for performance innovation in all forms Full range of Ford vehicles for China and exciting interactive displays will greet visitors to Ford's display SHANGHAI, China, April 2, 2015 – Taking another bold step to fulfill its promise of introducing 15 new vehicles to China by 2015, Ford will unveil the new Ford Taurus at Auto Shanghai 2015, with a special pre-show event on April 18. Ford's new flagship sedan for China will take the stage at the auto show, along with six other new vehicles making their debuts in Asia Pacific. "We are looking forward to taking the wraps off seven new vehicles for our customers in China and continuing our delivery of great products and innovative technologies," said John Lawler, chairman and CEO, Ford China.