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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.

2015 Ford Mustang Convertible to recreate Empire State Building stunt

It would have been all too easy to miss the auto show debut of the 2015 Ford Mustang convertible. It was, after all, unveiled alongside its fixed-roof counterpart at the Detroit Auto Show this past January, lumping coupe and cabrio into one debut. But Ford is evidently still intent on making its new droptop stand out. The top of the Empire State Building ought to do the trick.
Automotive history buffs may recall that, 50 years ago, Ford unveiled its first Mustang convertible atop what was then the tallest building in the world, that Art Deco icon of the New York skyline. Half a century later, Ford is recreating the feat and bringing the new topless Mustang to the same observation deck on the building's 86th floor.
Getting it up there, of course, will be no easy task. While they'd usually airlift the vehicle onto the roof or lift it by crane, the spire protruding from atop the building makes approaching the narrow observation deck too dangerous, and no mobile crane can telescope the thousand-plus feet it would take to get the pony car up there.

Toyota again claims Corolla outsold Focus worldwide

Toyota isn't convinced the Ford Focus was the best-selling nameplate globally last year. Bloomberg reports that for the second time in seven months, both Toyota and Ford are laying claim to the title. Ford cites R.L. Polk & Co. data that says the automaker moved some 1.02 million Focus models in 2012 compared to just 872,774 Toyota Corolla units. But Toyota says the actual figure is closer to 1.16 million Corolla models.
Last year, Ford said it took the sales crown through the fist half of 2012 based on information from IHS Automotive, but Toyota pointed out those numbers left out models like the Corolla-based Matrix and Auris, as well as the Corolla Fielder and Scion xB-based Corolla Rumion. Whether or not Toyota's belief that all these cars should be counted in the Corolla bucket is accurate or not is seemingly up for debate... as is the question of why it matters so much to both parties.
This time around, Ford is holding the line that the Focus is the "best-selling nameplate," with Erich Merkle, a US sales analyst with Ford saying the company's figure is, "a pure number that is verified by a third party." Toyota, meanwhile, has requested clarification from Polk.