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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

Texas teen is 10th Takata airbag victim

A 17-year-old high school senior from Richmond, Texas, died in a 2002 Honda Civic on March 31 after the Takata-supplied airbag inflator ruptured. This is the 10th fatality linked to the faulty parts in the US. Honda and US regulators confirmed that the airbag exploded, according to Reuters. The fatal incident occurred when the Civic's driver rear-ended a Honda CR-V. The teen was wearing a seatbelt and wasn't speeding. "Everybody should have walked away from this," Fort Bend County Sheriff's Deputy Danny Beckwith told Reuters. However, a piece of shrapnel from the inflator cut the driver's carotid artery, and the person died. With this latest fatality, there have been 10 deaths and over 100 injuries in the US from exploding airbag inflators. Nine of the deaths have happened in Honda vehicles. The other was in a Ford Ranger pickup. Investigators at the Independent Testing Coalition placed the cause of the explosions on a combination of the inflator's chemical, design, and the weather. The ammonium nitrate propellant can explode with additional force when exposed to moisture, like in high humidity areas. The part's construction is also part of the problem because it allows this humidity to access the chemical. Takata has recalled roughly 24 million airbags in 19 million vehicles in the US. The latest tally from the National Highway Traffic Safety Administration showed that as of March 11, 2016, about 7.5 million inflators have been replaced. All the parts with ammonium nitrate inflators may need replacing someday, which could affect 100 million vehicles. Related Video: Statement from Honda Concerning Confirmed Texas Rupture Statement from American Honda Motor Co., Inc. Re: Confirmed Rupture of Takata Airbag Inflator in Fort Bend County, Texas Statement date: April 6, 2016 During an inspection today, accompanied by representatives of the National Highway Traffic Safety Administration (NHTSA), the Sherriff's Department of Fort Bend County, Texas, and Takata, American Honda confirmed that the Takata driver's airbag inflator ruptured in the crash of a 2002 Honda Civic on March 31, 2016, in Fort Bend County, Texas, resulting in the tragic death of the driver. Our thoughts and deepest sympathies are with the family of the driver during this difficult time. Honda has shared all available vehicle history information collected to date with NHTSA and will continue to cooperate with NHTSA throughout the process of investigating this crash.

Honda working on 'power exporter' to go with fuel-cell vehicle

The bad news, as we've previously reported, is that Honda's first production hydrogen fuel-cell vehicle won't debut until 2016, a bit later than expected. The good news is that the automaker may produce a device that will let that FCV's motor power up other devices as well. So it's a tradeoff of sorts. The company is producing what it calls the Power Exporter Concept. Put simply, it's a device that can connects to the fuel-cell vehicle and produce AC power (the picture makes it look fairly small, but dimensions weren't disclosed). The device has a maximum output of 9 kilowatts. Honda isn't saying much else about the device, which was announced along with further details of the company's upcoming fuel-cell concept vehicle. Still, it's heady yet not terribly surprising stuff from a company that's long been a big player on the portable power generator industry. Honda recently said its first production fuel-cell vehicle would see the light of day in early 2016 instead of 2015. The futuristic-looking vehicle will have a power output of about 130 horsepower and will be able to have its hydrogen tank filled up in less than five minutes. Take a look at Honda's press release below. Honda Unveils All-New FCV CONCEPT Fuel-Cell Vehicle - Striving to Realize a CO2-free Society by Combining FCV with an external power feeding device and Smart Hydrogen Station - TOKYO, Japan, November 17, 2014 - Honda Motor Co., Ltd. today unveiled, for the first time in the world, the Honda FCV CONCEPT, a concept car for an all-new fuel-cell vehicle (FCV), and the Honda Power Exporter CONCEPT, a concept model for an external power feeding device that enables AC power output from the FCV with maximum output of 9 kW*1. The all-new FCV that will be based on this concept model is scheduled to go on sale in Japan by the end of March, 2016 and subsequently in the U.S. and Europe. In addition to the FCV and external power feeding device, Honda will further promote the application of the Smart Hydrogen Station (SHS), a packaged hydrogen station unit that adopts Honda's original high-differential-pressure electrolyzer. In this way, Honda will work toward the forthcoming hydrogen society under three key concepts – "generate," "use" and "get connected" – and strive for the early realization of a CO2-free society.