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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

Honda recalls 2016 Civic 2.0-liter engine for piston issue

The Basics: Honda will recall 42,129 examples of the 2016 Honda Civic sedan with the 2.0-liter four-cylinder engine in the US. These models have build dates between September 22, 2015, and February 3, 2016. The issue does not affect the Civic Coupe. The Problem: The pistons might not have a wrist pin circlip or the part's installation could be incorrect. This problem could cause the engine to seize, leading to engine damage and an increased risk of fire or a crash. Injuries/Deaths: There are no deaths, but there was an unconfirmed report of a minor injury that didn't require medical attention, according to Honda. There was also a report of one engine fire, which was separate from the minor injury. The Fix: Dealers will inspect the engines and replace any damaged parts as necessary. If You Own One: Honda won't have the parts ready until this summer. Owners will receive initial notification about the recall in March, and they'll get a second letter when the components are ready. More Information: Honda already issued a stop sale on the 2016 Civic Sedan equipped with the 2.0-liter engine due to this problem. RECALL Subject : Piston Wrist Pin Circlips may not be Secured Report Receipt Date: FEB 09, 2016 NHTSA Campaign Number: 16V074000 Component(s): ENGINE AND ENGINE COOLING Potential Number of Units Affected: 42,129 All Products Associated with this Recall close Vehicle Make Model Model Year(s) HONDA CIVIC 2016 Details Manufacturer: Honda (American Honda Motor Co.) SUMMARY: Honda (American Honda Motor Co.) is recalling certain model year 2016 Civic vehicles manufactured September 22, 2015, to February 3, 2016 and equipped with 2.0L engines. The affected vehicles have engines with piston assemblies that may have been manufactured without a piston wrist pin circlip or with an incorrectly installed piston wrist pin circlip. CONSEQUENCE: If a circlip is missing or incorrectly installed, the piston wrist pin may not be secure and may drift and damage the engine cylinder causing the engine to seize, and increasing the risk of a crash or a fire. REMEDY: Honda will notify owners, and dealers will inspect and replace the piston assemblies, as necessary, free of charge. Parts are expected to be available in the Summer of 2016. Owners will be mailed an interim notification beginning March 15, 2016, and will be mailed a second notice when parts are available. Owners may contact Honda customer service at 1-800-999-1009. Honda's number for this recall is JX9.

Lewis Hamilton has Vettel in crosshairs at Canadian Grand Prix

MONTREAL - The Canadian Grand Prix has been a happy hunting ground for Lewis Hamilton, and he will look to bag a sixth career win on the island circuit on Sunday to refuel his hopes of another Formula One drivers title. With 14 races remaining on the calendar, it is far from do-or-die for Hamilton, but the pressure is mounting on the Briton and Mercedes with arch rival Sebastian Vettel and Ferrari threatening to widen the gap at the top of the championship standings. Only Michael Schumacher has won the Canadian Grand Prix more times (seven), and Hamilton intends to close the gap further in Montreal as the race marks its 50th anniversary. Hamilton needs to do so, at the scene of his first ever Formula One victory a decade ago, to reel in Vettel after the German led a Ferrari one-two in Monaco and powered 25 points clear. "Montreal has been a great hunting ground for me in the past, and I plan for it to continue," the triple world champion told reporters. With five wins and five poles from previous visits to Quebec, Hamilton would normally be the favorite, but champions Mercedes are no longer the dominant team. "The Ferrari seems to work everywhere. The next 14 races are going to be very, very difficult," he said after struggling to seventh place in Monaco. "They have had arguably the strongest car all year. They look like our car which just worked everywhere last year." The race will also mark the return of twice world champion Fernando Alonso to the Formula One grid after the Spaniard skipped the Monaco Grand Prix last month to chase IndyCar glory at Indianapolis 500. Alonso turned in an impressive performance at the famed Brickyard, qualifying fifth fastest and running at the front but late in the race suffered a familiar fate with his Honda engine giving up. Little has changed at struggling McLaren during Alonso's brief sabbatical with the team still hampered by an uncompetitive Honda engine. There is plenty of reason to party around the Circuit Gilles Villeneuve this week with the city celebrating its 375th anniversary, Canada its 150th birthday and the Canadian Grand Prix its 50th. Williams driver Lance Stroll will be hoping to contribute to the party atmosphere. For the first time since the days of 1997 world champion Jacques Villeneuve, the Canadian Grand Prix will have some true home interest with teenager Stroll on the starting grid for Williams.