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Foreign automakers pay from $38 to $65 per hour to non-union workers

Sun, Mar 29 2015

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

U.S. VP Harris pledges to consult S. Korea over EV subsidy concerns

Tue, Sep 27 2022

TOKYO/SEOUL — U.S. Vice President Kamala Harris told South Korea's prime minister on Tuesday that Washington will work to address Seoul's concerns over recently enacted electric vehicle (EV) subsidies that could disadvantage Asian automakers. The $430 billion "Inflation Reduction Act" bill enacted in August includes a host of U.S. President Joe Biden's priorities, including investments to roll back climate change and make Washington a world leader in the EV market. Among the law's provisions are requirements that EVs be assembled in North America to qualify for tax credits. The law also ends subsidies for other EV models and requires that a percentage of critical minerals used in those cars' batteries come from the United States or an American free-trade partner. Harris, visiting Japan, met with South Korea's Han Duck-soo and "underscored that she understood (Korean) concerns regarding the Act's tax incentives for electric vehicles, and they pledged to continue to consult as the law is implemented," the White House said. A senior Biden administration official said extensive conversations have already taken place within the U.S. government over how to address South Korea's concerns. "She listened very carefully and made clear our commitment to work within the U.S. government — the U.S. Trade Representative, the Treasury Department — as we look ... to help address that issue," the official said. Biden has sought to deepen business with South Korea as part of a bid to increase U.S. manufacturing jobs and build a united front against China, who he views as the country's key ideological and economic competitor. Korean officials see the new requirements as a betrayal after South Korean companies agreed to make major investments and build factories in the United States. Heavily industrialized South Korea worries the new subsidies will set back Hyundai Motor Co and its affiliate Kia Corp in the world's largest consumer market. Cars are South Korea's third-largest export. (Reporting by Trevor Hunnicutt in Tokyo, and Soo-hyang Choi and Joyce Lee in Seoul; Editing by Clarence Fernandez and Kim Coghill) Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Government/Legal Green Plants/Manufacturing Genesis Hyundai Kia Electric South Korea

Hyundai Elantra Sport likely to get 201 hp, optional manual

Fri, Apr 29 2016

The South Korean market often gives us a preview of what's coming soon from Hyundai and Kia in the US, usually with only the model name differing. That's what we thought when we saw the new Avante Sport being shown there, and Hyundai Motor America spokesman Jim Trainor confirms that it's basically what we should expect from the upcoming Elantra Sport. Hyundai previously confirmed the quicker sedan will arrive in the US by the end of the year. The Avante Sport uses the Veloster Turbo's 1.6-liter turbocharged four-cylinder, making the same 201 horsepower and 195 pound-feet of torque as it does in the funky hatch-coupe. Expect a choice between a seven-speed dual-clutch gearbox and a six-speed manual to go with it. The sporty compact upgrades to a multi-link rear suspension, replacing the standard Elantra/Avante torsion-beam setup. South Korean customers can choose an optional Extreme package that includes upgraded stabilizer bars, different springs and shocks, and a rear spoiler. We're hoping the suspension upgrades will be standard on the Elantra Sport. Hyundai made some subtle visual tweaks to signal the Sport model's extra performance. Lower side sills, larger openings in the front fascia, and a rear diffuser with dual exhaust tips poking out get the speedy message across. Inside, the front seats get larger bolsters and there's a unique flat-bottom steering wheel. Carbon-fiber-esque trim completes the sporty look. Currently, the only Elantra available in the US uses a 2.0-liter four-cylinder running on the Atkinson cycle that makes 147 hp and 132 lb-ft of torque. An Eco trim will join the lineup this spring with a turbocharged 1.4-liter four-cylinder and seven-speed dual-clutch gearbox. With the Sport, Hyundai will have a family of models to appeal to a large portion of buyers in the segment. Related Video: