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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

2015 Mercedes-Benz ML400 Quick Spin

Mercedes-Benz has taken a risk in its quest to downsize its engine range. For 2015, the brand's popular M-Class five-passenger CUV did away with its trusty 4.4-liter, twin-turbocharged V8, and has replaced it with a 3.0-liter, twin-turbocharged V6. It's no surprise that power is down thanks to this move. Outputs of 402 horsepower and 443 pound-feet of torque are replaced by 329 hp and 354 lb-ft, but weight is down significantly as well. The new ML400 is nearly 300 pounds lighter than the 4,982-pound ML550. Will that tradeoff be enough to satisfy a buying public that's embraced falling fuel prices by buying bigger and thirstier vehicles? To find out if the blown V6 is a suitable replacement for the twin-turbo V8, we spent a week at the helm of the all-new ML400. Driving Notes This 3.0-liter, twin-turbocharged V6 is the same engine being offered in the C400 and E400 sedans. Typical of today's turbocharged engines, peak torque is spread lavishly across the rev range, from 1,600 to 4,000 rpm. That's not as generous a spread as the ML550, which offers all its torque between 1,600 and 4,750, but the power on offer is easy to access. Importantly, the new V6 never feels flat-footed or unable to answer our commands. In fact, the ML400 feels even quicker than its six-second sprint to 60 would indicate, although it's not so fast as to challenge the 5.3-second time of the ML550. After a slight and expected bout of turbo lag, the power arrives suddenly and proceeds linearly until just south of the engine's 6,500-rpm redline. The throttle response is soft in Eco mode, as expected, but sharpens up slightly when the fuel-sipping mode is off, where the gas pedal is still easy to modulate. It's a quiet engine, too. Compared to the brawnier exhaust note of the old ML550 or the howling six-cylinder in the BMW X5 xDrive35i, the ML400's note is smooth and refined, befitting of a V6. Its turbocharged nature is instantly noticed, though. Get on the throttle and the 3.0-liter happily hisses its way up the tachometer. But, it's only when you get on the throttle hard that the engine really weighs in. In day-to-day driving and traffic its soundtrack is unobtrusive and relaxed. The EPA rates the ML400's fuel economy at 18-miles-per-gallon city and a 22-mpg on the highway. That's better than the 14 city and 19 highway of the old V8 ML, but it still seems a bit low, especially for the highway figure.

F1's Vettel leads, Verstappen and Grosjean crash at Silverstone

SILVERSTONE, England — Ferrari's Sebastian Vettel pushed Formula One title rival and home race favorite Lewis Hamilton off the top of the British Grand Prix practice timesheets on Friday while Max Verstappen crashed. Hamilton, winner for the past four years at Silverstone, had started the day by leading a Mercedes one-two in the sunny opening session. Vettel, who leads the Briton by a point in the championship after nine races, put in a lap of 1 minute 27.552 seconds in the afternoon to end the session 0.187 faster than his fellow-four-times world champion. That was still slower than Hamilton's morning time of 1:27.487, however, with Vettel third then and half a second slower. Hamilton's Finnish teammate Valtteri Bottas, with a new engine in his car after last weekend's mechanical retirement in Austria, was second and third fastest respectively in the two sessions. Australian Daniel Ricciardo and Kimi Raikkonen traded fourth and fifth places while Max Verstappen, winner in Austria for Red Bull, was sixth in the morning but crashed after lunch without setting a time. The 20-year-old Dutchman had ended the first session early after he was told to stop the car. Haas's Romain Grosjean had a heavy crash at the fast first corner, slamming into the tire barriers after failing to close the drag reduction system (DRS), in the morning and did not take part in practice two. "The car is destroyed," the Frenchman, who was unhurt in the impact, said over the radio. "I'm very, very sorry guys. I think it was the bump. I missed the (DRS) button." Team boss Guenther Steiner said the team needed to rebuild the chassis. Grosjean's team mate Kevin Magnussen and McLaren's Fernando Alonso were called to see stewards for a "potentially dangerous maneuver" after an incident between them early on but stewards ruled there was no further action needed. "Magnussen tried to hit me two times - in one and three," Alonso reported over the radio. "Very dangerous."Reporting by Alan BaldwinRelated Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Image Credit: Reuters Motorsports Ferrari Mercedes-Benz Racing Vehicles F1 Lewis Hamilton Sebastian Vettel Kimi Raikkonen silverstone Max Verstappen british grand prix Romain Grosjean