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European automakers gear up for Brazilian production

Brazil is the place to be, apparently. Toyota has been investing in the South American country, as has BMW, which announced a $261 million investment in October 2012, on the heels of an Audi factory announcement in San José Chiapa. The high-end immigration is only set to continue, as Mercedes-Benz and Jaguar-Land Rover have both announced plans to set up manufacturing operations there.
Mercedes is the big news here, as its new facility will see the German manufacturer invest 170-million euros for production of its next-generation C-Class and upcoming GLA-Class. "Brazil is an important future market. With our local production we accept the challenge and take on the competition," noted Andreas Renschler, Management Board member for Production and Procurement at Mercedes-Benz Cars and Mercedes-Benz Vans. Production is expected to begin by 2016.
Jaguar-Land Rover, meanwhile, isn't so concrete in its plans. The news of its investment in South America comes from a job posting for a plant quality manager in Brazil that was picked up by the UK's AutoCar. "Portuguese language skills will be definite advantage" for interested candidates, according to the job listing. The want ad follows on the heels of remarks by Jaguar Land Rover's Dr. Ralph Speth, who said there are "very intensive discussions" with Brazil's government. Unlike Mercedes, there's no mention of which vehicles will be produced in South America, although AutoCar thinks the Freelander, sold in the US as the LR2, is a leading contender.

Lewis Hamilton wins record sixth British Grand Prix

SILVERSTONE, England — Formula One championship leader Lewis Hamilton won a record sixth British Grand Prix on Sunday after jumping ahead of Mercedes teammate Valtteri Bottas by taking advantage of the safety car being deployed. In front of his home fans, Hamilton made the decisive move to the front in the 20th of the 52 laps by pitting to get new tires. With the safety car still out after Antonio Giovinazzi spun off in his Alfa Romeo, Hamilton rejoined ahead of pole-sitter Bottas. "The safety car came out and it was perfect timing," Hamilton said. Hamilton had initially attacked Bottas on the fourth lap, overtaking but failing to keep position. "It was maybe not my luckiest day," Bottas said after falling 39 points behind Hamilton in the championship standings. "But that's life." After finally moving into the lead, Hamilton avoided pitting again so stayed on hard tires while Bottas was on fresher soft ones but the world champion still set a lap record on the final lap. By beating Bottas by almost 25 seconds, Hamilton extended his championship lead over the Finn to 39 points and moved ahead of Jim Clark and Alain Prost to take the record for British GP victories. "I love you Silverstone," Hamilton said over the team radio in the week when the track's future for the race was secured until at least 2024. It was an 80th career win for Hamilton, of which seven have come in the 10 races this season. "Today was one of the best days I can remember having," Hamilton said. "I have done so many races you would think I would get used to it or the feeling would numb down but it feels as amazing as the first win (at Silverstone in 2008)." Charles Leclerc of Ferrari completed the podium after a crash in the fight for third saw Sebastian Vettel crash into the back of Max Verstappen on lap 38. "It was my mistake," Vettel said. "He passed me and he ran a bit wide which gave me the chance to come back. "I looked for a second he was going for the right and there would be a gap on the left ... but it didn't open and by that time it was already too late." Too late for Vettel to avoid crashing his Ferrari into the back of Verstappen, damaging the floor and diffuser of the Red Bull. "He apologized," Verstappen said. Vettel finished 15th and now trails Hamilton by 100 points in fourth place. Motorsports Ferrari Mercedes-Benz Racing Vehicles F1 Lewis Hamilton british grand prix

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