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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

Recharge Wrap-up: Mazda, Subaru and Toyota PHEV, Nomadic Power grant

The next generation of the Toyota Prius Plug-in Hybrid looks to be important for Mazda and Subaru as well. Toyota will likely need to sell more of the new plug-in hybrid to meet stricter ZEV standards in California. That means it will get more extra electric range, as customers have been asking for. Subaru and Mazda will also have to adhere to the California standards beginning in 2018. Those two smaller automakers will likely license a plug-in hybrid powertrain from Toyota in order to fulfill compliance. Read more at Green Car Reports. Tesla is partnering with Dalhousie University to improve battery technology. Tesla signed a five-year research agreement with Dalhousie's Jeff Dahn, a lithium-ion battery researcher. Dahn and the 25 researchers in his lab will work with Tesla's Director of Battery Technology, Kurt Kelty, to increase capacity through improved materials. The collaboration could be important both for Tesla's automotive and stationary batteries. "Our research group's goal is to increase the energy density and lifetime of Li-ion batteries, so we can drive down costs in automotive and grid energy storage applications," says Dahn. Read more from Dalhousie University. Nomadic Power is receiving a European Commission grant worth ˆ2 million (about $2.26 million) for trailer-mounted mobile batteries. Nomadic Power's mobile batteries, called Nomads, have incorporated photovoltaic systems and can be used to extend the electric driving range of a plug-in vehicle, or to provide backup power to a home. The Nomads use an intelligent energy management system to learn and predict user behavior and manage the solar system based on weather forecasts. "We see a strong future in electric-powered mobility and an increasing use of renewable energy, photovoltaic power in particular," says Nomadic Power CEO Dr. Manfred Baumgaertner. "Our mobile batteries have great potential in these markets that recently got a significant shot in the arm by Tesla's announcements." Read more from Nomadic Power, and at Green Car Congress. Related Gallery 2012 Toyota Prius Plug-In: First Drive View 24 Photos News Source: Green Car Reports, Dalhousie University, Green Car Congress, Nomadic PowerImage Credit: Nomadic Power Government/Legal Green Mazda Subaru Tesla Toyota Technology Electric recharge wrapup

Hurricane Sandy cost automakers 15,000 vehicles, may have ruined up to 200k

Hurricane Sandy was the largest Atlantic storm in US history, and its total economic impact is just now coming into view. According to Automotive News, Toyota, Chrysler, Nissan and Honda are set to scrap around 15,000 new vehicles ruined by the storm. Nissan alone accounts for about 40 percent of those, with 6,000 Nissan and Infiniti models deeded "un-saleable" due to damage. The company saw 56 dealerships shuttered due to the storm, but 51 of those have since reopened.
Toyota, meanwhile, had some 4,000 vehicles at its Newark port facility, and of those, 3,000 may be scrapped. An additional 825 were dealer inventory when they were ruined. Honda and Acura dealers are reportedly sending 3,440 vehicles to the salvage yard. By comparison, Chrysler weathered the storm fairly well with 825 units destroyed, while Hyundai suffered only 400 lost units and Kia scrapped around 200.
As you may recall, Fisker also suffered some losses, and Automotive News reports the manufacturer saw 320 Karma models damaged beyond repair. Ford and General Motors have yet to come up with estimates, and no automaker has commented on the full cost of replacing the vehicles.