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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

Volkswagen recalls 20k Routans to replace ignition switch

Volkswagen is recalling 20,676 examples of the 2009-2010 Routan minivan to replace their key fobs and ignition switches. This new campaign is linked to one from FCA in March. In these vehicles, it's possible that if the switch is jarred, the key can be jostled out of the Run position. If this happens, then the engine shuts off, and the airbags, power steering and power brakes are all deactivated, which is a safety problem. The campaign to fix this issue began last year when FCA recalled 700,000 minivans, and the Routan was also affected because of its shared platform. However, in March 2015 FCA updated its recall to replace the whole ignition switch with an improved design, rather than the original plan of just a new detent ring. With this latest update, the VWs are getting the same fix. Until the minivans are repaired, VW says that drivers should remove all items from their key ring, including the fob. The recall is expected to begin in April for owners of the 2009 Routan and in August for the 2010 models, according to documents submitted to the National Highway Traffic Safety Administration (available here as a PDF). Some vehicles already have a new detent ring under the earlier recall, but they still need to be fixed again to get the ignition switch. Related Video: RECALL Subject : Ignition Switch may Turn Off Report Receipt Date: APR 01, 2015 NHTSA Campaign Number: 15V194000 Component(s): ELECTRICAL SYSTEM Potential Number of Units Affected: 20,676 All Products Associated with this Recall Vehicle Make Model Model Year(s) VOLKSWAGEN ROUTAN 2009-2010 Details Manufacturer: Volkswagen Group of America, Inc. SUMMARY: Volkswagen Group of America, Inc. (Volkswagen) is recalling certain model year 2009 Routan vehicles manufactured June 25, 2008, to June 10, 2009, and 2010 Routan vehicles manufactured October 1, 2009, to August 11, 2010. This defect can affect the safe operation of the airbag system. Until this recall is performed, customers should remove all items from their key rings, leaving only the ignition key. The key fob (if applicable), should also be removed from the key ring. Road conditions or some other jarring event may cause the ignition switch to move out of the run position, turning off the engine. CONSEQUENCE: If the ignition key inadvertently moves into the OFF or ACCESSORY position, the engine will turn off, which will then depower various key safety systems including, but not limited to, air bags, power steering, and power braking.

Giorgetto Giugiaro sells shares in legendary styling house to Audi

Giorgetto Giugiaro undoubtedly stands among the great automotive designers of the 20th century, having penned the original Volkswagen Golf and Delorean DMC-12, among countless others. However, the great stylist is now longer an employee or even an owner of the company that bears his name. According to Automotive News, Giugiaro and his son, Fabrizio, sold their remaining 9.9 percent of Italdesign Giugiaro to Audi on Sunday, June 28, and the two resigned from the business the following day. The news about this just came out, though. The exact reason that the two men left the company hasn't been made entirely clear. According to Automotive News, a statement said that Giorgetto Giugiaro went "to dedicate more time to his personal interests." Italdesign Giugiaro remains open and intends to keep growing, though, the same announcement asserts. After stints at Bertone and Ghia, Giugiaro founded Italdesign in 1968. He created some masterpieces there, including '70s wedges like Maserati Merak, Lotus Esprit, and much more. The 2000s weren't so kind and 90.1 percent of the company was sold to Volkswagen Group in 2010. Former Audi design boss Wolfgang Egger took over styling duties there in late 2013, but he only lasted for about a year, leaving in late 2014. Since the sale, Italdesign has continued to work, including with the Gea concept at the 2015 Geneva Motor Show and the very mean-looking Parcour in 2013. Giugiaro's designs are still highly prized, as well. On September 5, Bonhams is auctioning the Maserati Boomerang concept by him and expects to get around $4 million for it. The gallery above offers a few more examples of his and Italdesign's concepts for VW Group over the years.