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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

VW's Winterkorn to stick around through at least 2018

Volkswagen may yet to have found a new chairman, but it's not about to get rid of its chief executive any time soon. The German automaker has announced its intention to renew Martin Winterkorn's contract through the end of 2018. That is, assuming that the Supervisory Board heeds the recommendation of its own Executive Committee when the full 20-member board meets on September 25. 68-year-old Winterkorn joined the Volkswagen Group back in 1993 after a decade and a half at Bosch. He was named head of Audi in 2002, and chairman of the Board of Management (effectively the chief executive officer) of the entire Volkswagen Group in 2007. Just a few months ago he faced off against Ferdinand Piech – chairman of the company's supervisory board and grandson of Ferdinand Porsche – that resulted in Winterkorn's victory and Piech's resignation. The executive committee's endorsement, then, is effectively a vote of confidence in Winterkorn's leadership. It still leaves unresolved the question of who will ultimately take over as chairman to succeed Piech. Winterkorn was touted for a potential promotion, but if the supervisory board renews his contract – currently set to expire next year – he'll be staying right where he is and a new chairman will need to be found. The chair is currently filled on an interim basis by Berthold Huber, former head of the union that was instrumental in Piech's ousting. Wolfsburg, 02 September 2015 Resolution of the Executive Committee of the Volkswagen AG Supervisory Board The Executive Committee of the Supervisory Board of Volkswagen AG unanimously agreed a resolution for submission to the Supervisory Board at its meeting on September 25, 2015 under which a new contract as Chairman of the Board of Management of Volkswagen AG for a term until December 31, 2018 should be concluded with Professor Dr. Martin Winterkorn. "Together with Professor Martin Winterkorn at the helm we will continue on our successful path of recent years and systematically implement the goals of Strategy 2018", Berthold Huber, Chairman of the Supervisory Board of Volkswagen AG, said.

Recharge Wrap-up: 2015 Fuel Economy Guide available, how Porsche ships 919 Hybrid

The EPA and Department of Energy have released the 2015 Fuel Economy Guide. Unsurprisingly, the groups say that this year features more fuel efficient and low-emissions vehicles than previous years, and they span a greater variety of vehicle types. The guide also provides "best-in-class" lists, greenhouse gas ratings and estimated fuel costs for each vehicle. The EPA and DOE hope that car buyers will use the guide to help choose cars that are better for the environment and the climate. Check out the guide for yourself or read more in the press release below. To get from one WEC race to the next, Porsche ships its 919 Hybrid LMP1 cars by air. As the team travels around the world - from continent to continent - it must take 35 tons worth of cargo with it, including two LMP1 cars. That means draining fluids, partially dismantling the cars, and fitting everything into a 747. The team also ships items by sea, which requires shipping extra sets of items due to the longer shipping times. "It's all about efficiency," according to Porsche. Read more in the press release below. Terra Motors is unveiling the A4000i electric scooter, which it will sell in Europe, at the EICMA motorcycle show in Milan. The A4000i, which features smartphone connectivity, will be the company's European flagship model. Terra Motors will begin selling in Italy, and plans to make arrangements to sell in several more countries shortly after. Terra hopes to set up manufacturing in Europe, as well. Also on display at EICMA is the company's Bizmo II electric scooter, which has a driving range of 93 miles on a single charge. Read more in the press release below. Volkswagen is providing a 2015 e-Golf to Stanford University for research. The car will be used to study electric mobility, improvements in the driving experience and people's driving behavior and attitudes toward EVs. "Volkswagen's longstanding relationship with Stanford has allowed us to push the boundaries of automotive research and innovation," says Volkswagen's Ewald Goessmann, "and we look forward to extending our work together to drive advances in electric vehicles." See the video and read more in the press release below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. EPA, DOE Release 2015 Fuel Economy Guide for Car Buyers The U.S.