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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

BMW X7 to follow Volvo's lead with four-seat, $100k limo

That BMW is planning an X7 crossover is nothing new. The company needs a three-row model to cap its crossover range and take on the Mercedes GLS and Audi Q7, and the current X5 can only take it so far. But according to Automotive News, the Bavarian automaker is planning an even more luxurious version – with fewer seats. The ultra-luxe X7 variant is slated to arrive as the latest embodiment of a new trend emerging among upscale automakers. You make a seven-seat SUV, then rip out the second and third rows, replace them with a pair of first-class recliners, and presto! You have a high-riding limousine. Volvo recently took that approach with the introduction of the XC90 Excellence, and Mercedes may soon adopt a similar formula with the anticipated Maybach version of the GLS. Now BMW appears to be following suit as well. Like the XC90 Excellence, the X7 limousine would carry a price tag in excess of $100,000, and for all that scrap, buyers could expect all the luxury accoutrements that Munich has to offer. Look for reclining seats, acres of legroom, infotainment displays mounted to the front seatbacks, and a center console packed with temperature-controlled cupholders, folding tables, and maybe even a bottle cooler. Like the anticipated 9 Series sedan, the X7 limo would help BMW bridge the gap between its core range and its Rolls-Royce line, which is soon to launch a crossover of its own – albeit unrelated to the X7 – to compete in an even higher market segment. Though these rearward-focused luxury crossovers may be targeted especially at the Chinese market – where titans of industry are chauffeured through densely packed city streets – the X7 is anticipated to be built right here in the USA at the plant in Spartanburg, SC. It won't be the only new crossover joining the Roundel marque's lineup, though. A new X2 is anticipated to apply the same format we've seen on the X6 and X4 to the smaller X1. At this rate, we wouldn't be surprised to see a super-sized, slant-backed X8 to follow as luxury automakers make a growing share of their profits from crossovers. Related Video: Featured Gallery 2014 BMW X5 View 35 Photos News Source: Automotive News - sub. req.Image Credit: BMW BMW Crossover Luxury bmw x7

BMW M1 really was the Ultimate Driving Machine

Life giving you lemons? Make lemonade. That's the spirit in Munich that lead to BMW producing the only mid-engined sports car in its 98-year history. The project resulted from a collaboration with Lamborghini (now owned, incidentally, by arch-rival Audi) to meet Group 4 homologation requirements. Lamborghini withdrew, the FIA changed its rules, but BMW built it anyway.
Arguably one of Giorgetto Giugiaro's finest designs, the M1 packed a 3.5-liter inline-six, driving 273 horsepower to the rear wheels through a five-speed manual. The Procar racing version turbocharged that output up to 850 hp and attracted the top drivers in a one-make F1 support race series.
Over the course of three years, the Bavarian automaker only built 456 examples of the M1, and for BMW enthusiasts, there's no vehicle more coveted. But don't take our word for it - let Petrolicious tell one noteworthy owner's tale in the video below.