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Will global automakers drop local JV partners if China's government says they can?

Chinese economic policies could be in for a big change, as President Xi Jinping pushes the communist country to open its domestic markets even further. That could mean big things for the auto industry, especially when it comes to the country's far-reaching joint-venture system.
According to Chinese law, foreign automakers may only maintain a fifty-fifty partnership with their domestic counterparts. But with Jinping's push for openness leading to potential free-trade deals, that policy could be relaxed (or eradicated all together) in short order. What's an automaker to do?
Well, in BMW's case, stay the course. Automotive News Europe reports that, despite the grumblings about the JV policy changes, the German manufacturer has resigned its agreement with Brilliance through 2028. This is made doubly remarkable by the fact that BMW signed the extension over three years before it was set to expire.

Honda scores big in Automobile Advertising of the Year Awards [w/videos]

This year the Detroit Auto Show didn't just celebrate the automobile, it celebrated how we find out about the automobile, too. Partnering The One Club, this year introduced the 2014 One Show Automobile Advertising of the Year Award to Cobo Hall, celebrating winners in five different categories of advertising: broadcast television, online, interactive, experiential, and print/outdoor. Winners in those categories were judged by 50 creative directors and journalists, while a Public Choice category was chosen from among nearly 20,000 online votes.
Honda walked off with three of the six awards, its Hands spot taking Broadcast honors, its Sound of Honda getting the Online category and Illusions winning Public Choice. Hyundai made the grade in Interactive with Driveway Decision Maker, Fiat captured Print/Outdoor with its "Letters" ad, and Toyota's Tundra Endeavor Campaign spot and BMW's A Window into the Near Future were co-winners for Experiential.
You can watch all of the press release and winning videos below or check out all of the finalists, announced last month, for a refresher.

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