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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

China's auto sales continue to drop

The days of unending growth of carmakers in China look to be over, and some analysts are even forecasting a net drop in volume this year, The Detroit News reports. After falling numbers in June and July, the China Association of Automobile Manufacturers tallied total sales, including trucks and buses, in August to 1.7 million, down 3 percent from 2014. There were some tiny specs of good news in China, but there's no turnaround in sight. Total vehicle sales from January to August are actually still up but only 2.6 percent. Like the rest of the world, SUVs are booming with numbers up 45.6 percent from the previous year. Honda managed a very impressive 50.7 percent gain on the strength of the CR-V and Vezel (the HR-V here), according to The Detroit News. Also, the country's domestic automakers, which generally offer less expensive products, posted a 2.5 percent growth in sales. The news continues to look bad for Detroit's automakers, though. Volume from General Motors dropped 4.8 percent in August, and Ford fell 3 percent in August. Both of them have invested significant amounts there in the past years. The vehicle industry in China grew last year, but there was burgeoning evidence of weakness. At the end of 2014, dealers there pushed back against huge inventories pushed by automakers. Even before the big drops began in June, GM saw the writing on the wall and started cutting prices. BMW responded to the slump by cutting back production to deal with the changing demand. News Source: The Detroit NewsImage Credit: Mark Schiefelbein / AP Photo BMW Ford GM Honda Car Buying

BMW's new i DC Fast Charger will give free juice to i3 drivers

From solar chargeports to the first SAE Combo Fast Charger, BMW is offering or promoting more charging options for the i3 than most people will know what to do with. This is not a bad thing. At the Plug-In 2014 conference happening in San Jose, CA this week, BMW announced a new i DC Fast Charging unit as well as the ChargeNow DC Fast program, which is similar in some ways to Nissan's No Charge To Charge. Let's start with the chargers. Smaller and much cheaper than other DC fast chargers, an i DC Fast Charger costs just $6,548 plus installation. Remember, it was a big deal in 2011 when Nissan's DC fast charger was less than $10,000. The i DC Fast Chargers use the SAE Combo connector, so will also work in EVs from Ford, VW and Chevy and other automakers, when available. They take 30 minutes to charge an empty i3 to 80 percent full. All a driver will need in order to use the charger is a ChargePoint (or ChargeNow) card. Most of the first units will likely end up at BMW i dealers across the US. In a separate announcement, the ChargeNow DC Fast program will allow BMW i3 drivers to get free charging until the end of 2015 at participating NRG eVgo Freedom Stations. The catch is that they need to use the ChargeNow card at least once by the end of 2014. eVgo is promising to install at least 100 compatible DC fast chargers in California by the end of next year, so this should be relatively easy in at least one of the 50 states. We will have more from San Jose soon. BMW Unveils BMW i DC Fast Chargers and ChargeNow DC Fast program at Plug-In 2014. BMW i DC Fast Chargers, developed in collaboration with Bosch Automotive Service Solutions, are half the size of current DC Combo fast chargers, compatible with multiple electric vehicles and significantly more affordable. BMW i DC Fast Chargers run on the ChargePoint network giving BMW i3 drivers access with a ChargePoint or ChargeNow card. ChargeNow DC Fast enables BMW i3 drivers to charge at no cost, at participating NRG eVgo Freedom Stations equipped with DC Combo Fast Charging, through 2015. San Jose, CA/Woodcliff Lake, NJ – July 28, 2014... At Plug-In 2014, a conference dedicated to discussing key issues for the long-term success of electric vehicles, BMW of North America launched its BMW i DC Fast Chargers which can charge the BMW i3 all-electric vehicle's battery up to 80 percent in 30 minutes.