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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

Ford secures Microsoft for software updates

Ford is dropping Microsoft later this year as its infotainment partner when the Blue Oval switches to the BlackBerry QNX operating system for Sync 3 (pictured above). However, the two companies aren't severing ties completely, because the Redmond, WA, outfit is taking responsibility for Sync 3's wireless updates. Don Butler, Ford Director of Connected Vehicles and Services, announced the deal during a speech, according to Automotive News. "We've obviously had a good, long relationship with Microsoft," he said. "Microsoft understands the automotive environment and the kinds of experiences that we'd like to enable." The ability for Sync 3 to accept Wifi updates was announced as a major feature the new infotainment system, but this was the first mention of how that has been handled. Ford will host the files on Microsoft's Azure Cloud servers, according to Automotive News. Owners will need to give permission to check for new software, and they'll be notified after an improvement's installation. Dealers will install Wifi transmitters to keep vehicles on the lot up to date, as well. Sync 3 is set to replace the much-maligned MyFord Touch later in 2015 on some 2016 model year vehicles, and by next year it should be available throughout the Ford and Lincoln lineups. In addition to the wireless updates, the new system also promises a simplified interface, better voice recognition and faster response times. Ford Motor Company is preparing for vehicle ownership and user experiences of the future with the creation of a global cloud based Ford Service Delivery Network enabling new ways for consumers to interact with cars. Teaming up with Microsoft, Ford will expand connected services for customers around the world using the globally scalable and reliable Azure Cloud infrastructure. Ford and Lincoln owners will benefit from the convenience of new connectivity services keeping them better informed and in control of their vehicle at all times with the expanded availability of features like scheduled remote start, vehicle finder, and vehicle status (fuel or charge level, tire pressure). Building the Ford Service Delivery Network (SDN) on the Microsoft Azure platform enables a common platform for Ford to bring new features and services to market faster, quickly scale up for global implementation, and remain flexible for the future. Starting later this year, the Service Delivery Network will first enable over-the-air software updates for SYNC 3.

Mark LaNeve named head of Ford US sales and marketing

Ford continues to rework the positions of its top marketing executives as Jim Farley moves to take over the Blue Oval in Europe and Stephen Odell becomes head of global sales. The latest shift brings Mark LaNeve in as the new vice president of US marketing, sales, service and dealer relations, effective February 1. LaNeve replaces John Felice, who is retiring. Felice was with the automaker for the last 30 years and held his most recent job since November of 2013. In addition to coordinating marketing and sales, LaNeve's other duty is to build "innovative new digital communications and transforming the retail experience for customers," according to the automaker's press release announcing the change. He reports to both Odell and Joe Hinrichs, Ford's boss of the Americas. LaNeve has a long history in the auto industry. He spent a portion of his early career with Cadillac but eventually was hired as the CEO of Volvo Cars North America. He also headed up US marketing at General Motors for several years in the 2000s. Since 2012, LaNeve has been the chief operating officer at Global Ford Team, which is responsible for the company's worldwide advertising. There's an interesting challenge ahead of LaNeve in leading the Blue Oval's US marketing and sales in 2015. Ford was the bestselling auto brand here in 2014 but overall sales fell about 1.1 percent. According to Automotive News, the company's market share dropped to 14.9 percent, a one-percent reduction and the lowest level since 2008. Read below for the automaker's official announcement of LaNeve's new job. JOHN FELICE RETIRING AFTER 30 YEARS; FORD NAMES MARK LANEVE TO LEAD U.S. MARKETING, SALES AND SERVICE TEAM John Felice is retiring as vice president, U.S. Marketing, Sales and Service, after 30 years of service Mark LaNeve, named vice president, U.S. Marketing, Sales and Service and elected a Ford Motor Company officer; former chief operating officer at Global Team Ford brings nearly three decades of automotive marketing and sales experience to Ford Ford Motor Company [NYSE: F] announced today changes in its senior leadership team as it continues to deliver and accelerate the company's One Ford plan while driving for product excellence and innovation. John Felice, vice president, U.S. Marketing, Sales and Service, has elected to retire after 30 years at Ford, effective Feb. 1, 2015.