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Uber hopes facilities in Detroit will help shape its autonomous future

Hot off the heels of unleashing its fleet of self-driving vehicles in Pittsburgh, PA, Uber announced plans to open a new facility in the Detroit, MI area, reports Automotive News. The new facility was announced at an event hosted by Society of Automotive Engineers in Detroit, MI. Uber's vice president of global vehicle programs Sherif Marakby revealed the news, reports Automotive News. The facility is meant to help the ride-sharing company collaborate with suppliers and automakers in the area. There's no word on where Uber will build the new facility or how big it will be, as those factors have yet to be determined. Just like Pittsburgh, PA, Detroit, MI could become another testing ground for the ride-sharing company. The latest move to open a facility in the Detroit area comes after Uber offered users in Pittsburgh the chance to ride in one of its autonomous vehicle as it looks to gain vital real-world testing. Uber is utilizing a fleet of modified Ford Fusions. Earlier this year in April, the automaker announced a partnership with Google, Lyft, Uber, and Volvo to develop autonomous cars. A new facility in Detroit would strengthen the partnership and help Uber, as well as Ford put autonomous vehicles on the road faster. Related Video: News Source: Automotive News - sub. req.Image Credit: AOL Green Ford Volvo Transportation Alternatives Technology Emerging Technologies Autonomous Vehicles Detroit Uber taxi Lyft ridesharing facility

Watch as U.S. auto industry springs back to life after lockdown

WARREN, Michigan — The Detroit Three automakers and their suppliers began restarting assembly lines on Monday after a two-month coronavirus lockdown in a slow revival of a sector that employs nearly 1 million people in the United States. On a chilly and damp Monday morning, hundreds of workers at Fiat Chrysler Automobile's (FCA) truck plant in Warren, Michigan, began lining up before 4 a.m. to start the 5 a.m. shift. Signs overhead read: "Let's restart." "I'm a little nervous," said Larry Smith, 53, of New Baltimore, who works on wheel alignment away from the assembly line. "They made all the precautions (and) they've done everything they can to prepare us ... I'm trusting in God." Detroit automakers on Monday said there were no issues with absenteeism as the plants opened. FCA reopened four U.S. assembly plants on Monday, including Warren Truck, on a single shift, as well as four parts plants. The reopening of car plants will be a closely watched test of whether workers across a range of U.S. industries can return to factories in large numbers without a resurgence of infections. General Motors Co, Ford Motor Co and FCA have all been preparing for weeks to reopen their North American factories in a push to restart work in an industry that accounts for about 6% of U.S. economic activity. Investors welcomed the gradual restart, sending GM's shares up more than 9% on Monday. FCA shares rose 7.3%, while Ford's were up 6.7%. Auto companies have redesigned assembly lines and retrained workers in an effort to avoid coronavirus outbreaks that could derail production again. Workers entering factories on Monday were checked by temperature monitors. Face masks or shields are standard protective equipment. Jobs such as installing seat belts that used to require two or more workers to get close together inside a vehicle have been redesigned to keep people a safe distance apart. Plastic screens have been installed along assembly lines to separate workers leaning in to the engine compartments of vehicles. Break areas have been reconfigured to keep workers six feet apart. The Detroit automakers have collaborated with each other and with the United Auto Workers to develop common coronavirus safety practices. Other automakers in the United States are adopting similar safety measures.

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