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Daimler consulting with Ford about 3-cylinder engines

Soon enough, Ford will offer its 1.0-liter EcoBoost three-cylinder engine under the hood of the Fiesta here in the United States, building on the success of the small powerplant overseas. In fact, this success has caused other automakers to take notice, and according to Automotive News Europe, Daimler is now talking to Ford about this engine for use in its own products.
In other markets, Ford offers the 1.0-liter mill under the hood of the Focus (we had the chance to sample this package on our home turf), as well as the B-Max MPV. For this new collaboration, Daimler would use the turbo-three in the next-generation Smart ForTwo, as well as the Renault Twingo, which the German automaker will be collaborating on as part of its alliance with Renault-Nissan. Speaking to AN, a Mercedes-Benz engineer called the 1.0-liter mill an "interesting and impressive engine."
In exchange for details about the EcoBoost inline-three, Daimler will supply Ford with information regarding its Euro6 stratified lean-burn gasoline engine, which is found in the new E-Class sedan.

Petersen Museum celebrates 50 years of Ford Mustang with special exhibit

If you're a pony-car enthusiast, this is your year. Not only has Ford introduced an all-new Mustang, but it's also the 50th anniversary of the original. Celebrations and commemorations have been scheduled throughout the year, and not the least of them is the latest exhibit at the Petersen Automotive Museum in Los Angeles. Called "Mustangs Forever: 50 Years of a Legend", the exhibit includes Mustangs from every generation of the iconic pony car, including the 1965 convertible Ronald Reagan drove during his California gubernatorial campaign, a 1971 Mach 1 Cobra Jet, a 1974 Mustang II, 1993 SVT Cobra, 2000 Cobra R and a 2006 Shelby GT-H. Special sections focus on motorsports, aftermarket modifiers and limited-edition models. The display opened on Sunday with the Mustang Madness spectacular and will run for the next six months, but if you're not heading to Southern California within the coming half-year then you can scope out all the action in our live gallery of photos above.

Detroit 3 and UAW set for showdown over tiered wages

This week, thousands of United Auto Workers will converge on Cobo Center in Detroit for the Special Convention on Collective Bargaining, an every-four-year event that lets members tell UAW leaders what the negotiating priorities should be during contract negotiations. This is where a lot of sand and a lot of lines start coming together in preparation for contract negotiations between the UAW and the Detroit 3 automakers, which will happen later this year. Number one on the UAW agenda is the end of the two-tier wage system created in 2007 to help the automakers get through bankruptcy; veteran workers are paid the Tier 1 rate of around $29.00 per hour, new hires are paid the Tier 2 rate of between $15 and $20 and get about half the benefits of Tier 1. Tier 2 hiring has been an undoubted success for the automakers, allowing them to keep factories in the US and hire more workers. By agreement, it is capped at a certain percentage of each automaker's workforce, and while the union's ultimate position is to get rid of the dual-scale system entirely; one leader said Ford could easily afford the $335 million it would take to convert all its workers to Tier 1 out of its $6.9 billion in 2014 North American profit, and General Motors could do the same out of the $5 billion it is handing to investors through the (admittedly forced) share buyback. Other delegates say that at the very least they'd be happy with enforcement of the current caps in the new contract. The automakers, conversely, would welcome expansion of the Tier 2 ranks. Including benefits, import automakers pay workers "in the high $40 range" per hour, according to an analyst, while Ford and GM pay about $59 in wages and benefits per hour. More Tier 2 workers on the rolls would let those two companies get labor cost parity with the competition. Fiat-Chrysler pays wages closer to the imports because of special exceptions in its UAW contract that allow unlimited Tier 2 hiring; those exceptions will end on September 14 and bring FCA into line with the other domestics, unless the new contract maintains them. FCA CEO Sergio Marchionne is opposed to the two-tier system, having called it "almost offensive." One analyst says the UAW might win a sizable pay raise for Tier 2 and a small increase for Tier 1, but the keystone issue will be how the hiring matrix can help the automakers keep overall wages in line with the imports.