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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.

We spy the Ford Mustang King Cobra early at SEMA

As is the case with most auto shows, waiting for the reveal of hot new models is the worst part. So, while our own Drew Phillips has been wandering the halls here in Las Vegas since they unlocked the doors for SEMA 2014, we didn't expect him to come back with any big reveals until later in the day. Until this happened.
Meandering by the Ford stand, Phillips eagle-eyed a trunk lid that caught his attention. Popping out from an otherwise draped 2015 Mustang, the matte black lid clearly has the name King Cobra embossed on the rear.
That name is interesting for a few reasons: to start, Ford hasn't used the Cobra name (without "Jet" attached) since way back in 2004, so a new snake is certainly something to take note of. Second, the King Cobra name dates all the way back to the ill-remembered Mustang II, meaning there is a clear link to Blue Oval history here.

Ford trademarking 'Mach 1,' possibly for Mustang

A legendary name might be accompanying the redesigned, 2015 Mustang when it finally makes its world debut - Mach 1. Stumbled upon by the team at Ford Authority, the Mach 1 title was found in a trademark filing with the US Patent and Trademark Office, and would revive a name last used on the fourth-generation, 2003 Mustang.
While the the 2003 vintage was well and good, the Mach 1 is really remembered for a three-year run from 1969 to 1971 - it's best to just forget the emissions-choked 1972 to 1978 Mach 1s - when power output ranged from a modest 250 horsepower with the two-barrel, 351-cubic-inch Windsor V8 to "375 hp" (actual output was rumored to be well north of 400 horsepower) with the righteous, 429-cubic-inch Super Cobra Jet V8.
What does the title hold for the sixth-generation Mustang? It's tough to say. The fanatics at Ford Authority seem to think Mach 1 could take the place of the Shelby GT500 at the top of the Mustang hierarchy, which sounds like a valid argument. At the same time, we could see the SVT Cobra moniker returning for the flagship model, and the Mach 1 doing battle with the Chevrolet Camaro Z/28 (unless the Boss 302 were to return). Confounding things is the historical precedent - the Mach 1 was responsible for the death of the Mustang GT in 1969, so it might make sense as a volume performance model.