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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

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

Ford and Lincoln recall roundup: Explorer, F-350 Super Duty, Aviator

Ford and Lincoln released information on a flurry of recalls this morning. There are three in total, and they span different models and separate issues. Those models include the 2013-17 Ford Explorer, 2020-21 Lincoln Aviator and 2020-21 Ford F-350 Super Duty. We’ll organize these three in order of most cars recalled. 2013-17 Ford Explorer This recall includes a substantial 774,696 vehicles, of which 676,152 are in North America. Why? Ford says these vehicles “may experience a seized cross-axis ball joint that may cause a fractured rear suspension toe link.” The diminished steering control that would follow could increase the likelihood of a crash, Ford states. Only vehicles that spent time in high corrosion states should be affected, Ford says. That means places that lay salt down, experience cold weather and high humidity. Owners of these vehicles will need to take their car into the dealership, where it will be inspected to determine if it needs work. If so, Ford will replace the cross-axis ball joint/knuckle, then replace the toe links with a newly-designed part. Notifications to owners of these vehicles are scheduled to be sent out the week of August 23.  WeÂ’ll note that Ford is reporting six “allegations of injury” related to this issue. For those who donÂ’t live in the high-corrosion states/their car was never registered in those states, Ford is offering a customer satisfaction program in case you were interested in having the work done anyway. 2020-21 Lincoln Aviator Lincoln is pulling back 40,995 new Aviators due to an improperly secured battery cable wire harness. This recall applies to gasoline-only versions of the Aviator, so Grand Touring PHEV buyers neednÂ’t worry. The wire harness may contact the AC compressor pulley due to it being secured improperly. Ford says that over time, the pulley could rub through the wire harnessÂ’ insulation, resulting in a short circuit and ultimately a fire. However, Ford is not currently aware of any injuries or fires related to this concern as of now. When you bring your car in, the dealer will inspect all the parts to determine what needs to be done. Fixes range from a basic tie strap to keep the harness away from the pulley (if it hasnÂ’t made contact yet), to replacement of the wire harness and AC belt if the contact has caused damage. Owners should expect to be notified the week of July 30 if their Aviator is involved in the recall.