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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 continues autonomous tech development

Some of the autonomous-driving features that Ford offers in Europe will come to the United States as soon as next year. The Blue Oval will add the pre-collision assist and pedestrian detection technologies that it has already installed on the Mondeo sedan in Europe. Those features, part of what Ford calls the "second of three phases" in driverless technology, will be brought stateside in a yet-to-be disclosed model, while most of Ford's US vehicle line will have the features by 2019. It has been testing an automated Fusion for more than a year. Ford is looking to build upon the autonomous-vehicle technology that it already has on models such as the Fusion, Taurus, F-150, Edge, and Explorer. Those amenities include active-park assist, lane-departure warning, and blind-spot monitoring. Ford said early last year that it was working with the Massachusetts Institute of Technology (MIT) and Stanford University to develop algorithms for use in driverless cars. The effort is part of Ford's so-called "Blueprint for Mobility" geared toward autonomous driving features that are being developed over the next decade. FORD COLLABORATES WITH SILICON VALLEY INNOVATION ECOSYSTEM ON AUTONOMOUS VEHICLES, 3D PRINTING, WEARABLE TECHNOLOGY Autonomous vehicle technology is another step closer to production at Ford – moving from a research effort to an advanced engineering project Ford announces it is working with Silicon Valley-based 3D-printing firm Carbon3D to quickly produce high-quality automotive-grade parts Ford kicks off wearable technology development with MyFord® Mobile app extension – coming soon to smartwatches including Android Wear – providing customers the ability to check vehicle driving range, battery charge and more for their plug-in hybrid or electric vehicle quickly from their wrists Autonomous vehicle technology is another step closer to production at Ford, moving from a research effort to an advanced engineering program, the company announced today. Ford has appointed a director of autonomous vehicle development – 29-year Ford veteran Randy Visintainer – and created a global team to work on the advanced program. Ford Research and Innovation Center Palo Alto is working on the global Ford team to deliver the Ford Smart Mobility plan, which aims to take the company to the next level in connectivity, mobility, autonomous vehicles, the customer experience and big data.

Ford running short of F-150 frames

Like most any automaker, Ford is eager to build as many F-150 pickups as it can sell. And considering that the truck has long stood as the top selling vehicle in the United States, that means building (and selling) a lot of them. Further, Ford reports that its factories are finally fully up to speed and ready to build as many F-150s as dealers can sell. Unfortunately another factor is reportedly preventing the new aluminum-bodied pickup from reaching its potential. According to Automotive News and as we've heard before, the Blue Oval automaker has had trouble getting its hands on as many frames as it needs. Though Ford would not confirm the shortage itself, AN cites union sources in reporting that the Metalsa plant in Kentucky, which produces the new F-150's frame for Ford, has been unable to meet the demand for more such frames. "Whenever you have launches, you have issues that you have to deal with in the supply base," is all Ford CFO Bob Shanks would admit. "We're always working closely with suppliers if there's an issue to sort it out. If that were the case, that's what we'd be doing." The reported supply shortage could be why plans for overtime production are reportedly being canceled at both the plants in Kansas City and Dearborn where the F-150s are assembled, despite reaching or nearing full capacity. The shortage could also help explain why, according to AN, sales of the F-Series in the United States fell nearly 10 percent last month, while the rest of the pickup market rose 17 percent. Related Video: