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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

2017 Honda Ridgeline is ready for tailgate duty [w/video]

Honda's new Ridgeline might not be the biggest, baddest truck, but trust us, it's the vehicle you want for your next tailgate. Sure, the Ridgeline gets a 3.5-liter V6 engine and a six-speed automatic transmission, but that's not why you want it. With a dual-action rear tailgate; a built-in, drainable, water-tight in-bed trunk; and the industry's very first in-bed stereo, Honda has built a vehicle that's better suited for keg hauling and barbecuing than rock crawling or towing. We approve. Beyond that, the 2016 Detroit Auto Show marks the first time we're seeing the interior of Honda's new pickup. It looks like a slightly more rugged version of what's found in the Pilot, with a prominent central display and a center cluster with a strong emphasis on the digital. There's a largish display and a digital speedometer, and the only analog gauges are for the tachometer, fuel, and engine temp. We've got a full gallery of live images at the top of the page and the press conference with our reaction below. Have a look. All-New 2017 Honda Ridgeline Pickup Truck Makes World Debut at 2016 North American International Auto Show •2017 Ridgeline brings Honda innovation in technology, design and packaging to the midsize pickup truck market •All-new Ridgeline delivers superior driving dynamics in combination with the largest interior space and most versatile bed in a midsize 4-door pickup •Honda-exclusive features including In-Bed Trunk®, dual-action tailgate and the industry's first in-bed audio system make Ridgeline the ultimate tailgating vehicle DETROIT, January 11, 2015 – Honda today unveiled the all-new 2017 Ridgeline truck at the North American International Auto Show, once again challenging conventional thinking in the pickup truck market with Honda-exclusive features, design and technology that help Ridgeline set new benchmarks for versatility, capability and comfort in a midsize pickup. "We are bringing our unique technology and original thinking to the market in a new and challenging concept for a Honda pickup," said John Mendel, executive vice president of American Honda Motor Co., Inc.

Is today's Honda Accord cheaper than it was back in 1989?

Whether you're shopping at the grocery story or on a car lot, everything seems to be getting more expensive these days. However, when all the factors are considered, that might be more an issue of perception than of fact. The American Public Media radio show Marketplace recently tackled the question whether modern vehicles were actually more expensive once you factored in important variables like inflation and cost of ownership. The result was pretty surprising.
For its example, Marketplace chose the Honda Accord, because in August, it was one of the bestselling vehicles in the US, with 51,075 of them sold. Winding back the clock 25 years to 1989, Honda's cheapest Accord cost $11,770, and that money bought you a stripped-out car with 98 horsepower, a manual gearbox, no air conditioning and hand-crank windows.
Fast-forward to present day, and a basic Accord starts at around $22,000 and gives buyers significantly more features, including a 185-hp engine, dual-zone climate control, Bluetooth, cruise control, more space, refinement and much better safety. By Marketplace's math, when just figuring for inflation, that modern Honda would cost about $11,500 a quarter century ago, despite all of that extra equipment. But that's just one factor. Scroll down to listen to the full report for an explanation of how cost of ownership figures into the mix, and whether it throws all of the calculations off.