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Europe to get next Hyundai Genesis

Hyundai is preparing to make a rather bold move with its Genesis, as reports are now stating that the next-generation rear-drive sedan, which we showed you earlier this week, will be sold in Europe. The first-generation of the Genesis sedan never crossed the pond.
The 2015 Genesis will enter the traditional stomping grounds of BMW, Mercedes-Benz and Audi armed with the same 3.8-liter V6 and 5.0-liter V8 found in the current model. All-wheel drive, a first for the model, will also be available in Europe. "We have to overcome the challenge of competing with established European brands. We expect the Genesis to play a crucial role in improving our brand recognition," Hyundai said in a statement.
Hyundai has done a fair job of changing its image in the US from a budget-minded brand into a legitimate, mainstream competitor that covers a broad swath of the American market, offering cars from the $14,545 Accent to the $61,000 Equus. That movement started in earnest with the Genesis, and it looks like Hyundai is determined to repeat that models success in Europe.

Is it time for the car-based trucks to return?

Back in 1957 Ford began producing the Ranchero. In 1959 the El Camino made its debut. In time, other manufacturers would execute their own version of the "Car Truck" anomaly. Dodge, Subaru, and Volkswagen would all join in the category before eventually ceasing production for the United States. Although production ran longer overseas, including Australia, where the "utes" were very well received, in the United States the last ute offering, the Subaru Baja, would cease production in 2006. The manufacturer offerings were very diverse. Powerplants ranged from 4 to 8 cylinders. The number of driving wheels were also diverse. Some were 2 wheel drive, others 4 wheel drive. Even more differentiation could be found in how the manufacturers decided to pursue the utility portion of their vehicle by providing either a unibody architecture for improved mileage, or a solid chassis for extra load bearing capacity and better towing ratings. Here's a brief (not comprehensive) production history of ute history in the United States... Chevy El Camino/ GMC Caballero: 1959-1960 then 1964-987 Dodge Rampage/ Plymouth Scamp: 1982-1984 Ford Ranchero: 1957-1979 Subaru Brat: 1978-1987 Subaru Baja: 2003-2006 Volkswagen Rabbit Sportruck: 1978-1984 That brings us to 2017. Trucks are huge sellers for manufacturers. However, miles per gallon ratings are huge concerns for those same manufacturers. So, automakers are looking to increase the efficiencies of their products to make them more palatable to the increasingly green conscience buying public. Enter a ute revival. A reborn unibody ute would meet that need as it would have the mileage numbers more closely tied to a car than a truck. It seems that I'm not the only one thinking this way. Hyundai has identified the emptiness of this car truck niche, looked at its own portfolio, and recognized the lack of pickup trucks. Fixing that emptiness is one of their concerns. So, they have viewed the active traditional pickup market, while also watching the unibody Ridgeline sales over in the Honda camp and determined that the niche needs to be filled with their own twist. They are rumored to have green lighted the 2019 Hyundai Santa Cruz for sales beginning in 2018. Hyundai's twist however, is that their vehicle would be based on a crossover chassis, possibly the Tucson. Remember, this is a rumor. So, it could change to a red light from the manufacturer or just as easily change to a Genesis chassis overnight.

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