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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

2023 New York Auto Show Live Updates: Hyundai's surprise, Nissan's super stand, '24 Wrangler

The 2023 New York International Auto Show shifts into high gear Wednesday, April 5, and our reporters are already in the city, with events unfolding even as we speak. We'll being seeing cars in person, interviewing automaker insiders and snapping photos of vehicles and all the other oddities that pop up at an event like this and we'll be giving you live updates and color from the show floor along the way.  Ram, Hyundai, Subaru, Kia, VW and Jeep are all expected to show something new this week, and other automakers are known to be hosting off-site events that may produce news — expected or otherwise. Genesis has already revealed its GV80 Coupe, for example, along with the fact that it has been confirmed as a production model. And we're just getting started.  Read on below for our observations from the show floor and points beyond: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.     Green New York Auto Show Genesis Hyundai Jeep Kia RAM Subaru Volkswagen Concept Cars Electric Future Vehicles

2017 will be the year the connected car becomes a reality

2016 was full of talk of autonomy, but little action beyond crazy, futuristic concept cars and announcement after announcement from automakers. If this year's CES is any indication, 2017 is going to focused on connectivity. More than that, CES showed that traditional barriers between automakers are breaking down in favor of universal and open source technology standards that will benefit both consumers and developers. CES, traditionally a showcase for the latest and greatest technology and gadgets like flat-screen refrigerators or televisions that broadcast in the fifth dimension, has become so intwined with the auto industry that we at Autoblog cover it like any other auto show. At every CES event I attended and nearly every booth I went to, there was some talk, display, or demonstration of how cars will connect to your phone and your home, and eventually each other. It seems we're heading toward the tech singularity where all devices work under one cohesive ecosystem – the Internet of Things, if you like. The difference between autonomy and connectivity is how real the latter feels because so much of the connected tech on display at CES is either here already or will be here by the end of the year. There were dozens of demos, both big and small, that allowed us to test and explore what's on the horizon. Bridging the gap between home and car, Ford is integrating the Amazon Alexa personal assistant straight into its vehicles. That means you'll be able to talk to Alexa in your car just like you would through an Echo or Dot at home. It also means you can shop on Amazon by voice while you're driving (since that wasn't convenient enough already). Samsung is developing smartwatch applications for Ford, BMW, and others. Toyota is adopting Ford's SmartDeviceLink smartphone connectivity system for its vehicles. That means developers can have one app that works across multiple infotainment systems. The Linux Foundation is developing an open-source operating system that will be free to use, making it easier for developers to connect smartphones and apps across multiple manufacturers' systems. Automotive Grade Linux, or AGL, is available for download right now. Major automakers like Toyota and Daimler (who usually are set on competing with one another) are partnering to further the development of the project. Bosch, Hyundai, and Chrysler showed connected car concepts at CES that preview the future of automobiles.