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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

2016 Hyundai Elantra GT gets refreshed with a big new face

Hyundai is taking the sheet off of a facelift for the 2016 Elantra GT at the 2015 Chicago Auto Show, and if buyers spec the five-door hatchback right, they can also get the Korean brand's latest infotainment system. The biggest and most obvious change for the updated Elantra GT is its brand new front end. The grille now features wide, horizontal slats with chrome accents, which removes the previous design's somewhat smiling face. It also brings the styling more in line with the rest of the Hyundai lineup. In addition, vehicle rides on some redesigned 17-inch wheels. The interior is left basically the same for the update, except if buyers choose the optional Technology Package. It adds a new 7-inch touchscreen navigation system with a rearview camera, which is similar to the unit in some trims of the Sonata and Genesis. Hyundai's Blue Link telematics system and Apple Siri Eyes Free are included, as well. Choosing the pack also features dual-zone climate control, a panoramic sunroof, LED taillights and ventilated driver's and passenger's seats, which brand claims is a segment first. Mechanically, the steering is retuned for better feel in 2016 but everything else carries over. That gives buyers a direct-injected 2.0-liter four-cylinder with 173 horsepower and 154 pound-feet of torque and the choice of a six-speed manual or automatic. Base pricing is the same as the 2015 model year at $18,800, plus an $825 destination charge on all models, for the manual or $19,800 with the auto. Although, with all of the extra kit, the Tech Package is now $3,950, rather than $2,900 last year, but the required Style Package for it is re-priced to $1,975, as opposed to $2,550 in 2015. Hyundai's Sporty and Versatile Hatchback Gets a More Affordable Style Package and a New Navigation System with Next-Generation Blue Link Telematics CHICAGO, Feb. 13, 2015 – Today at the Chicago Auto Show, Hyundai Motor America introduced a refreshed Elantra GT for the 2016 model year, offering updated styling with customer-focused technology and features. With a more distinctive front fascia and all-new 17" alloy wheels, Elantra GT's new look further enhances the vehicle's signature sporty styling. And when mated to a standard 2.0-liter Gasoline Direct Injection engine, the formula comes together to deliver a vehicle that both looks and feels dynamic.

Hyundai confirms a shift to EVs, unveils fuel cell SUV

SEOUL — Hyundai confirmed on Thursday it was placing electric vehicles at the center of its product strategy — one that includes plans for a premium long-distance electric car as it seeks to catch up to Tesla and other rivals. Like Toyota, Hyundai had initially championed fuel cell technology as the future of eco-friendly vehicles but has found itself shifting to electric as Tesla shot to prominence and battery-powered cars have gained government backing in China. Hyundai's debut of its more modestly priced Ionic hybrid and electric has been well-received. But the pure electric's per-charge driving range is much shorter than the Tesla Model 3 or Chevrolet Bolt. Toyota is now also working on longer-distance, fast-charging electric vehicles. Hyundai first started signaling this strategic shift back in May when it first discussed plans to launch an electric sedan under its high-end Genesis brand in 2021 with a range of 500 km (310 miles) per charge. It will also introduce an electric version of its Kona small crossover with a range of 390 km in the first half of next year. "We're strengthening our eco-friendly car strategy, centering on electric vehicles," Executive Vice President Lee Kwang-guk told a news conference, calling the technology mainstream and realistic. The automaker and affiliate Kia, which together rank fifth in global vehicle sales, also said they were adding three plug-in vehicles to their plans for eco-friendly cars, bringing the total to 31 models by 2020. Underscoring Hyundai's electric shift, those plans include eight battery-powered and two fuel-cell vehicles — a contrast to its 2014 announcement for 22 models, of which only two were slated to be battery-powered. Hyundai also confirmed a Reuters report that it is developing its first scaleable, dedicated electric vehicle platform, which will allow the company to produce multiple models with longer driving ranges. HYDROGEN SUV Hyundai unveiled a near production version of its new fuel cell SUV with a driving range of more than 580 km per charge, compared with the 415 km for its current Tucson fuel cell SUV. The mid-sized SUV will be launched in Korea early next year, followed by U.S. and European markets. A fuel cell electric bus is slated to be unveiled late this year, while a sedan-type fuel cell car is also planned. Even so, analysts noted that gaining traction with fuel cells was going to be a long hard slog partly due to a lack of charging infrastructure.