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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

2020 Kia Telluride Second Drive | Won over

When I first saw the 2020 Kia Telluride at the 2019 Detroit Auto Show press days, I was super impressed. It looked great on the show floor, the interior was roomy, materials were high-quality and details well attended to. I couldn't wait to show my wife, Cat, who has been looking to move from a Mercedes-Benz GLK into something a bit bigger. The Tellurides were less accessible when Cat and I took our son, Wollie, to the public show, so I couldn't fully show off this new ute I thought was so cool. "Eh, it's a Kia," Cat said, despite my many previous attempts to convince her that the notion of crummy, boring, cheap Kias is a thing of the past. Anyway, I'd have to wait to get a Telluride from the press fleet to convince her further and to see if I even liked it as much on the road as I did seeing it on the show floor. The day I brought it home, my 3-year-old son called — as he often does — around lunchtime to ask what car I'd be driving. When I said "Kia Telluride," he got excited. He's been a huge fan of our long-term Stinger (as well as an Optima we once rented in Arizona), so the Kia brand name impressed him. My wife, who was also on the line, had no reaction. Driving it home, I fell in love with the Telluride, just as I expected I would. Our top-of-the-line SX-trim tester was nice, loaded with content, trimmed with what looked and felt to be high-quality materials. It took close inspection to see that the headliner isn't a soft microfiber, and that the wood trim is actually plastic. The Nappa leather upholstery is rich, and the seats supportive. The huge dual sunroof and gigantic windows give the cabin an open, airy feeling. I would be pushing for a Telluride as a future addition to Autoblog's long-term garage, as I could see myself enjoying this car for many a mile, with the space to serve many purposes. When I got home, Wollie was eager to check the Telluride out. He climbed all through it, and marveled at the sheer amount of space it affords. He had the room to navigate freely from seat to seat and row to row. As a full-grown adult, I also found it fairly easy to navigate between the captains' chairs and get comfortable in the third row. I wouldn't recommend putting three adults in the back, but I'd be happy back there for shorter rides, or perfectly relaxed in the second row on long hauls. The Snyder boys were sold. Cat came out to see it, and still wasn't impressed.

Is your new-car warranty good at the race track?

We've all heard the horror stories. Your buddy knows a girl that was dating a guy whose best friend's brother once broke his brand-new, recently purchased performance car while making runs at a drag strip or laps at a track day, and the manufacturer wouldn't cover the repair under warranty. True story? Urban legend? Complete crap? Yes, no, maybe. One thing's for sure: Automotive warranties have always come with caveats. In 1908, an ad in the Trenton Evening Times clearly stated: "All Ford Cars Guaranteed for One Year." Although it changed over time, by 1925 the Ford New Car Guarantee only covered 90 days on material and 30 days on labor, and it clearly stated that that there was "No guarantee whatever on Fan Belts, Glass, Bulbs, Wiring, Transmission, Bands, Hose Connections, Commutator Shells, Rollers, Spark Plugs or Gaskets." Whether or not Ol' Henry would pay to fix your Model T if you broke it shaving a tenth off your lap time at the local board track seems to be lost to history. We're guessing no. But what about today? Do new-car warranties in 2017 cover cars when they are driven on race tracks? We researched the warranties of 14 auto brands to find out, and the answer is yes, no, maybe, depending on the brand, in some cases the model, and whether or not your car is modified from stock. Acura has been out of the high-performance car game for a number of years, but jumps back into the party in 2017 with its hybrid-powered $173,000 NSX supercar. And Acura's warranty, as well as Honda's, clearly states that it does not cover "the use of the vehicle in competition or racing events." View 33 Photos So we asked Sage Marie, Senior Manager of Public Relations for Honda and Acura. "If the car is stock, the warranty covers it on a track just as it does on the street. No question," he told us. "However, if the car is modified, say with slick tires or other components that would put higher stresses on the vehicle's parts and systems, then we would have to investigate the circumstances further." Marie went on to say the same would be true for any Acura model or Honda vehicle, including the new 2017 Honda Civic Si. This became a common theme. Chevrolet actually started this practice with the fifth-generation Camaro on the high-performance ZL1 and Z/28 models.