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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

Hyundai, Kia add to 2.4 million cars recalled in U.S. over fires, engines

DETROIT — Hyundai and Kia have added more than a half-million vehicles to 3 1/2 -year string of U.S. recalls for engine failures and fires. Three recalls released Thursday by the government add new problems and vehicles to the Korean automakers' list of safety woes, which have brought hundreds of complaints about fires from across the nation. The companies have now recalled nearly 2.4 million vehicles for fire and engine failure problems since September 2015, and they are under investigation by the National Highway Traffic Safety Administration for potentially being slow to fix faulty vehicles. In addition, the companies are doing a "product improvement campaign" covering another 3.7 million vehicles to install software that will alert drivers of possible engine failures and send the cars into a reduced-speed "limp" mode if problems are detected. The largest of three recalls posted on the National Highway Traffic Safety Administration website Thursday covers nearly 379,000 Kia Soul small SUVs from 2012 through 2016 with 1.6-liter engines. Documents show that high exhaust gas temperatures can damage the catalytic converters, which control pollution. That can cause abnormal combustion and damage pistons and connecting rods. A failed connecting rod can pierce the engine block and cause oil leaks that can cause fires. In addition, Hyundai and Kia are recalling 152,000 Tuscon SUVs from 2011 to 2013 and Sportage SUVs from 2011 and 2012 to fix an engine oil pan leak that also can cause fires. Documents show that Kia had been investigating fires in Souls after the nonprofit Center for Auto Safety petitioned the government to look into the fires last year. In November, the automaker couldn't find any safety problem trends but it kept monitoring repair data and found the problem with the catalytic converters. All Souls with 1.6-liter engines made from July 8, 2011, through August 11, 2016, are being recalled. Dealers will replace a computer that prevents the catalytic converter from overheating. They'll also replace the catalytic converter and the engine if they have been damaged. Letters will be mailed to owners starting April 12. In the Tuscon and Sportage recalls, the fix for the oil pan problem is still being developed. Hyundai owners will be notified starting March 29, while Kia owners will get letters starting April 10.

2017 Kia Sportage gets bigger and gains bulbous new duds

Anyone who's been keeping an eye on our monthly By The Numbers series of posts knows that crossovers are the kings of the automobile world in 2015. That's not likely to change any time soon, at least so long as gasoline remains relatively cheap and lenders remain willing to offer ever-longer loans with reasonable interest rates. Kia looks perfectly positioned to capitalize on the booming crossover trend with its latest Sportage. The 2017 Kia Sportage is a bit more bubbly on the outside than before, and it's got more interior room thanks to a chassis that's been stretched 1.2 inches longer than the previous model. Two powertrains will be available: a 2.4-liter four-cylinder with 181 horsepower and 175 pound-feet of torque, and a 2.0-liter turbo with impressive figures of 241 hp and 260 lb-ft. A six-speed automatic transmission is standard across the board. All-wheel drive will, of course, be optional, and Kia claims the new Sportage will be more fuel efficient than before. Kia's latest infotainment system will make its debut inside the 2017 Sportage, and it will bring both Apple CarPlay and Android Auto on a seven- or eight-inch screen, though LX models will have a lesser five-inch display. We don't yet know how much the 2017 Kia Sportage will cost, but we'd bet dollars to donuts that it will be competitive with the rest of the compact crossover segment. There's a lot more information to be gleaned from the press release below. First, though, we suggest you watch the video up above to see Kia's latest cute 'ute for yourself as it struts its stuff at the LA Auto Show. Then, Sportage fans are welcome to geek out to our high-res image gallery. All-new 2017 Kia Sportage makes North American Debut at Los Angeles Auto Show Fourth-Generation Sportage Compact CUV Boasts Sophisticated Design, a Refined Premium Interior and Significant Ride and Handling Improvements - Stiffer structure, new suspension, advanced driver assistance systems, and premium materials take Sportage to the head of the class - Cutting-edge design, engaging driving dynamics and intelligent packaging stand out in a staid compact CUV segment - First Kia to offer UVO3, featuring 14 telematics services, 8 GB of music storage, access to onscreen apps and Wi-Fi tethering capability, all free of charge Los Angeles, November 18, 2015 – Kia Motors America (KMA) today unveiled the all-new 2017 Sportage at the Los Angeles Auto Show.