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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

2021 Kia Seltos fuel economy revealed at up to 31 mpg combined

The 2021 Kia Seltos made its official debut in the U.S. just a couple months ago at the L.A. Auto Show. Now its fuel economy numbers have been published by the EPA. The compact crossover's numbers are roughly on par with its smaller Soul sibling and significantly better than the larger Sportage. The Seltos is available with two different engines, a 146-horsepower naturally aspirated 2.0-liter four-cylinder coupled to a CVT, and a 175-horsepower turbocharged 1.6-liter four-cylinder with a dual-clutch transmission. The former is available with front-wheel drive or all-wheel drive, while the latter only comes with all-wheel drive. Unsurprisingly, the most efficient model is the front-drive 2.0-liter with city fuel economy of 29 mpg, highway economy of 34, and 31 combined. Adding all-wheel drive drops those numbers to 27 in town, 31 on the highway, and 29 combined. The turbo Seltos brings up the rear with 25 mpg in the city, 30 on the highway and 27 combined. Compared with its smaller sibling, the Soul, the Seltos performs impressively, with the front-drive model matching the Soul Eco Dynamics combined fuel economy of 31 mpg. On the other hand, the turbo Soul's 29 mpg combined rating is better than the turbo Seltos. The turbo Seltos does have all-wheel drive, which the turbo Soul lacks. In fact, no Soul is available with all-wheel drive, a worthy selling point for the Seltos. When comparing the Seltos numbers to the bigger Sportage, which also offers all-wheel drive, every version of the Seltos outperforms the best Sportage's combined fuel economy number of 26 mpg. Comparing the Seltos with other small crossovers, it fares well. Looking at front-drive competitors, only the much more expensive Subaru Crosstrek Hybrid and the smaller, cheaper Nissan Kicks and Hyundai Venue top the Seltos in fuel economy. The Buick Encore ties it. With all-wheel drive, the Seltos is also competitive. The non-hybrid Subaru Crosstrek's 30 mpg combined beats the Seltos by just one, and the Honda HR-V is tied with the Kia. The 2020 Kia Seltos will go on sale early this year. The base price will be below $22,000. Related Video:

South Korea assists auto industry struggling with coronavirus fallout

SEOUL —  South Korea said on Monday it would provide logistical and financial support to help its auto industry through the coronavirus crisis, warning of disruptions to supply chains from Europe and the United States. The government said it would speed up customs clearance, arrange freight transportation and provide liquidity support for the industry, which employs about 12% of South KoreaÂ’s workforce, according to official figures. The coronavirus pandemic has led to shutdowns at auto factories and dealerships in the United States and Europe, which are expected to affect South Korean automakers such as Hyundai and Kia. “ItÂ’s time to prepare for the shock of a global demand contraction and European supply issues,” Industry Minister Sung Yoon-mo said in a meeting with parts supplier executives and industry associations, according to a readout from the ministry. “Survival is the most crucial thing in this unprecedented crisis when both demand and supply contract at the same time.” The ministry gave no details on how much liquidity support the government would provide or what form it might take. The assistance is part of 50 trillion won ($39 billion) in emergency financing announced last week to boost the economy. South Korea has reported 8,961 coronavirus cases and 110 deaths from the disease. Hyundai Motor closed its Montgomery, Alabama, assembly plant on Wednesday after an employee there tested positive for COVID-19. It also suspended production at its plants in the Czech Republic and India due to the coronavirus outbreak. Europe and the United States account for about 70% of Korean automakersÂ’ exports, and 54% of Korean parts exports, government data showed. A trade ministry official said South Korean exports would deteriorate in April and May, after rising 10% year-on-year in the first 20 days of March. Car exports rose 13.7% in the period, customs agency data showed on Monday. “For the time being, a drop in exports of cars and auto-parts are inevitable as car factories and dealerships are closing,” Sung said. South Korean automakers had stocked up on inventories which could last up to two months, Sung said. Related Video: Earnings/Financials Government/Legal Plants/Manufacturing Hyundai Kia coronavirus