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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

Recharge Wrap-up: Renault-Nissan at COP21, fast charging viability

Nissan and Renault's combined fleet of 200 EVs drove over 175,000 kilometers (about 108,700 miles) during the COP21 environmental summit in Paris. The largest fleet of EVs for any international conference served as shuttles for attendees, saving almost 182 barrels of oil and 18 tons of CO2 emissions. In addition to providing the Nissan Leaf, Nissan e-NV200, and Renault Zoe EV shuttles, the Renault-Nissan Alliance also set up a network of 90 chargers to support the fleet. 13 of the 27 quick and semi-quick chargers will remain in place for public use. Read more in the press release below.Siemens names Ann Arbor, Michigan for its first Center of Excellence for Intelligent Traffic Technology. The company will implement new and upgrade existing traffic technologies in the city, including cloud-based traffic management software, local controller software and an adaptive traffic control system designed to improve traffic flow and safety. In a college town with highly varying numbers of students and visitors throughout the year, "the need to move traffic in and out of the city efficiently is crucial not only for economic and environmental impacts, but for quality of life for Ann Arbor residents," says Marcus Welz, president of Siemens Intelligent Traffic Systems. Many Ann Arborites (your author included) would surely agree. Read more at Green Car Congress, or in the release from Siemens.A study in Ireland found that public fast charging could soon become commercially viable. The researchers found parking spots to be the most popular public charging locations, and that fast chargers saw the most frequent use, suggesting commercial viability for the infrastructure in the short- to medium-term. The study also found that most drivers prefer to charge at home, and do so during peak hours. Incentivization could be necessary to break people from this habit. Read more at Green Car Congress.

Ghosn: 'While I'm proud of our EV leadership, I know it's not enough.'

Renault-Nissan CEO Carlos Ghosn has written something like a State of the Union on electric vehicles and the carbon economy. We'd sum it up as, 'we're working on it but we all need to work harder.' Ghosn believes all of the commitments made at the Paris COP21 climate change conference are a start, but "the support of the business community is imperative," in coordination with the public sector. He stresses that he's after an "orderly transition," one that uses what we have now in order to go where many believe we need to go. That means no threats or revolution, no "aggressive government intervention and centralized demand and control," but rather a "practical, affordable way to begin reducing dependence" on the fuel that turns the skies brown. Ghosn wraps up his manifesto this way: "The UN Secretary General recently said that we are the first generation to feel the effects of climate change and the last to be able to do anything to stop it. This is a call to action, and the auto industry is committed to doing its part." Based on the undeniable shift toward the electrification of the automobile, we know that the call is being answered. Given the limited market share EVs have today, it could still use some more people and companies picking up the phone. With vehicle numbers expected to grow from 800 million to more than two billion by 2050, "transition will occur one way or another," Ghosn writes. Head over to Forbes to read Ghosn's thoughts.