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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

VW spending $10 million on EV infrastructure, calls on Congress for help

It must be the season of big EV infrastructure announcements. In the last few days, we've heard from Bollore in France, PG&E in California and now VW. The German automaker says it will spend a total of $10 million on electric vehicle charging infrastructure by 2016. That includes the previously announced ChargePoint investment VW made with BMW and work the automaker is doing to get chargers for cars like the e-Golf installed as its dealerships. But Jorg Sommer, Volkswagen of America'sl VP of product marketing and strategy, said today in Washington, DC that automakers need help from the federal, state and local governments to turn electric mobility into a thing. Speaking at the 2015 Electric Drive Congress, Sommer said VW would like the Feds to support fast charging networks in urban areas as well as interstate corridors and that governments should "commit to cleaner fleets by purchasing EVs and PHEVs. This should be a US Government priority," he said. He also suggested that the plug-in vehicle multiplier credits under the EPA's greenhouse gas regulations should be extended beyond the 2021 model year. VOLKSWAGEN OF AMERICA TO INVEST $10 MILLION IN ELECTRIC VEHICLE CHARGING INFRASTRUCTURE BY 2016 Feb 10, 2015 Washington, D.C., February 10, 2015 – Jorg Sommer, vice president, product marketing and strategy, Volkswagen of America, today presented Volkswagen's holistic approach to e-mobility surrounding the launch of the zero-tailpipe emissions 2015 e-Golf, including a $10 million commitment to support electric vehicle infrastructure by 2016. During a presentation delivered at the 2015 Electric Drive Congress in Washington D.C., Sommer stated that Volkswagen believes continued legislative support is needed to reach the next level of electric vehicle adoption. "Automakers have effectively delivered electric vehicles that can satisfy the needs of most American drivers," said Sommer. "In addition to the investment we and other companies and industries are making, we would like to see Federal financing support for establishing fast charging networks in urban areas and interstate corridors. We'd like to see more state and federal organizations commit to cleaner fleets by purchasing EVs and PHEVs. This should be a U.S. Government priority, and federal purchasing guidelines should reflect that by giving fleet purchasers the flexibility they need," Sommer said.

The super-sized Atlas isn't the three-row VW should build

In the late '50s and early '60s the Volkswagen Beetle wasn't ubiquitous in my hometown of Lincoln, Nebraska, but it came pretty damn close. Fords and Chevys dominated, but beyond the occasional MG, Triumph, or Renault the import scene was essentially a VW scene. When my folks finally pulled the trigger on a second car they bought a Beetle, and that shopping process was my first exposure to a Volkswagen showroom. For our family VW love wasn't a cult, but our '66 model spoke – as did all Volkswagens and most imports at the time – of a return to common sense in your transportation choice. As VW's own marketing so wonderfully communicated, you didn't need big fins or annual model changes to go grab that carton of milk. Or, for that matter, to grab a week's worth of family holiday. In the wretched excess that was most of Motown at the time, the Beetle, Combi, Squareback, and even Karmann Ghia spoke to a minimal – but never plain – take on transportation as personal expression. Fifty years after that initial Beetle exposure, and as a fan of imports for what I believe to be all of the right reasons, the introduction of Volkswagen's Atlas to the world market is akin to a sociological gut punch. How is it that a brand whose modus operandi was to be the anti-Detroit could find itself warmly embracing Detroit and the excess it has historically embodied? Don't tell me it's because VW's Americanization of the Passat is going so well. To be fair, the domestic do-over of import brands didn't begin with the new Atlas crossover. Imports have been growing fat almost as long as Americans have, and it's a global trend. An early 911 is a veritable wisp when compared to its current counterpart, which constitutes – coincidentally – a 50-year gestation. In comparing today's BMW 3 Series to its' '77 predecessor, I see a 5 Series footprint. And how did four adults go to lunch in the early 3 Series? It is so much smaller than what we've become accustomed to today; the current 2 Series is more substantial. My empty-nester-view of three-row crossovers is true for most shoppers: If you need three rows of passenger capacity no more than two or three times a year – and most don't – rent it forgawdsake. If you do need the space more often, consider a minivan, which goes about its three-row mission with far more utility (and humility) than any SUV.