2005 Volkswagen Passat Gls on 2040-cars

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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 budget sub-brand stuck in limbo over VW standards, costs

Reports in October 2012 claimed Volkswagen had begun investigating the creation of its own budget brand. This came after having failed to purchase Malaysian car company Proton or produce a meaningful partnership with Suzuki, and after watching Renault-Nissan make piles of euro on Dacia and plot the return of Datsun. For VW, more important than the question of what to call it was how to build it profitably and in a way that didn't damage the VW brand. According to a report in Autocar, a satisfactory answer still hasn't been found. The hurdle is how to hit "'necessary' quality and safety levels" at the price points needed to make the venture worthwhile. At the time of the 2012 report, German outlet Der Spiegel said VW was trying to get prices down to 6,000 to 8,000 euro ($7,784 to $10,379 US), about two thousand to four thousand euro under the price of the VW Up and in line with the cost of a 6,790-euro Dacia Sandero in Germany. In March 2013, VW announced, "We want to bring a true budget car to the market in China in the foreseeable future," the most concrete move in that direction after years of planning to make a decision. Working with local Chinese maker FAW, it was predicted that the vehicle in question would appear around 2016, but as of November last year a final vote on it needed to wait until this year because "We are still working on the cost side" and profit possibilities for a car that "has to be durable, it has to be precise, it has to be safe." Even Fiat, another automaker long considering a budget brand beneath its Fiat line-up, wasn't sure how to squeeze any extra money from lower-cost products but was sure that it couldn't be done by manufacturing in Europe. If VW hasn't yet made the math work with a joint venture in China, it will be interesting to see how it might build a European go-it-alone business case.

The VW Sport Coupe GTE Concept promises exciting things for brand's future [w/video]

In recent years, it seems as though the Audi allotment of design talent from the Volkswagen Group has gotten braver, while the VW designers have become more conservative. One look at the current Volkswagen range reveals a lot of tidy sheet metal, but hardly any that rank as evocative or emotionally compelling. If the rhetoric around this Sport Coupe GTE Concept turns to action, however, VW's mass-marketed cars could become a lot more interesting to look at. Sharp creases and bold graphics can be found on just about every inch of the concept, and the large wheels at either extreme corner help to sell this as a "four-door coupe" more than most executions of that now hackneyed styling term. And, if you like what you see, then you might want to hold out for quickly approaching versions of this look on production models. Design head Walter de Silva says this language will be "shaping the immediate future" for VW product. Mechanically, the Coupe also previews more hybridization for the VW line. The concept has a plug-in hybrid powertrain, with a turbo 3.0-liter V6 driving the front wheels, and an electric motor sending yet more power to the rear. You can read up on the details in our official post from a few days ago, or just click through the pretty pictures in the gallery above. SPORT COUPE CONCEPT GTE MAKES WORLD DEBUT AT THE GENEVA AUTO SHOW Four-door coupe marks beginning of a new design era at Volkswagen Wolfsburg/Geneva, March 2015 -Volkswagen will debut the Sport Coupe Concept GTE at the 2015 Geneva International Motor Show, heralding a new and progressive Volkswagen design language. "Evolution and revolution come together in the Sport Coupe Concept GTE. This concept is based on Volkswagen design DNA, which has been visibly sharpened even more. It shows how the highest-volume brand of our Group is shaping the immediate future," says Walter de Silva, Head of Design of Volkswagen AG. Dr Heinz-Jakob Neusser, Volkswagen Brand Board Member for Development, elaborates: "This breathtakingly dynamic coupe is unlike any other to appear in this class. The design of the Sport Coupe Concept GTE is an impressive alternative to the classic sedans of the B and C segments-it has the style of a sport coupe that is enriched by the functionality of a large hatchback and the interior space of a sedan." Klaus Bischoff, Head of Design of the Volkswagen Brand, adds: "The Sport Coupe Concept GTE is another milestone of expressive design.