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German prosecutors have recorded calls between VW bigwigs talking dieselgate

It's barely possible to believe how poorly Volkswagen continues to handle dieselgate. Depending on which day you catch the news, the German carmaker embodies the corporate venality of "Michael Clayton," the comic blundering of the Coen Brothers' "Burn After Reading," and the every-man-for-himself vengeance of "Reservoir Dogs." Today is Tarantino day, with news that German prosecutors have recordings of phone calls between former Audi and Porsche development boss Wolfgang Hatz, ex-Volkswagen Group executive Matthias Muller, and current Porsche executives Oliver Blume and Michael Steiner. Hatz made the calls to the trio in November 2015, two months after Volkswagen admitted its diesel-particulate sins to the U.S. Environmental Protection Agency. Hatz was still employed at the time, and in his company car. Who recorded the calls? His wife. Hatz and his missus apparently saw the storm coming and started stacking defenses early. Hatz's wife, who can be heard encouraging Hatz during at least one call, sent the recordings to Hatz's attorney from her mobile phone. According to a Google translation of the German newspaper Handelsblatt's report, she included the note, "Here is a very long, but quite informative conversation on the current situation with useful formulations." The report in Handelsblatt said that in Germany it is generally "not allowed" to record a conversation and pass it on to a third party. We don't know how the authorities will handle this matter, since prosecutors found the recordings in e-mail attachments on Mrs. Hatz's mobile phone. Remember, when the diesel scandal broke, VW spent months saying that only a small number of low-level personnel were behind it, and all of the higher-ups had been blindsided. Ex-CEO Martin Winterkorn claimed to be "stunned that misconduct on such a scale was possible in the Volkswagen Group." Winterkorn successor Matthias Muller said, "according to current information, a few developers interfered in the engine management." Former VW USA honcho Michael Horn told a congressional committee that "a couple of software engineers" programmed the software for reasons no one could understand. In the recorded conversations, Hatz apparently called Muller to find out how VW planned to treat him.

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

Despite EV push, Audi will lead hydrogen for VW Group

The cynics among us will assume that Volkswagen Group would rather not affix its flagship brand name to its main hydrogen fuel-cell efforts in the wake of that German automaker's diesel-emissions scandal. Instead, there's less of a taint in having those efforts led by VWs Audi division. And that's exactly what's going to happen, reportedly. Audi will lead Volkswagen's way towards selling hydrogen fuel-cell vehicles to the general public, Automotive News Europe reports, citing comments Audi's new development head Stefan Knirsch recently made at VW headquarters in Germany. That first effort may come in the form of the H-Tron Quattro concept SUV that Audi unveiled at the Detroit Auto Show in January. That model is slated to have a 373-mile range on a full tank of hydrogen (using the optimistic European driving cycle) and includes a rooftop solar panel that can add 621 miles a year via sun rays. And true to Audi's performance-driving bent, the car will offer up to 282 horsepower and 406 pound-feet of torque, for a 0-62 miles per hour time of under seven seconds. Audi will also look to cut production costs by reducing precious metals such as platinum in fuel-cell stacks. As for plug-in vehicles, Audi said at last November's Los Angeles Auto Show that as much as 25 percent of new Audis will be plug-in vehicles by 2025. A month later, Audi said that the A3 E-Tron, which was launched in Europe in late 2014, was already accounting for a quarter of Audi sales in the Netherlands and Norway. Related Video: Featured Gallery Audi H-Tron Concept View 25 Photos News Source: Automotive News Europe-sub.req. Green Audi Volkswagen SUV Hydrogen Cars