1996 Passat Tdi Runs Great Avg 45 Mpg on 2040-cars

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Cost-cutting measures put VW Beetle in jeopardy

Volkswagen is on a mission to cut costs. That means producing more models across its various brands based on the same platforms and powertrains, but the latest word from Germany has it that it will also mean cutting some of the VW brand's less successful models. First on the chopping block, according to German publication Der Spiegel, is the three-door version of the Polo, which will reportedly cede its place to the five-door version exclusively. The elimination of that model alone is said to save VW a good 200 million euros, putting it on its way towards reducing the brand's costs by a targeted five billion euros. The Polo isn't the only one in danger, though. The Eos, as we know, is not due to be replaced, but the future of the Beetle could be in jeopardy as well. The Beetle may be one of VW's most iconic models, but is hardly its most successful in terms of sales. With the 2014 annual report due to be released shortly, the last full-year sales figures had Volkswagen selling 109,517 Beetles in 2013. That may be more than four times the number of Scirocco models it sold, but hardly puts a dent in the 871,413 Jettas, 824,629 Golfs and 725,291 Polos it sold during the same year.

Autoblog Podcast #389

Episode #389 of the Autoblog podcast is here, and this week, Dan Roth, Chris Paukert, and Mark Pereira from Autoblog Canada talk about Johan deNysschen's move to Cadillac, rumors of more BMW nomenclature changes, a second generation for the Subaru BRZ, and cars from 2004 that we miss. We start with what's in the garage and finish up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the new rundown below with times for topics, and you can follow along down below with our Q&A. Thanks for listening! Autoblog Podcast #389: The video meant to be presented here is no longer available. Sorry for the inconvenience. Topics: Johan de Nysschen moves to Cadillac BMW model designations changing even more Subaru BRZ getting second generation Cars We Miss In the Autoblog Garage: 2014 Ducati 899 Panigale 2015 Hyundai Sonata 2015 Volkswagen GTI 2015 Chevrolet Silverato 2500 Diesel Hosts: Dan Roth, Chris Paukert, Mark Pereira Runtime: 01:59:10 Rundown: Intro and Garage - 00:00 Johan deNysschen - 36:12 BMW Nomenclature - 53:58 BRZ - 56:27 Cars We Miss - 01:05:07 Q&A - 01:30:09 Get the podcast: [UStream] Listen live on Mondays at 10 PM Eastern at UStream [iTunes] Subscribe to the Autoblog Podcast in iTunes [RSS] Add the Autoblog Podcast feed to your RSS aggregator [MP3] Download the MP3 directly Feedback: Email: Podcast at Autoblog dot com Review the show in iTunes Auto News Hirings/Firings/Layoffs Podcasts BMW Cadillac Chevrolet Hyundai Subaru Volkswagen

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