The poor first quarter earnings of Ford and General Motors are having an effect all the way up the food chain. Both automakers struggled with recalls in the first three months of the year, and, according to The Detroit News, they have responded by increasing the percentage of bonuses tied to vehicle quality for salaried workers, including top executives.
Ferrari has got to be a great place to work. In fact, it's named as one of the best places to work in Europe year after year. Add to that the pride of making some of the coolest cars in the business, running one of the winningest teams in all of motorsports (even if the Scuderia isn't doing so well thus far this season) and all around standing for the best Italy has to offer, and you've got the makings of a dream job. And it just got a bit sweeter.
Toyota is on track for record profits, and in return, its Japanese workers are receiving their first increase in base wages since 2008, plus higher pay based on seniority and a larger bonus for 2014. The Japanese automaker predicts the average laborer will net a 2.9 percent income gain.
The owner of the Howard Cooper Import Center in Ann Arbor, Michigan recently sold his 47-year-old dealership to a new company, but before he did, he took the time to say thanks to his employees. How? Everyone on staff received $1,000 for each year that they'd worked for the company.
Even at a team like Ferrari (which has more grand prix victories to its name than any other team in Formula One – 217 to be specific), every win counts. Especially these days when they're far more scarce than they were in the Michael Schumacher days of back-to-back championships. So when Fernando Alonso took home the checkered flag in Malaysia this past weekend, there was cause for celebration in Maranello.
Ford has announced that it will give both bonuses and merit-based raises to the company's salaried workers in the United States and Canada for the first time since 2008, according to Reuters. On average, the manufacturer will offer a 2.7 percent salary increase based on individual performance. The company stopped offering the bonuses after the financial crisis of 2009 sent automotive sales into a plunge. Ford paid neither bonuses nor merit raises that year, but offered merit raises in 2010. In 2
The government of France uses a "bonus-malus" system to encourage its citizens to go green with their next car purchase. The more fuel efficient a vehicle you buy, the bigger incentive you get. The more gas guzzling a vehicle you buy, the bigger penalty you pay. Unfortunately for France, too many people are buying fuel efficient vehicles and taking advantage of the government incentives, which means income from the gas guzzling penalty hasn't been high enough to make the program budget neutral.
The latest musical theme for Ford workers and shareholders could be Junior Mafia's "Get Money." The Blue Oval just told its salaried employees that 2010 bonuses would average three percent. Not only does that reinstate the bonus system missing for the past two years, it rewards salaried employees the same way it rewards executives. Of course, it depends on the year's corporate and individual objectives being met, but there are few better ways to help ensure targets are delivered upon than by pro
Although the French Minister of Economy complained about the reduction in taxes when the bonus/malus system started in France, the whole scheme is only now getting some changes. How does the system work? When you purchase a car, you have to pay an additional tax (malus) if the car produces too much CO2, or you might get money back from the state (bonus) if it's below a certain amount.
Ford is making significant strides to turn its North American operations around. In 2006, it was able to cut almost 34,000 workers from its payroll after one round of buyouts and is looking to cut even more of its workforce this year through another payoff program that's being offered to 54,000 UAW-represented workers.
While comparing Porsche to General Motors is beyond a stretch, we couldn't help but think about last week's UAW strike against the General while reading about Porsche giving away $7,350 in bonuses to over 8,000 full-time employees. Must be nice to be part of a profitable automaker – even if it's from sales of the Cayenne.
Podcast #60 finds us reminiscing about the Geneva Motor Show. We spend a while talking about what our team saw at the show - standout vehicles, best and worst, most surprising (good and bad) to see in person versus pictures. John presses Damon for information about how some hotly anticipated cars such as the Mazda2, Audi S5, and the M3 looked at our first opportunity to be up close and personal with them. A good long time is spent covering Geneva before we turn our attention to Ford's sale of As
Alan Mulally went to Ford to kick ass and chew bubblegum, and now he'll be able to afford more Hubba Bubba. It's really a stock option bump -- from $5 to $6 million -- as a reward for taking FoMoCo by its earlobes and attempting to drag it out of the mire it's stuck in. We have seen more focus out of Dearborn as Mulally rallies the troops, and the compensation is recognition that the good fight is being waged. Intent on keeping its four-star general focused, the board has also allowed Mulally's
The UAW has been hearing a lot about how the 2007 labor talks will involve tough concessions. Ballooning health care costs and twice as many retirees as active employees result in a $1,500 per-vehicle disadvantage for the Detroit automakers -- these are among the major factors cited for GM's $10.6 BLN loss in 2005 and Ford's $12.7 BLN loss in 2006. Of course, the UAW will point out that poor management decisions and a lack of new products are every bit as much to blame, which is why recent repor