How much will labor costs increase for the Detroit automakers because of the new contracts with the U-A-W?
The new contracts will increase the cost gap between the Detroit-3 and foreign automakers who build in the U-S, according to the Center for Automotive Research. The think-tank in Ann Arbor says GM and Ford costs will go up by 8-dollars an hour, and Fiat Chrysler will rise 11-dollars an hour during the 4-year contracts.
Although labor costs are only about 5-percent of the cost of a vehicle, CAR research says prices will go up.
GM total labor cost will be 71-dollars an hour…. Ford 69, Fiat Chrysler 66.
Total labor cost includes wages, health care, and pensions.