From generous pay and benefits to stronger job security, the United Auto Workers union won significant concessions in tentative settlements that have ended their strikes against Detroit’s three automakers.
Now, General Motors, Ford and Stellantis are facing sharply higher labor costs, estimated by some analysts at exceeding $1 billion per year, per company. The automakers will try to absorb those cost increases through expense reductions and efficiencies while still aiming to post strong enough profits to please Wall Street.
“I don’t think consumers will necessarily readily absorb all the price increases,” said Jonathan Smoke, chief economist for Cox Automotive. “We are bound to see continued growth in discounting, which has just started to recover as supplies improve.” Natalie Knight, the chief financial officer of Stellantis, the parent company of Chrysler, Jeep and Ram, said her company has already pulled out of two auto shows in the United States to save on expenses.
As factories crank back up after the strikes, Smoke foresees pressure on the companies to keep prices affordable, especially with auto loan rates around 10% driving up monthly payments. Discounts, he said, will likely have to come out of the automakers' profits.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Auto strike settlements will raise costs for Detroit's Big 3. Will they be able to raise prices?DETROIT (AP) — From generous pay and benefits to stronger job security, the United Auto Workers union won significant concessions in tentative settlements...
Read more »
UAW announces deal with General Motors that tentatively ends strikes against Detroit automakersDETROIT (AP) — The United Auto Workers union said Monday that it reached a tentative contract with General Motors, the last of the Detroit Three automakers to agree to a deal.
Read more »
General Motors, the lone holdout among Detroit Three, faces rising pressure and risks from strikeDETROIT (AP) — Pressure in rising on General Motors as the lone holdout in a strike targeting all three big Detroit automakers after a tentative contract...
Read more »
Detroit Lions Look to Continue Winning Streak Against RaidersThe Detroit Lions, led by coach Dan Campbell, have been performing well against the spread and are favored to win the AP NFL Coach of the Year award. They will face the Raiders in a highly anticipated matchup in Week 8 of the NFL.
Read more »
Detroit Red Wings' Power Play Success: Utilizing Zone EntriesThe Detroit Red Wings have been one of the biggest surprises in the Eastern Conference this season, with their power play playing a big role in their early success. They have utilized zone entries and a crisscross strategy to quickly capture offensive zone pressure.
Read more »
las vegas raiders detroit lionsCanada's Sports Leader
Read more »