Higher Autoworker Wages Unlikely to Significantly Raise Car Prices
-
Labor costs make up a small part (about 7%) of the total cost of building a car, so increasing autoworker wages will have minimal impact on vehicle prices.
-
Automakers have to compete with non-union companies who aren't raising wages, so can't easily pass on higher labor costs through increased car prices.
-
Higher labor costs will likely cut more into automaker profits than raise consumer prices.
-
Car prices are driven more by supply and demand than production costs. Recent increases are due to high demand and low supply, not rising expenses.
-
Consumers buying more optional features on cars also raises average sales prices, even if base model costs remain stable.