Suggestions that Detroit’s ‘Big Three’ automakers might shift more production abroad if they cannot reduce labour costs were again aired today (14 June).
Go deeper with GlobalData
According to a Reuters report, an unnamed industry executive told the Wall Street Journal (WSJ) the three companies were resolved to move jobs overseas if they could not reduce their US labour costs.
The WSJ reported, citing auto executives, that the three automakers will seek unprecedented concessions from the United Auto Workers union in upcoming contract negotiations, Reuters said.
The report said the domestic group wants to close a gap in labour costs of $US10bn a year compared with their leaner Asian-owned rivals.
None of the three automakers or the UAW was available to comment to Reuters on the report.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe WSJ noted that the US automakers previously have agreed to costly labour contracts but now are united in believing they have no choice but to close the cost gap.
The WSJ added that the crucial round of contract talks with the UAW begins next month and a four-year deal on wages and benefits expires in September, according to Reuters.
