“The Detroit company said it lost production of 95,000 vehicles due to the United Auto Workers walkouts, costing the company $1.1 billion. But due to $2 billion worth of annual efficiency gains and cost reductions expected by the end of next year, the company said it can handle $9.3 billion in labor cost increases from U.S. and Canadian union contracts through April of 2028.
“The deals, GM said, will increase costs per vehicle by $500 next year and $575 by the end of the contracts, but analysts say competition will limit the company’s ability to raise prices…
“At the end of the contract top-scale assembly workers will make about $42 per hour, plus they’ll get annual profit-sharing checks. UAW President Shawn Fain said during the strike that labor costs are only 4% to 5% of a vehicle’s costs, and that the companies were making billions and could afford to pay workers more.”