UAW reaches deal with GM, ending strike against Detroit automakers

[michaelluscher]

UAW reaches deal with GM, ending strike against Detroit automakers

General Motors and the United Auto Workers (UAW) have reached a tentative agreement, they said on Monday, with its members winning record pay hikes to end six weeks of a coordinated strike against the Detroit Three automakers.

www.reuters.com

To be ratified, but deep exhale it's finally over

 

[cptbarkey]

Wow.

"Consumers will bear some of the cost burden over time ... automakers will not have an easy time passing along all of the costs ... and will have to seek efficiencies in other ways, or further limit production to more expensive vehicles that can absorb higher labor costs," Cox Automotive's chief economist, Jonathan Smoke, said.

 

[joekingcorvette]

People will still vote with their wallet. If prices get too high they will buy another product or find another avenue to decrease costs.

 

[MrHorspwer]

People will still vote with their wallet. If prices get too high they will buy another product or find another avenue to decrease costs.

Unfortunately, all automakers will raise their prices in kind.

The ones with lower labor costs will simply enjoy higher margins. The consumer still gets the short end.

 

[PF52]

"Consumers will bear some of the cost burden over time ... automakers will not have an easy time passing along all of the costs ... and will have to seek efficiencies in other ways, or further limit production to more expensive vehicles that can absorb higher labor costs," Cox Automotive's chief economist, Jonathan Smoke, said.

In an unrelated note, that guy needs to team up with a chap named Mirrors, to do a regular column/blog about the economy.

 

[joekingcorvette]

Unfortunately, all automakers will raise their prices in kind.

The ones with lower labor costs will simply enjoy higher margins. The consumer still gets the short end.

This is exactly how Hyundai and Kia were able to do so well. They had better warranties and lower prices. People will go to the companies that offer the best deal however companies such as Honda and Toyota get a lot of business because there reliability is exceptional compared to the Big 3. You don't have to buy from these companies that have gone on strike and want to raise their prices to make their employees happy.

 

[Dave Hess]

Good to see them going back to work and assembly lines running.

 

[Gus_Mahn]

People will still vote with their wallet. If prices get too high they will buy another product or find another avenue to decrease costs.

Lots of us that can afford new cars and trucks have already checked out. I plan on just keeping on driving what I have and living where I live. The $40,000 new cars and $60,000+ trucks are just more $ than I can justify before taxes and insurance.

 

[joekingcorvette]

Yes I agree vehicles are getting too high.

 

[2010Civic]

Never have and probably never will buy a "big 3" car.

 

[E365]

Ford says the cost to build a vehicle will go up $850-$900 each. Much lower than I expected…

 

[MalibuRam65]

People will still vote with their wallet. If prices get too high they will buy another product or find another avenue to decrease costs.

I doubt it there’s plenty of folks who will continue to buy from the Big 3 regardless. A lot folks family members worked or used to work there and feel obligated to continue to buy there products.

 

[Skippy722]

Anything worth driving (in my opinion, no I’m not interested in a FWD snoozefest) is asininely expensive anymore. Back to buying used it is

 

[Hermann]

They knuckled under again.

 

[Elkins45]

I wonder what new country we’ll start importing cars from once Kia and Hyundai become too expensive without a 108 month loan? India? Maybe somewhere in Africa?

Personally I would love to see a genuine Mexican car company make a go of it. It would be nice to at least keep the money on the same continent. Or maybe Brazil: they make great commuter jets.

 

[JeffKeryk]

Ford says the cost to build a vehicle will go up $850-$900 each. Much lower than I expected…

The labor component is generally 10% to 15% of the cost to manufacture a car. Material is the biggie, and factory utilization is important, because you want to spread the factory overhead over more vehicles.
I understand a highly automated line coupled with low labor can get labor down as low as 5%.

I expect manufacturers to work on cost components such as the dealer distribution model. Industry 4.0, which is the integration of advanced digital technologies into manufacturing, while poorly defined, is emerging. The company who chooses to implement this and has the requisite resources will win. It's coming.

 

[MalibuRam65]

We should be happy the BiG 3 settle with the UAW now the workers can get back to building Quality vehicles that we all know and love . Sure prices may go up but we must to continue to support