The powerful United Auto Workers (UAW) union began a strike last Friday at three car factories in the United States. A strike that affects the three big Detroit manufacturers: General Motors, Ford, and Stellantis, and that could provide another boost to Tesla’s already solid position in terms of sales.
This strike seeks to improve the economic and working conditions of the workers of the main American groups. The union demands a salary increase of 36% in four years, while the three American manufacturers have not exceeded 20%.
This situation may result in the production costs of large traditional groups increasing and with it the difference with Tesla. Data from the consulting firm Munster indicates that workers at Ford, General Motors, and Stellantis earn 38% more than those at Tesla. A difference that everything indicates will increase when the agreement is signed.
According to the Munster report: ” Big carmakers are in a difficult situation when it comes to making the transition to the electric car, and current discussions with unions will eventually result in a sharp increase in costs that will push them even further.” into the red »
For his part, Dan Levy, an analyst at the consulting firm Wedbush: « Let’s be clear: this is a potential nightmare situation for GM and Ford, as both are in the early stages of a path of massive electric vehicle transformation for the next decade that will define future success .”
The situation is not easy, and to reduce costs, manufacturers need to scale production. Something that a strike will not help in the least. Added to this is the foreseeable increase in costs once the agreement with the unions is closed, which in the best of cases will be around 20% salary increases.
As an example, Tesla’s labor cost is currently estimated at around $45 to $50 per hour, while the Detroit giants do it for between $64 to $67 per hour. Both figures include salaries, benefits, and profit sharing.
A scenario where large manufacturers face a Tesla that is traveling at full speed, increasing production and reducing costs, for example with the use of the gigapress, which allows them to lower costs. Something that has an impact on increasingly lower prices, and an increasingly higher market share that in the case of the United States already reaches an overwhelming 60% of the market for Tesla.