Salary of workers in the automotive sector in the United States will have effects
An increase in the salary of workers in the automotive sector in the United States will have effects.
In this regard, the Mexican Association of Automotive Distributors (AMDA) has warned that the proposed 25% per hour wage increase by companies like Ford and General Motors for their workers in the United States will have impacts on costs. Offering a salary increase to workers in the US automotive sector is the only option to end a strike that has already exceeded six weeks.
As a result, it will have repercussions on the finances of the automakers and on the progress in the production and sale of electric vehicles worldwide.
Regarding this, Guillermo Rosales, president of the AMDA, stated that the 25% wage increase, along with other benefits in a gradual process, will have an impact on the management and finances of the involved companies.
He believes that beyond affecting the final cost to consumers in the short term, it will diminish the capacity of these three major corporations (GM, Stellantis, and Ford) to compete in the race that the automotive industry is currently engaged in for the transition to electromobility.
He emphasized that the three major Detroit automakers have accelerated their projects to electrify their vehicle offerings in recent years, and with this increase in the wage structure, “their competitive capacity will be reduced,” he asserted.
On the other hand, the National Auto Parts Industry (INA) has indicated that the impact on the sector due to the strike has resulted in losses of up to $780 million in orders in six weeks.
Salary of workers in the automotive sector in the United States
Workers in the US automotive sector: Positive The executive considers the progress with workers in the US automotive sector to resolve the conflict they are facing with Ford, General Motors, and Stellantis in the United States as positive.
However, he believes that the impact of this conflict could hinder progress in the race to electrify the vehicle offerings in the region.
Guillermo Rosales mentioned that the impact of the strike over the six weeks is only 1 percent of last year’s exports to the United States.
On the other hand, Rosales highlighted that the industry continues to grow, with each distributor selling an average of 271 new vehicles and 91 used vehicles per dealer from January to September, marking growth of 11.8% and 5.6%, respectively.
Furthermore, AMDA revealed that at least 21 car dealerships or distributor companies located in Acapulco were completely damaged after the passage of Hurricane Otis in Guerrero, which represents 65 percent of all distributor agencies operating in the region, as confirmed by Guillermo Rosales, president of the AMDA.
“In Acapulco, there are 21 distributor companies in operation, and this represents 65 percent of the 32 that we have registered throughout the region. Indeed, we can say that all of our associates in the disaster area caused by Hurricane Otis have serious damage to their buildings and facilities; many of them were also victims of unwarranted vandalism that occurred in the affected area,” he stated to the media.
Also read: The U.S. Automotive Sector Strike Extends.
