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Chrysler has lowest per worker labor costs

Chrysler has lowest per worker labor costs


03/23/2015
Fiat Chrysler Automobiles' labor costs for its U.S. workers are now on par with Toyota and Honda and are about $10 less per hour than crosstown rivals General Motors and Ford, according to an analysis published Monday by the Center for Automotive Research.

FCA US, the company previously known as Chrysler, pays its workers about $48 per hour when all benefits and bonuses are included compared with $58 for GM and $57 for Ford.


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The figures, revealed ahead of the UAW's bargaining convention that starts Tuesday in Detroit, underscore how far each Detroit Three have come over the past eight years. In 2007, all three automakers were scrambling to figure out how to close a $30-per-hour labor cost gap with their Asian rivals.

But they also show that FCA US has been able to close the gap with Asian automakers at a much faster rate than GM and Ford, giving it a key advantage going into contract talks that threatens to throw the UAW's desire for a similar pattern with all three automakers out of whack.


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