Per the Federal Reserve: Corp savings in the recent auto restructuring:

Including all costs (retirees, etc.)

GM: $933/vehicle
Ford: $260/vehicle
Chrysler: $269/vehicle

p. 12


http://www.chicagofed.org/digital_assets/others/events/2008/automotive_outlook_symposium/presentation_labor_negotiations.pdf

I seriously doubt that lousy $260-$933 is going to stop anyone from buying the vehicle they prefer.

I also seriously doubt consumers will see a dime of it.


labor hours/vehicle 2006 = 23 in 2006.

even at $100/hour, that's $2300.

if you include the labor in the parts, 100 hours.

even at $100/hour, that's $10,000, less than half the price of most cars.

at $14/hour (the new rate), that's $1400.

"As always, productivity gains are reducing the labor content in automotive production. Labor hours per vehicle assembled by the “Detroit 3” car makers, for example, declined from 24–28 hours in 2002 to 22–23 hours in 2006. Beyond assembly, estimates by Martin Baily of the McKinsey Institute and the Institute for International Economics report that labor hours to produce an auto in North America, including parts, are decreasing at an annual average of 1.7 percent annually since 1987, and are now approaching 100 hours total."

http://midwest.chicagofedblogs.org/archives/detroit/