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      "text": "The focus on labor cost and productivity provides a window into a plant's competitiveness as labor typically represents 65% to 70% of the total conversion cost.",
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      "text": "Beyond labor cost per vehicle, the report goes on to examine conversion cost, which is calculated by looking at direct and indirect labor costs, overhead including rent, energy consumption, equipment maintenance, and production supplies, and depreciation.",
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      "text": "The current environment is shining a new light on labor cost per vehicle, which considers both wages and productivity, and represents a key metric in determining an automaker's competitiveness and profitability.",
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      "text": "The global automotive industry is facing significant new challenges to growth and profitability — from tariffs in the United States to increasingly aggressive Chinese car marketing outside of China and a simultaneous slowdown in sales of battery electric vehicles.",
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      "text": "Based on the data, we created four groupings of car companies with similar labor-cost-per-vehicle attributes but often with very different challenges beyond labor cost.",
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      "text": "Source: Oliver Wyman analysis",
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      "text": "Getting Under The Hood Of Automotive Labor Cost Per Vehicle",
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      "text": "Exhibit 1: Labor cost is a major component of conversion costs",
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