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  "documentTitle": "Labor Cost Per Vehicle Report",
  "authorId": "OliverWyman",
  "authorName": "Oliver Wyman",
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      "text": "Labor cost per vehicle: $585",
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      "text": "The makeup of this group is broad, consisting of traditional automakers in France, Italy, the United States, Japan, and South Korea — all with models that boast high production volumes at affordable price points. With an average labor cost per vehicle of $880, this group is competitive in terms of labor productivity and wages, with most maintaining diversified manufacturing networks in both higher- and lower-cost countries. These car makers tend to maintain older factories with lower depreciation, and their product complexity is lower than that of Euro premiums. But there are also significant differences between mainstream members. Japanese automakers, for instance, maintain a relatively low labor cost per vehicle in Japan of $769, which is on par with newer plants in Eastern Europe. In 1982, when The Harbour Report® published its first report comparing cost differences between US-based manufacturers and Japanese manufacturers, the average Japanese cost per vehicle was over 250% less than American manufacturers. Today the difference is 200%, with labor costs per vehicle still representing some of the gap. The average US labor cost per vehicle is $1,341, which includes the impact of the most recent union negotiations in 2023 when the United Auto Workers strike brought historic gains for automotive assembly line workers.",
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      "text": "The second group is composed of startup EV manufacturers. We include Tesla in this group — even though it has grown beyond startup status — because it shares a similar labor cost per vehicle. Like most startups, it also does not work with organized labor contracts and negotiated wage rates and benefits. For a variety of reasons, including relatively low production rates compared with mainstream producers, this group has relatively high production cost per vehicle and relatively high labor costs per vehicle — twice the rate their primary competition among mainstream producers must contend with. Competitive labor productivity is challenging for the group — even with non-union wage rates — because of lower production volumes. But there is also a wide range of labor costs per vehicle, with the lowest $1,502 and the highest $13,291. This group's competitive edge has been provided by subsidies and tax credits that encourage car makers to build EV and battery plants and consumers to buy EVs. The Trump administration in the US is working to eliminate incentives for EV production and consumer purchases, which would eliminate this competitive advantage and could affect the group's ability to reach scale.",
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      "kind": "paragraph",
      "text": "Chinese car companies have a low average labor cost per vehicle of $585, which is the product of low wages and high efficiency among car manufacturers and the supply chain. That said, there is a wide range of labor cost per vehicle between domestic Chinese manufacturers and Western-affiliated joint car production operations located in China. That's because Chinese-owned car companies maintain larger workforces and lower productivity metrics than the joint ventures between Chinese interest and Western car manufacturers which maintain workforces more aligned with Western operations.",
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      "text": "CHINESE CAR MANUFACTURERS",
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      "text": "Getting Under The Hood Of Automotive Labor Cost Per Vehicle",
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      "text": "EV-ONLY MANUFACTURERS",
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      "text": "MAINSTREAM MODEL MANUFACTURERS",
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