With market uncertainty, the automotive industry will face an added strain of competitive wages as they transition to electric vehicles. Plante Moran’s Mark Barrott highlights the criticality of cost margins and how the automakers and their suppliers must satisfy the wage increases demanded by workforces to retain top talent and make EVs profitable.
Barrott notes the transition to electrification may spark a battle for labor with U.S. automakers and create an opportunity for wage growth. However, suppliers are likely to face the most pressure from the labor competition and high material costs.
Read more to find out how the rising labor costs can affect automakers and their suppliers across the United States and threaten to slow the electrification process.
