“ The first archetype, Euro premiums, has an average labor cost of $2,232 per vehicle and includes premium brands such as Mercedes-Benz, BMW, Jaguar Land Rover, and Audi. This group is characterized by high production costs, complex design and advanced manufacturing processes, and strong labor unions. Within the category, German manufacturers face among the highest labor costs of $3,307 due to stringent regulations and high wage rates.

The second archetype, electric vehicle-only manufacturers, includes startups as well as more established players like Tesla, which do not operate under organized labor contracts. Their average labor costs range from $1,502 to $13,291, and they face high per vehicle production costs due to low manufacturing volumes. EV-only manufacturers also have been heavily reliant on government subsidies, which are now being cut back by the new administration.

The third archetype, mainstream model manufacturers, has an average labor cost of $880 per vehicle and includes traditional high-volume automakers from various countries. Japanese manufacturers enjoy lower labor costs per vehicle, with an average of $769, compared with manufacturers in the United States, where the average is $1,341 — a labor cost per vehicle that reflects recent historic union gains.

The fourth archetype, Chinese car manufacturers, has an average labor cost of $585 per vehicle, characterized by low wages and high efficiency. The group maintains the lowest overall conversion costs in the industry by leveraging its newer factories, efficient supply chains, and high production volumes” - https://www.oliverwyman.com/our-expertise/insights/2025/apr/...