Auto strike settlements will raise costs for Detroit’s Big 3. Will they be able to raise prices?

By TOM KRISHER
AP Auto Writer

DETROIT (AP) — From generous pay and benefits to stronger job security, the United Auto Workers union won significant concessions in tentative settlements that have ended their strikes against Detroit’s automakers. Now, General Motors, Ford and Stellantis are facing sharply higher labor costs, estimated by some analysts at exceeding $1 billion per year, per company. The automakers will try to absorb those cost increases through expense reductions and efficiencies while still aiming to post strong enough profits to please Wall Street. In addition, analysts say, the companies will likely try to offset their cost increases by raising vehicle prices for consumers. How much they’ll be able to do so remains unclear. Auto buyers are already facing enormous price runups since the pandemic.