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Auto strike settlements will raise costs for Detroit's Big 3. Will they be able to raise prices?
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File -A Ford Bronco is displayed at a Gus Machado Ford dealership on Jan. 23, 2023, in Hialeah, Fla. New union agreements with Detroit automakers reached during the past week will cost Ford, Stellantis and General Motors over $1 billion per year by the time they take effect in four years. - photo by AP Photo/Marta Lavandier, File
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 three 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.