Subaru can’t afford to build electric cars in North America because McDonald’s pays well

Subaru badge on the back of the Subaru Solterra 2023 electric SUV

picture: Subaru

If you’re planning to sell electric cars in North America, you’re probably trying to figure out how to build electric vehicles here as well. The Inflation reduction law Make it a worthwhile investment for automakers. no Subaruthough – Subaru still isn’t convinced, for now.

We know this from comments made by CEO Tomomi Nakamura during the company’s latest quarterly earnings report, which was released on Wednesday. During the call, Nakamura lamented the rising inflation that has pushed wages up in parts of the country, resulting in It made operating a second American plant seemingly financially unviable. Subaru is already operating one such facility in Lafayette, Indiana, where it is located ImprezaAnd the legacyAnd the Outback And the rise of Made.

However, things took a strange turn when Nakamura compared the hourly wages his company pays factory workers with those of another local company in Indiana. courtesy Car News:

“In Indiana, part-time workers at McDonald’s earn between $20 to $25 an hour, which rivals what temporary workers earn in our factory,” Nakamura said. “If we build a new factory, it will be very difficult to hire new people for it. Labor costs are going up now. It is very difficult for us to secure workers in our Indiana factory, including supplier workers.”

I’ve never done business in Hoosier Prefecture, so it’s entirely possible that Nakamura knows something I don’t. But when I read the quote above, the estimate of $20 to $25 shocked me as a Boy high. There are five McDonald’s franchises in the Lafayette area, as far as I can tell Via Google Maps. At the time of writing, it was Restaurant chain website Lists the range of employees and managerial positions open between them. Those that mention hourly rates are all listed between $12 and $15 an hour, “plus cash incentives.” while, Subaru factory around the corner Apparently he pays $17 an hour at the entry level end for a “worker,” about $19 for a “production assistant,” and prices go up from there.

In other words, the golden arches don’t seem to catch a large number of potential assembly line workers to climb. But even if that were the case, there are many reasons why Subaru would pay people a living wage to build electric cars in the U.S. Of course, there are Boring reasons no one likes to talk aboutBut it’s also just a wise business move for Subaru.

Certainly, the company can count on its traditional conservatism to make it happen over the next few years. It has worked wonders so far. By March – the end of its current fiscal year – the brand is estimating its size Operating profit will exceed $2 billion. In the second quarter alone, Subaru sold three percent more cars in the US than in the same period in 2021. It was the only region outside of Japan where sales increased.

But this will not last forever. Electrified models will consume larger slices of the pie as the decade goes on. In the long run, some cities and States Sales of internal combustion cars will be phased out. Subaru expects you to have A factory in Japan will produce electric cars by 2027so it is clear that the writing can be seen on the wall.

Lest Subaru lag behind and be forced to offer electric cars without the discounts that many of its competitors will enjoy, it may want to push itself to invest in this side of the Pacific as well, before it’s too late. until Toyota And the Honda, who have been criticized for being laggards in their own right, apparently understood too much. If that means spending McDonald’s on the other side of Route 52, so be it.

#Subaru #afford #build #electric #cars #North #America #McDonalds #pays

Leave a Comment

Your email address will not be published. Required fields are marked *