Car production: the ranking of the countries where it costs the most

There are several factors that determine the production cost of a car . Among these, a significant weight is recorded by labor . In fact, those involved in the assembly and management of the entire production cycle of a vehicle represent a significant cost (as well as a fundamental resource) for manufacturers. For this reason, the production site of a car can significantly impact the final production costs and, therefore, the selling price of the car and the manufacturer's profit margins.

This is a key aspect to understanding some of the choices made by companies in the automotive sector, which all too often focus on delocalizing production, moving activities to countries where workers cost less. A report by the consulting firm Oliver Wyman sheds light on this delicate issue. The survey, available on the official website oliverwyman.com, is very detailed and analyzes various aspects of the production cycle. One of the most interesting aspects of the report is the cost of labor per vehicle, with a ranking that highlights the substantial differences between individual countries. Italy is not doing well: as the survey confirms, producing cars in our country is very expensive for manufacturers.

The countries where producing cars costs the most

The survey shows substantial differences between countries in terms of labor costs per vehicle. In Morocco , for example, $106 per vehicle is enough, while in Romania it costs $273. Mexico is also particularly cheap at $305. In China , the world's largest market for the four-wheel sector, producing a car costs $597 per vehicle in labor. Japan ($769) and South Korea ($789) are in the middle of the ranking.

The Top 5 countries where producing a car costs the most opens with the United States , where the cost is $1,341 per vehicle. One of the goals of the duties wanted by Trump is precisely to compensate for the high labor costs in the United States and push manufacturers to produce cars in the country. France is fourth with a total of $1,569. On the podium we find Italy with $2,067 (more than double that of Spain, which stops at $955). This data helps to clarify the reason why car production is declining in our country. Second place for the United Kingdom , with $2,333, and first place for Germany with a cost of $3,307.

There are other factors too

The cost of labor is not the only parameter to consider, even if it significantly affects production costs. There are various factors to consider such as the costs of transporting the car to the country of marketing and also any duties. It is also necessary to consider the network of suppliers that could be more developed in one country rather than another, pushing manufacturers to choose to produce cars even where the cost of labor is higher. The impact of economies of scale should not be underestimated. The weight of the cost of labor, in fact, is reduced as production volumes and the efficiency of the entire assembly cycle increase. In any case, delocalization to a country where producing cars costs less (such as North Africa or Eastern Europe) represents a valid strategy to reduce overall costs.