Car production in Germany is the most expensive in the world (2 photos)
A recent study by the consulting company Oliver Wyman clearly shows the difference in labor costs depending on the location of a particular plant. 
Researchers who compared the performance indicators of 250 major automobile manufacturers around the world found that Western Europe is currently the most expensive region in the world for the automobile business. Average labor costs for assembling one new car in Germany reached $3,307, in the UK - $2,333, in Italy - $2,067, in France - $1,569.
In fact, labor costs can be considered one of the reasons why global automakers organize assembly facilities in other countries. For example: localizing models in the US provides significant savings, since this expense item there remained within the range of $1,341. And in some other European countries, it is much more profitable to make cars. It is not for nothing that Volkswagen Group has sites in neighboring Slovakia ($830) and the Czech Republic ($691). 
The industry leader, China, is in no hurry to catch up with Europe in terms of labor costs with its moderate $585 per car. In two other Asian centers of the global auto industry, South Korea and Japan, the figures reached $789 and $769, respectively. According to Oliver Wyman, the cheapest place to make cars is Morocco — $106 per unit.
"The question arises as to how we can continue to ensure car production in Germany in the future," Fabian Brandt, head of Oliver Wyman's German subsidiary, told the Handelsblatt newspaper. "If volumes continue to decline, many mid-sized suppliers will either leave us or cease operations altogether."
