Assembling Lada, Getting Paid Like for a Ford: Labor Costs in the Russian Automotive Industry Equal U.S. Levels

Russian workers' payments have already surpassed those of Canadian workers and are second only to a number of European colleagues

According to an Oliver Wyman study, Russia spends about $1,248 per car on labor costs for assembling automobiles. This is more than in Canada ($968), but less than in the United States ($1,300).

Morocco remains the leader in low labor costs, at just $106 per car. Kazakhstan ranks fourth with $394.05, and China ranks sixth ($597). In Europe, costs are higher: in Germany - $3,300, in the UK - $2,300, in France - $1,600.

In Russia, the main model is the Lada Granta, its average price is 1.05–1.1 million rubles. With assembly line production, labor costs account for 5–10% of the retail price, which corresponds to $1,248. The Russian automotive industry in terms of labor costs is approaching the United States, but remains more expensive than many Asian and African countries.

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