Foreign cars in US to keep price edge as Ford faces higher labour costs

Detroit

FOREIGN car makers with plants in the United States will be able to offer lower vehicle prices as Ford Motor Co faces continued higher labour costs under a new four-year contract with its US union workers.

The labour cost gap of US$8-10 per hour will allow car makers such as Toyota Motor Corp, Honda Motor Co, Nissan Motors Co and Hyundai Motor Co to offer more attractive options while keeping vehicle prices competitive with the Detroit Three car makers, or charge less for their vehicles.