Yahoo Autos Subaru Can't Afford to Build EVs In North America Because McDonald's Pays Too Well
If you’re planning to sell electric vehicles in North America, chances are you’re trying to work out how to build EVs here, too. The Inflation Reduction Act has made it a worthwhile investment for automakers. Not Subaru, though — Subaru remains unconvinced, for the moment.
We know this from comments made by CEO Tomomi Nakamura during the company’s latest quarterly earnings report, which occurred on Wednesday. During the call, Nakamura lamented the surging inflation that’s pushing wages upwards in parts of the country, which have apparently made running a second U.S plant financially infeasible. Subaru already operates one such facility in Lafayette, Indiana, where the Impreza, Legacy, Outback and Ascent are made.
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However, things took an odd turn when Nakamura compared the wages his company pays hourly plant workers with those of another local Indiana business. Courtesy of Automotive News:
“In Indiana, part-time workers at McDonald’s earn $20 to $25 per hour, which is in competition with what temporary workers make at our plant,” Nakamura said. “If we were to build a new plant, it would be very difficult to hire new people for that. Labor costs are rising now. It is quite challenging for us to secure workers for our Indiana plant, including those of suppliers.”
I have never conducted business in the Hoosier state, so it’s quite possible Nakamura knows something I don’t. But when I read the quote above, the $20-to-$25 estimate struck me as a tad high. There are five McDonald’s franchises in the Lafayette area, as far as I could tell via Google Maps. At the time of writing, the restaurant chain’s job site lists a range of staff and managerial positions open between them. The ones that do mention hourly rates all list between $12- and $15-per-hour, “plus cash incentives.” Meanwhile, Subaru’s plant around the corner appears to be paying $17-per-hour at the entry-level end for a “Laborer,” about $19 for a “Production Associate,” and the rates go up from there.
