UAW Strikes Lead to Big Raises for Auto Workers, But Unclear If Car Prices Will Rise

The UAW recently reached tentative deals with Detroit automakers after a 6-week strike, but the new labor costs may impact future vehicle prices.

The automakers agreed to increase union workers' pay by 25% over 4 years, plus cost-of-living adjustments, amounting to a 33% raise.

Experts disagree on whether the pay hikes will definitely lead to higher vehicle prices. Some say it's too early to tell.

Ford says the new UAW deal will add $850-$900 in labor costs per vehicle produced.

Economists warn the pay increases could contribute to ongoing inflation in vehicle prices, though automakers may not easily pass all costs to consumers.