Tokyo: Nissan Motor Co. Chief Executive Officer Carlos Ghosn said it's inevitable that wages in the automotive industry in developing markets will rise, following labour unrest in China over low pay.
"I've never seen an emerging country where wages don't go up," Ghosn said during a question and answer session after a speech at a university in Bangkok. Carmakers in countries including Brazil, China, India and Thailand will have to raise salaries, he said.
Striking workers in China, the world's largest automobile market, have forced parts makers to boost wages, increasing production costs for Nissan, Toyota Motor Corp. and Honda Motor Co. At least eight strikes have taken place in the past month in the country, where a shrinking supply of low-cost labour is increasing workers' bargaining power.
Car and parts companies need to implement salary increases "in a way that is smooth, in a way that is anticipated and realistic," Ghosn said.