I have a couple decades of experience in mass production supply chain. For something complex like an automobile, you could have 4 or 5 "tiers" of suppliers. Tier 1 suppliers are those who deliver directly to the production line, usually in sub assemblies. Tier 2s deliver to the Tier 1, and so on.
The lower in tier, often the more competitive the market can be because you're only supplying pretty basic components with no assembly. Increasing cost to increase profit margin could be the difference in winning a big contract or not. The companies bid on contracts that last maybe 3-5 years and are out in the future a couple of years. They operate on a very slim profit margin but are still making money.
You take that concept and add a bit more complexity for each tier it moves up until you get to the tier 1 where labor happens to be a big part of overall cost due to the sub assemblies they are putting together. If you're not producing anything, you're not selling anything. These companies are not sitting on a huge cash reserve.
Every slight change to the cost structure simply makes the end product more expensive, then you likely sell less vehicles.