You need to re-do your math. In addition to what others have said, if they start paying 40 hours pay for 32 hours work, they're going to have to hire 25% more

You need to re-do your math. In addition to what others have said, if they start paying 40 hours pay for 32 hours work, they're going to have to hire 25% more people to produce the same number of cars - that is, to reach the same income.