By Esther D’Amico
Published 25 October 2023
The United Auto Workers (UAW) strike against Detroit’s Big Three automakers is nearing its sixth week but has not resulted in higher car prices thus far, according to a recent Cox Automotive report.
“For dealers and shoppers, there will be no impact for several more weeks to come,” said Jonathan Smoke, Cox chief economist, in the report published on October 19.
According to the report, disruptions to new vehicle inventory have not been significant enough at this point to cause major delivery or supply setbacks.
The Current Situation
Interestingly, data from Kelley Blue Book indicates that all three Detroit automakers have experienced an increase in shopping activity since the onset of the UAW strike, both in terms of shopper volume and share of shopping. This rise is likely attributed to a sense of urgency for those planning to make a purchase in the near future.
As of October 19, the strike affected the production of about 43,000 vehicles per week out of the roughly 145,000 produced by the Big Three—Ford, General Motors (GM), and Stellantis. However, should the strike escalate and disrupt production closer to 145,000 vehicles, the broader automotive market may begin to feel the repercussions, which could extend into the used-vehicle market.
Growing Unrest
This strike commenced at three factories on September 15, following stalled contract talks between the automakers and the union. More union locals at additional plants have since been called to strike, exemplifying the widespread labor unrest across various industries. Workers, including flight attendants, pilots, and writers, are striving for better wages and contract modifications.
Increasing Participation
On October 24, at GM, 5,000 workers from the Arlington, Texas, assembly plant joined the strike, bringing the total number of Big Three union members participating in the strike to over 45,000. This walkout followed a significant event where 6,800 workers ceased operations at Stellantis’s Sterling Heights assembly plant and an earlier disruption at Ford’s Louisville, Kentucky, truck plant involving 8,700 workers.
Automakers’ Perspectives
According to statements from GM, they express disappointment regarding the escalation of the strike, noting it is adversely affecting team members who are sacrificing their livelihoods. Moreover, the automaker indicated negative ripple effects on dealers, suppliers, and surrounding communities reliant on their operations.
Stellantis, in their update, declared, “We are outraged that the UAW has chosen to expand its strike action.” The company presented a new offer to the UAW that included 23 percent wage increases over the life of the contract and nearly a 50 percent hike in contributions to the retirement savings plan, along with additional job security protections for employees.
In a statement from Ford, the company acknowledged the hardship experienced by UAW employees during this extended strike due to lost wages and profit sharing. They emphasized the urgency to conclude negotiations that will significantly improve the lives of the automakers’ workforce and ensure a sustainable future for all involved.
According to the UAW website, strike assistance of $500 per week is available for participants, along with a bonus check payable before the upcoming Thanksgiving and Christmas holidays.
