Strike Among Auto Workers: Implications for Car Buyers
The United Auto Workers (UAW) union is currently striking. As a result, they’ve stopped working simultaneously at Detroit’s three major auto companies. While the strike has been on the news, it hasn’t affected car prices or availability yet.
This strike only involves the big three car companies in Detroit. Also, it doesn’t stop the production of every car they make. The UAW is taking it slow, so most factories are still running as usual. Experts believe that this strike won’t affect most car buyers for now. But if it goes on for too long, car prices might increase.
Not All Companies Are Impacted
Many companies sell cars in the U.S., sometimes using different brand names for those vehicles. But out of all these companies, only three big ones have workers in the UAW group. They are Ford, General Motors, and Stellantis, often called “The Big Three.” Right now, the UAW can only strike or protest against these three companies, which make up about 40% of the cars Americans buy yearly. So, the strike doesn’t affect the other 60% of vehicles.
Car companies from other countries have factories in the U.S., but the UAW hasn’t gotten their workers to join them. The list for the Big Three and their respective brands includes the following:
Ford Motor Company:
- Lincoln
- Ford
General Motors:
- GMC
- Chevrolet
- Cadillac
- Buick
Stellantis:
- Ram
- Maserati
- Jeep
- Fiat
- Dodge
- Chrysler
- Alfa Romeo
Union Targets Only Three Facilities in Current Strike
In the past week, union members ceased work at three separate facilities, each representing a different company, affecting production for eight car models.
- Chevrolet Express
- Chevrolet Colorado
- GMC Savana
- GMC Canyon
- Ford Ranger
- Ford Bronco
- Jeep Wrangler
- Jeep Gladiator
Implications for Car Prices
At the beginning of the strike, car prices probably won’t change much. The Big Three carmakers, expecting the strike, ensured they had many cars ready to sell. So, even if they stop making cars for a bit, dealers can still sell from their existing stock.
For the strike to make a difference, it has to go on long enough that these carmakers run out of their stored cars, which might cause prices to increase. However, since the strike only affects a few car types and the companies store many vehicles, prices might not increase for a while.
It’s also worth noting that the Ford F-150, Chevrolet Silverado, and Ram 1500 are the big moneymakers. They are usually the top-selling cars in the U.S. every month.
Strike Duration: What Can We Expect?
Imagine a strike as a test of who runs out of supplies first: the union’s money for the strike or the car company’s stock of cars to sell. In this unique strike, both are changing, so it’s hard to guess how long it will last. Some say that if every union worker stops working at once, they have money to support them for about three months. But the UAW’s plan of only stopping work at specific places might make that money last longer. Unions can also move money around to keep the strike going.
On the flip side, the car companies have a lot of cars stored up to sell. Since the union only stops work at one place at a time, most cars are still being made. Even with all the talk about the strike, not much has changed. This might mean it won’t end soon.
The last big car strike was in 2019, when UAW workers stopped working at some GM places. It went from September 15 to October 25. Before that, there was a short strike in 2007 that only lasted three days. Both the union and the companies seem ready for this strike to go on for a while.
In the following video, WDIV News reports on how the automotive strike can impact car prices.
California Car Accident Attorney
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Photo by Koons Automotive on Unsplash
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