
Detroit- The UAW announced the expansion of the strike against the Big Three automakers to an additional 38 GM and Stellantis plants, widening the strike across the country to include workers from Massachusetts to California. The new strike targets are specifically aimed at hurting dealerships with all 38 involving parts distribution centers. “The UAW is going for the gut punch as this strike gets a lot nastier,” said Daniel Ives, an analyst with Wedbush Securities. He called it “a very strategic and risky poker move by the UAW.” Ives added, "We think the walkout at the parts distribution centers of GM and (Stellantis) could have a debilitating impact on each company's auto production and repair capabilities, raising the probability that the companies will either make concessions similar to those made by (Ford) or announce countermeasures." The UAW is counting on GM and Stellantis independent franchise dealership owners, that buy the cars from the automakers, to put pressure on GM and Stellantis.
Auto industry analysts expect creating long wait times for repairs for owners of GM and Stellantis vehicles will backfire on the union. “People who have a car that they need to repair will not be sympathetic to the UAW when they can’t get the car fixed and can’t get to work,” said Eric Gordon, a business professor at the University of Michigan.
Since covid hit consumers have been holding on to their vehicles longer to deal with inventory shortages, high prices and interest rates. Older cars need more repairs and that could get a lot more difficult if parts to repair the cars dry up during a protracted strike. During the UAW-GM strike in 2019, consumers were hit first by parts availability issues, long wait times and expensive repairs. Since many parts are made-to-order for repairs, those orders were immediately cut off when workers at GM walked off the job. Like in 2019, simple repairs could come with long wait times or higher prices as available parts dwindle. During the 2019 strike non-UAW represented parts suppliers also had to close some facilities - further fueling wait times for repairs.
About 5,625 UAW workers have joined members of the three assembly plants already on strike, a Ford truck plant in Wayne, Michigan, a GM plant in Wentzville, Missouri and the Stellantis plant in Toledo, Ohio, bringing the total number to 18,300. “At noon Eastern today, all parts distributions centers at General Motors and Stellantis will be on strike,” UAW President Shawn Fain said on Sept. 22. “We will shut down parts distribution until those two companies come to their senses and come to the table with a serious offer.” Ford was spared from this round of strike escalation with significant improvement in offers the union said. Ford has agreed to the restoration of cost-of-living wage increases that were dropped several years ago, better profit-sharing, and improved job security.
Thestrike has resulted in an economic loss of more than $1.6 billion in its first week, according to estimates from East Lansing, Michigan-based consulting firm Anderson Economic Group LLC, which has done business for GM and Ford.
Latest GM locations on UAW strike
Latest Stellantis locations on UAW strike