Sunday, October 1, 2023

US auto workers strike will affect deliveries

After shortages of essential components, a pandemic and major transportation challenges, Canadian motorists will once again be affected by an extraordinary situation that will delay car deliveries. In fact, the general strike called last Thursday by members of theUnited Auto Workers (UAW), one of the largest manufacturing plant employee unions in the United States, will increase delivery time for several vehicles in our market. some products Fordof G.M. and Stellar (parent company of Chrysler, Dodge, Jeep, RAM, to name a few) will be affected.

Back to strike

So far, the UAW has gone on strike with 12,700 of its members. The partnership focused on three plants in the United States: a GM plant in Missouri, a plant in Stellantis, Ohio, and a Ford plant in Michigan. The group, which has 146,000 members, is primarily demanding a 36% salary increase over four years.

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At the moment, three American manufacturers have offered a 20% increase, according to the union, which movement leaders say is not enough. In addition, they expressed that new factories could be affected by the strike, even in Canada where the 3 giants have facilities.

Ford Ranger 2023 Photo provided by: Ford

Financial and productive consequences.

According to the consulting firm Anderson Economic Group (AEG), this strike could cost manufacturers $5 billion if it lasts for 10 days. In addition to economic losses, a delay in production is to be expected.

The strike is expected to completely affect the inventory of distributors across the border. This situation will have repercussions in Canada, as manufacturers have expressed their desire to fill inventory in the United States as a priority once the conflict ends. This means, therefore, that Canada will be the victim of a delaying effect that should last longer.

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Fortunately, not all vehicles made by the big three manufacturers will be affected. Here is the list of products that should experience a delivery delay in the coming weeks:

G.M. Missouri chevrolet Colorado
G.M. Missouri chevrolet Express
G.M. Missouri gmc Canyon
G.M. Missouri gmc Sheet
Stellar Ohio all terrain Gladiator
Stellar Ohio all terrain Cowboy
Ford Michigan Ford colt
Ford Michigan Ford ranger

The UAW is currently in negotiations with Ford to reach a final agreement. Once concluded, the union plans to work with GM and Stellantis to resolve the situation. The group added a layer of pressure and indicated that if nothing is resolved by Friday, September 22, a more intensive strike will be called.

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