The strike's impact could increase quickly if the UAW follows through on its plan to escalate the strike and ramp up pressure on the automakers at the bargaining table.
The Detroit Three workers who went on strike early Friday don't churn out the full-size pickups and SUVs that generate the automakers' biggest profits, nor do they build the engines or transmissions needed to keep other factories humming.
"They are not trying to cripple the companies with this," said Marick Masters, a management professor at Wayne State University in Detroit."What they did is take an intermediate step that's significant enough that it can be felt, but it's not significant enough that the companies won't be willing to come back to the table and sit down and talk without having to take some dramatic course of action.
The strike began two days after Jeep debuted the freshened 2024 Gladiator, which will be built at Toledo Assembly, at the Detroit auto show. The Toledo plant already had begun building the updated 2024 Wrangler, which Jeep unveiled at the New York auto show in April. "GM sales are likely more vulnerable in a strike, as GM's sales pace is stronger and supply more limited, so any disruption will be a negative," Smoke wrote."Stellantis sales, on the other hand, have been weak — so with abundant supply, their sales would likely not be impacted for a much longer period of time. Ford is in between."
Brown said the targeted nature of the strike gives it a similar feel to the semiconductor shortage that threw a wrench into manufacturers' production plans over the past several years. A full nationwide strike lasting 45 days could cost Ford and GM $80 million to $90 million a day and slash light-vehicle production by 900,000 vehicles, Langan wrote in a research note. A strategy that shifts which plants go on strike is less costly for the companies but"creates a lot of headaches for the automakers as they're trying to create their production plans," he said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Explainer-Clock ticks down towards potential UAW strike against Detroit Three automakers(Reuters) - The United Auto Workers (UAW) union expects to go on strike against the Detroit Three automakers on Thursday if no agreement is reached ...
Read more »
UAW strikes all 3 Detroit automakers as historic job action beginsTalks stalled in the final hours of negotiations, even as the automakers offered record raises as high as 20 per cent.
Read more »
Effects of UAW strike against Detroit 3 to be felt in CanadaA strike by members of the United Auto Workers Union at a trio of Detroit Three plants in the United States could hamper Canadian parts suppliers’ post-pandemic recovery the longer it drags on, say industry experts.
Read more »
Detroit Automakers, UAW Spend Strike’s First Day in War of WordsThe United Auto Workers and Detroit automaker executives exchanged harsh words on Friday, the first day of the union’s unprecedented simultaneous strike against all three of Detroit’s manufacturers.
Read more »
Looming UAW Strike Deadline Casts Pall Over Detroit Auto ShowA looming strike deadline set by the United Auto Workers is on lot of minds as the North American International Auto Show gets underway this week in Detroit, but few people on the show floor are talking about it.
Read more »