The United Auto Workers (UAW) contract with major automakers (Ford, General Motors, Stellantis) is set to expire on September 14, and the UAW has demanded significant changes, including a substantial wage increase and a shorter workweek. Counteroffers from the automakers have been criticized by the UAW.
There is a growing likelihood of a strike, and experts are considering its potential impact. The UAW has an $825 million strike fund, which could last around 90 days. However, if the strike is tactical and focuses on key factories (e.g., engine and transmission plants), it could extend even longer.
This situation comes as manufacturers are trying to rebuild dealer inventories and production. Supply chain issues are easing, but used car prices are returning to normal, and new car incentives are increasing.
Automakers are cautious about the strike risk but haven’t provided specific information about their inventory preparations. Parts shortages due to a strike could have a more immediate impact, potentially affecting new-vehicle sales.
If a strike occurs, incentives are expected to disappear quickly, and consumers looking for deals are advised to buy now. Limited choices and higher used car prices may follow if the strike persists beyond 30 days, causing potential disruptions in the automotive market.
For further insights on what a UAW strike could mean for your ability to find a car to buy and comments from Seraph’s founder and CEO Ambrose Conroy, you can refer to the Car and Drivers’ piece following the link below.
