A UAW Strike Update

Dealers Feeling the Squeeze

Dealerships are grappling with orders that remain unshipped as the strike looms over additional plants. Interestingly, these units still appear on their floor plan due to the assigned VINs at the building of the car’s chassis rather than the finishing of the car.

Dealers are also struggling with parts availability. Chrysler dealers are being billed and paying for parts inventory that may not be showing up for months. The UAW strike has shut down many of the parts distribution warehouses. This has made gathering the necessary parts, and then completing the actual job, very inefficient and time consuming, especially in body shops.

Automakers Respond to the Strike

The UAW strike has prompted notable reactions from key players in the automotive world.

• Ford has put its $3.5 billion battery project in Michigan on pause
• Stellantis withdrew from the 2024 CES tech expo due to the strike’s disruption
• General Motors has expressed that the 23% salary increase it offered was its highest offer while maintaining competitiveness.

As Bill Ford pointed out, non-unionized competitors are benefiting from the strike’s duration.

Challenges in Workforce Transition

Many of the issues arising from this strike revolve around repositioning the workforce as the automotive industry undergoes a significant transition toward electric vehicles. Since electric vehicles require less parts, they require less labor, which risks job security for workers.

Simultaneously, automakers strive to stay competitive with their non-unionized counterparts. This shift is creating uncertainty and challenges for both automakers and dealerships.

Unifor’s Role in Negotiations

Unifor, the Canadian autoworkers’ union, is resuming talks with Stellantis after securing contracts with Ford and General Motors. They have set a strike deadline for Stellantis, giving them until October 29 to agree to a deal. The goal is to align with the agreements made with other Detroit 3 members while addressing specific workplace issues related to Stellantis. Negotiations also involve securing future product commitments in the EV transition, aiming for stability and growth within the workforce.

Dealers’ Strategies During Uncertain Times

Dealerships are navigating the challenges posed by the ongoing strike by pressuring manufacturers to fulfill orders, optimizing pre-owned inventory, and focusing on fixed operations. As the strike’s duration remains uncertain, adaptability and resilience are vital for dealers seeking to maintain their operations successfully.

During these industry shifts and negotiations, the automotive world is in a state of flux, with various stakeholders working to find common ground amid uncertainty. We will continue to monitor these developments and provide updates as they unfold.

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