ACV facts & figures
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The United Auto Workers (UAW) strike against the Big 3 automakers has been making headlines. If you’re a car dealer, you’re likely wondering how this is poised to affect you and your business. We’ve gathered the key facts as they stand right now to help you get a sense of what’s at stake, which cars are most impacted, and how parts and sales are likely to be affected.
The Strike at a Glance
The Big 3 automakers (General Motors, Ford, and Stellantis) were unable to present a contract that satisfied the UAW’s asks ahead of the previous contract’s expiration. The union had indicated they would begin strike action if this happened, and so they did.
In the last four years, the profits of the Big 3 have increased 65% and worker pay has only increased 6%. The UAW is asking for at least a 40% increase in pay to reflect the essential contributions the workers have made in the growing profitability of each company. That figure also reflects the pay increases CEOs have seen in the last four years. The UAW is also asking for better working conditions, including a 4-day work week, recognition of Juneteenth as a holiday, paid parental leave, pensions, and more.
Unlike typical strikes where workers across the board strike all at once, the UAW has initiated what they are calling a “walk-out strike” where they are striking at key locations and as the corporations refuse to meet their needs, they are increasing the footprint of their strike by adding more and more locations over time. This strategy is keeping the companies on their toes.1
As of September 22, the UAW claimed they were making progress with Ford but were increasing strikes against GM and Stellanis.2 Then, as of September 29, UAW expanded strikes at Ford and GM but not Stellantis. It’s an ever-evolving situation.3
What Makes and Models Are Impacted the Most?
The strikes are mainly targeting plants that produce SUVs, pickup trucks, and vans—vehicle types that make up a significant portion of the company’s profits.
A strike of this size spanning four or more weeks would have a massive impact on production as well as cause sizable delays across efforts to produce more electric vehicles. The three initial plants represented in the strike, and the vehicles they produce are:
Ford’s assembly plant in Wayne, MI
- Ford Ranger
- Ford Bronco
GM’s assembly plant in Wentzville, MO
- Chevrolet Colorado
- Chevrolet Express
- GMC Canyon
- GMC Savana
Stellantis assembly complex in Toledo, OH
- Jeep Gladiator
- Jeep Wrangler
- Jeep Wrangler 4xe (electric)
As strikes continue, dealers will not be able to replace vehicle types from these facilities as they sell out from their lots.4
For car shoppers, the strike is not yet poised to have a significant impact. If production continues to be halted or supplies limited, then prices could rise; but it will take some time to get to that point.5
How Are Parts Impacted?
Although car shoppers may not feel an immediate impact, parts shortages may significantly disrupt repair processes for some vehicle types.
As the UAW expanded strikes across 20 states for Stellantis and GM, parts production started to come to a halt. These factories are the distribution centers for many parts that ship to dealerships, so dealers should expect to see delays in the repairs they need.
As a result, cars that need repairs could wind up stuck at their dealerships for several weeks—or even months—until the strike agreements are resolved and production catches up. It usually takes months for shortages and large disruptions to even out in the aftermath.5
What About Vehicle Sales?
For the first time in years, the number of vehicles produced and ready to be sold recently surpassed 2 million, which means there shouldn’t be a significant disruption in the immediate term for sales teams. We are not bordering on a car shortage at this time, so there should be enough inventory buildup to support some sales period.5
The New York Times reports that, as of September 24, GM claimed to have enough vehicles across dealer lots to meet shoppers’ demands for 40–70 days across their brands. For Ford, they can last 74 days, and for Stellantis it is roughly 100 days (excluding Jeep, which has fewer than 100 days).6
What Happens Next?
The situation continues to develop, but there are some concerns that could increasingly unfold over time.5 These include:
- Eventual shortages of vehicles
- Reduced holiday discounts
- Market share takeovers from rival car companies, like Toyota
How long these strikes could go on is unknown, so we are watching and waiting to see when there will be an agreement and what it will look like. As of now, the strike has only targeted a limited list of facilities, which has kept the list of impacted vehicles short. According to the strike strategy, this could potentially expand.6
ACV Is Your Dealer Partner
Even if the UAW strikes begin to impact your business, you can turn to ACV as your dealer partner, ready to help supply used car inventory. As an online car auction exclusive to dealers, we offer the best condition reports in the industry featuring all the information you need to bid confidently. Our own vehicle condition inspectors complete every report, including interior and exterior photos, high-definition engine sounds, OBDII scan, and more to help you feel secure and confident in your bid. There are no membership fees to sign up, so get started with ACV today.
Sources
- Domonoske, C. (14 September 2023). Here’s where things stand just before the UAW and Big 3 automakers’ contract deadline. NPR. Retrieved September 29, 2023, from https://www.npr.org/2023/09/14/1199420521/uaw-strikes-big-3-automakers-ford-gm-stellantis
- Kaye, D. (22 September 2023). UAW significantly ramps up strikes against GM and Stellantis—but not Ford. NPR. Retrieved September 29, 2023, from https://www.npr.org/2023/09/22/1199730114/uaw-strike-deadline-big-3-shawn-fain-ford-gm-stellantis
- Welch, D. and Coppola, G. (29 September 2023). Ford CEO Rails at UAW as his plant, GM are hit with more strikes. Bloomberg. Retrieved September 29, 2023, from https://www.bloomberg.com/news/articles/2023-09-29/gm-ford-to-be-hit-by-more-uaw-walkouts-as-stellantis-spared?leadSource=uverify%20wall
- Picchi, A. (15 September 2023). These are the vehicles most impacted by the UAW strike. CBS News. Retrieved September 29, 2023, from https://www.cbsnews.com/news/uaw-strike-vehicles-chevrolet-colorado-gmc-ford-bronco-jeep-wrangler/
- Domonoske, C. (23 September 2023). How the UAW strikes could impact car shoppers. NPR. Retrieved September 29, 2023, from https://www.npr.org/2023/09/23/1200614584/uaw-strike-big-3-shawn-fain-ford-gm-stellantis-car-prices-repairs-spare-parts
- Moreno, J. E. and Nerkar, S. (28 September 2023). Drivers and dealers could soon feel impact of UAW strikes. The New York Times. Retrieved September 29, 2023, fromhttps://www.nytimes.com/2023/09/28/business/economy/uaw-strike-dealerships-parts-suppliers.html