Nearly 13,000 United Auto Workers (UAW) members were instructed at midnight on Friday to strike key assembly plants belonging to the Detroit-Three, due to failed contract negotiations. The union’s demands include significant pay hikes and enhanced benefits, among other things. This strategic strike, affecting plants in Missouri, Michigan, and Ohio, is seen by UAW President Shawn Fain, as a tactic to strengthen the union’s bargaining power and force an atmosphere of unpredictability.
Joining us now to share his perspective on the strike, is Mike Maroone, the CEO of Mike Maroone Auto and retail automotive veteran.
Key takeaways:
1. The UAW has gone on strike at three major US assembly plants belonging to GM, Ford, and Stellantis.
2. Maroone compares the unpredictability of the strike’s impact to the uncertainty during the COVID-19 pandemic. The union has made significant wage increase demands, and there is a large gap between what the union wants and what manufacturers are willing to offer.
3. Labor notices the record-breaking profits of the auto industry and feels they should get a larger share, especially considering the rising inflation.
4. The UAW is strategically focusing on combustion engine assembly plants, where profits are more significant. Although, this can offer a competitive edge to import competitors, like Honda, Toyota, Hyundai, Kia, and Nissan.
5. Maroone’s dealerships are already low on inventory. If the strike continues for a long time, say the 90 days UAW claims they can last, it would disrupt supply, allowing other brands to take market share.
6. If the strike continues for a significant period, dealer discounting and OEM incentives could decrease. This would further strain vehicle affordability.
Stay tuned to CBT News for more strike coverage.
