UAW Strikes to Disrupt Newer Vehicle Supply Chain

With still no agreement between the United Auto Workers (UAW) union and automakers Ford, General Motors (GM) and Stellantis being made, there is no end in sight to the ongoing UAW strikes happening across the country, calling the future state of the supply chain into question, New York Times reports.

Strikes are predicted to soon take place at even more locations across the country. As it continues, the number of new cars at dealerships is likely to decrease, as well as parts being made for those vehicles.

The strikes first started at assembly plants for popular vehicles such as the Ford Bronco, the Jeep Wrangler and the Chevrolet Colorado. On September 22, it widened to parts distribution centers at GM and Stellantis.

Repairs for these vehicles are expected to become more difficult if strikes occur at GM and Stellantis parts warehouses. Dealerships will likely be more affected by issues with their service department than anything else as it’s commonly the most profitable part of the business, explained CoPilot Chief Executive Pat Ryan.

As a result, many dealership service departments may end up halting repairs and laying off technicians.

Companies that make parts and components for new vehicles, such as batteries and mufflers, are also expected to take a hit from the strikes. Resilinc has estimated nearly 700 auto suppliers will be affected. 

“There is definite strain in the supply chain, and you’re going to see some of them suffer as a result of the strike if it lingers for a month or more,” said Ann Marie Uetz, a partner at the law firm Foley & Lardner who represents auto suppliers.