As the ‘Big Three’ Detroit automakers; Ford (F) -), Stellantis (STLA) -) and General Motors (GM) -) sit at the bargaining table with the United Auto Workers union, one industry expert has a terrible outlook if the strike continues.
AutoTrader executive editor and spokesperson Brian Moody appeared on CNBC’s Last Call on the evening of Oct. 9 to reveal to host Brian Sullivan that the ongoing UAW strike has the ability to affect the new and used car market if it continues, and that General Motors seems to be the most vulnerable of the Detroit titans amidst the negotiations.
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Moody told Sullivan on the show that although production was ramped up on some of the automaker’s most profitable models, such as their Chevrolet Tahoe and Suburban large SUVs, the supposed uptick in supply can prove to be finite if the strike continues.
“One of the good things to note from a consumer perspective and a dealer perspective is that a lot of these vehicles, they were building inventory already,” Moody told CNBC. “There was less cars last year at this time, they were building them on purpose and now they’re building them at a point where there’s abundant supply. If [the strike] goes on much longer, that won’t be the case.”
Looking at the larger picture
The AutoTrader pundit also noted that GM is not the only automaker at risk — Stellantis’ popular Ram trucks are profitable and in good supply, but a more pressing issue can affect the companies’ maintenance of inventory as the strike continues.
“They still haven’t reduced incentives, they still have some incentives,” Moody said. “Ford, GM and Chrysler/Stellantis; they’re not there yet, but they need to reach an agreement soon in order to avoid price hikes and pulling back of incentives, which can impact customer’s ability to buy an already expensive thing.”
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For General Motors, the UAW is not the only labor union in North America that it may face a strike from. In addition to their current woes with Shawn Fain’s UAW, GM failed to reach a tentative agreement on Oct. 9 with Canadian union Unifor, which represents 4,300 of its workers across the Detroit river in the Canadian province of Ontario.
Affected are plants that produce light and heavy-duty versions of GM’s popular Chevrolet Silverado, as well as engines and other various parts for cars and trucks across its brand portfolio.
In a statement, Unifor National President Lana Payne said that the Detroit giant “continues to fall short on our pension demands, income supports for retired workers, and meaningful steps to transition temporary workers into permanent, full-time jobs.”
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