If you thought you were going to get a deal on a new Ford ((F) -)), General Motors ((GM) -)) or Stellantis ((STLA) -)) car or truck any time soon, think again.
According to a report by Business Insider, the looming strike by the United Auto Workers union can affect inventory on dealer lots and can result in fewer deals for cars and trucks made by the big three for consumers, especially if the strike lasts for a long period of time.
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The union has been in contract negotiations with Ford, GM and Stellantis for months, asking the automakers for better wages, among other resolutions. But if an agreement does not materialize by the Sept. 14 deadline, more than 150,000 union members will go on strike, which could cause a ripple effect throughout the industry.
The report states that the big three automakers have been able to keep up with demand this year, enabling dealers to offer deals and incentives for consumers.
But AutoForecast vice president of global vehicle forecasting Sam Fiorani told BI that manufacturers would be able to have adequate supply for dealers for the first few weeks of a strike, and won’t be quick to sell vehicles cheaply, even if a short strike is possible.
"Inventory will be strained if the strike were to run more than a month, which would take us into mid-October. A strike into November would all but eliminate the chances of year-end sales,” said Fiorani.
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The report also noted that an averted strike does not exactly mean that deals are to be had for consumers, as manufacturers and dealers are still aiming to keep inventory levels at pre-COVID levels, even if automakers stockpile cars in anticipation of a strike.
Fiorani said that the industry is “starting from a point below traditional inventory levels,” and that “the current stockpiles of vehicles would bring dealers closer to where they were pre-pandemic.”
In all, the looming strike presents a dire situation for both the big three and consumers, as automakers brace for its potential impact. Meanwhile, competitors can expect to cash in on the situation, as potential buyers might be forced to look elsewhere.
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