The Car Shortage Is Finally Easing. The UAW Strike Could Change That.
It’s a confusing time to buy a car. After three years of surging prices, limited choices and long waits, the new and used markets were starting to stabilize. Now, a United Auto Workers strike of General Motors, Ford Motor and Jeep-maker Stellantis is poised to worsen the already tight supply of popular models, dealers and industry analysts say.
How a strike affects buyers and owners will largely depend on how long it plays out. For consumers, a prolonged work stoppage could mean fewer options for new and used cars, higher prices and long waits for repairs that depend on specialty parts. “Now that we finally have inventory, we’re restructuring again," says Scott Kunes, who helps oversee 30 auto dealerships across the Midwest as chief operating officer of Kunes Auto & RV Group.
Manufacturers typically don’t raise their suggested retail prices during strikes like this, no matter how low supply dips. But it won’t seem like that to consumers. Dealers will have fewer incentives available and could charge above sticker on high-demand models, they say.
“We can’t afford to have the same deals on products we don’t have a lot of in stock," Kunes says. The possible downsides don’t end there, dealers say. Some dealerships will be less likely to work with out-of-state counterparts to get customers exactly what they’re looking for.
Popular used car models could shoot up in price. And repairs may take longer, if shops can get necessary manufacturer-supplied parts at all. Where things stand All three Detroit carmakers struggled with supply-chain issues early in the pandemic, which significantly affected the supply and price of new vehicles.
Read more on livemint.com
