UAW strike against Ford, GM, Stellantis cost US economy nearly $4B so far
Automotive News executive editor Jamie Butters discusses the expansion of the UAW strikes and its impact on car buyers.
The United Auto Workers' ongoing strike against Ford, General Motors and Stellantis is in its third week, and has already cost the U.S. economy nearly $4 billion.
The latest numbers from Michigan economic consulting firm Anderson Economic Group released Monday show the union's strike against Detroit's Big Three in the first two weeks amounted to $3.95 billion in total losses.
United Auto Workers members strike the General Motors Lansing Delta Assembly Plant on Sept. 29, 2023, in Lansing, Michigan. (Bill Pugliano/Getty Images / Getty Images)
The breakdown shows the work stoppage has cost workers $325 million in direct wages, while automakers collectively lost $1.12 billion, dealers and customers lost $1.2 billion and suppliers took a $1.29 billion blow.
«Suppliers were particularly hard-hit by the UAW's strategy of announcing specific plants to be struck just hours before they were shut down,» AEG's principal and CEO, Patrick Anderson, said in a statement. «The shutdown of 38 parts distribution centers also crimped dealership service operations and, of course, caused more UAW workers to lose wages.»
UAW WORKERS, VOLVO-OWNED MACK TRUCKS REACH ‘TENTATIVE’ DEAL TO AVOID STRIKE
AEG said it expects Ford will face much higher losses from the strike moving forward, after the automaker was spared in the second round of the strike escalation. But the UAW's shutdown of a second Ford assembly plant on Friday be «significantly more costly» for the company, the analysts said.
A United Auto Workers (UAW) member on a picket line outside the Ford Motor Co. Michigan Assembly plant in Wayne, Michigan, on Friday, Sept.
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