United Auto Workers strike: Cost to US economy nears $8 billion
Comodo Motors general manager Jordan Baker joins The Big Money Show to discuss the impact on auto dealers and car buyers from the ongoing UAW strike.
The United Auto Workers' month-long strike against Detroit's Big Three automakers continues to take a growing toll on the industry and beyond, and fresh data shows its cost to the U.S. economy is approaching nearly $8 billion.
The latest numbers from Michigan economic consulting firm Anderson Economic Group released Monday show the union's strike – now in its fifth week – against Ford, General Motors and Stellantis cost the economy $7.7 billion through the fourth full week.
Workers picket outside the Ford Assembly plant as the UAW strike against the Big Three U.S. automakers continues on Oct. 10, 2023, in Chicago. (Scott Olson / Getty Images)
AEG's breakdown shows the UAW's simultaneous, but limited, strike against the automakers has cost workers $359 million in lost wages, while the Big Three have collectively lost $3.45 billion. Dealers and customers are out a combined $1.21 billion, and suppliers have now taken at least a $2.67 billion hit.
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«We’ve entered the danger zone for many suppliers, and more than one production line,» Patrick Anderson, AEG principal and CEO, said in a statement. «Without a settlement soon, a plausible restart with higher costs will likely lead to some permanent losses of production, and suppliers that will need financial assistance to return to operation.»
«We’re already seeing retail sales, airline travel and income tax collections dropping in the state of Michigan. There are also increasing layoffs among vulnerable suppliers,» Anderson continued. «Most of these cost are being borne by workers
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