The Symbiotic Relationship Between the UAW Strikes and the Automotive Industry

The United Auto Workers (UAW) strike is coming to a historical head. The strike specifically impacts three major automotive manufacturers: Ford, General Motors, and Stellantis. Though it emerged on September 15, we won’t feel or understand the full effects of the strike on the market overall until more time has passed.

That said, we know the strikes will impact the automotive industry as a whole. And consumers have a few pressing questions, such as:

“Should you buy now knowing that cars may cost more later?”

If you’re unsure, it might be a good idea to check prices on the vehicles you’ve been eyeing for some time and consider moving on to buying a new vehicle. Liberty Buick GMC is especially poised to help you make that purchase; you’ll have confidence in the price and leave with less fear of what the future market could bring.

Don’t let worry prevent you from making the smart move. Reach out to our dealership today to close the deal on one of the fantastic new models we offer!

This Strike’s Place in History

The 2023 UAW strike has captured the attention of many. It has received hours of press coverage, and as of September 26, is the first strike ever joined by a sitting US President. This is not the first strike, but the most recent one before 2023 occurred in 2019.

Founded in 1935, the UAW has been intimately involved with the automotive industry and has existed through many changes, actions, and strikes. The Union also survived the 2008 recession and its impact on employee benefits and pensions.

We’ve seen so many strikes this year some experts have dubbed it “The Summer of Strikes.” And the automotive industry isn’t unique — many also know about the writer’s strike in Hollywood. Many of these labor actions are expected to persist through the year’s end. To put the scale of these strikes into perspective:

In 2023, some 362,000 auto workers went on strike—an astronomical jump from 36,000 auto workers over the same period just two years ago.

This strike arose due to recent growth in the US automotive industry. With record gains due to the booming SUV and truck markets—in which American manufacturers have traditionally invested and pursued innovation—many workers feel they deserve more benefits, pay, and support in proportion to the growth. You can see this innovation and understand the shift in the market by looking at the SUV and truck pages at Liberty Buick GMC. 

“The North America Automotive Market size is expected to grow from USD 0.94 trillion in 2023 to USD 1.22 trillion by 2028, at a CAGR of 5.43% during the forecast period (2023-2028).”

– Mordor Intelligence

The UAW’s Demands

So what exactly are the UAW organizers and Union members demanding for the strike to end? And how will this affect the length of the strike? While many companies in the automotive industry seem far away from the union demands, these four points drive many of the strikes:

1. Wage Increase of around 40% – A substantial wage increase is perhaps the most prominent demand and one in which the UAW seems most unmoving. This is deeply rooted in the growth and anticipated growth outlined earlier.
2. Reinstating Cost of Living Protections – Major automotive manufacturers did away with cost-of-living adjustments in the post-2008 recession world. The UAW is demanding those benefits back going forward.
3. Ending the Two-Tier System – This may be the most confusing to those out of the loop. New hires make less than veterans since the changes made after 2008. It takes eight years for a hire to make it to the top rate; now, the UAW is pushing for a 90-day period to achieve that same pay.
4. Increased Job Security Amid a Changing Automotive Landscape – It’s no secret electric vehicles and hybrids seem to be the next step for the automotive industry. Liberty Buick GMC, for example, has much of its new inventory represented by these energy-efficient vehicles. And with the increase in popularity, many working in automotive manufacturing are concerned it could put them out of a job.

These are the most represented demands, but others include a four-day work week (with overtime pay over 32 hours), increased union representation in new plants, and improved work conditions overall.

Inventory, Cost, and the Consumer Impact

Now that you’re up to speed on the strike, how can you expect it to impact you as a consumer? We have some good news: it will likely take time for you to feel the effects,

“Analysts say there is a risk that the strike could eventually push supplies down and prices up, but that would take a long time to materialize.”

– Camila Domonoske, NPR

Liberty Buick GMC is located in Matthews, NC—near the Charlotte GM plant—where strikes could grow and continue. Factory strikes could make it difficult for brands connected to GM to find parts, especially as the strikes spread and become larger. Because Liberty Buick GMC sells vehicles from GM, our customers may feel the impact of the strike’s connection to the local plant.

Pete DeVito, a United Service Workers Union (USWU) representative representing car dealerships like ours, had this to say:

“It could mean cars that need repairs are stuck at dealerships or body shops for two months, for three months, when it should be there for two or three weeks because they can’t get a part.” 

Some dealerships are more prepared than others with stocked-up supplies, but those can only last so long. With the uncertainty of the strike duration, now is an excellent time to spring on a repair or overhaul to the vehicle you’ve been sitting on. Liberty Buick GMC’s service department is ready to repair and assist quickly so you can stay prepared and protected.

Still, the long-term impacts will continue to be debated and analyzed. Shaw Fain, UAW President and one of the driving forces behind the strike, disagrees with some about its economic impact:

“It’s not [that] we’ll wreck the economy. We’ll wreck their economy. The economy that only works for the billionaire class and not the working class.”

Others, such as Elon Musk, are confident it will negatively impact the US auto industry and consumers. Musk predicts the UAW demands will “drive GM, Ford, and Chrysler bankrupt in the fast lane.”

What’s Next?

No one can anticipate when the strikes will end. We can expect that the longer it continues, the more time it will take for the industry to re-correct for some of the shortages identified earlier.

Dealerships will be protected in car sales for some time. Large amounts of inventory that have come online after the Covid slowdown will keep inventory and supply high, resulting in competitive prices. Dealerships like Liberty Buick GMC, which has superior supply, will be even better positioned to thrive through a prolonged strike.

It’s important to remember that nothing lasts forever; supply could dwindle and increase costs. If you’ve been waiting to buy, consider scheduling an appointment and making the leap!

Buying With Liberty Buick GMC

If you want to buy a vehicle quickly, be sure to do so with a dealership that’s ready to help. Liberty Buick GMC has helped the Matthews area secure new vehicles at a great price for years. We have hundreds of reviews to confirm this, specifically praising our speed, professionalism, and ability to connect buyers with exactly what they want. Check out this recent review from Mr. Lingerfelt:

With great deals, solid inventory, and countless reviews validating our ability to deliver a flawless experience, don’t wait for the market to change or worsen. Come to Matthews and buy with Liberty Buick GMC today!