Auto Giants Ford and General Motors Face Parts Shortages and Layoffs Amidst UAW Strike, US

Date:

Updated: 9:31 AM, Sat September 16, 2023

Auto Giants Ford and General Motors Face Parts Shortages and Layoffs Amidst UAW Strike

The United Auto Workers (UAW) strike, which commenced on September 15, has already started to impact major automakers Ford and General Motors (GM). As the strike enters its second day, both companies are facing parts shortages and are being forced to make layoffs. The ripple effect of the strike is being felt in auto plants across the country, with production issues arising due to the disruption in the supply chain.

Ford has reported that the UAW strike has impacted the paint shop and final assembly sections of its Michigan assembly plant. This has resulted in approximately 3,800 line workers being put on the picket line and production being affected. Additionally, 600 employees did not report to the integrated stamping section, which handles parts that require protective e-coating from the paint plant. Without the paint department, no parts can be produced, leading to further work disruptions.

GM is also feeling the effects of the strike, as it anticipates the closure of its Fairfax, Kansas Plant next week. The plant, which produces the Cadillac XT4 SUV and Chevy Malibu, is running out of stamped metal parts from its Wentzville, Missouri Assembly Plant, which was included in the UAW’s targeted strike on Thursday night.

General Motors Global Manufacturing Executive Vice President Gerald Johnson has expressed hope that this strike will not mirror the six-week strike that occurred in 2019. Johnson emphasizes that no one benefits when the industry is at a standstill, and that the company is committed to working with the best interests of all parties in mind.

Former Automotive Task Force Chief Harry Wilson, who oversaw the GM and Chrysler bankruptcies, has offered wage suggestions that exceed what is currently on the negotiating table. Wilson believes that a wage increase of 30% over the period since the last contract, which accounts for inflation, would be fair and help workers keep up with rising costs.

The strike is already resulting in financial losses, as line workers are receiving only $500 per week and will have to wait until the week after next to receive their first paycheck. S&P Global Mobility analysts estimate that the strike has already caused a loss of 3,200 vehicles, which will continue to rise as the strike persists.

As the strike continues, it is crucial for all parties involved to find a resolution that addresses the concerns of both workers and manufacturers. The impact of the strike goes beyond the immediate layoffs and parts shortages, affecting the livelihoods of thousands of workers and the profitability of major auto giants. The automotive industry, unions, and management must work together to find common ground and reach a fair and timely agreement.

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Shreya Gupta
Shreya Gupta
Shreya Gupta is an insightful author at The Reportify who dives into the realm of business. With a keen understanding of industry trends, market developments, and entrepreneurship, Shreya brings you the latest news and analysis in the Business She can be reached at shreya@thereportify.com for any inquiries or further information.

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