After a shortage of essential components, a pandemic and major transportation challenges, Canadian motorists will once again be affected by an extraordinary situation which will delay automobile deliveries.
Indeed, the general strike called last Thursday by members of theUnited Auto Workers (UAW), one of the largest unions of manufacturing plant employees in the United States, will increase the distribution time of several vehicles in our market. Some products of Ford of GM and of Stellantis (parent company of Chrysler, Dodge, Jeep, RAM to name a few) will be affected.
Back to the strike
The UAW has gone on strike with 12,700 of its members so far. The association targeted three plants in the United States, namely a GM plant in the state of Missouri, a plant in Stellantis, Ohio, and a Ford plant in Michigan. The group, which has 146,000 members, is mainly demanding a salary increase of 36% over four years.
For the moment, three American manufacturers have offered a 20% increase, according to the union, which is not enough according to the leaders of the movement. Moreover, they expressed that new factories could be affected by the strike, even in Canada where the 3 giants have installations.
Financial and production consequences
According to the consulting firm Anderson Economic Group (AEG), this walkout could cost manufacturers US$5 billion if it extends over 10 days. In addition to financial losses, a production delay is to be expected.
Inventory at dealers across the border is expected to be fully impacted by the strike. This situation will have repercussions in Canada, as manufacturers have expressed a desire to fill inventory in the United States as a priority once the conflict ends. This therefore means that Canada will be the victim of a delaying effect which should last over a longer period.
Fortunately, not all vehicles manufactured by the big 3 manufacturers will be affected. Here is the list of products that should experience a delivery delay in the coming weeks:
| Builder | Region | Brand | Vehicle |
|---|---|---|---|
| GM | Missouri | Chevrolet | Colorado |
| GM | Missouri | Chevrolet | Express |
| GM | Missouri | GMC | Canyon |
| GM | Missouri | GMC | Savana |
| Stellantis | Ohio | Jeep | Gladiator |
| Stellantis | Ohio | Jeep | Wrangler |
| Ford | Michigan | Ford | Bronco |
| Ford | Michigan | Ford | Tidy |
The UAW is currently in negotiations with Ford to reach a final agreement. Once concluded, the union plans to work with GM and Stellantis to resolve the situation. The group added a layer of pressure and indicated that if nothing is resolved by Friday, September 22, a more intensive strike will be called.
