Supporters cheer as members of the United Auto Workers union go on strike at the Ford Michigan Assembly Plant in Wayne, Michigan, on September 15, 2023.
Bill Pugliano | Getty Images News | Getty Images
The United Auto Workers union launched a targeted strike against Detroit’s three major automakers early Friday morning. The shutdown affects three plants that make popular models such as the Ford Mustang, Chevrolet Colorado and Jeep Wrangler.
This was the first time in history that the UAW attacked all three automakers in Detroit at the same time. But while the strikes began at the same time, their outcome could be very different in the days to come – star The road to closing a deal may be tougher than with cross-town rivals Ford and General Motors.
Stellantis faces problems that its local rivals don’t. The company, formed in early 2021 from the merger of Fiat Chrysler Automobiles NV and French automaker Peugeot SA, has more production capacity than it needs globally. Stellantis has said it intends to close or sell 18 U.S. facilities, including factories and parts warehouses. The company currently has about 35 factories and parts distribution centers in the United States.
This is a plan that unions are unlikely to be willing to accept.
With that in mind, Stellantis may have been preparing for a prolonged strike: As of early September, the company had more vehicles in U.S. dealer inventories than any of its crosstown rivals.
The auto industry measures inventory in “days of supply,” based on each model’s sales over the past 30 days. As of early September, all four of Stellantis’ U.S. brands had vehicles on dealer lots or en route to dealers that were more than 100 days old, according to data from Cox Automotive. General Motors’ Cadillac and Chevrolet brands have vehicle shelf life of only 46 days and 51 days respectively; the Ford brand has a value of 77 days.
As of the beginning of this month, the industry-wide average supply was 58 days. Historically, Detroit automakers have tended to have larger inventories because their full-size pickup trucks come in many different configurations.
Compared to Stellantis, the UAW strike against Ford is likely to be relatively short-lived. Judging by comments from Fein and Ford executives in recent days, Ford appears to be the closest of the three automakers to a deal with the union. The UAW may have realized this when it chose to attack only one part of Ford’s Michigan Assembly Plant, the area where vehicles are painted and final assembled. Last night, all UAW-represented workers at GM’s Wentzville, Mo., assembly plant and Stellantis’ Jeep Wrangler plant in Toledo went on strike.
GM may also be immune to a prolonged strike. Details on Thursday of GM’s final offer before the strike showed it was similar to Ford’s, offering a 20% pay increase over the four-year contract, more vacation time and two weeks of parental leave, among other things. Other offers.
If Ford reaches a deal with the UAW soon, GM could soon follow Ford’s lead.
But as of Friday morning, Strantis appeared ready for a long game.
“We are deeply disappointed in UAW leadership’s refusal to responsibly reach a fair agreement in the best interest of our employees, their families and customers,” the company said in a statement after the strike. “We are immediately placing the company on notice. is placed in emergency mode and will take all appropriate structural decisions to protect our North American operations and company.”
As is customary after a strike, the UAW and automakers will pause negotiations on Friday. Meetings are expected to resume this weekend.
Svlook
