According to reports, the American auto industry will likely report rising sales in the third-quarter (ending 9/30/23), as the carmakers finished the quarter unaffected by the impact of the UAW labor dispute.
The automakers are now facing a UAW strike at five assembly plants and many parts makers and distributors.
Analysts have credited the automakers’ pre-strike efforts to build up their inventory in anticipation of the strike.
On Friday, the United Auto Workers union expanded its strike against the big three carmakers in the U.S. A week earlier, the UAW broadened the strike beyond 3 manufacturing plants and now includes 38 parts-distribution centers which are owned by GM and Stellantis.
All tolled, according to AP, roughly 16% of the country’s unionized auto workers, and even more workers at those parts facilities – all members of the United Auto Workers union (UAW) – are now on strike.
The big question now, for the fourth quarter and beyond is, how long will current inventories hold out before the automakers feel the pinch? If these strikes drag on, or if they expand as it appears they may, this will put a crunch on the automotive supply chain.
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