UAW strike will be devastating for U.S. car industry

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A potential UAW strike would be worse on consumers the longer it lasts, experts say. But its duration is 'the real unknown.'

As the deadline for the United Auto Workers' announced strike creeps closer without the union having reached a deal with manufacturers, experts warn that the impact of the workers' action could be devastating for the U.S. car industry.

"The union has shown a willingness to strike all three Detroit-based automakers if necessary, which would make it unusual in its size," Tyson Jominy, Vice President of Data & Analytics at J.D.

"While a UAW strike will significantly impact car production, the union's strategy is uncertain. Regardless, it is likely a significant number of vehicles, many in popular consumer segments, will not be produced during the strike." The cab is lowered onto the frame of a battery-powered F-150 Lightning truck at Ford's Rouge Electric Vehicle Center in Dearborn, Michigan, on September 20, 2022. A long UAW strike would limit availability of popular vehicle models and could raise prices.Experts are split on how a potential UAW strike could impact the price of new and second-hand cars.

Jominy agrees, saying that"consumers of all brands will potentially see higher prices if the strike persists longer than a few weeks."

 

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