UAW Strike Day 34: Dark economic forecast as industry enters 'danger zone'; Stellantis pulls out of CES

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The auto industry could soon say goodbye to smaller suppliers and even some vehicle models as the strike prolongs.

Consulting firm Anderson Economic Group says this month-long strike has entered the danger zone — and auto parts suppliers are suffering.as idle production lines cease building vehicles, the smaller firms that contribute to the supply chain could be on the chopping block."At this point, I don’t see a winner in this strike getting longer," said Patrick Anderson of the Anderson Economic Group. "This is not a good way to stay in charge. This is a good way to lose your leadership.

Marick Masters, a Wayne State University business professor, says the small suppliers make the plastic and metal parts that go into the cars we love. And right now, they risk running out of money.Anderson also warned that some vehicle models may have hit the "point of no return." In total, the strike has hit the auto industry with $7.5 billion in losses, and about 30% of that is in Michigan. About half of those losses came out of Detroit's Big Three automakers' profits.

 

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