UAW strike set to hit deep into the industry's supply base

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Jeffrey Aznavorian has already cut output about 6% at his small auto parts factory outside Detroit due to the United Auto Workers strike. But he is bracing for it to get worse.

in 20 states owned by GM and Stellantis. The union said it was not expanding its action against Ford, because the parties had made progress in talks.

The supply base for the Detroit Three, as they’re called, reaches deep into the economy, especially in the upper Midwest, and touches everything from chemical and metal producers to electronics.on Tuesday said it would idle its only operating blast furnace at a plant in Illinois due to an anticipated drop in demand from the auto industry during the strike.

"Many of them would find it very difficult to survive that," he said. "Certainly, they would have to lay off workers - it’s just a question of how long they could go without revenue." He estimates 30% of smaller suppliers carry too much debt to survive a long strike.

 

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