Robert Besser
26 Sep 2023, 20:45 GMT+10
DETROIT, Michigan: This week, the United Auto Workers (UAW) expanded its members' strike to include dealers selling and servicing General Motors (GM) and Stellantis vehicles.
While being highly profitable, selling and installing auto parts is vulnerable to disruption as the auto industry relies on deliveries at short notice.
Richard Fasulo, a diagnostic technician from Wappinger, New York, who works for a Cadillac franchise and used car dealers, said, "It is going to become near impossible to get a lot of these parts."
"The broader strike, which targets 38 parts distribution centers owned by GM and Stellantis, is going to have these shops telling their customers, 'We don't know when we can fix your vehicle. It might be indefinitely'," he added.
Repair parts and servicing generate 40 percent or more of the gross profit margins of major auto retail chains, such as AutoNation and Lithia.
Mike Stanton, President and CEO of the National Association of Auto Dealers, said, "Dealers do not want to see anything to limit our potential to serve customers, so we certainly hope automakers and the UAW can reach an agreement quickly and amicably."
The UAW will expand the strike by aiming to shut down plants that make the highest-profit vehicles, such as pickup trucks.
Thomas Morris, 60, who went on strike on September 22 at a General Motors parts distribution center in Philadelphia, said, "It is definitely going to impact customers."
In a statement, Stellantis said it was awaiting a response from UAW to their "competitive offer" a day earlier and looking forward to a "productive engagement," while GM said the company has "contingency plans for various scenarios."
"The UAW had made a smart move," said Arthur Wheaton, director of labor studies at Cornell's School of Industrial and Labor Relations.
"I think it is a great strategy going after the distribution centers. Services are big business. That is how they make a lot of their money," he added.
Get a daily dose of Europe Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Europe Sun.
More InformationCOLUMBUS, Ohio: To stop the spread of bird flu, more than 1.3 million chickens will be killed on Ohio's Union ...
In a devastating turn of events, Israel's war on Gaza, sparked by Hamas's unprecedented attacks on October 7, has resulted ...
BATON ROUGE, Louisiana: In a Louisiana election where more than 43,000 people cast their ballots, a candidate for parish sheriff ...
LIVINGSTON, Kentucky: This week, railroad operator CSX said a train derailment involving 16 cars, two of which spilled molten sulfur ...
Fifty-seven journalists have been killed as of Saturday as a result of Israel's war on Gaza, which has extended to ...
TEL AVIV, Israel - Following Taoiseach Leo Varadkar's statement on Emily Hand's release, Israel's foreign minister says he summoned the ...
NEW YORK, New York - Retreating bond yields and a higher-then-expected GDP reading for the third quarter boosted U.S. stocks ...
WASHINGTON D.C.: President Joe Biden invoked a Cold War-era act this week to boost investment in U.S. manufacturing of medicines ...
NEW DELHI, India: On November 24, the Economic Times (ET) reported that Tesla is ready to invest up to $2 ...
NEW YORK, New York - U.S. stocks closed in positive territory despite a volatile day Tuesday. Spending much time in ...
WASHINGTON D.C.: On November 24, the U.S. Food and Drug Administration (FDA) recalled three more brands of whole and pre-cut ...
DETROIT, Michigan: US electric vehicle (EV) sales are expected to reach a record of 9% of all passenger vehicles this ...