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 Ohio Standard 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 Ohio Standard.
More InformationPHILADELPHIA, Pennsylvania: In a measure supporters claimed will increase public safety amid high violent crime rates, Philadelphia City Council passed ...
WASHINGTON D.C.: U.S. cruise operators and travel agents said that 2024 will witness record passenger numbers for the cruise industry, ...
SEATTLE, Washington: The Seattle Times reported that thousands of households were without power in the greater Seattle area on the ...
CHICAGO, Illinois: As winter sets in and with cold weather just around the corner, Chicago is struggling to house hundreds ...
WASHINGTON D.C.: A U.S. auto safety regulator said this week it is opening an investigation into 73,000 Chevrolet Volt plug-in ...
NEW YORK: This week, a New York judge approved legal settlements to end lawsuits that halted the state's legal cannabis ...
PHILADELPHIA, Pennsylvania: In a measure supporters claimed will increase public safety amid high violent crime rates, Philadelphia City Council passed ...
CHICAGO, Illinois: As winter sets in and with cold weather just around the corner, Chicago is struggling to house hundreds ...
BOLOGNA, Italy: Due to fears of a collapse, local officials have secured the area around one of two 12th century ...
MUNICH, Germany: The heavy snow and icy conditions that hit Bavaria, Germany, canceled flights and long-distance trains out of Munich, ...
RALEIGH, North Carolina: After a decade of discussions and hesitations, North Carolina has expanded Medicaid coverage by offering government-funded health ...
The U.S. has supplied Israel with scores of BLU-109 bunker-buster bombs since October 7, the Wall Street Journal has reported, ...