Here’s how a UAW strike could affect car prices

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Here’s how a UAW strike could affect car prices
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If there is no deal, as many as 150,000 UAW workers could go on strike against three automakers - Ford, General Motors and Stellantis, the parent company of Jeep and Chrysler - just after midnight on Friday Sept. 15.

A member holds up a sign at a rally by United Auto Workers Local 863 in Louisville, Ky., Thursday, Aug. 24, 2023. The demands that a more combative United Auto Workers union has made of General Motors, Stellantis and Ford — demands that even the UAW's president has called “audacious” — are edging it closer to a strike when its current contract ends Sept. 14.

It has the potential to be the second largest work stoppage in 25 years, topped only by the SAG-AFTRA actors strike, which began last month. There are still many unknowns about how a strike would unfold and whether all 150,000 workers would walk off the job at once. But here is what we know at this point.The union and its 150,000 autoworkers are fighting for big pay and compensation improvements at the Big Three automakers.

Ambrose Conroy, an auto expert and founder of Seraph Consulting, said he doesn’t expect an immediate price increase. “We’ve seen big price increases and we have an affordability problem. I don’t think a lot of the [manufacturers] have the room to increase more,” he said.The auto industry is vital to U.S. manufacturing, making up about 3 percent of gross domestic product.

Workers at auto dealerships would also suffer, losing commissions on sales of UAW-produced vehicles if they are in short supply, Hicks added.The Big Three say they are aiming to negotiate a fair contract with wage increases and benefits that they argue are more generous than most employers offer. So far, the raises the companies are offering range from 9 to 14.5 percent over the life of the four-year contract.

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