Right now, the automakers have big inventories, so most analysts say there shouldn’t be an immediate shortage of cars.
File - The sticker price is displayed in the window of an unsold 2023 Navigator sports-utility vehicle at a Lincoln dealership on June 18, 2023, in Englewood, Colo. The strike by auto workers is almost certain to lead to higher prices for car buyers; it's only a matter of whether panic buying will make dealer lots look empty sooner than analysts expect.
The UAW began striking at factories that make only a few vehicles – Ford Broncos and Rangers, Jeep Wranglers, Chevrolet mid-size pickups and GMC vans. Dealers have good inventories of those. If the strike isn’t ended soon, however, there could be shortages of some makes and models –big sellers or vehicles that are already in short supply, such as Chevrolet Silverado and Tahoe, GMC Sierra and Ford F-Series pickups. The car companies have plants in Mexico that could keep producing some models – as long as they have a supply of parts.
“You’ll start to see that pricing gets affected everywhere — and not just on the new end of the business,” Drury says. “Used-car values, which have been seeing a bit of a decline from last year’s highs, could start going back up” as consumers look for an affordable alternative to new vehicles. Car prices were rising long before the auto workers even raised the possibility of a strike. A chip shortage, disruptions in the global supply chain and strong demand pushed prices higher.
The UAW is asking for a 36% increase in wages over four years, plus other demands that would increase expenses for the companies. On Saturday, Stellantis detailed its latest offer for cumulative raises of nearly 21% in hourly wages, roughly in line with proposals from Ford and GM.
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