Car Industry Strikes & How They Effect Car Buying

If you’ve been reading the news, you’ve probably heard of the UAW strike. What you may not know is that it is one of the biggest auto strikes in American history.

Working class solidarity aside, many have been rightfully concerned about how this auto workers strike will impact the economy. After all, the recent writers’ strike affected film production and may increase streaming subscription prices. Will the GM strike in 2023 affect those wanting to purchase a new car?

It may. Join us as we discuss the effect of car industry strikes on car shopping overall.

The GM Strike in 2023 Situation

At the time of writing, the UAW strike is already a month old. More than 25,000 members of the UAW union, approximately 17% of the union-backed workforce, are picketing General Motors, Ford, and Stellantis. They are demanding wage increases, cost of living protections, job security, and more.

This is only one in a long history of car industry strikes, especially in Detroit. Automaking is one of the US’s largest industries, meaning its success directly impacts the economy. Worker concerns have been compacting over time with the shift to EVs like the bZ4X and receding workers’ protections.

Effects on Car Prices

Strikes are necessary for workers to fight for fair compensation and better working conditions. In the long run, they are good for our economy. However, coupled with rising car loan interest rates, the strikes will have some short-term effects that you may notice.

Strikes will inevitably lead to shortages of new cars – unless they’re Toyota. As a result, the existing inventory at dealerships may experience a significant markup, and cheap cars for sale will be harder to find.

This effect could take some time before it hits car buyers, though, as car production is at an all-time high. Most likely, the only short-term effect we’ll see is a paucity of holiday discounts.

Effects on Parts

There may be a sudden shortage of parts. Owners of particular vehicle models will feel this the strongest, paying a premium for repairs. GM and Stellantis owners, buckle up.

The UAW was smart about its decision on where to strike. They targeted factories that would cause only a minimal amount of disruption, a warning shot of sorts. We will only feel the effects if automakers refuse to concede, forcing strikers to shut down more locations.

The Future of the Strikes

There is a very good chance the strike will end soon with concessions met. Auto manufacturers will have their eye on Hollywood, where SAG-AFRA picketed for five months and got most of their demands.

Plus, the Big 3 (Ford, GM, and Chrysler) make up less than half the market. Their ability to compete with foreign manufacturers like Hyundai, Toyota, and Honda will diminish the longer they wait.

Find Strike-Free Deals at Red McCombs Toyota

The UAW-enabled GM strike in 2023 has dealt a heavy blow to the United States’ biggest auto manufacturers. The strike will impact future new inventory, availability of parts, and the Big 3’s position against foreign manufacturers. Unless they meet demands ASAP, the long-term effects could be noticeable.

Know which company isn’t plagued with strikes? Toyota! Drop by Red McCombs Toyota to take advantage of our low, low special offers.