3 Ways the UAW Strike Could Impact Car Shoppers

Chevrolet

Updated on October 4, 2023

Article QuickTakes:

• Strike would mean fewer cars built and fewer choices
• Used car prices could increase
• Replacement parts availability could be impacted

More than 25,000 members of the 150,000-person United Auto Workers (UAW) union — who assemble domestic vehicles and parts for carmakers including Ford, General Motors, and Stellantis (Dodge, Jeep, Ram, and Fiat) — are part of a strike that began at midnight Sept. 14.

The initial strike action hit three facilities: Ford’s Michigan Assembly Plant in Wayne, Michigan, where the company builds the Ford Bronco and Ranger; GM's Wentzville Assembly facility just outside of St. Louis, Missouri, where Chevrolet Express/GMC Savana cargo vans and Chevrolet Colorado/GMC Canyon midsize trucks are built; as well as Stellantis’ Toledo Assembly Complex in Ohio, where Jeep Wranglers and Gladiators are manufactured.

Since then, UAW leadership expanded its strike to almost 40 locations in 20 states, targeting General Motors and Stellantis facilities and parts distribution centers from Oregon to Florida. Strikes also hit Ford's Chicago Assembly Plant, where Ford Explorer and Lincoln Aviator SUVs are made, as well as GM’s Lansing Delta Township plant in Michigan, which makes the Buick Enclave and Chevrolet Traverse.

On Sept. 29, UAW president Shawn Fain said Stellantis will be spared additional strikes as the European/North American carmaker had made significant progress in addressing union demands. 

According to Reuters, the UAW is seeking wage increases of 36 percent, plus cost-of-living increases, a 32-hour work week and the restoration of pension benefits to all workers, as well as ending the use of temporary workers.

Less Choice

For consumers and new car buyers, the impacts of a longer strike could be felt on dealer lots. Ford has struggled to keep up with orders of its popular Bronco throughout the post-pandemic period due to supply chain issues. An extended plant shutdown will make it even harder for buyers to get their vehicles.

So far, the plants targeted by the UAW strike produce popular SUVs and pickup trucks.

Used Car Prices Could Increase

The U.S. has already experienced an increase in used car prices since the COVID-19 pandemic began three years ago. While prices for used cars have been declining this year, according to values reported by wholesale vehicle auction company Manheim, an extended pause in manufacturing may ultimately result in even higher prices for used cars. That's part of the trickle-down effect of fewer new cars being available for purchase.

According to an analysis of inventory data by Cox Automotive, used vehicle inventory had been picking up after hitting a low in March 2023. However, the national inventory of used cars — about 2.25 million vehicles — dipped by 9 percent at the end of July, leaving just a 44-day supply of used cars.

Replacement Parts Could Become Sparse

More than just the manufacturing of cars, the UAW strike's larger impact will be felt in the availability of replacement parts. Those nationwide parts distribution centers are critical for providing parts to dealerships for routine maintenance, as well as replacement parts for body shops.

The strike comes in the wake of an already challenging situation sourcing parts for new and used vehicles as a result of pandemic-related shortages.