Automakers warn of supply chain woes as UAW strike expands

(NewsNation) — While customers haven’t experienced effects from the United Auto Workers strike yet, Detroit’s Big Three automakers warn of potential delays in acquiring a new car or worse yet, being stranded if their car breaks down.

Ford Motor Company asserts its suppliers, those responsible for providing them with parts, could face adverse consequences if the strike continues. This could trigger a ripple effect impacting hundreds of companies and thousands of jobs.

“We have roughly 125,000 supplier employees that support our Michigan assembly plant,” said Liz Door, Ford Motor Company’s chief supply chain officer. “If prolonged, this really could have a significant impact as it expands into our other Ford factories. We see anywhere between 325,000 to 500,000 people that could be laid off.”

Ford said it’s not just the vehicles they manufacture but it’s every little part that is used to put the car together that could become hard to find.

Ford CEO Jim Farley echoed these concerns, emphasizing that thousands of jobs are on the line.

“If the UAW’s goal is a record contract, they have already achieved this,” Farley said. “It is grossly irresponsible to escalate these strikes and hurt thousands of families.” 

So far, suppliers haven’t announced plans to reduce staff and whether Ford’s claim is a genuine threat or just a negotiation strategy is yet to be determined.

Automotive experts indicated to NewsNation that this strike will cause issues extending beyond UAW workers and Detroit’s Big Three.

Experts also suggest that customers will also feel the impact, as car parts might become scarcer for repairs. Also, consumers might witness both used and new car prices rise.

So far, UAW isn’t backing down. On Friday, the union announced two additional plants to join the picket lines including a Ford assembly facility in Chicago and a General Motors plant in Lansing, Michigan — a total of 25,000 union workers walked off the job.

“Just like 80 years ago, today, our union is building a different Arsenal of Democracy,” said UAW President Shaw Fain. “But this war isn’t against some foreign country. The front lines are right here at home. It’s the war of the working class versus corporate greed. We are the new Arsenal of Democracy. The workers are the liberators. And our strike is the vehicle for liberation.”

Meanwhile, workers are continuing to stand firm.

”I think the pandemic really helped to show workers how essential they truly are when we were labeled as essential workers,” said Brandon Campbell, UAW’s region director. “Just before that, we were labeled as by these billionaire corporations, right? As throwaways.”

“You’re a walking, driving, marketing firm for those companies and then when it comes time for your reciprocity, when it comes time for you to kinda get your fair shake during the labor contract, it’s like none of that ever existed,” said UAW Local 31 President Dontay Wilson, who represents the Kansas City striking workers.