EDITORS/NEWS DIRECTORS:
The United Auto Workers has expanded its strike against Detroit automakers by walking out of spare-parts warehouses in 20 states spread across the country. The strike started Sept. 14 at three huge assembly plants in Michigan, Ohio and Missouri.
The UAW’s strategy is to keep escalating the strike if Ford, General Motors and Jeep and Ram owner Stellantis don’t move closer to the union’s contract demands, which include pay raises of 36% over four years.
The union targeted all three in the first round of walkouts, hitting one assembly plant operated by each of the Detroit Three when UAW contracts with each company expired. But when the union also targeted car-parts centers on Sept. 22, it only hit GM and Stellantis, the successor to Fiat Chrysler. The union said it spared Ford because it has made progress in talks with that company, although significant differences remain.
The strike is a fight between the union and carmakers, but if it drags on it will reduce inventories of new cars and push prices higher – even for models made by companies that aren’t involved in the dispute, including Honda, Toyota and Tesla.
Even sooner, the walkouts at GM and Stellantis parts centers could disrupt the supply of parts used in dealer service departments and other repair shops. That will inflict pain on the automakers and car dealers, but it also risks angering motorists if repairs on their vehicle are delayed by a lack of parts.
UAW President Shawn Fain, who was elected in March, has called the showdown a defining moment for the union.
The car companies say they already pay production workers more than nonunion competitors Toyota, Honda and Tesla do, putting them at a competitive disadvantage. The Detroit Three say they can’t afford to meet the union’s demands — including a shorter work week, an end to separate and lower pay tiers for new hires, and better retirement benefits — because they must invest in the transition to electric vehicles. ___
READ AP’S EXPLAINER ABOUT THE STRIKE
The UAW strike is growing. What you need to know as more auto workers join the union’s walkouts
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FIND YOUR STATE: WHERE WORKERS ARE STRIKING
CALIFORNIA
Ontario (Stellantis parts center)
Rancho Cucamonga (GM parts center)
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COLORADO
Aurora (GM parts center)
Commerce (Stellantis parts center)
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FLORIDA
Orlando (Stellantis parts center)
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GEORGIA
Morrow (Stellantis parts center)
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ILLINOIS
Bolingbrook (GM parts center)
Naperville (Stellantis parts center)
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MASSACHUSETTS
Mansfield (Stellantis parts center)
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MICHIGAN
Auburn Hills (Stellantis parts center)
Belleville (GM parts center)
Burton (GM parts center)
Center Line (Stellantis parts center, 2 locations)
Lansing (GM parts center)
Marysville (Stellantis parts center)
Romulus (Stellantis parts center)
Pontiac (GM parts center)
Swartz Creek (GM parts center)
Warren (Stellantis parts center, 2 locations)
Wayne (Ford assembly plant)
Ypsilanti (GM parts center)
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MINNESOTA
Plymouth (Stellantis parts center)
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MISSISSIPPI
Brandon (GM parts center)
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MISSOURI
Wentzville (GM assembly plant)
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NEVADA
Reno (GM parts center)
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NEW YORK
Tappan (Stellantis parts center)
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NORTH CAROLINA
Charlotte (GM parts center)
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OHIO
Streetsboro (Stellantis parts center)
Toledo ( Jeep assembly plant run by Stellantis )
West Chester (GM parts center)
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OREGON
Beaverton (Stellantis parts center)
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PENNSYLVANIA
Langhorne (GM parts center)
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TENNESSEE
Memphis (GM parts center)
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TEXAS
Carrollton (Stellantis parts center)
Roanoke (GM parts center)
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VIRGINIA
Winchester (Stellantis parts center)
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WEST VIRGINIA
Martinsburg (GM parts center)
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WISCONSIN
Hudson (GM parts center)
Milwaukee (Stellantis parts center)
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CONSIDER THESE REPORTING THREADS
What impact might the strike have on car prices in your community, and how soon? Ask local car dealers about the inventories. Be watchful for increases on certain models — big sellers and vehicles that were already in short supply — such as Ford F-150 and Ram pickups. Also cars produced at plants that are currently on strike, such as Jeep Wranglers.
Used cars could cost more. If prices rise on new vehicles, that will just push more consumers into the resale market, which has only recently cooled off after a surge in prices coming out of the pandemic. Ask local car shoppers if dealers are driving harder bargains. You might even be able to spot changes in prices advertised on specific cars — if they stay on the lot long enough, which normally might lead to price-cutting.
It’s getting more expensive to own and operate a car, regardless of the strike. Interest rates are rising, and car insurance is up 19% from a year ago, according to government inflation numbers. Gasoline up only slightly from a month ago, at $3.84 as of Sept. 26, according to auto club AAA, but pump prices usually drop going into fall. Talk to local consumers who are struggling with the added expense. Are they cutting back on driving? Taking public transportation if that’s available?
There are of course stories around the striking auto workers themselves. The union says they’ll get $500 a week from the strike fund. For many, that will be a pay cut. Check state law to see if they are eligible for unemployment insurance. If the strike turns into a long one, how are they making ends meet?
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VIEW THESE ADDITIONAL RESOURCES
Edmunds tracks average interest rates for new and used vehicles by state: https://www.edmunds.com/car-loan-apr-interest-rate/
Cox Automotive is a source of information about car inventories and prices. Here’s Tuesday’s report: https://www.coxautoinc.com/news/cox-automotive-forecast-september-2023-u-s-auto-sales-forecast/
Some UAW locals have their own Facebook pages. The parent union: www.facebook.com/uaw.union
The automakers have strike-related websites, although they might not be updated often.
Ford: https://www.at.ford.com/content/dam/atford/microsites/USmanufacturing/index.html
GM: https://www.gmnegotiations2023.com/public/us/en/negotiations/home.html
Stellantis: https://stellantisnegotiations2023.com/
For information on just about any plant, you can Google the company’s name and the city where the plant is located to pull up facts sheets that usually include the number of workers (before the strike) and products made there.
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Localize It is an occasional feature produced by The Associated Press for its customers’ use. Questions can be directed to Katie Oyan at koyan@ap.org.