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Hampton Roads prepares for impacts of the United Auto Workers union strike

Experts tell News 3 Anchor Erin Miller that vehicle prices could go up and it could take longer for manufacturer's repairs
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APTOPIX Auto Workers Strike
Posted at 7:08 AM, Oct 03, 2023
and last updated 2023-10-03 08:48:03-04

VIRGINIA BEACH, Va. — The United Auto Workers and the Detroit Three automakers are still not seeing eye-to-eye, though they have come to an agreement with Mack Trucks.

The union and companies are starting a third week where workers are striking against Ford, General Motors and Stellantis, which owns Chrysler and Dodge.

The strike is not just going to impact people who are on the picket line.

Experts tell News 3 anchor and problem solver Erin Miller it could have an impact on the prices of vehicles, determine how quickly you can get your vehicle fixed, and also have big implications for the future of the industry.

“You’re noticing that the UAW strike is using a very strategic approach,” says Peter Shaw, Tidewater Community College professor emeritus of Business Administration.

Since September 15, the country has seen assembly plant employees walk out in waves. In fact, as of this week, more than 25,000 auto workers have hit the picket line.

So far, the cries from workers have garnered the attention of the former and current commander in chief, and hopefully the leaders of the Big Three who call the shots.

“First, you affect the strike on the supply chain plants and that affects the assembly plants,” Shaw says. “The secondary path is that you're affecting the dealerships, because they need those auto supply parts to get repair work done.”

Shaw says when talking about the strike, context is important.

“I read recently that the industry has about a 55-day supply. So, in that particular case, in the near-term future, I just do not think it is going to be a problem,” he says.

However, if the strike does last that long, production will slow, Shaw says, and fewer vehicles will be delivered to dealerships.

“Fewer vehicles mean the price of the vehicles are going to go up,” Shaw notes.

CBS News reports if the strike lasts a month, prices could go up 10%. If vehicle prices do go up, it is likely that people are going to want to hold onto their vehicles longer.

“Just like a body, maintenance is key [to keeping your vehicle healthy],” says Gina Wood, the general manager for AAA Car Care Center in Virginia Beach.

Often, you can do that maintenance in your driveway.

“[It’s important to do] certain things like checking your antifreeze — topping it off prevents the engine from overheating,” Wood says. “The bloodstream of any vehicle is [the oil. So,] making sure that you have oil [is important to ensure your engine is getting proper lubrication.]”

Wood says even something as simple as keeping an eye on your tire pressure from month to month can give you better traction and fuel economy.

Access to parts has not rebounded since the pandemic, and Shaw says the strike will likely only add to the problem.

“If they can't get their cars repaired, because the dealership can't get the parts, that's going to be a problem [for local consumers,]” he says.

This is the first time in history that the union has simultaneously gone on strike against all three companies at once.

Shaw adds that it could have an impact on the future of the industry, encouraging automakers to lean more into technology than labor. While there are several factors that go into that, he notes that in 1979, there were 1.5 million auto workers, and today, there are less than 150,000.

While the future is unknown as the union and Big Three negotiate contracts, Shaw says if you need maintenance on your vehicle, now's the time to get it done.