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As of noon on September 29, the UAW added vehicle assembly
plants at Ford and GM to its strike for a new four-year contract.
The UAW specifically added Ford’s Chicago Assembly plant and GM’s
Lansing Delta Township assembly plant – both of which build
three-row sport-utility vehicles. (A stamping plant also at the
Lansing complex, however, will continue to operate.)
The action on September 29 brings the total number of employees
on strike to 25,000 people. During an announcement of the
additional facilities, UAW Shawn Fain said that Stellantis was not
struck as a result of a last-minute offer which the UAW felt made
sufficient enough progress on several issues: cost of living
adjustments, the right to strike over plant closures during the
contract, and a moratorium on outsourcing manufacturing.
Since September 15, the UAW has been on strike at three vehicle
assembly plants at each of the automakers; on September 22, the UAW
added parts and distribution centers at GM and Stellantis.
The UAW aims to achieve 100% of its demands and is willing to
drag out the situation, and the plants added on Sept. 29 follow
that strategy. Holding off striking at full-size pick-up, engine
and components facilities ensures they still have leverage beyond
the actions to date.
With the September 22 strike additions, the UAW had spared Ford.
In sparing Stellantis this week, but striking Ford once again, the
union continues uncertainty and provides action to follow its
promises of striking if progress hasn’t been made. It also
illustrates that the level of progress to avoid a strike is
variable; being spared one week doesn’t mean the automaker will be
spared the next week. It also leaves GM as the only automaker who
has not been spared; every UAW strike announcement in this process
has included GM facilities.
The UAW strategy is to create increasing economic disruption
until they achieve the accommodations they seek, and it says it is
willing to go the distance, implying willingness to expand strikes
to include a full strike if they find it necessary. Historically,
while union negotiations have become strained and difficult, this
year’s talks are proving to be the most contentious in decades.
Quotes from our S&P Global Mobility
experts:
“The slow-motion UAW strike has extended its reach to
encompass Ford’s Chicago plant and GM’s Lansing Delta Township
plant. Notably, it excludes the nearby Lansing Regional Stamping
plant that supplies crucial components to GM’s profitable full-size
truck production facilities, including Fort Wayne, Flint Truck and
other facilities. The UAW appears to be strategically biding its
time before targeting these key profit centers.” — Joe
Langley, associate director, North American production forecasting,
S&P Global Mobility
“The UAW has again selected plants which produce vehicles in
similar segments, in this case three-row utility vehicles. Though
the Ford Explorer and Lincoln Aviator produced in Chicago are a
size smaller than the Chevrolet Traverse and Buick Enclave produced
at GM’s Lansing Delta Township, these are the largest non-truck
three-row utilities these two automakers offer. For GM, there is
additional complexity as the action could ultimately delay start of
production of the new-generation Chevrolet Traverse in late 2023.
(The start of production of the new-generation Ford Ranger pick-up
at the Michigan Assembly Plant has been delayed as the plant is on
strike.) The UAW does continue to strike against similar operations
at each of the automakers, choosing vehicle plants with output in
the same or similar segments with the September 15 and 29 actions
and non-manufacturing operations serving a similar purpose with the
September 22 action.” — Stephanie Brinley, associate
director, AutoIntelligence, S&P Global
Mobility
“As the UAW labor dispute enters its 3rd week, the impact on
the supply base will intensify. Though the impact thus far has been
selective, more suppliers are having to adjust their operations in
the form of layoffs, reductions/delays in capital spend and paring
inventory to cut financing costs where possible. Suppliers will
feel the financial impact of this labor dispute long after it is
settled due to lost business.” – Michael Robinet, executive
director, consulting services, S&P Global
Mobility
Fast Facts
Current vehicle assembly plants on strike:
- Two new plants with September 29 action
- Michigan Assembly Plant, Wayne, Michigan, Ford: Produces Ranger
and Bronco - Wentzville, Missouri, GM: Produces Chevrolet Colorado, GMC
Canyon, Chevrolet Express/GMC Savana, stampings for Chevrolet
Malibu - Toledo Assembly Complex, Toledo, Ohio, Stellantis: Produces
Jeep Wrangler and Gladiator - NEW: Chicago Assembly Plant, Chicago,
Illinois, Ford: Ford Explorer and Lincoln Aviator - NEW: Lansing Delta Township, Lansing,
Michigan, GM: Chevrolet Traverse and Buick Enclave
Estimated Secondary Effects:
- No change with September 29 action
- Springfield, Ohio, Navistar: unconfirmed if down, assuming down
9/20 due to reliance on Express/Savana bodies from Wentzville - Fairfax Assembly, Missouri: Produces Chevrolet Malibu, Cadillac
XT4
S&P Global Mobility estimates that the Chicago and
Lansing plants have a combined output of nearly 2,000 per day. We
now estimate daily losses are up to 6,030 units per day, inclusive
of all primary and secondary impacts. This assumes a straight time
schedule, with no overtime.
This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.
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