UAW Strike

[JimJa]

Due to the UAW strike, suppliers are being affected as well as the manufactures. Has anyone been unable to have their truck repaired due to your dealer's inability to get parts?

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[Iowa Guy]

Ford is not affected by the parts distribution strike, only GM and Stellantis

 

[Tom_C]

There's been delays since the pandemic! Some guy on here can't get a replacement drive shaft and been waiting a while.

 

[JimJa]

Ford is not affected by the parts distribution strike, only GM and Stellantis

Your comments need expansion. Many suppliers are not directly affected by the strike, but instead are affected by a lack of requirement for their products. The aftermarket requirement is minimum compared to the manufacturing requirement and many of those plants will shut down. Obviously the manufactures have put the squeeze on the suppliers and quality has suffered, we can all see that. Their margins have to be low to the point they have very little wiggle room.

John Mcelroy's weekly podcast of a week ago had some well versed folks talking about this very thing. Of course their views had a huge amount of speculation, but one person thought the strike would last until next year (looking pretty likely at the moment) and another indicated suppliers would be shutting down (or going out of business) within one week. We are now close to four weeks. Last I heard was over 400 suppliers have shut down. I have no idea exactly what those suppliers provide, but it's an indication of where this thing is headed. Fein has really dug in his heels and Ford was the latest hit as of this morning after they indicated they were not increasing their last proposal.

There is a method to Fein's approach. Initially walking out at some of the lower profit margin plants preserves the UAW's strike fund (~$500M). But Ford's Super Duty plant is one of Ford's highest profit margin plants with an additional 8,700 workers. That's huge.

...but, those workers are now not paying into the strike fund and at last count the UAW was bleeding about $14M/week, more as of today's walk out. There isn't a real motivation by the UAW to settle until the strike fund gets low and that's going to be awhile. Regardless, the cost of new vehicles are going to increase as are the finance interest charges due to inflation. Currently the average new vehicle cost is just under $50K and about 16% are financing for 80-84 months at slightly over $1,000/month. As this forum has shown, used car prices are only going to remain high.

 

[RangerDanger617]

My local dealer sourced a replacement drivers' side tail light for me and had it in stock within 3 business days. Install took under an hour. No shortage of vehicles being worked on at 7AM on a Tuesday.

 

[Grandaccess]

bless their little hearts....
probably wont effect me, what could go wrong at 20K?
but if it does I will buy aftermarket replacements of what ever fails
6+ months ago before the walk out I had a lower Rat Hose blow, well it was a slow piss leak anyway, my local Ford dealership said they couldnt even order one or even put it on back order with no ETA of a part, so I had one shipped in from the west coast, the upper and lower hose had to be bought in a set and it cost $175 now this 10 Ply, carbon fiber High Performance piece of wonder will out TF last my shitty Union made truck LOL
you needed your parts to say FOMOCO?
you needed them Union made? LOL
I too would like to work less and get paid 40% more, probably not this year?
and our trucks and parts are going to cost more and more, so I am just going to have to make this one last 250k like I did my last one.....

 

[Grandaccess]

Your comments need expansion. Many suppliers are not directly affected by the strike, but instead are affected by a lack of requirement for their products. The aftermarket requirement is minimum compared to the manufacturing requirement and many of those plants will shut down. Obviously the manufactures have put the squeeze on the suppliers and quality has suffered, we can all see that. Their margins have to be low to the point they have very little wiggle room.

John Mcelroy's weekly podcast of a week ago had some well versed folks talking about this very thing. Of course their views had a huge amount of speculation, but one person thought the strike would last until next year (looking pretty likely at the moment) and another indicated suppliers would be shutting down (or going out of business) within one week. We are now close to four weeks. Last I heard was over 400 suppliers have shut down. I have no idea exactly what those suppliers provide, but it's an indication of where this thing is headed. Fein has really dug in his heels and Ford was the latest hit as of this morning after they indicated they were not increasing their last proposal.

There is a method to Fein's approach. Initially walking out at some of the lower profit margin plants preserves the UAW's strike fund (~$500M). But Ford's Super Duty plant is one of Ford's highest profit margin plants with an additional 8,700 workers. That's huge.

...but, those workers are now not paying into the strike fund and at last count the UAW was bleeding about $14M/week, more as of today's walk out. There isn't a real motivation by the UAW to settle until the strike fund gets low and that's going to be awhile. Regardless, the cost of new vehicles are going to increase as are the finance interest charges due to inflation. Currently the average new vehicle cost is just under $50K and about 16% are financing for 80-84 months at slightly over $1,000/month. As this forum has shown, used car prices are only going to remain high.

well if they cant make the 2023 the rest of the year or even start in Nov. making the 24 they will just move production to Mexico or someplace that does want to make them?

 

[Iowa Guy]

Your comments need expansion. Many suppliers are not directly affected by the strike, but instead are affected by a lack of requirement for their products. The aftermarket requirement is minimum compared to the manufacturing requirement and many of those plants will shut down. Obviously the manufactures have put the squeeze on the suppliers and quality has suffered, we can all see that. Their margins have to be low to the point they have very little wiggle room.

John Mcelroy's weekly podcast of a week ago had some well versed folks talking about this very thing. Of course their views had a huge amount of speculation, but one person thought the strike would last until next year (looking pretty likely at the moment) and another indicated suppliers would be shutting down (or going out of business) within one week. We are now close to four weeks. Last I heard was over 400 suppliers have shut down. I have no idea exactly what those suppliers provide, but it's an indication of where this thing is headed. Fein has really dug in his heels and Ford was the latest hit as of this morning after they indicated they were not increasing their last proposal.

There is a method to Fein's approach. Initially walking out at some of the lower profit margin plants preserves the UAW's strike fund (~$500M). But Ford's Super Duty plant is one of Ford's highest profit margin plants with an additional 8,700 workers. That's huge.

...but, those workers are now not paying into the strike fund and at last count the UAW was bleeding about $14M/week, more as of today's walk out. There isn't a real motivation by the UAW to settle until the strike fund gets low and that's going to be awhile. Regardless, the cost of new vehicles are going to increase as are the finance interest charges due to inflation. Currently the average new vehicle cost is just under $50K and about 16% are financing for 80-84 months at slightly over $1,000/month. As this forum has shown, used car prices are only going to remain high.

totally understand that, I work at the one of the largest Tier 2's, believe me, we have all the details on this

 

[Friday yet?]

make this one last 250k

+1

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