UAW strike’s impact on car prices could be felt by drivers for years – and the entire buying process faces major delays
A HUGE car strike could mean motorists may have to pay higher prices for vehicles that would also take longer to produce.
The cost of buying a car skyrocketed as a result of the global Covid-19 pandemic, and just as prices began to fall again, the United Auto Workers union went on strike.
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Experts expect the U.S. auto market to be thrown into turmoil again due to the UAW strike, as auto sales never fully recovered from the pandemic, CNN reported.
Car dealerships will remain open and people will still be able to buy cars, including from top automakers like Ford, General Motors and Stellantis, because the dealers are independent franchises.
Most dealers still have vehicles in stock for sale for several weeks, and the current strike plans will initially impact only a handful of their product lines, said Jonathan Smoke, chief economist at Cox Automotive.
He emphasized that the effects of the strike cannot be compared to those of the pandemic.
The automotive economist even pointed out that this will not have an impact on car buyers like the computer chip shortage that has largely brought the entire U.S. auto industry to a standstill in recent years.
Not all manufacturers are struggling with the strike either – not even a good majority of all car manufacturers are currently facing a strike.
For example, Toyota, BMW, Hyundai, Nissan, Tesla, Volvo and Subaru are among the automakers that still produce vehicles in the United States because some automakers’ workers are not unionized.
The strikes are limited to factories that currently only produce a few specific models.
If the strike drags on for a long period of time, prices will rise again, said Tyson Jominy, industry analyst at JD Power.
Japanese and South Korean automakers’ dealers have always tended to have fewer vehicle inventories than those of Michigan-based automakers, said Scott Kunes, chief operating officer of Kunes Auto and RV Group.
Kunes Auto and RV Group owns more than 40 dealerships across the United States.
Americans could face price pressure as domestic automakers begin to run out of inventory and their competitors may not have the vehicles ready to meet demand.
The US experienced production slowdowns at the height of the pandemic.
To overcome the vehicle purchasing hurdles of the time, more and more car buyers turned to factory ordering new vehicles rather than just choosing from what was already on a dealer’s lot.
This is convenient for drivers who really want a car that exactly fits their design ideas, feature desires and even all driver needs.
If you want to place such an order during the UAW strike or have already ordered a vehicle that has not yet been built, you risk waiting a long time for your car.