On Friday morning local time, United Auto Workers (UAW) President Fein held an online press conference and announced that following the launch of strikes against one assembly plant in each of the three major auto giants last week, throughUAW members at all U.S. auto and Stellantis parts distribution centers (38) entered into a "stand-up" strike starting at noon on Friday.


(Source: Social Media)

General Motors responded that Friday's escalation of the strike was "unnecessary" and that the UAW's decision today affects 18 of the company's facilities and more than 3,000 workers and their families. This move also adds to the authenticity of the text messages leaked yesterday that the UAW was preparing for a strike that would last for several months—that the UAW leadership was manipulating the negotiation process for a personal agenda. GM also said it would have contingency plans to neutralize the impact of an escalating strike.

According to media statistics, there are a total of 5,600 union members in these 38 parts distribution centers, of which nearly 3,475 are involved in General Motors, and approximately 2,150 workers in Stellantis have joined the strike. But counting the 12,700 workers who went on strike last week, the UAW mobilized just over 12% of the Auto Workers union members.

U.S. auto dealers will also begin to feel the pinch of the strike by paralyzing parts distribution centers.Without distribution centers to replenish parts, dealer service stations would quickly run out of parts needed to repair customers' cars, impacting revenue. Car dealers are not subsidiaries of car manufacturers, and repairing cars is also an important source of profit for them.

What about Ford?

As for Ford, Fein said that although there are still differences between labor and management, Ford showed a serious attitude in reaching an agreement during the negotiations and proposed a significantly improved contract.

Ford also issued a statement immediately, saying that it was working hard to reach an agreement with the UAW. Although the two sides have made progress in some areas, there are still wide gaps on key economic issues.


(Source: Ford)

Fein reveals Ford has agreed to reinstate workersAutoworkers agreed to give up their right to cost-of-living adjustments when GM and Chrysler filed for bankruptcy in 2009. Ford also agreed to provideTwo years of wages and benefits for workers affected by factory closures, awardedUnions strike to protest factory closing powers. In addition, Ford also agreed to increase the proportion of profit distribution. However, Fein did not mention whether there was any progress on the salary increase issue with Ford.

(Source: UAW)

There is no doubt that by dividing Ford and the other two car manufacturers, the UAW is also pressuring General Motors and Stellantis to "be in line with Ford." Wedbush analyst DanIves said that no automaker will fully accept the UAW's requirements.However, the progress the UAW has made with Ford will put pressure on GM and Stellantis.

According to IHS Markit estimates, due to the impact of strikes at three factories in the past week, General Motors, Ford and Stellantis produced 6,300, 4,500 and 5,900 new vehicles respectively, which also affected operating profits of at least tens of millions of dollars.