The Associated Press reported on the 24th that after the United Auto Workers (UAW) union expanded its strike on the 22nd against all 38 parts distribution centers operated by General Motors and Stratis in 20 states in the United States, dealers of the two automakers were hit. As the impact of the strike expands, US President Biden and former President Trump have recently stated that they will go to Michigan to support the union.
Reuters analyzed on the 23rd that sales and installation of parts are one of the most profitable and vulnerable areas of the automobile industry because this area relies on timely delivery. Currently, some dealers say they are having difficulty sourcing parts. Fasulo, a technician at a Cadillac franchise dealer, said dealers have had to tell customers "we don't know when we can get your car repaired."
Automakers have built up inventories of vehicles, but for many dealers, repair issues can quickly arise. Whitten, director of labor studies at Cornell University's School of Industrial Relations, said the UAW's move was wise. "Lock-down distribution centers are a great strategy, and the service industry is a big business."
Analysts at Deutsche Bank told the Los Angeles Times on the 23rd that GM, Ford and Stratis have lost more than 16,000 vehicle production since the strike last week. Anderson Economic Group, a Michigan-based economic consulting firm, estimated that the strike caused about $1.6 billion in economic losses, including more than $500 million in company losses and more than $100 million in lost wages from strikes and layoffs.
Biden posted on social media on the 22nd that he would visit Michigan on the 26th to "join the strike team, stand with UAW employees, and fight for a fair share of the value they helped create." The Trump campaign issued a statement on the same day saying that Biden's trip to Michigan was "a cheap photo op" and the only reason he did so was because Trump announced that he would go there on the 27th. Reuters stated that many unions have supported Biden's re-election, but the UAW has not yet expressed support.
"It is very rare for a president to visit strikers." Jeremy Suri, a history professor at the University of Texas at Austin, told Reuters that even pro-labor former President Carter had never done so. The last U.S. president to express support for the strikers was Theodore Roosevelt. Worried about coal shortages, he invited striking workers to the White House for a meeting. But before the meeting, Roosevelt found that he lacked the bargaining leverage, just like Biden now.