OAK PARK, Mich. (WXYZ) — Automotive dealers in metro Detroit say they are preparing for potential impacts if the United Auto Workers decide to call a strike later this week.
The UAW and Detroit's Big Three automakers have been working to come to an agreement on wages and benefits since mid-July. The UAW is asking for the elimination of wage tiers, the return of retiree benefits like healthcare and pensions, a 32-hour work week, and a significant wage increase. While all three automakers have returned counter offers to the union's demands, none have been accepted.
The UAW is expected to call a strike if the two can not strike a deal by Thursday at 11:59 p.m.
"I will definitely admit that I’m nervous about it. We are more or less a just-in-time business. We’ve got between 30-45 day supply on new car inventory and about the same on parts and both of those things rely on the manufacturer to get it to us in time to deliver it to the next customer," said Ken Thomas who is a partner at Northland Chrysler Dodge Jeep Ram in Oak Park.
Thomas says he has been working in the auto industry for 30 years and the last few years have come with plenty of challenges. Thomas says the pandemic caused shortages in the workforce, new car inventory, and microchips making big impacts on dealerships. They're now looking at compounding shortages if a strike goes on for several weeks.
"I’m more concerned probably on the parts side just for service, especially for warranty repair. Most of the parts require factory approval before we can even order it. If they’re shut down that means that car is just sitting," said Thomas.
The veteran car dealer also says selling cars may prove tougher during a strike as auto workers are often his customers.
"The UAW employees are my main customer base. We’re in Detroit basically. So obviously if they’re not working, they can’t buy cars, they can’t pay for service work and the other things," said Thomas.
If you are looking to buy a car or need repair work, Thomas recommends getting it squared away soon in case parts and vehicles become harder to get in the coming weeks.
"For their sake, as well as our sake and the industry's sake hopefully this is a very, very short-lived strike if there is even one," said Thomas.
