If you’re in the market for a new car, you might have to shell out more money in the coming months. The United Auto Workers strike is likely to impact consumers in Tallahassee.
More than a week into its targeted strike at the three established U.S. car companies, the United Auto Workers union has poked holes in a supply chain that has still not fully recovered from the COVID pandemic. Bill McKinney, owner of Tallahassee Ford, says consumers in Tallahassee, will ultimately pay the price for inventory shortages.
“So currently for the auto strike for those in Tallahassee, it depends on where you shop. At Ford Tallahassee, we elected a long time ago when we went through COVID-19 to now limited inventory meaning if a dealership sells 200 cars their expenses are based on that. Still, they are only supplying 50 from the manufacturer now they have to make decisions such as whether they keep people or work for a lesser margin. What’s the right road to go?” McKinney said.
The strike, now in its fourth week, started on Sept. 15. The rising cost of living and changing technology in the auto industry are major factors contributing to the UAW strike. Union members are demanding a 46-percent pay increase and a 4-day work week.
General Motors, Ford Motor Company and Stellantis, the parent company of Chrysler, Chevy and Jeep, could suffer heavy losses if the strike continues. Members are on strike demanding an increase in wages, and to get rid of the multi-tiered system that leaves some workers with lower wages and security.
Union members also want to ensure that they have a say in the transition to electric vehicles.
James McRae, a senior sales consultant at Tallahassee Ford, says a car that would cost $100,000 five years ago is now twice that amount and it could get worse.
“If the strike does last we could see some significant reduction in inventory here in Tallahassee,” McRae said.
The longer the strike goes on the harsher the effects will be, according to labor experts. This is not the only auto strike that has taken place, however. We are currently in a climate that has cars underproduced for going on three years and it has had a tremendous effect on pre-owned vehicles.