What GM's Strike Means to Car Shoppers

At 11 this morning, the United Auto Workers union went on strike at American GM plants. This basically shuts down production of many new GM cars, trucks and SUVs for the foreseeable future. But does that mean you won’t be able to find that new GM car, truck or SUV when you go car shopping in the immediate future?

According to the latest inventory numbers, GM on average has enough vehicles for 67 days at the current rate of sales. Some hot vehicles like the Buick Enclave — built in Lansing, Mich. — only had a 26-day supply, which is roughly 3,600 vehicles, as of Sept. 1. Trucks and SUVs like the Chevy Silverado (90 days) and GMC Yukon (139 days) won’t be hard to come by, however.

Another big issue is how new cars built at striking plants will suffer. Those new cars include the 2008 Cadillac CTS, on which GM has already spent millions of dollars in advertising and marketing. If the strike drags on, the CTS could be hard to find, especially because it has received so much positive buzz. GM is also heavily betting on the all-new Chevy Malibu, which was set to begin production next month. We’d guess the strike will be resolved by that time, however.

UAW Strikes GM (The Detroit News)

Comments

[Unions?]

Destroy the UAW.

NOW is the time to end Socialism in this country.

If it wasnt for unions, the quality of work places would be much worse i think.

[Scott]

The UAW just doesn't get it do they! These greedy blood-suckers won't be happy till all U.S. manufacturing is gone!!! So f'n sad... Wish they understood how GOOD they have it and how the rest of us are just hanging on.

[Dave T.]

Feel free to comment guys, let's just be civil ok? thanks.

[M3]

Unions did have a vital role in improving workplace conditions a hundred years ago. Things are different now and unions are no longer needed. They're fraught with corruption and seriously undermine the competitiveness of American industry. Time to move on without them.

[Max Reid]

Already $3 gas prices are hurting Big-3 which depend so much on Trucks, now the Unions should understand that asking too much will
only help Big-3 lose their market share and close more plants.

Worst case, they could simply buy Vehicles from China and sell here.

[Amuro Ray]

You guys need to see the root cause of the issue - poor education on many of those Union workers.

It's been what? 60, 70 years? And yet the education level of many of the domestics manufacturing workers have hardly improved. I don't know if it's still a requirement, but I believe that college education is NOT required to a Union worker...heck, I don't even thnk that high school education is a must. Without Unions, where do you think they will work? They will just become a burden of this society, unfortunately. Worst of all, many of them are proud to be poorly educated because they believe that Unions will protect their behinds any time. (Refresh - remember those who volunteer to "retire?" The "leave" pkgs that big 3 have given out - tens to hundreds of thousand of dollars for their future without having to work at all; and job banks security in some cases too!)

It's a lose-lose situaion. Because of Unions, we've a whole ton of people who don't believe in education; and because of the lack of education, they firmly believe that Union is the only way to go (a never-endling loop).

My concern is that any strike will have BAD effect to quality and product planning. Imagine a 1/2 spray car paint, or 1/2 made-body. These will definitely cause problem in the future, and this is the WORST QC for the upcoming new models. Thus, if you are planning to buy GM cars in the next few months, chances are you will be back to the service dept. more often than everyone else.

[Al]

Damn fools. Destroying the company that employs them. If GM goes away where will all the workers go? To the Union Of The Unemployed? Perhaps that concept is a little too advanced for them to grasp.

[dave]

Wow. The UAW being a bunch of arrogant idiots, and greedy ones, yet again.

What a surprise [/sarcasm]

The wages and strikes are already forcing the big three with reconstruction and sending jobs abroad.

No, those illogical dolts DON'T get it.

[dave]

Wow. The UAW being a bunch of arrogant idiots, and greedy ones, yet again.

What a surprise [/sarcasm]

The wages and strikes are already forcing the big three with reconstruction and sending jobs abroad.

No, those illogical dolts DON'T get it.

[Brent]

Good for them. When is the last time workers have stood up to any American company when it was time to cut wages and benefits. As far as sending their jobs oversees that arguement is tired. When is the US going to wake up and stand up for our OWN citizens. That includes all those who think that most union members are "uneducated and arrogant".

[J]

Way to go, UAW, by destroying the company that employs their members, which will ultimately lead to more lay offs.

[Allen]

Brent, I rarely comment here for reasons that are my own, although Tom L has got me back a few times.

I will say this: I have yet to ever, EVER meet a Union worker who was at the top of their class in high school. I've never met an auto union worker who finished college.

And people can complain all they want about how Unions defend workers: they defense is not needed anymore. Today employers, even here in America, are facing skills shortages, not surpluses. Wages for professionals just keep rising. Why? Because employers need more of them. The most competitive businesses want to get more competitive and cut more of an edge. Untrained people do not give you that.

I hope to god GM does not agree to the Unions demands just to get back in production. IT just undermines the needs of todays world and the future. The future needs intelligent people who can develop the new, not uneducated morons who praise the old.

Here is my solution for GM: put out a call for any available workers in Detroit and all along the rustbelt. There are plenty of people with no education there (and therefor, few prospects in the future). Offer them relocations packages to your plants in need of workers (make sure you secure some cheap housing complexes along those plants).

In old times these people were called strike breakers.

[Amuro Ray]

Another funny observation - ok, lemme put it this way - adding oil to fire :) is how FEW comments you've seen from pro-dom supporters (pds) on this topic! Is this kinda a slap in the face to those pds - especially those who repeatedly (and wrongly) stated that buy domestics = money stay here = more Americans at work = build in US? Well, the UAW is telling YOU that "[T[hat's Not The Case!" UAW is telling you that GM (and probably Ford & Chrylser too) is relocating all the jobs to Asia, when the profits keep mounting (for GM)! So buying domestics = support economy of OTHER COUNTRIES (the more you buy, the more likely Big 3 will relocate factories to Asia to make more profit) = money NOT staying in US!

So what are you pds telling us? Buy domestics to support the manufacturers so that they can build factories overseas, or believe the UAW and NOT buy domestics so that you won't help the domestics manufacturers to build more factories outside of US?

[Anon]

*sigh*

I rememeber you had an arguement about the Camry being built in the united states so the money stays here and then how I proved you so wrong by showing you who holds stock in toyota.

Stockholders. You have used that arguement so many times that you just contrdicted yourself to try to seem all mighty over "pds".

Money stays here because the banks here are the ones who have major stock in the automarkers here in America. Just like overseas banks have their hands in Japan cars.

Buy domestics and the money stays here which helps this country out. You can't sit here, in this country and complain about how much everything is going down hill while you drive your stupid import around. You are part of the reason why money is going over seas and not staying here.

Stop trying to force imports down everyones necks and just let them decide. Oh wait I forgot your an "import supporter".

Every other post you seem to contradict yourself or try to build up a fire when there is none. You got owned over in the HD truck review and I remember personnally giving the link to everyone that money from toyota sales goes over seas after you said that that was only a lie from the american car industry.

Turns out your the only liar.

[Unknown]

I think we should change UAW to United Against Wal-Mart! They are the ones who really need the union. They have run more jobs than any U.S. company overseas by strong-arming vendors. Remember their "Buy American" campaign back in the day?

[Amuro Ray]

Anon,

You didn't prove me wrong - you proved yourself wrong. I was just ignoring you because you simply have no clue on stock trading, and how the economy works. Of the top SHARE holders you've listed - they are all companies...and guess what - they are also invested and traded by other mutual fund companies and investors. Just like the banks here - they are also invested by many individuals from all over the world. Where the company sits is NOT enough; where the people who actually put out the hard cash (i.e. you and me) is, and the people are all over the world, not just the US. The argument was - it was the individual stock OWNER - the ULTIMATE stockholders - around the world that benefits, not the companies themselves, because companies are just business entities. Get it?

Why don't you go back to university, study ECON101, and understands how the economy really works? This isn't the place to teach u - it takes time and intellectual to understand, dude.

P.S. Buy domestics and the money stays here which helps this country out - so you are sided with the companies, which means you are against the UAW, and so the UAW is lying 'bou companies not providing job security within the US, and money flowing out of the countries because the domestics invest on foreign countries to build factories and such?

P.P.S. I am not an import suppoter - I would say I'm kinda neutral on both sides; I'm just someone who loves to kick the behinds of those die hard pds who don't even know a clue of what they are talking about!

[Steve from Yellowstone]

I like turtles.

[J]

Anon,
So based on your conclusion about who holds the stock of certain company, I am assuming that you home never EVER had a Nintendo product, Sega product, Sony product, and not a single game that was a made by any oversea companies. Plus not a single finished goods is from overseas in your household.

Oh my...I can't imagine how hard that life would be.

[Adam]

Cars suck buy a donkey.

[Carol]

Why is it all the negative comments about the auto industry come from people that are just envious of a job with good pay and benefits that they don't have? Auto workers have made many sacrifices in the past few years on benefits relating to health care, pension, and wages. The people that have put this state in such financial distress are those that are buying foreign vehicles. The American parts content of GM/FORD/Chrysler vehicles is 85%+. Did you know that a Lexus contains less than 3% of American parts? A Hyundai/Kia contains less than 1% of American parts! The money paid for such vehicles leaves the country. If the consumer wants to support foreign economies that's their choice, but don't blame the state of the economy on auto workers! People love to call themselves Americans, but they have no loyalty whatsoever!!

[Carol]

If China can't make cheap toys, dog/cat food what makes you think they can make a quality car?

[Skinner]

OK...
A)GM almost goes belly up.
B)They make the necessary cuts and start producing some good products under good leadership and begin a turn-around.
C) The union goes on strike and shuts them down.
D) see A).

[Amuro Ray]

Carol,

Welcome to the REAL world - a world that changes all the time, nothing is guaranteed, and a world that has COMPETITIONS globally.

You can find what you want - job security, health care benefit, etc. in Fantasyland though.

[alex]

the uaw should be disbanded! they are corrupt, wrong and hurting the big 3 when they need help. Look at any objective standard, they are hurting.. The big 3, well still below honda and toyot in my opinion, are starting to make gains.. Why is it the uaw thinks its their god given right for socialism? Its not their right. Now, of course, as everyone does, workers need to be taken care off. But who else gets 95% of their pay for 2 years after they are fired? give off your butt and get to work.. The big three must be tough with the uaw in order to have a chance to survive. Then, if they survivie this, they must improve a lot! They are behind on hyprid technology, fuel efficiency in general, reliability, and the most important thing, image and perception..

[J]

So, I guess other than Anon, Carol is also one of those people don't have a single foreign made product at home. That includes, but not limited to let say: A Pentel pencil, A cell phone battery, etc...(Geez! My DKNY shirt is made in China for god sake!)

[Infosaur]

SEND IN THE PINKERTONS!!! (Which Ironically have been sold to Securitas, a Scandinavian firm)

[bowirder]

Inevitably, globalization will cause most manufacturing jobs to go overseas to labor intensive economies. It's a natural transgression. I won't get into the economic background, but at some point in the not too distant future, few of these UAW workers will have jobs on an assembly line. Although I commend them for their hard, monotonous work, they are effectively speeding up the process of globalization.

Over time, the marginal cost of making a vehicle will exceed the marginal profit with fewer vehicles having been produced over that same time period, utilizing human resources from the UAW (nothwithstanding fixed costs). Let's face it, America is a service economy, and the UAW has worn out its factory worker welcome.

[Carol]

All these negative comments from people that don't have a clue as to what automotive workers get. Automotive workers have been paying 30% of their health care for about 15 years now! Their health care benefits are less or comparable to what other companies offer their employees - whether they are automotive related jobs or not. I am appalled by the snide, ignorant comments from people that don't have a clue, but they sure love to jump on the bandwagon and complain about things they know nothing about!! Wake up people and get real. Quit blaming the American automotive industry for the bad economy and your miserable lives!!!!!!!
American car companies produce vehicles that are better than the imports. There's too many American automotive "haters" out there that are so consumed by their bitterness and hatred they refuse to see all the positive progress that has been made by GM/Ford/Chrysler's capital investment in the U.S. FYI - GM's is 20 billion. No wonder this nation is so divided on so many issues, it's a sad day when Americans are more loyal and supportive to foreign companies than American ones. Maybe all you American bashers should leave the country and go work/live abroad. I doubt you would be well received and welcomed. There was a time not too long ago when people like you were considered "traitors". Not much has changed!!

[Dennis]

To those who worry about the quality of the vehicles left on the factory line during the strike. No need to worry. The strike started at lunch time - meaning the assembly-line already stopped under normal circumstances.