Iowa Logistics Experts Weigh In On UAW Strike

2020 Ford F-150 Pickup Trucks

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(Undated) -- The United Auto Workers Strike against Ford, GM, and Stellantis has those who study logistics and supply chains wondering about a larger impact on the industry and consumers.

University of Northern Iowa Business Associate Professor Andy Anderson says dealerships who built up their inventory will be glad they did if the strike goes on for a long period of time. He notes, however, depending on how long the strike continues the law of supply and demand could easily put upward pressure on vehicle sticker prices. Anderson says there could also be longer wait times to get the vehicle you want. He says the strike could be a short term logistical shock, but it could also lead to higher prices on car lots to maintain healthy profit margins. Anderson says the price pressure may also spill over into the pre-owned lots.

Iowa State University Business Professor Frank Montabon agrees that a lengthy strike could affect dealer inventories because of supply and demand. He notes a key factor is the automotive industry is lean, there is not a lot of extra inventory of vehicle components. He says the basic concept is don't hold onto steering wheels and bumpers unless the manufacturer is 100% sure those items will be used. Montabon says the challenge will be restarting the assembly lines because of the availability of components and also labor force.

Today (Monday) was day four of the United Auto Workers' strike against the Big Three U.S automakers. The UAW reportedly met with Ford and GM over the weekend, and was to meet with Stellantis today (Monday).

Nearly 13-thousand auto workers remain on strike at three plants in Ohio, Michigan and Missouri.

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