Friday, September 08, 2023

What the pivotal point of the UAW strike in Detroit? Only 8 billion dollars.

Negotiations will remain active for one more week between the United Auto Workers (UAW) and Detroit’s big three automakers: Ford, General Motors, and Stellantis. If neither party is able to reach an agreement, then the UAW will be going on strike until their demands are met.

A recently study predicts that if the Big 3 meets the UAW demands, it could cost upwards of $8 billion in profits over the length of the contract 
A strike could delay the ongoing EV transition, with lost production costing automakers another $1.4 billion per week.


So, in about 8 weeks, more or less, the manufacturers hit the break even point in the strike. It's going to cost them more past that, but, they lose NOTHING to let the strike go as long as the new contract costs equal amount will be. 

8 billion, one way or another, will be the estimated cost to the corporations, and they will not get around that. 

If their multibillion dollar managers (each costs over a million a year to the corporation) who have only one job to accomplish per their hiring agreement, raise the profit margin of the corporation, were worth their annual salaries, this 8 billion wouldn't matter.  

Not build better cars. Not reduce losses, increase quality, or make some new type of car the public might buy in larger quantities, or in other countries markets. 



2 comments:

  1. Pretty sure there are some chinese hands behind that. Similar stuff is happening in Europe.

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  2. You seem to be siding with the union. Does that mean you support their demand of a 46% pay increase and overtive for every hour over 32 hours per week? Can you explain how that is economically feasible?

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