Consumers looking to buy a car are understandably anxious as reports of a possible auto strike by the United Auto Workers continue to make headlines. This article will discuss the potential drawbacks and provide suggestions for things to think about when shopping for a new vehicle. We’ll give you all the details you need to make a choice, from the affected brands to the models that are still in stock.
Effects on Automotive Consumers
Concerns about a possible auto strike are understandable, but at this time the United Auto Workers are only threatening strikes against General Motors, Ford, and Stellantis. It’s unlikely that the potential strike will affect your decision to buy a Toyota, Honda, or Hyundai.
However, there are some things to think about if you have your heart set on a Ford, Chevrolet, or Jeep—made by Ford, GM, and Stellantis, respectively. In the event of a strike, you may still have time to shop around if you are not set on a particular color or set of options. Covid-related parts shortages have resulted in lower-than-usual inventory levels; knowing how this may affect the models you want is important.
Differences in Inventories Across Automakers
There is considerable variation in current inventory levels across the three companies that are potential strike targets, despite the fact that all three are still recovering from manufacturing disruptions brought on by the pandemic. Stellantis, the maker of Jeep, Dodge, and Ram models, has more vehicles than it needs, while General Motors has the most limited supply.
If you’re looking at GMC, Chevy, or Cadillac SUVs or trucks and have specific preferences, you should know that there are already wait times for some models. The difficulty lies in locating the desired characteristics and choices without placing an order or waiting for delivery.
Adaptability Is Essential
There is no need to make a hasty purchase right now if you can be more lenient with your preferences. Industry analyst Ivan Drury predicts that if the strike continues for a significant amount of time, the situation will not become critical for quite some time. Drury, however, recommends acting quickly to avoid supply chain disruptions and limited availability later on.
In the United States, car manufacturers are already using enticements like zero-percent financing and rebates to sell vehicles. Drury recommends taking advantage of these deals and making a choice quickly to prevent future setbacks and restrictions.
Modes with Sufficient Stock
There are still some models that are currently in plentiful supply despite the impending strike. Analyst Michelle Krebs says that there is a plentiful supply of Ford Bronco Sports, Escapes, Equinoxes, and full-size pickups. Pickups, on the other hand, have so many variants and customizations that the inventory needs to be more extensive for customers to find what they’re looking for.
Consequences for Global Standards
It would be reasonable to assume that a strike in the United States would not affect the production of models in Mexico or Canada, since those factories do not employ UAW workers. However, the North American (i.e., Canada and Mexico) factories of automakers are interconnected. Components made in the United States are shipped to assembly plants in Mexico and Canada, so a strike there could halt vehicle production in those countries.
Some of these brands’ models are made in other countries and then shipped to North America for sale. Some GM vehicles, such as the Buick Envision, are assembled in China, while others, like the Chevrolet Trailblazer and Trax, are produced in South Korea. Strikes are less likely to impact these global models because automakers rarely ship major components between factories on different continents.
How to Deal with Uncertainty
Vehicle shortages were common after the Covid era, and the feeling of shopping for a car during a potential strike can be reminiscent of that time. Strike effects, however, will likely be model- and brand-specific. Keeping this in mind, you might want to check out Stellantis brands to see if there’s one that fits your needs. Potential buyers may benefit from better deals and incentives as a result of the surplus inventory.
The decision to shop for a vehicle during a potential auto strike comes down to personal preferences for make, model, and adaptability. Always do your research and base your choice on what is best for you. You can find the right car for your needs in spite of the uncertainty if you keep an eye on inventory levels, take advantage of current incentives, and think about other options.
See first source: CNN
1. How likely is an auto strike to affect my car-buying decision?
As of now, the United Auto Workers (UAW) have threatened strikes against General Motors, Ford, and Stellantis (formerly Fiat Chrysler). If you’re considering purchasing a Toyota, Honda, or Hyundai, it’s unlikely that a potential strike will impact your decision.
2. How do inventory levels vary among the automakers facing potential strikes?
There is significant variation in current inventory levels. Stellantis, the maker of Jeep, Dodge, and Ram models, has surplus inventory, while General Motors has the most limited supply. Chevrolet, GMC, and Cadillac SUVs or trucks may already have wait times for specific models.
3. Is it advisable to make a quick purchase decision due to the potential strike?
While there’s no need for a hasty purchase, acting quickly can help you avoid potential supply chain disruptions and limited availability. Industry analysts recommend taking advantage of current incentives like zero-percent financing and rebates.
4. Which car models have sufficient stock despite the potential strike?
Some models still have ample supply. Ford Bronco Sports, Escapes, Equinoxes, and full-size pickups are among them. Pickups, in particular, offer numerous variants and customizations, so a wider inventory is necessary for customers to find what they’re looking for.
5. How might a strike in the United States affect car production in Mexico and Canada?
While factories in Mexico and Canada do not employ UAW workers, North American factories are interconnected. Components produced in the United States are shipped to assembly plants in Mexico and Canada. Therefore, a strike in the U.S. could halt vehicle production in those countries.
6. What should I consider when shopping for a car during a potential auto strike?
Your decision should be based on your personal preferences for make, model, and adaptability. Keep an eye on inventory levels, take advantage of current incentives, and explore other options. You can still find the right car for your needs despite the uncertainty caused by a potential strike.
Featured Image Credit: carlos aranda; Unsplash – Thank you!