The members of United Auto Workers (UAW) recently announced their decision to authorize a strike against the famous auto company General Motors (GM). With this announcement, the strike started during the midnight of Sunday. The contract of UAW which it had previously signed with GM expired on Saturday at 11:59 am.
Several news portals had earlier reported that if the members of UAW stage a walkout against the GM, then it could affect the auto part supply of the company. The strike is taking place in the Dayton area. The automaker employees over hundreds of people.
Several reputed employers of Dayton area are GM’s suppliers and employ thousands of employees. DMAX, which is based in Moraine region, employs over 800 workers. Similarly, Fuyao Glass America, which is based in the same region, has more than 2000 workers.
Through a LinkedIn post, Dayton Daily News stated that currently GM is equipped with enough inventory so that it could deal with short walkouts. An official from the company confirmed this news after conducting one assessment based on the industry.
The analysts of Cox Automotive have estimated that the inventory of GM regarding Sports Utility Vehicles (SUVs) and trucks are capable of standing out for about 80 days in total. Cox Enterprise are the owners of Cox Automotive. The former is a part of Daily Dayton News.
Mainstay Capital Management’s Founder and Chief Executive Officer (CEO) David Kudla has stated that UAW’s strike could have a real impact on DMAX Plant based in Moraine. It is famous for producing the Duramax Diesel Engine.
He further stated that the strike would have a severe impact. The company makes engines for heavy-duty, GMC Sierra and Chevy Silverado. Although these plants are not under UAW contract, since they make supplies, the latter would be affected. The plant would remain idle at some point.