
How the united auto workers strike could affect you and your car
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However, there is unlikely to be a similar and immediate effect from the UAW’s actions. “Right now, I would say the impact on the new vehicle market from the strikes is probably pretty
limited,” says Joseph White, a veteran auto industry journalist for _The Wall Street Journal_ and Thomson Reuters. Companies have a “decent” inventory of the vehicles affected, White says:
“So right now, at this stage, the impact isn’t that big.” If the strike goes on for months, that could change. There are reasons to be concerned about prices in the short term, but
they are not related to the UAW’s activities, White says. It’s possible car dealers may engage in price gouging, actions that caused some of the price increases on new vehicles during the
pandemic. “For consumers, the thing to watch is, what are the dealers doing with prices and who are they trying to take advantage of?” White says. “The dealers may read the headlines and
tell consumers, ‘We’re charging $1,000 or $2,000 over list because, you know, strike.’ That’s not the union’s fault. Unions are not doing that. That’s the dealer.” WILL THE COST OF
USED CARS GO UP? When new car prices and interest rates rose during the pandemic, many consumers who couldn’t find new cars — or who couldn’t afford them — looked to the used car market,
which elevated prices and contributed to scarcity of those autos. But this escalation happened over the course of years, amid supply chain issues that impacted the entire global auto
industry. The current situation is different, White says, at least for the near future. “I’d say it shouldn’t really have a direct impact on used vehicles. This doesn’t mean that people
won’t try to take advantage of the situation — dealers, that is,” he says. “But there’s no particular reason why used vehicle prices should go up because there’s not yet a big shortage of
new vehicles.” WHAT ABOUT AUTO REPAIR AND MAINTENANCE? The UAW expanded its strike last week to include dozens of centers that distribute automotive parts for the assembly of new
cars, as well as for maintenance of vehicles on the road. This could be where consumers see the most impact.