GlobalData Points

• A strike could potentially delay notable new product launches and buildouts such as the refreshes of the popular and profitable GM Large SUVs and Ford and Stellantis’
• Unionized production of large pickup trucks in North America “faces a downward trend “as other non-union manufacturers such as Tesla and Toyota continue to increase sales. Large pickup truck production previously represented 40% of overall production in the region in 2019, but now only represents about 36% for 2023.
• GM, Ford, and Stellantis are continuing to look to reduce labor costs as they upgrade current or build new facilities to manufacture BEVs (battery electric vehicles) so that they can stay competitive with Tesla and other manufacturers. BEVs require fewer parts than traditional fossil-fueled vehicles, which means fewer union workers are needed to manufacture each vehicle.
• Earlier in 2023, Stellantis idled the Belvidere assembly plant in Illinois – in part due to the escalating costs in the shift to BEVs – which left 1300 employees out of work. The plant was once home to the Jeep Cherokee and has the capacity to produce 300,000 vehicles annually.
• The threat of more plant closures is one item on the agenda for contract negotiations and since the automakers have had recent years of healthy profits, the UAW believes the closures are unnecessary.