PotentialUAWstrike could cut production, push up car prices: analysts

Published

2 years ago

September 15, 2023

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A prolonged coordinated strike by the United Auto Workers union against the Detroit Three automakers could cut production by thousands, potentially pushing up vehicle prices and exacerbating supply-chain disruptions, analysts said.

The auto industry is on edge as the current four-year contracts between the UAW and General Motors, Ford Motor and Stellantis for hourly US workers expire on midnight Sept. 14, after which the union’s chief has warned of a possible coordinated strike.

New vehicle prices may rise by less than 2% if the strike lasts about two weeks, according to automotive consulting firm J.D. Power.

“Everyone’s going to see higher prices regardless of the company you buy from if it (strike) continues for more than two weeks,” said Tyson Jominy, vice president, data and analytics at J.D. Power.

He added that companies such as Toyota, Honda and Volkswagen may also benefit if the domestic brands quickly run out of inventory to sell.

Jominy said the used car market, which quickly follows the underlying trends of the new market, may see a greater impact on prices if there are fewer substitutes for buying a vehicle.

CFRA analyst Garrett Nelson said strikes at all three automakers would cut North American auto production by 150,000 units per week, resulting in higher vehicle prices as inventories deplete.

That would mean an end to the trend of cooling vehicle prices in recent months, at a time when inflation continues to pinch US consumers.

“Even if the UAW continues to negotiate beyond its deadline, the lack of a deal and threat of a strike should discourage auto dealers from offering discounts on their existing inventory and drive an uptick in vehicle prices,” J.P. Morgan insurance analyst Jimmy Bhullar said.

Deutsche Bank previously estimated that a strike would hit earnings at each affected automaker by about $400 million to $500 million per week of production.

GM and Ford are also in the midst of a multi-billion dollar EV transition and brokerage Wedbush estimates adoption of some major UAW proposals to result in an increase in the price of electric vehicles rolling out over the next 12 to 18 months.

“(Ford CEO Jim) Farley and (GM CEO Mary) Barra both face some tough decisions ahead and find themselves with the back against the wall,” Wedbush analyst Dan Ives wrote in a note.

The resulting disruptions from any strikes are also likely to benefit EV leader Tesla, industry experts said. Some dealers are also expected to gain from shortages of vehicles.

“The big thing to keep in mind (is) that (the) UAW strike could help stabilize our margins, which is quite nice,” auto retailer Lithia Motors’ CEO Bryan DeBoer said during a July analyst call.

Another large dealer, AutoNation, previously said it had built up inventories from domestic manufacturers, which should provide some cushion.

However, UAW president Shawn Fain rejected the idea that worker wages were responsible for auto prices going up in the last few years.

In a video released on Thursday titled “Here’s what the Big Three and the corporate media’s NOT telling you about car prices,” Fain said “corporate greed” was responsible for rising car prices.

“In the last four years, the average price of a new car is up 30%, meanwhile auto worker wages have risen a meager 6%,” Fain said.

Sports

Pirates ball-crusher Cruz accepts HR Derby invite

Published

2 hours ago

July 8, 2025

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Pirates ball-crusher Cruz accepts HR Derby invite

Field Level Media

Jul 8, 2025, 04:16 PM ET

Pittsburgh Pirates center fielder Oneil Cruz accepted an invitation on Tuesday to compete in Monday’s Home Run Derby in Atlanta.

Cruz is the fifth player to commit to the competition, held one day before the All-Star Game. The others are Ronald Acuna Jr. of the Atlanta Braves, Cal Raleigh of the Seattle Mariners, James Wood of the Washington Nationals and Byron Buxton of the Minnesota Twins.

Cruz, 26, is known for having a powerful bat and regularly delivers some of the hardest-hit homers in the sport. His home run May 25 at home against the Milwaukee Brewers had an exit velocity of 122.9 mph and was the hardest hit homer in the 10-year Statcast era.

But Cruz has never hit more than 21 in a season, and that was in 2024. He’s on track to set a new high this year and has 15 in 80 games.

Cruz has 55 career homers in 324 games with the Pirates.

Cruz will be the first Pittsburgh player to participate in the Derby since Josh Bell in 2019. Other Pirates to be part of the event were Bobby Bonilla (1990), Barry Bonds (1992), Jason Bay (2005), Andrew McCutchen (2012) and Pedro Alvarez (2013).

Overall, Cruz is batting just .203 this season but leads the National League with 28 steals.

Among the players to turn down an invite to the eight-player field are two-time champion Pete Alonso of the New York Mets, Kyle Schwarber of the Philadelphia Phillies and 2024 runner-up Bobby Witt Jr. of the Kansas City Royals.

Defending champion Teoscar Hernandez of the Los Angeles Dodgers recently turned down a spot as a consideration to nagging injuries.

Top power threats Aaron Judge of the New York Yankees and Shohei Ohtani of the Dodgers also are expected to skip the event.

Sports

Yanks moving Chisholm back to 2B after 3B stint

Published

2 hours ago

July 8, 2025

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Yanks moving Chisholm back to 2B after 3B stint

Field Level Media

Jul 8, 2025, 01:40 PM ET

New York Yankees All-Star Jazz Chisholm Jr., after making 28 starts in a row at third base, is moving back to second base starting with Tuesday’s game against the Seattle Mariners, manager Aaron Boone said.

Boone confirmed the change on the “Talkin’ Yanks” podcast on Tuesday.

Chisholm, who is batting .245 with 15 home runs, 38 RBIs and 10 steals in 59 games, has recently been bothered by soreness in his right shoulder, which he said is an issue only on throws.

He said he prefers to play second base and prepared in the offseason to exclusively play in that spot before injuries played havoc with Boone’s lineup card, starting with Chisholm’s oblique injury in May.

Third baseman Oswaldo Cabrera went down with a season-ending ankle injury on May 12.

DJ LeMahieu manned second base while Chisholm was at third, but Boone has a better glove option in Oswald Peraza, a utility man with a stronger arm plus defensive skills across the infield.

LeMahieu, 36, is batting .266 with two home runs and 12 RBIs this season.

Sports

Willie Mays’ personal collection going to auction

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2 hours ago

July 8, 2025

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Willie Mays' personal collection going to auction

Dan HajduckyJul 8, 2025, 02:40 PM ET
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The personal collection of Willie Mays, including a Presidential Medal of Freedom awarded to the Hall of Famer by President Barack Obama, will head to auction via Hunt Auctions on Sept. 27-28 in San Francisco.

“Per Mays’ wishes, all proceeds from this auction will go to delivering education, training, and health services for youth through the Say Hey! Foundation which Willie Mays founded in 2000,” Hunt Auctions said in a statement.

Other items to be auctioned include Mays’ 1954 New York Giants World Series ring, his 1954 and 1965 NL MVP Awards, his Baseball Hall of Fame induction ring and his 1962 home San Francisco Giants uniform — photo-matched to that year’s MLB All-Star Game and two other games from that season.

There’s also a 1977 Stutz Blackhawk VI, custom made for Mays.

“We are deeply humbled and grateful to Willie Mays for having been selected to represent this important offering of his personal collection,” said David Hunt, president of Hunt Auctions, who also handled the auctioning of Bill Russell’s and Bill Walton’s personal collections.

“For all of his extraordinary achievements as a baseball player, Willie Mays wanted his enduring legacy to be helping children,” Jeff Bleich, Mays’ friend and the chair of the Say Hey! Foundation, said in a statement.

The collection’s first public display will be at the 2025 National Sports Collectors Convention, held at the Donald E. Stephens Convention Center in Rosemont, Illinois, from July 30 through Aug. 3.