PotentialUAWstrike could cut production, push up car prices: analysts

Published

2 years ago

September 12, 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

Stanley Cup Playoffs Central: Bracket, schedule, scores, news

Published

16 mins ago

April 17, 2025

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Stanley Cup Playoffs Central: Bracket, schedule, scores, news

The 2025 Stanley Cup playoffs begin on April 19. The Winnipeg Jets are the NHL’s top overall seed, having finished the regular season with the most points in the standings, and the Washington Capitals earned the No. 1 seed in the East.

This page will be your home throughout the postseason, including schedules, scores, highlights and other preview content.

Read on for the full playoff coverage from every first-round series all the way through the Stanley Cup Final.

First round

Atlantic Division

Regular-season records:

Maple Leafs: 51-26-4, 106 points
Senators: 44-30-7, 95 points

Leading scorers:

Maple Leafs: Mitch Marner (27 goals, 73 assists)
Senators: Tim Stutzle (23 goals, 53 assists)

Schedule:

Game 1: TBD
Game 2: TBD
Game 3: TBD
Game 4: TBD
Game 5: TBD
Game 6: TBD
Game 7: TBD

Regular-season records:

Lightning: 47-26-8, 102 points
Panthers: 47-31-4, 98 points

Leading scorers:

Lightning: Nikita Kucherov (37 goals, 84 assists)
Panthers: Sam Reinhart (39 goals, 42 assists)

Schedule:

Game 1: TBD
Game 2: TBD
Game 3: TBD
Game 4: TBD
Game 5: TBD
Game 6: TBD
Game 7: TBD

Metropolitan Division

Regular-season records:

Capitals: 51-21-9, 111 points
Canadiens: 40-31-11, 91 points

Leading scorers:

Capitals: Dylan Strome (29 goals, 52 assists)
Canadiens: Nick Suzuki (29 goals, 58 assists)

Schedule:

Game 1: TBD
Game 2: TBD
Game 3: TBD
Game 4: TBD
Game 5: TBD
Game 6: TBD
Game 7: TBD

Regular-season records:

Hurricanes: 47-29-5, 99 points
Devils: 42-32-7, 91 points

Leading scorers:

Hurricanes: Sebastian Aho (29 goals, 45 assists)
Devils: Jesper Bratt (21 goals, 67 assists)

Schedule:

Game 1: TBD
Game 2: TBD
Game 3: TBD
Game 4: TBD
Game 5: TBD
Game 6: TBD
Game 7: TBD

Central Division

Regular-season records:

Jets: 56-22-4, 116 points
Blues: 44-30-8, 96 points

Leading scorers:

Jets: Kyle Connor (41 goals, 55 assists)
Blues: Robert Thomas (21 goals, 60 assists)

Schedule:

Game 1: TBD
Game 2: TBD
Game 3: TBD
Game 4: TBD
Game 5: TBD
Game 6: TBD
Game 7: TBD

Regular-season records:

Stars: 50-25-6, 106 points
Avalanche: 49-29-4, 102 points

Leading scorers:

Stars: Matt Duchene (30 goals, 51 assists)
Avalanche: Nathan MacKinnon (32 goals, 84 assists)

Schedule:

Game 1: TBD
Game 2: TBD
Game 3: TBD
Game 4: TBD
Game 5: TBD
Game 6: TBD
Game 7: TBD

Pacific Division

Regular-season records:

Golden Knights: 49-22-10, 108 points
Wild: 45-30-7, 97 points

Leading scorers:

Golden Knights: Jack Eichel (27 goals, 66 assists)
Wild: Matt Boldy (27 goals, 46 assists)

Schedule:

Game 1: TBD
Game 2: TBD
Game 3: TBD
Game 4: TBD
Game 5: TBD
Game 6: TBD
Game 7: TBD

Regular-season records:

Kings: 48-24-9, 105 points
Oilers: 47-29-5, 99 points

Leading scorers:

Kings: Adrian Kempe (35 goals, 38 assists)
Oilers: Leon Draisaitl (52 goals, 54 assists)

Schedule:

Game 1: TBD
Game 2: TBD
Game 3: TBD
Game 4: TBD
Game 5: TBD
Game 6: TBD
Game 7: TBD

Sports

Robertson injured in Stars’ regular-season finale

Published

16 mins ago

April 17, 2025

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Robertson injured in Stars' regular-season finale

ESPN News Services

Apr 16, 2025, 10:36 PM ET

Dallas forward Jason Robertson sustained a lower-body injury during the Stars’ regular-season finale at Nashville on Wednesday and left the game.

Robertson, the Stars’ second-leading points producer with 80 (35 goals, 45 assists) this season, left the game early in the second period after being hit into the boards by Nashville’s Michael McCarron. The team announced that Robertson would not return.

Dallas, which went on to lose 5-1, is locked into second place in the Central Division and will host the Colorado Avalanche in the first round of the playoffs. However, the Stars are mired in a season-worst 0-5-2 slide.

Robertson, the Stars’ second-round draft pick in 2017, is in his sixth season with Dallas, having recorded 79 or more points in each of the past four campaigns.

Field Level Media and The Associated Press contributed to this report.

Sports

Iafallo signs 3-year, $11M extension with Jets

Published

17 mins ago

April 17, 2025

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Iafallo signs 3-year, M extension with Jets

Field Level Media

Apr 16, 2025, 12:47 PM ET

Winnipeg Jets forward Alex Iafallo signed a three-year contract extension worth $11 million Wednesday.

The extension will begin next season for Iafallo, who has recorded 31 points (15 goals, 16 assists), 15 penalty minutes and a plus-21 rating in 81 games this season.

Iafallo, 31, has totaled 262 points (111 goals, 151 assists) in 583 career games with the Los Angeles Kings and Jets. He was an undrafted free agent who was signed by the Kings out of the University of Minnesota-Duluth in 2017.