The current UAW contract with Ford, General Motors and Stellantis expires within days.
Potential car buyers are no longer contending with chip shortages that dried up new-car sales during the pandemic and sent used-car prices soaring, but it’s still a bumpy ride for anyone looking to buy a car — and there’s a hazard sign up ahead.
Americans paid an average of $48,334 for a new car in July, according to Kelley Blue Book. That’s essentially flat year over year — but it’s being paid by a person whose salary may not be keeping with inflation and, while watching their excess savings dwindle, may balk at taking on more debt. If no new cars became available for sale, dealers would have an average of 58 days of sales at the current pace before their inventory dried up, Krebs said. A 60-day supply padding is the historical amount, she wrote. Most of the Big Three brands have days of supply above the 58-day average, Krebs noted.
Tesla’s win from the labor talks and any strike can be seen in the long run, he said. “The long-term benefit is that there is nothing a company likes to see more than its competitors’ costs go up,” said Gordon, who teaches strategy and entrepreneurship and has watched Musk’s business moves for years. That includes recent price cuts for various Tesla models.
If the union talks are putting labor relations front of mind, that might be a strike against Tesla for some buyers. Two years ago, the National Labor Relations Board ordered Tesla to reinstate a worker and told Elon Musk to delete an anti-union tweet.
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