United Auto Worker Strikes Have Cost $4 Billion — So Far

The United Auto Workers' targeted strikes have cost the automotive industry and customers nearly $4 billion after just two weeks, a significantly smaller losses than what was predicted if the union's 146,000 members all struck simultaneously.

The latest estimate from the East Lansing, Michigan-based firm Anderson Economic Group weighed four categories to determine the overall cost of the UAW's strikes: union members' lost wages, losses to suppliers and dealerships as well the costs to consumers. And, of course, the Detroit Three manufacturers themselves.

Suppliers have, by a narrow margin, suffered the most from the strikes — with $1.29 billion in losses. Next were car dealers and customers' $1.2 billion in losses. The Detroit Three — Ford Motor Co., General Motors and Stellantis — collectively lost $1.12 billion, while the autoworkers themselves have missed out on $325 million in direct wages.

When the strikes were first authorized on Aug. 25, Anderson Economics estimated that a potential strike from the UAW's entire Detroit Three-employed membership could cost the U.S. economy more than $5.6 billion after just 10 days.

The union chose instead to target individual facilities, lessening the overall impact of the strikes and giving it more flexibility.

“Suppliers were particularly hard-hit by the UAW’s strategy of announcing specific plants to be struck just hours before they were shut down,” Anderson Economic Group's CEO Patrick Anderson said. “The shutdown of 38 parts distribution centers also crimped dealership service operations and, of course, caused more UAW workers to lose wages.” 

The firm's estimates do not include additional strikes announced by the UAW on Sept. 29, which called on another 7,000 autoworkers to strike against  Ford's Chicago Assembly Plant and GM's Lansing-Delta Township facility in Michigan. Before those strikes were announced, 18,000 autoworkers were on strike against 38 parts distribution centers operated by GM and Stellantis, as well as one assembly complex operated by each automaker.

Anderson added that when the distribution centers shut down the impact of the strike spread more quickly to dealerships, customers and additional suppliers. While 67% of Americans approve of labor unions — and 75% of Americans support the autoworkers — Anderson suggests that feelings may shift over the next week, as the impact of the strike grows.

“When the innocent bystanders begin to feel it,” Anderson wrote. "[I]t will affect the generally supportive sentiment Americans have been expressing about the UAW’s demands thus far in the strike.”

The firm also anticipates that this week will be significantly more expensive for Ford, which was initially spared additional strikes in the UAW's first wave of additional labor stoppages. The newly-struck Chicago Assembly Complex makes the Ford Explorer, Police Interceptor Utility and Lincoln Aviator; the inclusion of Ford's Explorer — the automaker's most popular SUV in the second fiscal quarter of 2023 — is expected to greatly hurt the company and dealers.

Ford's Wayne, Michigan, assembly plant puts together its popular Bronco SUVs and Ranger midsize pickup trucks, which are some of the automaker's other cash cows.