How soon could UAW strike impact Southwest Florida consumers?

A historic labor strike is now underway against the big three American automakers.

As auto workers from General Motors, Ford and Stellantis walk out, car salespeople worry about what could come next.

One consulting group estimates a 10-day strike will cost $5.6 billion. And the longer it goes, the more the cost of cars will increase. Other companies like Honda, Toyota, Hyundai and Nissan won’t be impacted by the strike, but experts agree if you plan on getting a car, buy sooner rather than later.

Automakers have been hit hard in recent years.

First COVID’s supply chain issues persisted. Then, interest rates began to rise.

The strike is the latest in many obstacles for the automaking sector and consumers.

“It seems like we get one hit after another,” said Jay Ganzi, a managing partner at a Stellantis dealership — Cape Coral Chrysler Dodge Jeep Ram.

“This is, could be a huge debacle,” he said. “I’m curious to see how it turns out. I’ve never seen anything like it in my lifetime.”

Ganzi said the strike won’t hurt his dealership immediately. They have enough cars on the lot and will be fine for now.

“I have a little over two-and-a-half-month supply on the ground, so I’m good. I could only see the effect affecting the dealer body if the strike went on a month or so,” Ganzi said.

The United Auto Workers Union wants a roughly 40% raise over four years for all its members.

The big three have offered about that.

The UAW also wants a 32-hour week at full pay and to bring back the traditional pensions they gave up during the recession to help automakers.

Ganzi thinks those workers should get what they gave up.

“I think that the manufacturers, they’re going to have to meet somewhere in the middle,” Ganzi said. “I think what they’re asking for is a little outrageous, but I’m not at that end. I mean, the big three posted huge earrings for 2022.”

Florida Gulf Coast University’s director of Regional Economic Research Institute, Amir Neto, believes the strike would need to go on for quite some time before Southwest Florida feels the effects.

“They have built some of that inventory. Some of that production is still going on, so it will take some time before us to really start seeing the lack of that car that we really want to be at our dealership,” Neto said.

But the longer it goes, the more inventory shrinks, and the more you will have to pay for a new car.