News
James B. Bell
- October 03, 2023
Approximately 500 autoworkers from Ford Motor Co. and General Motors Co. have been laid off as a result of the ongoing United Auto Workers (UAW) strike, which is now in its third week.
Impact on Ford
A Ford spokesperson confirmed on Tuesday that 330 workers from its Chicago stamping plant and Lima, Ohio engine plant have been asked not to report to work. Layoffs began on Saturday at the Chicago plant and on Monday at the Lima plant.
In addition to these layoffs, Ford had already laid off 600 workers from its Michigan assembly plant on September 15, bringing the total number of Ford employees affected by the strike to 930.
The Chicago plant produces the Ford Explorer, Ford Police Interceptor, and Lincoln Aviator, and the production of these vehicles has been halted due to the strike.
Impact on GM
At GM, 130 workers from a plant near Cleveland and 34 workers from a facility in Indiana have been laid off. These factories manufacture metal parts used at GM assembly plants, which are currently inactive due to the strike.
Stock Market Response
Ford's stock dropped by 2% during midday trading on Tuesday, while GM's stock fell by 3.3%. These declines are attributed to general weakness in the U.S. equity market.
UAW Strike's Scope
The UAW has deviated from the traditional practice of striking at one company at a time. Instead, they have chosen to strike at all three major U.S. automakers, including Stellantis NV. This strike has impacted approximately 25,000 workers across various plants and parts distribution facilities.
These layoffs are a direct consequence of the strike at the Chicago assembly plant since the affected facilities need to reduce production of parts that would typically be shipped to the Chicago plant.
Conclusion
The UAW strike continues to have a significant impact on the automotive industry. Ford and GM have been forced to lay off hundreds of workers, halt vehicle production, and deal with stock market declines. As the strike persists, its effects on the industry are likely to intensify.
Related: UAW strike brings fight to consumers, worsening car-parts shortages already plaguing the industry
Don’t miss: Ford pauses work on $3.5 billion EV battery plant in Michigan
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