What is Happening with Detroit's Big Car Companies

What is Happening with Detroit’s Big Car Companies?

Detroit’s big car companies face walkouts: A breakdown of the UAW strike drama and its impact on GM, Ford, and Stellantis.

Hey everyone! 

We have some big car news out of Detroit, so let us break it down in plain English.

The Big Car Drama

So, three big car companies – General Motors (GM), Ford, and Stellantis – will face major disruptions this Friday.


Because they and their workers, represented by the United Auto Workers (UAW) union, are not seeing eye-to-eye on some major things, like job security and fair pay.

What the UAW Boss Says

Here is a spicy bit: UAW’s big boss, Shawn Fain, is shaking things up more than the people before him. 

He is warning that they will stop working at even more factories if things are not sorted out soon. 

Moreover, he will spill the beans on their next move at 10 a.m. local time.

The Money Talk

Money is always a big talking point. 

So, the car companies have said, “Hey, how about a 20% raise over four years?” 

However, the UAW’s return with, “How about 36% instead?” 

Quite the gap, huh? 

Especially at Stellantis, some of the big things the union wants still need to be added to the table.

Mike Hayes from the UAW said, “It is not just about the money. We want to make sure jobs stay in the USA.” 

They feel that despite the car companies getting big tax breaks, they must promise to keep local jobs.

The Game of Strategy

If there is a bigger strike, it could twist the arm of these car companies. However, there is also a catch. 

The UAW’s strike fund might dry up if more workers join the strike. 

Earlier, the strike focused on places making the popular SUVs and trucks but left out the big-ticket items like the Ford F-150.

For a snapshot: on September 15, almost 13,000 workers decided, “We are out!” at plants in Michigan, Missouri, and Ohio.

How are the Companies Reacting?

Post all this drama, these car companies started letting some folks go. 

Moreover, while all this is happening, some suppliers say, “We are good; not much impact here.”

Stock-wise, GM and Ford are not having the best time, while Stellantis is doing pretty well. 

Plus, because of the strike, they make about 3,200 fewer cars daily!

What is the Core Issue?

Here is the tea: Over at GM, workers want pay adjustments to keep up with the cost of living. 

While GM thinks of this as part of the pay deal, workers want it on top of a raise. 

Moreover, there is also some back-and-forth about vacation days.

On the other hand, Ford tried to make a deal earlier in the month.

The UAW thinks the talks went okay-ish.


They made a new offer recently. 

However, job security is still a big worry, especially with the chance of their places shutting down.

One worker, Donald Alston, said, “No one really wants to go on strike, but sometimes you have to stand up for what is right.”

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