An auto strike looks likely. Should I buy a car now?
When considering purchasing a new vehicle, you may be cautious about the reports of a potential strike by the United Auto Workers. According to professionals, this could negatively impact the availability of specific cars, trucks, or SUVs in the foreseeable future.
There isn't a one-size-fits-all answer when it comes to what a car shopper ought to do. It rests upon the specific vehicle one is in the market for and how flexible they are in regard to their options. To begin with, don't forget that only General Motors, Ford, and Stellantis are facing the possibility of strikes by the United Auto Workers. Therefore, if you plan to purchase a car from Toyota, Honda, or Hyundai, any potential strike would have negligible impact on your decision.
If you're planning on purchasing a Ford, Chevrolet or Jeep, which are produced by Ford, GM and Stellantis respectively, but you're not too fussy about the color or specific features, you may still have an opportunity to look for options even in the event of a strike.
However, the focus is on the possibility.
Car manufacturers are slowly regaining their footing after facing challenges in manufacturing caused by the shortage of components due to Covid-19. Pat Ryan, CEO of CoPilot, a website that monitors dealership stocks, revealed that the current inventory of new vehicles is slimmer compared to shortages caused by previous labor strikes.
These three companies have contrasting features. GM has the most limited supply among them, whereas Stellantis, the manufacturer of Jeep, Dodge, and Ram models, among other cars, has an ample quantity of automobiles stored in their dealer showrooms.
Ryan stated that Stellantis has a considerable amount of items in their inventory, and this strategy may assist them in selling a portion of the said inventory.
Alternatively, if you're interested in purchasing an SUV or truck from GMC, Chevy or Cadillac, there may already be delays for certain models, according to Ryan. This is particularly accurate if you have a particular specification in mind.
According to him, the difficulty in purchasing some of those things lies in the fact that you need to either place an order or wait to acquire the precise item that you desire.
According to industry analyst Ivan Drury from Edmunds.com, there's no reason to make a rushed purchase at the moment if you're open to more options. Even if the strike continues for a while, there will still be some time before things become extremely critical.
"If you're considering buying a car from an American manufacturer, you might notice that they're promoting low interest rates and cash incentives," he suggested. "My advice would be to make your purchase sooner rather than later, to avoid any uncertainty that might arise in three or four months if factory production slows down due to possible shutdowns."
According to Michelle Krebs, an analyst for AutoTrader, there are certain car models that are in high abundance currently, even beyond the Stellantis group. These include the Ford Bronco Sport and Escape, the Chevrolet Equinox, and larger pickup trucks. This information was shared via email communication.
However, Ryan observed that pickups typically demand a greater variety of choices and models for customers to discover the ideal vehicle in the available stock due to their extensive range of types and features.
It could be assumed that models manufactured in countries like Canada or Mexico, where UAW employees aren't working, won't face shortage problems during a strike in the United States. Regrettably, this isn't the situation since car factories in North America, comprising of Canada and Mexico, are interconnected, as stated by Thomas Goldsby, a supply chain management professor at the University of Tennessee in a written communication.
The author highlighted that factories located in the United States produce parts that are transported to factories in other countries. This means that if a strike continues, the automobile production in Mexican and Canadian factories may cease to operate in the future.
Even though some of these brands manufacture their models outside of North America, there are other options available. For example, the Chevy Trailblazer and Trax come from South Korea, while the Dodge Hornet from Stellantis is built in Italy, and the Buick Envision from GM comes from China.
Goldsby stated that the strikes are not likely to impact automobile factories located in other continents because manufacturers do not frequently transport important automobile parts between facilities situated on separate continents.
According to Ryan, this can be compared to buying a car in a time when there are a limited number of vehicles available due to the impact of Covid.
The speaker stated that the deals offered by Stellantis will probably be focused on certain brands and models. It would be beneficial to consider the Stellantis brands at this time, especially if there is a particular brand that interests you, as you may be able to get a better deal on those models.
