“If I were the UAW, you’re wanting to try to put pressure on the manufacturers to give in to your demands,” Keating instructed Automotive News. “By striking at a parts distribution warehouse, I don’t think that puts pressure on the manufacturers as much as it does the retail customer and not being able to get their vehicle fixed. If they choose to do that, it sounds to me like they are going to become a national villain to the retail customer or the retail public, which I think is not something they want to do.”
Stephanie Brinley, affiliate director, Automotive Intelligence at S&P Global Mobility, additionally wonders about how the union’s newest tactic will play out with the general public.
“Along with the specter of ongoing low inventory and some vehicles perhaps being in even shorter supply as a result, the situation also creates potential challenges for dealers and customers — if repair parts become difficult to source,” she mentioned in a press release. “But UAW leadership believes it has public support. In announcing this move, the UAW said automakers and dealers could ensure customers aren’t hurt if they avoid ‘price gouging.’ It is unclear how much patience an average consumer will have if they cannot get a vehicle serviced.”
Kunes Auto Group, of Delavan, Wis., owns greater than 25 franchised dealerships all through Wisconsin, Illinois and Iowa.
With Friday’s expanded strike, Kunes Auto COO Scott Kunes mentioned the group started proactively reaching out to prospects who may have service work or repairs.
“We just don’t want to leave anybody hanging out there,” Kunes mentioned. “With this new round of strikes, we are nervous that that people that may have been putting off unnecessary repairs may see issues.”
Kunes mentioned the group had an concept that the strike may disrupt elements distribution, so that they aimed the final month to increase a 60-day provide of latest autos and a 45-day provide of used autos by 30 days, in addition to growing elements provides by 50 %.
LaFontaine Automotive Group of Highland, Mich., which has each GM and Stellantis dealerships, has constructed up an arsenal of elements to arrange for the strike, spokesman Max Muncey mentioned.
He mentioned they’ve a couple of 90-day provide on extra frequent, fast-moving elements that make up a majority of its enterprise and so they have an excellent stash of specialty elements.
In truth, Muncey mentioned, from a stocking standpoint, the group has exceeded capability of two Michigan buildings and have turned to “off-site, shipping containers, pods and rental facilities that we’re using just to house the influx of parts.”
That inflow represents a rise of about $6 million extra in elements stock than what LaFontaine usually carries, Muncey mentioned.
“Last year, we’d normally keep about $18 to $19 million worth of parts on hand at any given time,” Muncey mentioned. “As of this morning, we’re up to just over $25 million in parts.”
Fowler Holding Co. President Jonathan Fowler mentioned Friday he’s nonetheless assessing how the UAW’s enlargement of the strike may affect his Norman, Okla., dealership group’s enterprise.
“I very much expect there will be more communication coming from the manufacturers to the dealers about what this means to us, specifically,” Fowler mentioned.
Ahead of the strike, Fowler Holding Co. checked out its prime 75 to 150 fastest-moving elements numbers that account for substantial parts of its service enterprise, Fowler mentioned. To keep forward of the curve, it preemptively elevated these inventories by an additional 60 to 90 days, he mentioned.
Keating mentioned his group will really feel the affect of a elements distribution heart strike rapidly and that it’s going to principally have an effect on guarantee work.
“All dealerships across the country have got a shop full of customers’ cars that need to be repaired,” he mentioned.
Keating mentioned he thinks his group will really feel the strike’s affect extra when it comes to coping with upset prospects wanting their autos fastened.
“If I am Shawn Fain running the UAW, that’s not a position I want to be in,” Keating mentioned. “I want public support. I don’t want everybody hating me.”
C.J. Moore contributed to this report.
Source: www.autonews.com