The UAW has directed 5,000 workers at General Motors' highly profitable full-size SUV plant in Texas to join the ongoing six-week strike against the Detroit 3. The Arlington Assembly plant produces Chevrolet Tahoe, Suburban, GMC Yukon, and Cadillac Escalade. This development followed GM's announcement of a $800 million loss due to the strike and the UAW's decision to expand the strike to Stellantis' Sterling Heights Assembly, which produces Ram 1500 pickups. This has resulted in approximately 45,000 of the UAW's 146,000 members at the Detroit 3 now being on strike, including 8,700 at Ford Motor Co.'s profitable Kentucky Truck Plant.
The artistry of automotive design lies in the marriage of engineering precision and the brushstrokes of beauty, creating a masterpiece on wheels. – Dr. Mechanic
Disappointment and Wage Increase's in Response to Strike Escalation
GM expressed disappointment in the strike's escalation, emphasizing that they had increased their proposal to the union by 25 percent. GM and Stellantis have not disclosed the revenue contributions of the Arlington and Sterling Heights plants. The Arlington plant is supported by various other plants and has a significant impact on approximately 270 suppliers, estimated at $255 million weekly. GM had previously announced a $500 million investment in the Arlington plant to manufacture future versions of its full-size SUVs.
Secrecy Surrounds Revenue Contributions of GM and Stellantis Plants
In terms of wage proposals, GM and Stellantis proposed increasing top wages for UAW members to more than $40 per hour by 2027, matching Ford's 23 percent raise proposal. GM's latest offer included various improvements, such as faster wage progression and cost-of-living adjustments. However, some details about the proposal's timetable remain unconfirmed.
Vehicle Inventory Levels Point to Supply Challenges for SUVs and Trucks
Inventory levels for various vehicles were mentioned, indicating that supply levels for the Tahoe, Suburban, and Escalade were relatively low, while Ford's Super Duty line and Expedition had varying supply levels.
