There are concerns that the ongoing UAW strikes could hurt all-important pickup truck sales from General Motors.
Auto News reports that the last GM pickup plant in North America still operational despite the strikes was forced to shut down last week due to parts shortages. This has triggered concerns that dealerships will soon start running low with pickup supplies and may be left without any pickups to sell.
GM’s Flint, Michigan production set was shut on September 16 and is responsible for building the Chevrolet Silverado HD, and GMC Sierra HD. Similarly, the Fort Wayne, Indiana site was shut on September 16 and builds the Chevrolet Silverado 1500 and GMC Sierra 1500. The Silao, Mexico plant was shut on October 1.
Vice president of data and analytics consulting for J.D. Power, Tyson Jominy, said “Truck supply may start to get a little tight soon, if it’s not already getting to that point.”
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The second half of the year had been a good one for GM with sales of the GMC Sierra jumping 29 per cent in the third quarter and 15 per cent for the Chevrolet Silverado. “General Motors was on the right arc. This is going to hurt and hurt badly,” chief executive of Flemington Car and Truck Country in New Jersey, Steve Kalafer said.
“I think you’re looking at a week, maybe two weeks, before dealerships are depleted and consumers have to make choices or wait on taking a delivery,” added president of Americas operations and global vehicle forecasts for LMC, Jeff Schuster added. “Even though from a days-supply level it doesn’t look dire yet, it is starting to dwindle.”
GM will inevitably look to compensate for lost production when the strikes end but it could be tough to make up. The car manufacturer is thought to have lost $660 million in profit since the start of the strikes.
