Strike-induced economic loss of U.S. auto industry snowballing

CHICAGO, Oct. 16 (Xinhua) -- As the United Auto Workers (UAW) strike against the Big Three U.S. automakers entered the 22nd day, the economic loss that the U.S. auto industry has hence incurred is snowballing.

A new assessment by Michigan-based Anderson Economic Group LLC shows that the strike has led to 359 million dollar direct wage losses to original equipment manufacturers; 3.45 billion dollar losses to the Big Three; 2.67 billion dollar losses in wages and earnings for the suppliers; and 1.21 billion dollar losses to dealers, customers and others.

In all, the strike has cost the auto industry 7.7 billion dollars by the fourth week of the work stoppage.

In a rare move, Ford Motor Co. Executive Chairman Bill Ford on Monday called on the union to make a deal and end the strike that is threatening not only the future of the automaker but of the American automotive industry, local media reported.

The union unexpectedly expanded the strike to Ford's most profitable plant in Kentucky that brings in 25 billion dollars in annual revenue, or one-sixth of its global automotive revenue Wednesday. On the following day, Ford said it has reached the limit of what it can offer to the UAW.

The UAW is ready for more walkouts against the Big Three "with little notice," said UAW President Shawn Fain Friday in a webcast. "We are prepared at any time to call on more locals to stand up and walk out. We will be calling out plants when we need to, with little notice."

To date, the strike has cost General Motors Co. 507 million dollars and Ford 517 million dollars, local media reported, citing J.P. Morgan estimates on Monday. In further estimates, the strike is costing GM 21 million dollars per day, and Ford 44 million dollars per day, up from the original assessment of 18 million dollars, after Ford's Kentucky plant was put on strike.

The union announced strike at three select factories of Ford, General Motors Co. and Stellantis NV on Sept. 14, after its contract with the Big Three expired.

It spread the strike to 38 GM and Stellantis parts distribution centers around the country on Sept. 22, following a failure in making meaningful progress in new contract negotiations and further to GM and Ford SUV assembly plants on Sept. 29, and then to Ford's highly profitable truck plant in Kentucky last Wednesday in the latest move.

To date, about 34,000 out of some 146,000 Big Three U.S. automakers represented by the UAW are on strike across the country. With nearly 4,000 Mack Trucks workers going on strike on Oct. 9, the total number of UAW members on strike now exceeds 38,000.