United Auto Workers strike: Cost to US economy tops $9 billion

The United Auto Workers' simultaneous, but limited, strike against Ford, General Motors and Stellantis has now cost the U.S. economy over $9 billion, which is more than twice the previous record for an auto industry strike this century.

The latest data released Monday from Michigan consulting firm Anderson Economic Group show the union's strike against Detroit's Big Three cost the auto industry alone some $9.3 billion as of Oct. 19, which marked the strike's fifth full week.

A breakdown of the numbers shows the UAW's strike has so far cost workers $488 million in lost wages, while the automakers have collectively lost $4.18 billion. Dealers and customers are out a combined $1.86 billion, and suppliers have now taken more than a $2.78 billion hit.

«The cost of this strike is now double that of the 2019 UAW strike against General Motors, with significant layoffs among supplier firms,» AEG principal and CEO Patrick Anderson said in a statement. «Lost wages of striking workers and those laid off because of the strike are nearing a half billion dollars.»

FORD MOTOR CO., STELLANTIS LAYS OFF WORKERS, SAYS DISMISSALS ARE ‘DIRECT RESULT’ OF UAW STRIKES

Anderson pointed to AEG's warning two weeks ago that if the strike was prolonged, it would force manufacturers to delay or cancel investments. «We've now seen GM, Ford, and Stellantis announce such actions,» he said. «Many more are likely if the strike continues.»

Ticker Security Last Change Change %F FORD MOTOR CO. 10.14 +0.23 +2.32%GM GENERAL MOTORS CO. 28.80 +0.80 +2.86%STLA STELLANTIS NV 19.61 +0.67 +3.54%

The UAW launched its strike against the Big Three on Sept. 15, starting with one major assembly plant at each manufacturer. The union has gradually added more strike targets as contract negotiations continue without any agreements in place.

Ford Motor Co.

The union targeted another Stellantis plant on Monday morning, bringing the total number of UAW members striking across the Big Three to 40,000. In total, the automakers employ nearly 150,000 workers who are represented by the union.

Stellantis

STELLANTIS, CITING UAW STRIKE, BACKS OUT OF LAS VEGAS TECH SHOW FOR NEXT YEAR

The shutdown of the production lines from the