A potential strike could disrupt the production of Ford’s best-selling F-Series, with broader economic consequences.
The United Auto Workers (UAW) union is preparing for a possible strike if a new contract agreement with Ford, General Motors, and Stellantis is not reached by September 14, 2023. The union, which represents over 140,000 workers, has been negotiating for better wages, benefits, and working conditions. If an agreement is not reached, a strike could have significant repercussions, not only for the auto industry but also for Ford’s production of its best-selling F-150 pickup truck.
The Ford F-Series, including the F-150, is one of the company’s most profitable vehicles, having been the best-selling vehicle in the U.S. for more than 40 years. A strike could lead to production delays or halts, especially at Ford’s assembly plants where the F-150 is manufactured. The truck’s production relies heavily on unionized workers, making a strike especially impactful.
According to the Anderson Economic Group, a consulting firm that specializes in the automotive industry, a 10-day strike involving the entire UAW could cost the U.S. economy $5 billion, or roughly half a billion dollars per day. This figure highlights the vast economic influence of the American automotive industry, not only in terms of manufacturing but also its supply chains, research and development sectors, and related industries.
The potential strike could also affect the broader automotive supply chain, disrupting parts manufacturing and delivery, and impacting other industries that depend on the timely production of vehicles. While the F-150’s production is vital for Ford, the economic ripple effect could extend far beyond the automaker itself, highlighting the interconnectedness of the U.S. automotive sector with the broader economy.