By on October 10, 2019

Industry analysts are becoming concerned that General Motors’ ongoing row with the United Automobile Workers will negatively impact its production commitments. Officially, the automaker has a surplus allowing it to endure strike conditions for a few more weeks. But it’s also supposed to preparing SEMA vehicles and readying production of the new, mid-engined Chevrolet Corvette Stingray — none of which have any back catalog to draw from.

While GM had 80 days worth of inventory at the start of October to help tamp down any panic, numerous models aren’t included in that pool. The C8 Corvette is supposed to launch this year, with volumes ramping up through early 2020. But orders for the outgoing C7 are backing up due to the UAW strike, requiring the automaker to finish those before retooling Bowling Green Assembly for the C8. That could further stall the Stingray’s arrival date, which was already a little nebulous.

And that’s just the tip of the iceberg. 

Speaking with Automotive News, LMC Automotive expressed fears that the next-generation GMC Yukon, Chevrolet Tahoe and Chevrolet Suburban could also be delayed by a month or more:

Assembly lines have been idled since 11:59 p.m. Sept. 15, when roughly 46,000 hourly workers walked off the job in the union’s first national strike against a Detroit 3 automaker since 2007. Both sides continued to negotiate Wednesday, the 24th day of the strike, as issues remained around wages and job security, among other topics.

“It just affects the ability of a plant to get to launch,” Jeff Schuster, president, Americas operation & global vehicle forecasting at LMC, told Automotive News. “These are not going to do massive damage to margin or affect consumer loyalty, but any further delays because of an extended strike do start to get costly.”

GM has attempted to assuage concerns by suggesting it’s too early to start freaking out. “As we recently said during the convertible reveal, the 2020 Chevrolet Corvette Stingray coupe goes into production at GM’s Bowling Green Assembly in late 2019, with the convertible following in late first-quarter 2020,” explained the company in a statement. “It’s too early to speculate on potential impacts to launch timing for any of our products.”

If the strike wraps up soon, then we’re inclined to agree. But if it continues through this month, there’s little hope of the Stingray making it here before Christmas.

Concepts intended for SEMA are operating on an even shorter timeline. The tuning trade show opens on November 5th and General Motors had plans to bring several modified vehicles, including its latest products, to the event. While the 2021 Chevrolet Colorado ZR2 appears ready, Muscle Cars & Trucks reported insider sources as saying several other models are in danger of being incomplete or absent come showtime.

One source said the UAW strike is “affecting everything.” Teams tasked with the SEMA builds are citing issues with the availability of parts, shipping, and receiving. They’ve also lost members with union ties who were required to walk out on the projects when the strike order was given. General Motors, again, said it was too early to speculate when questioned on its SEMA concepts.

While missing product at SEMA and Corvette delays could be high-profile blunders, GM would actually be hurt more by those late SUVs. Regardless of how all that pans out, the manufacturer will also be impacted by the strike itself. Anderson Economic Group, a market research and consulting firm, estimated that the walkout had already created a $660-million profit hit for GM and over $412 million in direct wage losses for all employees by the third week.

[Images: General Motors]

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19 Comments on “Product Postponement: Everyone’s Worried About GM Strike Delays...”


  • avatar
    Detroit-X

    The car buying public will be 100% okay. No worries.

  • avatar
    Hummer

    “ LMC Automotive expressed fears that the next-generation GMC Yukon, Chevrolet Tahoe and Chevrolet Suburban could also be delayed by a month”

    From spyshots, the longer these piles of excrement stay off US roadways the better.

  • avatar
    dukeisduke

    In a perfect world, this would result in Mary Barra getting the heave-ho. But the GM board is a joke, so I don’t expect a change.

  • avatar
    SCE to AUX

    GM is playing the long game.

    SEMA doesn’t matter, and neither does a delayed launch for new products. They intend to starve the UAW into compliance. By proxy, GM is doing FCA and Ford a big favor when it’s their turn.

    • 0 avatar
      amca

      The long game is that there will be fewer auto workers as electrics come to make up more of the market. Electric cars simply have fewer parts, and don’t take as many workers to build.

      that’s the long game GM’s trying to get ready for, and they don’t want to make big commitments to to future employment levels.

  • avatar
    aja8888

    If GM doesn’t get the relief it is seeking, it’s just more ammunition to move additional selected production to Mexico. If it gets some relief, Ford and FCA will have a good leg up going into their next contract negotiations.

  • avatar
    DeadWeight

    Hey, GM, just move HQ to China or Mexico and be done with it, already.

    As things stand now, the assembled in U.S. vehicles of MUCH HIGHER USA-MADE PARTS CONTENT of HONDA, TOYOTA, NISSAN, ETC PUT GUANGZHOU-GUADALAJARA MOTORS (GM) TO SHAME.

    • 0 avatar
      Peter Gazis

      Deadweight

      Escalade average transaction price $85,0000
      Corolla average Transaction price $20,00
      ——
      100% of Escalades are built in U.S.
      50% of Corollas are built in U.S.
      ———
      Escalade Designed in the U.S.A
      Corolla Designed by the Whale eaters in Japan
      ————
      Japan annual vehicle exports to U.S 1.7 million
      U,S. annual vehicle exports to Japan Zero
      ———
      Conclusion: Why don’t you take that little Asian P.O.S. of yours and shove it up your ___!( 3 letter word for donkey)

      • 0 avatar
        ToddAtlasF1

        What percentage of Buick Envisions are made in the US?

        • 0 avatar
          Peter Gazis

          ToddAtlasF1

          The Buick Envision was designed in Detroit at a cost of anout $700 milllion. The people building it in China get paid by GM of China.
          The U.S. dollars people spend on it here goes to GM U.S.A.

          Suk eggs troll!

          • 0 avatar
            ToddAtlasF1

            “ToddAtlasF1

            The Buick Envision was designed in Detroit at a cost of anout $700 milllion. The people building it in China get paid by GM of China.
            The U.S. dollars people spend on it here goes to GM U.S.A.

            Suk eggs troll!”

            Are you enrolled in special classes? The Envision is on the D2UX/XX platform, which was developed by Opel in Germany before GM paid Peugeot to take GM’s European operations. And do you really think the commies send Envisions to the US out of the goodness of their hearts? Read the Chinese content label on any GM vehicle. That where much of any GM purchase price goes. I’d rather buy a Japanese-made Japanese car any day, but I’m also happy with my Ohio and Canadian made Hondas.

      • 0 avatar
        conundrum

        You think you’ve got troubles? Every damn vehicle manufacturer is foreign in Canada. Our nascent industry was crushed a century ago by American imports.

        I laugh my head off any time some American thinks the rest of the world should buy US-designed vehicles. Not everywhere has the space to devote to approximate fit giganto-saurus americanus, and so there is zero consumer appeal appeal. Which is why GM and Ford spread their tentacles throughout the world and made cars suitable for local markets by establishing factories to do so. Everywhere but Canada that is, where we got the same slop you got.

        Suddenly, when a US manufacturer makes vehicles with actual universal appeal, they sell very well overseas — Tesla.

        Quit your complaining.

        • 0 avatar
          Peter Gazis

          conundrum

          The Chevy Equinox.
          Ford Edge, Flex, Lincoln Nautilus & MKT
          Chrysler 300 & Pacifica
          Dodge Charger, Challenger & Caravan
          Are all built in Canada by UNIFOR workers and all get Exported back to the U.S.
          The Acura RDX, some Honda CRVs, Lexus RXes, and Toyota RAV4s are also built in Canada, but they don’t pay union wages, and nothing gets exported back to Japan

      • 0 avatar
        conundrum

        You think you’ve got troubles? Every damn vehicle manufacturer is foreign in Canada. Our nascent industry was crushed a century ago by American imports.

        I laugh my head off any time some American thinks the rest of the world should buy US-designed vehicles. Not everywhere has the space to devote to approximate fit giganto-saurus americanus, and so there is zero consumer appeal appeal. Which is why GM and Ford spread their tentacles throughout the world and made cars suitable for local markets by establishing factories to do so. Everywhere but Canada that is, where we got the same slop you got.

        Suddenly, when a US manufacturer makes vehicles with actual universal appeal, they sell very well overseas — Tesla.

        Quit your complaining.

  • avatar
    RS

    It’s GM. It’s unions. I can’t care.

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