CAW Strike Will Severely Affect Car Production image

Today, September 13th, the Canadian Auto Workers union announced it will continue the strike preparations as the contract deadline with the Detroit carmakers is approaching.

The strike could stop production of more than 12 models manufactured in Canada and also affect production in North America. Some of the models manufactured exclusively in Canada by Detroit’s Big Three include the all-new 2013 Cadillac XTS, Chrysler’s flagship 300 sedan, Ford and Lincoln crossovers and Chrysler and Dodge minivans.

“Would a strike hurt? Oh, yeah,” said Kristin Dzickek, director of the labor and industry group at the Center for Automotive Research. “It would probably hurt Chrysler and GM more than Ford.”

Analysts believe that a strike during this troublesome period will affect automakers the most since there is no excess inventory after the companies tried to match production with demand. In some models there is even shortage. The Chevrolet Equinox which is produced only in Canada and is GM’s best-selling car in the US this year had a 41-day supply at the end of August, the Chevy Impala had a 25-day supply and the Dodge Caravan a 27-day supply. Vehicles with day-supply around 20 show a ‘severe shortage’ and if production is stopped it will affect sales immediately.