The strike of auto workers in the United States has intensified, and according to CCTV, the strike against automakers will be extended to 38 locations in 20 states and will not make any concessions. US think tank analysis: The direct loss caused by a one-week strike is $1.6 billion, and if workers' demands are granted, another $45-80 billion a year will be lost.
At present, the conflict between GM, Ford and Stellantis, and auto workers, continues to escalate, and auto workers demand that the three major car companies provide a four-day work day and raise wages by 40%. Over the past three years, executives at big auto giants have raised salaries by an average of 40 percent, while workers' salaries have risen by only about 6 percent.
In the face of workers' demands, the three major car companies complained bitterly. First, car companies have struggled on the road to electrification, and the total profits of the three major car companies in the first half of 2023 combined cannot meet the requirements of auto workers; Second, car companies lack the key technology and capital for electrification, and in the face of the rise of new energy vehicles around the world, whether American cars can survive is still facing challenges.
The auto workers' strike was clearly not temporary, and the union said it would be carried out to the end. At present, the United Auto Workers of America has prepared 825 million US dollars to ensure the basic livelihood of participants, and pays 500 US dollars a week for living expenses, which is expected to last for 11 weeks. About 146,000 workers participated in the strike, and about 146,000 workers participated in the strike.
The salary increase plans proposed by the three major car companies are: Ford agreed to a 20% salary increase, GM agreed to an 18% salary increase, and Strantis agreed to a 17.5% salary increase. This is still half the way from the demands of the autoworkers, and the two sides have reached a critical period of competition.
However, many media analysis that behind this is not only a game between auto workers and car factories, but more likely to be a big game.
1. "pressure promotion" of automobile manufacturers.
Christmas in the United States is coming, and now that car manufacturers and auto workers are "talking", it is bound to stimulate the traditional "procurement season" car consumption desire, new cars can be lived, and the pressure to de-inventory may be reduced.
2. The political game before the US election.
Some analysts pointed out that this is part of the political game before the US election. The current news is that Biden supports the strike of auto workers and also supports a reasonable increase in wages for automobiles, and has spoken out and contradicted on social media. Instead of attending the Republican Second Debate next week, Trump made a special trip to Detroit to support workers, and it seems he has found a breakthrough.
It seems to be a game between labor and management, but it will eventually evolve into a "vote war", the three major car companies are in trouble, the employment contradictions in the automobile industry are also concentrated and outbreaks, and the entire automobile industry is facing the crisis of transformation.
Although American automobiles occupy an important position in the global manufacturing and sales links, there are already traces of "loosening". The three major automakers have begun to announce that they will close some assembly plants and lay off employees due to the "shortage of parts". Of those, GM laid off 2,000, Strantis fired 68, and is expected to lay off another 300, and Ford lays off 600.
It is difficult to assess the final impact, but this incident has clearly unveiled the fig leaf of the "return of manufacturing" in the United States and poured cold water on Biden: there is money to fight, no money to raise salaries.
Autoworkers' wages haven't risen in years, or far from the speed of Wall Street money printers, are in dire shape, as is the new manufacturing industry. Therefore, the "Made in America" promoted by Biden has actually been out of order.
In the face of the electrification transformation of the global automotive industry, General Motors President Royce said: If we do not continue to invest, we will soon lose the market. Our competitors across the country and around the world will immediately seize this opportunity.
If the three major automakers fail to meet the requirements of auto workers, it will only exacerbate the contradictions between the two sides. The end result could be twofold:
First, U.S. automakers will transfer production lines and establish factories in emerging labor markets such as Mexico;
Second, the US auto industry has accelerated the pace of automation construction and reduced the proportion of manpower used.
The biggest headache for the US president is not only that, in the context of US inflation, all industries have shown a spiraling trend of labor costs, and in August 2022, the US introduced the Inflation Reduction Act, which simply cannot reconcile the contradictions between labor and capital. What follows may be the complete decline of U.S. manufacturing. However, even so, the United States is still fighting a trade war and a technology war.
In fact, solving such a thing is very simple: completely abandon the automobile industry, without this industry, there will be no this contradiction, is it not fragrant to import cars? The essence of this matter is the collapse of the traditional American automobile industry, and it is better to recognize the reality than to struggle.
In the past, Americans persuaded Orientals in this way, and now Orientals also come to persuade Westerners: it is better to build than to buy!