The global auto industry is undoubtedly in the midst of a worldwide recession, the latest example of which we just highlighted out of China. Compounding the U.S./China trade war issue is the fact that consumers globally are, for lack of a better word, mired in debt and simply broke.
Which is why a strike at General Motors this month could truly be Murphy’s Law in practice: the worst possible outcome, at the worst possible time.
And a strike seems more possible now than ever. We reported days ago that the UAW had authorized its leaders to strike and now the chance of a strike is at a “12 year high”, according to Bloomberg. Union leaders will be in Detroit this weekend to determine whether or not they will take a proposed labor contract from GM back to their members for a vote, or if they will strike.
There’s now “even odds” that GM will see its first walkout in 12 years.
Over the course of the last four years, GM has delivered its “best ever” profits while consumers bought record numbers of new vehicles. This, in addition to rhetoric from President Trump, has emboldened the UAW to ask for a greater share of the spoils and ask for a guarantee of work in at least one of the four U.S. plants GM marked for closure last November. GM is bracing for an economic downturn, which is likely going to make the negotiations contentious, as we pointed