With the auto industry just recently getting back on track from the repercussions of the pandemic, Minnesota vehicle dealers, parts makers and employees are concerned about a United Auto Workers strike at three key auto plants.
The UAW's action on Friday was "a warning shot," said Todd Olson, CEO of Minneapolis-based supplier Twin Cities Die Casting.
"If they do expand the strike, it could impact 20% of our total revenue," said Olson, whose company molds aluminum and magnesium parts for transmissions, clutches, mirror mounts and electric enclosures. "I will keep my fingers crossed that [the strike] doesn't get any worse."
UAW members walked out of the GM assembly plant in Wentzville, Mo.; the Ford Ranger truck and Bronco SUV assembly plant in Wayne, Mich.; and the Stellantis assembly complex in Toledo, Ohio. Union members want better wages and to restore pension benefits.
The actions already are having trickle-down effects. The union representing rail workers nationwide threatened to support the UAW strike and factories and car dealerships are bracing for a long haul.
"Today we are not affected. In one month, we will all be affected," said Tom Leonard, whose Fury Motors has 200 workers and sells Stellantis products such as Chrysler, Jeep, Dodge & Ram trucks in South St. Paul and Stillwater plus Ford vehicles in Waconia.
Leonard, chairman of the Minnesota Automobile Dealership Association, said about 200 dealerships in the state are in the same boat.
"We are very dependent on new shipments coming into us. [The Toledo Stellantis plant] makes a very critical, important product to us," Leonard said. After the pandemic, "we were just catching up and to have any kind of interruption will put us in a serious supply crunch in short order."