The United Autoworkers (UAW) has reached three production plants (one from each firm) and 38 parts distribution facilities, while the two sides remain separated on a new wage deal.
When manufacturers shut down, however, we all know the consumers will take a hit. Stocks of vehicles, which had dropped throughout the COVID era, have only recently begun to rise again.
If that occurs, we may anticipate a 5% increase in the price of a brand-new car and a 10% increase in the price of a used vehicle.
Once a parts shortage hits, owners may not be able to get their cars serviced at dealerships.
A 40-day strike, like the one that hit GM in 2019, would have a little negative impact on GDP growth, around 0.3%.
An economic downturn could result from a prolonged strike. Last-minute negotiations may result in significant wage hikes for employees.
The economy would avoid a potential disaster, but the already expensive cost of automobiles would increase even further.
As the new fiscal year approaches, Congress has yet to adopt any spending measures to support government agencies.
However, that may only put off the inevitable shutdown and the resulting impact to GDP growth.
The Democrats in the Senate have said "No way." The next steps are unclear at this time. To delay the inevitable, lawmakers may approve a stopgap spending measure.