USA: automotive strike causes layoffs in 30% of suppliers in the sector

The association that represents suppliers to the automotive industry in USAMEMA, estimates that 30% of the companies in the sector have already had to lay off some of their workers as a result of the strike that has affected since September 15 to General Motors (GM), ford and Stellantis.

MEMA, which represents a sector in which some 900,000 people work and generates the 2.5% of the Gross Domestic Product (GDP) of the United States, also noted in a statement that more than 60% of supplier companies anticipate layoffs in mid-October according to a survey carried out on September 29.

Furthermore, a 70% of the sector’s suppliers fear that the strike will affect the economic viability of the companies that supply them.

MEMA added that it is in talks with the White House to develop a plan to provide financial aid to companies with revenues of less than $200 million.

For the first time in the history of the sector, the United Auto Workers (UAW) union has launched a multiple and progressive strike in the three large automobile manufacturers in the United States due to the lack of agreement to sign a collective agreement.

So far, some 25,000 GM, Ford and Stellantis workers are on strike, paralyzing the activities of five assembly plants and dozens of parts distribution centers across the country.

MEMA also warned of the worsening of the situation due to the slowdown in the passage of commercial vehicles on the border between the United States and Mexico due to the fact that in recent weeks the US authorities have increased immigration border controls.

The association has suggested that authorities extend the hours of border crossings in El Paso and Arizona and ensure that the US Customs and Border Protection (CBP) agency coordinates with the Department of Security Texas Public “to speed up the crossing of trucks in the southwest” from the country.