BUFFALO, N.Y. — The United Auto Workers union says it reached a tentative contract with General Motors, the last of the Detroit Three automakers to agree to a deal. Under the deal reached early Monday, workers at all three companies will return to the job pending votes on whether to ratify the contracts, which will take place over the next two weeks.
"I think there's a tremendous amount of relief," said Niagara Frontier Automobile Dealers Association President Paul Stasiak.
The strike not only impacted the production of certain models of cars, but also the manufacture of parts for many others-- meaning that even if you weren't in the market for a car, the ability to get your current vehicle repaired was starting to be impacted and would have been more so, if the strike went on further.
According to Stasiak, car sellers positioned themselves as well as they could before the strike began a month and a half ago.
"They stocked parts inventory that they would have never stocked in anticipation of a potential holdout. They ordered cars and inventory maybe when other markets didn't with the hopes they would have inventory in case it ran out," Stasiak said.
It made good business sense, according to Stasiak, especially when it comes to consumers loyal to a particular brand, and could have prevented them from throwing their hands up in frustration and buying something else.
He also explained why that was even more important in our area.
"Particularly for General Motors and Ford dealers, we have a tremendous amount of employee base, legacy employees," said Stasiak. "Grandparents who worked at the stamping plant or engine plant... they're all buyers, consumers, and customers."
Despite the strike looking like it may end, the biggest impediments to sales will remain.
Chiefly: the rampant inflation that began in 2021 which has now pushed the average price of a new vehicle to $48,000 and the sky-high interest rates for loans which have more than tripled during the same time frame.
The price of new vehicles may rise even further as, under the tentative labor agreements, wage increases for autoworkers will rise by more than 30% over the next four years.