Chevy faces inventory challenges amid UAW strikes


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Supply Chain Constraints and Union Strikes Impact Days Supply Figures

Since the start of 2023, vehicle inventory levels in the United States have been on the rise as supply chain issues are gradually being addressed. However, the ongoing ‘Stand Up’ strikes led by the UAW union against the Big Three automakers, including Chevy, could potentially lead to a significant drop in their days supply figures.

As of September 2023, Chevy’s days supply stands at 53 days, slightly below the industry-optimal level of 60 days. While there are currently no visible signs of UAW strikes, experts believe that the strikes’ impact may become more pronounced in the coming months, particularly as the union expanded its strikes against General Motors and Ford in late September.

It’s important to note that some GM plants producing Chevy vehicles, such as the Colorado, Express, and Traverse, are currently affected by strikes. The future trajectory of these strikes remains uncertain, with the possibility of the UAW easing strikes based on progress in negotiations. Notably, the union has yet to target the production of full-size trucks and SUVs, which are the most profitable vehicles for automakers.

For Chevy, plants in Missouri and Michigan are experiencing strikes, and the union may extend its actions to the GM Arlington plant in Texas, where the Chevy Silverado is produced, as it seeks to secure favorable terms from General Motors. The situation continues to evolve, and industry watchers are closely monitoring developments.

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