Lengthy Strike Could Hurt GM

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From the “Department of the Obvious”: a prolonged strike at General Motors lasting more than a few weeks could really hurt the company an easily cost them billions.

GM had about a 65-day supply of cars and trucks as September began, versus a 71-day supply at the same time last year, said Paul Taylor, chief economist for the National Automobile Dealers Association. The Enclave, he said, is at a tight 24-day supply.

It was unclear what would happen to vehicles that were en route to dealers. The Teamsters transportation union said its 10,000 automotive transport members would not cross UAW picket lines.

The strike will cost GM about 12,200 vehicles per day, according to the auto forecasting firm CSM Worldwide of Northville. If the walkout goes beyond 36 hours, CSM expects vehicle production in Canada to be affected because of a lack of U.S.-built engines and transmissions.

The company and the UAW are still in negotiations, and the UAW leadership indicated they would be willing to compromise on several key issues.

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