CALEDONIA TOWNSHIP, Mich. (WOOD) — It has been nearly two weeks since the United Auto Workers Union decided to go on strike against Detroit’s “Big Three.” Now, some West Michigan car dealerships are starting to feel the effects, including Comodo Motors in Caledonia.
On Thursday, News 8 talked to Jordan Baker, owner of Comodo Motors. He said before the strike even began, they saw an increase in used car prices by 1.5%. Now, two weeks in, they are starting to experience shipping delays with car parts.
“I just hope they can make a deal, because it’s going to save a lot of people a lot of headaches,” said Baker.
Paul Isely, Associate Dean of Seidman College of Business at Grand Valley State University and former economics professor, said he’s predicting the strike will expand a bit on Friday.
“If it’s still a news story three weeks from now, then we’re in real danger of Michigan going back into recession,” he said. “This is going to put a very fast crimp on the availability of parts and it’s going to change the ability to purchase them. It’s going to increase lead times for fixing things, and it’s going to increase the cost of doing it because these parts are going to get more expensive.”
According to Isley, West Michigan’s economy could lose about $100 million dollars a week if the strike continues.
“Many of those suppliers exited the pandemic with less capital, less crash, and as a result, they’re more susceptible to going out of business or having to merge with other companies,” he explained.
According to Baker, his business experienced their first shipping delay this past week.
“We ordered them, they said they were two days out, and then the two days get here, and they said … you know what, we don’t know when we’re getting them. They’re just, they’re not coming,” said Baker.
The UAW strike currently involved more than 18,000 workers. Union leaders are expected to announce their next round of strike targets tomorrow.