New cars are already expensive and they’re about to get more so. If you’re in the market, you might want to look around for a good used car. From Tyler Durden at zerohedge.com:
After the six week UAW strike ended officially yesterday, there’s one thing we know for sure: it’s going to put upward pressure on the price of vehicles for time to come. The six-week strike concluded on Monday when General Motors secured a provisional labor agreement with the UAW, following similar deals with Ford and Stellantis.
But as the Wall Street Journal pointed out on Monday, the labor costs are going to hamper the automakers for years to come. Ford has already come out and said the new deal will add $850 to $900 per vehicle in additional costs.
UAW President Shawn Fain, apparently unable to grasp the concept that if the automakers go bankrupt there’s a chance no one will have jobs, proudly proclaimed on Monday: “We wholeheartedly believe that our strike squeezed every last dime out of General Motors.”
He added: “When we return to the bargaining table in 2028, it won’t just be with the Big Three, but with the Big Five or Big Six.”
The Journal noted that by the contract’s 2028 expiration, most union workers at Detroit automakers would earn mid-$80,000s annually, excluding overtime. Initially resistant, companies eventually agreed to reinstate cost-of-living adjustments, relinquished by the UAW in 2009.
