Analyst: ‘I don’t see a winner’ if UAW strike with Big Three stretches on

Economic group says UAW-Big Three strike is in the 'danger zone'

Consulting firm Anderson Economic Group says this month-long strike has entered the danger zone — and auto parts suppliers are suffering.

FOX 2 (WJBK) - The latest economic report on the United Auto Workers strike paints a grim picture for parts suppliers and production lines.

Anderson economic group calls it the "danger zone" but it could be considered a last stand for some businesses and vehicle models.

This week Ford Executive Bill Ford Jr. called to end the strike and UAW President Shawn Fain’s fiery response to stop playing games.

Consulting firm Anderson Economic Group says this month-long strike has entered the danger zone — and auto parts suppliers are suffering.

"Unless these suppliers get contracts and payment back and their assembly lines and production and their professionals working again, we fear that some of them won’t survive," said Patrick Anderson, Anderson Economic Group.

AEG says that through five weeks — the strike has cost the auto industry more than $7.5 billion. About 30 percent of those losses are in Michigan.

Detroit’s Big Three automakers have lost a combined $3.45 billion alone.

"For Michigan in particular, and the auto industry centered here, we’ve already had a lot of damage done," Anderson said. "But we’re in the danger zone in terms of being able to sustain all the investments that we have, and all the businesses that we have now."

FOX 2: "Are we close to entering the point of no return?"

"We’re getting close to that point of no return for some production lines," Anderson said.

He adds that while production on popular vehicles like the Ford F-150 and Chevrolet Silverado may withstand the impact of the strike, the smaller crossover vehicles may not.

"I do fear we’re at the point of return for some models," he said. "Right now if we don’t get to work right away. I do think there will be entire production lines on the chopping block."

FOX 2: "Just to be clear, there is no winner the longer this goes?"

"At this point, I don’t see a winner in this strike getting longer," he said. "This is not a good way to stay in charge. This is a good way to lose your leadership. We look bad in front of consumers, we look bad in front of other members of the industry. The rhetoric talking about car companies like they are our enemies is very unfortunate."

If the UAW strike continues next week, the next Anderson Economic Group report will detail the impact the UAW’s surprise walkout in Kentucky has on industry losses.