Auto supplier businesses endangered by extended UAW strike, says expert

As UAW strike marches on, smaller auto suppliers may be left behind

Marick Masters, a Wayne State University business professor, says the small suppliers make the plastic and metal parts that go into the cars we love. And right now, they risk running out of money.

CENTER LINE, Mich. (FOX 2) - In Center Line, workers for the Stellantis parts supplier Mopar are holding firm on strike day 33.

"Hopefully we get things moving faster," said Troy Alexander, a Stellantis worker. "We are out here, (in) rain, sleet, or snow."

But as the picketing continues, auto suppliers are taking deeper hits.

"We out here for y’all. If we get paid more, you get paid more," the worker said. "Everybody eats."

Supplier wages and earnings are down nearly $2.7 billion according to the Anderson Economic Group.

"There have been surveys done that have indicated that about a third of the suppliers in general are in some financial difficulty," said Marick Masters.

Masters, a Wayne State University business professor, says the small suppliers make the plastic and metal parts that go into the cars we love. And right now, they risk running out of money.

"So they cover the gamut," he said. "They are not necessarily ‘mom-and-pop,’ but they’re small businesses. They may have 10 to 20 employees, 30 employees or less. And they don’t generate a whole lot of revenue on an annual basis, but they generate enough to sustain that number of workers and provide good living wages for people.

"As Tier 1 they’re forced to scale back operations, the Tier 2 that’s maybe more dependent on these companies - will have to scale back even more."

The striking workers FOX 2 spoke with, say they feel the pain of the suppliers but have to keep fighting their fight.

"I hope it gets better for them," Alexander said. "If we get back to work and get a tentative agreement soon, that will be good for everybody."

Stellantis has pulled out of the CES Tech expo citing the cost related the strike and is looking to sell its Auburn Hills headquarters for Stellantis North America.