A strike by the UAW against the Detroit 3 could have massive ramifications for logistics and transportation companies that move vehicles and parts throughout the auto supply chain, industry experts said.
"There are entities whose business depends entirely on the movement of automotive parts, and that movement could grind to a halt," said Laura You, a partner at Warner Norcross + Judd LLP and a member of the Michigan law firm's automotive and supply chain industry groups.
Some logistics and transportation companies heavily rely on business from the Detroit 3 or the suppliers that build parts for them to stay afloat. A work stoppage at General Motors, Ford and Stellantis could force those companies to lay off workers or pivot to other customers, making it even harder for the automakers and suppliers to ramp production back up when the strike ends.
"When the strike is over, maybe there simply won't be enough people to move product from point A to point B," You said.