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After Strike's End, GM Hurries to Distribute Parts

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Oct. 30, 2019—In the aftermath of the UAW strike against General Motors, the OEM is adding shifts and hiring people to get parts to dealers, reported The Detroit Free Press.

It sent out a notice late Friday to its dealers that said: "One of our top priorities is to restore the health of our parts distribution network."

David Whiston, equity strategist at Morningstar Research Services, estimates GM took a $77 million-a-day hit to its North America profits. At that rate, the company would have been on pace to lose about $3 billion over the course of the strike. 

GM has the vehicle parts its dealers need in its warehouses, but it could not ship them during the strike because warehouse workers are union members. 

The shortage of parts also forced GM to halt some production at its plants in Canada and Mexico. Most notably, GM had to temporarily stop building its highly profitable 2020 Chevrolet Silverado and GMC Sierra pickups in Mexico and the new 2020 Chevrolet Blazer SUV in Mexico due to a parts shortage.

 

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