US Auto Assessment
UAW recently declared that it would not extend the strike to additional auto plants after reaching an agreement with GM (according to UAW) to include electric vehicle battery production in the UAW national contract. The battery plants have been a major point of contention with Ford and Stellantis.
A total of 58 facilities are currently affected by the contract dispute. Among them, 5 assembly plants are on strike (2 GM, 2 Ford, 1 Stellantis). Additionally, one GM assembly plant is idled due to parts shortages, and 19 other production sites are facing similar challenges. Furthermore, 38 GM, Ford, and Stellantis replacement-parts distribution centers across the U.S. are currently on strike.
Current estimates are indicating production disruptions at these 6 assembly plants.
In the ABS auto industry, demand has experienced an 11% decline in the third quarter, with a forecasted further fall of 13% in the fourth quarter of 2023. This is attributed to a combination of a seasonal slowdown in vehicle production and the impacts of the ongoing labor contract dispute. Despite a robust vehicle production in the first half of the year, ABS auto demand has seen a year-to-date increase of 7% in the third quarter and is projected to be up by over 2% at the year-end.
Similarly, in the PC auto industry, demand has decreased by 9.1% in the third quarter and is expected to further decline by 14% in the fourth quarter of 2023. This decline is influenced by a seasonal slowdown in vehicle production and the effects of the labor contract dispute. Despite a strong vehicle production in the first half of the year, PC auto demand has seen a year-to-date increase of 6% in the third quarter and is forecasted to be up by around 1% at the year-end.
Global Director, Engineering Plastics
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