- U.S. auto workers expanded their strike on Friday with a clear target for distress: dealers who sell and service GM and Stellantis vehicles.
Selling repair parts and service returns is the key to many dealers' profits, and returns 40% or better gross profit margins for big auto retail chains such as AutoNation and Lithia. The UAW had been expected to expand their strike by shutting down plants that made the highest-profit vehicles, such as pickup trucks. But automakers have built up vehicle inventory and for many dealers problems with repairs will start soon."It's definitely going to impact customers," said Thomas Morris, 60, who went on strike on Friday at a General Motors parts distribution center in the suburbs of Philadelphia.