Auto Industry News: Detroit Show A Go, UAW Strike Looms, and Overlanding Stays Strong
It’s a big week for the auto industry, and a tense moment for the city of Detroit. The most obvious anxiety is hovering around UAW contract negotiations – and it’s dense as a thunderstorm cloud. Current contracts expire this Friday, with threats of a strike growing louder every minute.
In other stress, event organizers are revving up for the Detroit Auto Show, which opens its doors this week to a car-buying public that is becoming ever more bored with traditional automotive shows. Still, automakers plan to roll out six buzz-worthy reveals, including a freshened Ford F-150.
The Engine Block has a quick show preview and union discussion updates, as well as some impressive numbers from the latest Overland Expo. Plus, oil prices might get weird again, good luck finding an EV technician anytime soon, and new nonprofit research shows carmakers are playing fast and loose with your private data.
Like we said, BIG week. Buckle up and let’s roll through what you need to know.
Detroit Auto Show Teaser
Let’s start with the smaller elephant in the room. The Detroit Auto Show kicks off this week, with media previews starting on Wednesday and the public event running Sept. 16 – 24. Event organizers are happy to announce that 35 brands will be represented through manufacturer and dealer displays, with six news-worthy debuts.
That all sounds lovely, if you don’t compare it too closely with pre-pandemic numbers.
In 2019, the show had 5 times as many global debuts and nearly 800,000 ticketed attendees. However, even that was a noticeable slump from the previous year, thanks to several large German automakers choosing to skip the event entirely.
Even with its new festival-like format and calendar shift from January to September, the Detroit Auto Show is struggling to maintain relevancy in a world that continues to favor digital impressions over real-life experiences.
What’s on this year’s docket?
All that said, organizers are holding on tight to optimism and feel they can still dazzle consumers. Here’s how they plan to do it in 2023:
- Six notable vehicle debuts, compliments of Stellantis, Ford, and General Motors. While most are still secret, we do know the facelifted 2024 Ford F-150 is due to make a splash, as is an updated 2024 Jeep Gladiator.
- More than three dozen brands mingling on the showroom floor, including the company everyone loves to hate — Tesla. The EV maker has avoided the show in the past, so it will be interesting to see what it has in store.
- An Exotic and Luxury Showcase, which will feature some of the latest and most intriguing products available, from high-powered EVs and supercars to a futuristic flying car from California-based Alef Aeronautics.
- Lots of test drives, including Ford and Jeep’s fan-favorite indoor, off-road test tracks.
- Lots of EVs too, in what is certainly a bid to get buyers more excited about the technology.
- Speaking of technology, the inaugural Mobility Global Forum will be headlined by NYT best-selling author Malcolm Gladwell. Known for his witty and approachable writing that reveals big truths through little anecdotes, it will be sure to be an interesting and entertaining presentation.
Tickets can be purchased at the show or online, and run $20 for adults, $12 for seniors, and $10 for kids under 10.
Did You Know…?
Last week, Mercedes-Benz CEO Ola Källenius confirmed a “Baby” G-Wagen is under development. Set to compete with the Ford Bronco, the smaller off-roader will presumably be much less expensive than its celebrity-toting, $140k big brother. No word on when it will arrive, but 2026 will likely be the earliest.
UAW Strike Threat Looms Large
This Friday marks the deadline for new contracts between Detroit’s Big 3 automakers and the UAW. And it is most certainly a deadline – not a reference point – as the union’s president Shawn Fain has repeatedly reminded workers, automakers and, for the first time, the general public.
During a Facebook Live Chat on Friday, Fain broke down the most recent contract proposals point-by-point, proving that the old mantra “we don’t negotiate in public” is dead.
Transparency is the name of the game now, and it seems to be serving the union’s new leader well. Nearly the entire 150,000-strong membership voted in support of a strike, with many already participating in practice pickets.
What would a UAW strike look like in 2023?
According to Automotive News, which has been closely following and studying contract developments, an upcoming UAW strike could play out in a few ways.
Mass Walkout
One, the union could strike all three Detroit automakers at once, an “unprecedented and economically devastating” possibility. Estimates place the cost of a 10-day, all-in strike at somewhere near $5 billion. While it would certainly grab attention (and headlines), such a move would be very difficult to sustain for a long period of time.
Strategic Walkouts
A second scenario could be what’s called a bottleneck strike, in which union walkouts halt production at key sites. This, in turn, paralyzes operations at other plants, forcing them to close. Think of it like a domino effect.
Legally, a bottleneck strike is risky. The law clearly dictates that individual plants are only allowed to strike over specific local issues, not companywide matters. Additionally, the move could leave some temporarily laid off workers out in the cold. But it would help the UAW avoid burning through its $825 million strike fund, allowing the union to picket for longer.
Traditional Walkout
A third option for the union would be to go the traditional route and strike just one automaker, presumably the weakest link in the chain who is most likely to make the most concessions. However, this feels unlikely given the union’s – more specifically Fain’s – fiery calls for “record contracts” and “an end to corporate greed.”
Indeed, just last week, the union filed charges with the National Labor Relations Board, saying GM and Stellantis were intentionally dragging their heels on contract proposals and refusing to bargain in good faith.
Latest Offers
In Friday’s social media broadcast, Fain pointed out that shortly after the allegations of unfair labor practices, the two automakers suddenly had proposals to offer. He promptly threw them into the trash bin, which has now become a prop in the background of his recorded chats.
The most notable change in negotiations came from Stellantis, which offered a 14.5% hourly wage increase over the next four years. Fain, who has been demanding 40% increases to match the CEO’s record salaries, called the offer “deeply inadequate” and said it “doesn’t make up for inflation or decades of falling wages,” nor does it reflect the massive profits UAW workers have generated for the companies.
As Mecum likes to say, the bid goes on. We’ll be following closely and have an update for you next Monday.
In Case You Missed It…
Jeep celebrated a big milestone last week, selling its five millionth Wrangler. The lucky New Jersey resident who took ownership of the model – a 2023 4xe Rubicon 20th Anniversary Edition – also took home a celebratory gift of $5,000 in Jeep Performance parts along with lifetime Jeep Wave customer care benefits.
People Still Really Like Overlanding
Its acolytes may be hitting far-off destinations, but overlanding itself is sticking around. At least, that’s what the recent numbers from Overland Expo Mountain West seem to suggest.
Trend, lifestyle, niche market – call it what you want, this popular pastime is accumulating more buzz by the day. Last month’s Mountain West gathering in Loveland, Colorado drew in a total 19,500 attendees, an 8% increase over last year. That might not sound like much, until you realize this is a relatively new event. It’s also just one of four annual Overland Expos, and the others draw similarly impressive crowds. (Expo West, in particular, wowed organizers with more than 30,000 attendees back in May.)
Folks are traveling far and wide to be a part of the fun, too. Stats show that Mountain West campers and day pass attendees came from 49 U.S. states, as well as China, Canada, Germany, Taiwan, Japan, South Korea, Australia, New Zealand, and Bermuda.
In addition to attending classes, working with trainers, and meeting other fellow overland enthusiasts, attendees also got to enjoy the first public appearance of the all-new 2024 Toyota Land Cruiser First Edition and the unveiling of GMC’s terrifying Hummer EV EarthCruiser – an all-electric overlanding upfit that begs the question “Why?”
What Else You Need To Know This Week
- On September 5, Saudi Arabia and Russia agreed to extend their voluntary oil cuts, starving the global market of 1.3 million barrels a day and driving up energy prices to a nine-month high. The move follows an OPEC+ decision to cut supply in April and then again in June, pushing benchmark Brent crude above $90 a barrel. With hurricane season on the way, along with colder weather and holiday travel season, we may see some uncomfortable fiscal tightening in the months ahead.
- In a different kind of shortage, Reuters reports that finding a technician to fix an EV may take some time. Repair shops are struggling with the issue all around the world, threatening to hurt EV adoption and upend deadlines for carbon emission cuts.
- And lastly, researchers for the nonprofit Mozilla Foundation, revealed their *Privacy Not Included guide last week, noting cars as the worst category of products for privacy. After reviewing 25 car brands, the group determined that automakers not only collect too much personal data, but they also share or sell this information to data brokers, third party companies, and/or the government. You can read more about the study here, and learn how to protect your privacy.
The Engine Block is your one-stop source for any and all auto industry news. Keep an eye on our weekly round-up of enthusiast coverage, product reviews, vehicle spotlights, auto show/expo features, and more. Check back Wednesday for a handy comparison of cab guards and ladder racks, and then return on Friday to learn how to prep for an off-road rally – from two rookies who are set to compete in their first competition next month.
