LITTLE ROCK, Ark. — As the United Auto Workers (UAW) strike nears a week on the picket lines, those in the industry are thinking long-term about the possible ripple effects that may bring.
The closest strike is hundreds of miles from Central Arkansas, but that doesn't mean delays aren't expected.
"If you're looking to purchase a new vehicle, a new GM vehicle, it's going to be an issue," Crain Chevrolet's Internet Sales Manager Tanner Hobbs said. "If you have a transmission and engine, a small part for your vehicle goes out, it's going to cause issues because those parts aren't being manufactured right now."
That strike between the UAW and the "big three" – Ford, Stellantis and General Motors, which owns Chevrolet – has no indicators of stopping soon. It would be another cause for concern after years of other problems.
Hobbs said they've struggled to keep cars on the lot, not due to high demand, but low inventory being delivered.
"It's kind of a slow trickle; there's not a lot of stuff here," Hobbs said. "It feels like you're getting compressed, and we're just trying to figure out how we can navigate through that compression."
And if the strike goes long term, expect some significant headaches for the shops that can't afford it.
"If you don't have inventory to sell, those costs can end up eating into your bottom line and could put many of these car dealerships in a bind," University of Central Arkansas Economist Jeremy Horpedahl said. "They may have to shut down or close. That is a possibility."
Horpedahl said that even if the strike lasts just a few weeks, delays could take longer to bounce back from.
"You'll get a huge backlog of orders, and those won't get immediately cleared out," Horpedahl said. "It can take months or even a year to get all those cleared out."
There's not much Hobbs can do locally as strikers petition hundreds of miles away besides hoping the situation is resolved. He knows one thing, though – things need to be fixed and fast.
"One thing happening in one part of the machine will affect the rest," Hobbs said. "If you don't have gas in the tank, how can the car start?"
Horpedahl said he's heard reports that car prices could rise by 10 to 20% if the strike continues long-term. Hobbs said they have no plans of doing that.