Ford Bronco seating supplier lays off 650 in Detroit due to UAW strike

The UAW launched a strike Friday on Ford’s Michigan Assembly plant in Wayne, Stellantis NV’s Toledo Assembly Complex just across the Ohio border and General Motors’ Wentzville Assembly plant near St. Louis. UAW President Shawn Fain said earlier this week that the strike would expand this Friday if no progress is made in negotiations.

Michigan-based parts maker CIE Newcor said it plans to lay off nearly 300 employees if it temporarily closes four company plants due to the strikes, according to a Worker Adjustment and Retraining Notification, or WARN notice, sent to the state and made public earlier this week.

Suppliers up and down the food chain are in a vulnerable position after two years of supply chain volatility, eroded margins and unpredictable production schedules. Larger tier one suppliers, such as Magna, have more of a financial cushion than the hundreds of small, sub-tier suppliers considered the most at risk from a prolonged strike.

Parts makers for the Detroit 3 stand to lose $38 billion of revenue if the strike expands, according to a Bloomberg estimate. Auburn Hills-based Nexteer Automotive, Southfield-based ABC Technologies, Detroit-based American Axle & Manufacturing, Lear and Magna are among the most exposed.

Chuck Dardas, CEO of Livonia-based AlphaUSA, said last week that the impact could already be felt at his small Tier 1 supplier, which sells metal fasteners to the Detroit 3. He said Tuesday that the fallout is spreading.

“Releases are starting to slowly ebb,” Dardas said by email. “Of course Michigan Assembly and Toledo releases have stopped.”