Warner Norcross + Judd LLP Partner Laura N. You discussed the UAW strike’s impact on auto suppliers in an Automotive News article “Suppliers urge price concessions from automakers as UAW strike hits finances.”
According to Automotive News, the financial wherewithal of the supply chain could be most tested after the strike ends and automakers look for production to come back online quickly. That's especially true if the strike persists for weeks or if it expands to include a large portion of any of the Detroit automakers' U.S. plants.
"This is not a type of industry where you can go from zero to 100 overnight," said Laura You, a member of Michigan law firm Warner Norcross + Judd's Automotive and Supply Chain Industry Groups. "If your customer orders have been stopped altogether for a period of several weeks, it will take time to ramp back up."
Suppliers are likely to quickly burn through what little inventory they do have and, if they are forced to lay off or furlough workers during the strike, might find they don't have enough workers ready to come back at a moment's notice. You suggested suppliers should work with automakers to make it clear that they will need time to ramp up.
Automotive News subscribers can read the complete story here.
You focuses her practice on complex commercial disputes and frequently advises automotive suppliers in commercial contract negotiations, pre-litigation disputes, trials and arbitration proceedings. Much of her work centers on Michigan but also extends across the United States and to several other countries, including Canada, China, Brazil, Mexico, France and Germany. You also represents business owners in closely held business disputes, lenders in foreclosure and related proceedings and commercial clients in a wide variety of conflicts including breach of contract, trade secret misappropriation and tort claims.
With deep roots in the heart of the U.S. automotive industry, Warner’s Automotive Industry Group provides proactive, timely and cutting-edge advice to suppliers throughout Michigan, North America and around the globe. Warner attorneys are recognized leaders in every area of law that impacts the global automotive and mobility market and understand the complex relationships between parts suppliers and vehicle manufacturers.
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