Hardly any cars to be made in U.S. by Detroit Three, thanks to new UAW contracts

“Within the next four to five years, there will hardly be any passenger car produced in Detroit,” according to Bidnessetc.com‘s George Zack. “This is what has been agreed by United Auto Workers (UAW), Ford Motor Company (NYSE:F) and Fiat Chrysler Automobiles NV (NYSE:FCAU) in recent negotiations. The only company to make small cars in Detroit by 2019 will be General Motors Company (NYSE:GM).”
While the Detroit Three will continue to build trucks and SUV that are in high demand due to low gas prices here in the U.S., in an effort to avoid the high wages agreed to in their most recent round of negotiations with the UAW, the automakers are accelerating moving more of their passenger-car production to Mexico.
The relevant question for the UAW should be: What happens when gas prices go up and consumers shift away from trucks and SUVs?
Read Zack’s article here.
Related:

• Detroit’s Big Three accelerate plans to build more small cars in Mexico

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