DETROIT  — "At the onset of the weekend, around 13,000 American auto workers made a bold move by going on strike, driven by a considerable disparity between the contract terms sought by the United Auto Workers (UAW) union and the compensation offered by the prominent Detroit-based automakers: General Motors (GM), Ford, and Stellantis (formerly known as Fiat Chrysler)."

This marks the first time in the United Auto Workers (UAW) union's 88-year history that they have walked out on all three companies simultaneously as their four-year contracts expired. The outcome of these strikes will play a crucial role in shaping the future of both the union and the American auto industry, especially as the industry transitions from internal combustion vehicles to electric ones.

The strikes began at specific plants to apply pressure on the companies to improve their offers, which fell significantly short of the union's demands for a 36% wage increase over four years. GM and Ford offered 20%, while Stellantis offered 17.5%. Workers on the picket lines expressed the need for higher pay, pension restoration, and cost-of-living adjustments.

The limited strikes are designed to conserve the union's strike fund, which would run dry in about 11 weeks if all workers walked out. UAW President Shawn Fain argues that the automakers can afford the demands, given their substantial profits, and dismisses their claims that higher settlements would lead to increased vehicle prices.

The strike encompasses a range of demands, including wage increases, cost-of-living adjustments, an end to wage tiers for factory jobs, a shorter workweek with full pay, and the restoration of traditional defined-benefit pensions for new hires.

These strikes primarily target plants that produce vehicles with lower profit margins, sparing the companies' highly profitable full-size pickup trucks and SUVs. Automakers claim they are facing unprecedented demands as they transition to electric vehicles while still producing traditional gasoline-powered cars and trucks to generate revenue. They are concerned that rising labor costs could make their vehicles more expensive than those produced by foreign automakers with U.S. factories.

The duration of the strikes and their impact on inventory levels at dealerships and the companies' financial performance remain uncertain. Stellantis, with the most extensive inventory, could potentially hold out the longest, while Ford and GM have somewhat shorter supply windows. Analysts suggest that these strikes could last longer than previous ones, considering the high stakes involved for both parties.