A STRIKE involving almost 50,000 General Motors workers in 33 US factories is likely to delay production of the latest mid-engined Chevrolet Corvette but the effect on deliveries of GM’s other North American products is likely to be almost invisible to Australian consumers.

GM Holden would not comment on the strike by the United Auto Workers Union (UAW) in the US but indicated any flow-down would be, at worst, minimal.

Holden currently imports two vehicles from North America – the Acadia, made in Tennessee, and the Mexican-built Equinox.

The Equinox plant is not yet involved in the strike action but Tennessee has 3500 striking workers at the Spring Hill facility.

Overseas reports indicate that workers at the San Luis Potosi plant, which produces the right-hand-drive Equinox for Australia, are holding meetings to discuss strike action.

The impact to Holden should be minimal given the low-volume sales of the North American imports.

Holden last year reduced the inventory of some models, including Equinox and the European-sourced Commodore, in line with a declining new-vehicle market.

In October 2018, Holden chairman and managing director Dave Buttner noted poor sales of both models and immediately ordered a freeze on their importation until existing stocks could be cleared.

This was in reaction not only to falling vehicle sales in Australia, but  global moves by GM that in September last year said it wanted a 15 per cent reduction in its workforce to save a planned $US6 billion ($A8.9 billion) by the end of 2020.

Like Australia, the US is experiencing a slowdown in vehicle sales. But the reduction in sales does not include the Corvette that now has a 12-month order book ahead of its December 2019 production start. GM has even indicated it would make a convertible version starting in February 2020.

Meanwhile, a major problem has reared its head for body repairers and workshop businesses getting spare parts.

UAW members have also closed 22 parts distribution warehouses across North America, throwing all supplies to franchise and independent repairers into chaos.

US industry journal Automotive News said most repair centres had a week of inventory but expected to be short for the second week and would have to delay customer work.

In the lead up to the end of the previous contract, GM pushed production output to assure it would have enough stock for dealers to cover a potential short-term UAW confrontation.

The strike by the UAW started on September 16 when almost 50,000 members walked out, one day after the union’s contract with GM expired and before the signing of the next four-year contract.

The UAW and GM had months of unsuccessful negotiations that centred on GM’s plans to close plants and make thousands of blue- and white-collar workers redundant.

It also followed tense negotiations by the UAW with other US-based factories including Volkswagen.

The UAW is also in line to discuss new contracts with Ford and Fiat Chrysler Automobiles. The outcome of the GM talks, as all parties clearly understand, will be key to establishing wages and conditions for Ford and FCA.

The UAW strike action appears triggered by GM’s announcement late last year that it would undertake a restructuring plan aiming to reduce the workforce by 15 per cent, including about one-quarter of its executive team.

It is expected to cost 8000 salaried workers their job and 6000 hourly workers will need to accept a transfer elsewhere in the company or leave.

Four American factories and one Canadian plant will close.

GM’s Lordstown factory in Ohio closed in March 2019 after making the last Chevrolet Cruze. Then transmission factories in Maryland and Michigan closed. The Hamtramck plant in  Detroit was to close in early 2020 but some reports suggest it may be saved.

By Neil Dowling