‘We’re in the abyss’: How the UAW strike could hit the economy

While the current economic impact of a targeted strike by the United Auto Workers (UAW) is limited, the threat of a full walkout looms over contract negotiations with auto giants Ford, General Motors and Stellantis.

Right now, that threat is hard to quantify — any estimate will depend on the length of the strike and how many more workers are called to the picket line.

Even so, the economic impact of a full-fledged 10-day strike against the Big Three could top $5 billion, the Anderson Economic Group estimated in an August report.

A months-long work stoppage could also eat into the Big Three’s cash holdings, Fitch Ratings warned Friday, particularly if the targeted strikes balloon to a widespread shutdown.

And autoworkers are already being laid off by some companies, as thousands more UAW members brace for making just $500 per week on the picket line.