A defining point for the auto industry
What effect will the United Auto Workers strike have on General Motors, and how long can it last? Doug Krizner asked Micki Maynard from The New York Times, who said the UAW could be at it for weeks.
UAW workers on strike outside of GM Powertrain Plant (Bill Pugliano/Getty Images)
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TEXT OF INTERVIEW
Doug Krizner: The United Auto Workers are expected to resume negotiating this morning. They walked out on General Motors yesterday in the first strike over a national contract in 37 years.
Let's bring in Micki Maynard. She covers the auto industry for the New York Times. Micki, how long can this go on?
Micki Maynard: Well, considering what Ron Gettelfinger, the UAW president, said yesterday, that they felt there had been no movement in the talks, then that would suggest a strike of days or weeks.
Krizner: So we're hearing that the sticking point at this juncture is job security.
Maynard: That's right. I believe General Motors doesn't want to have its hands tied as it looks at the future, because frankly, they don't need to build cars for the United States any more. I think it would be a shock to many people to think that GM could supply the American market with vehicles built outside the United States. But General Motors may have that capability.
Krizner: So if this continues for some time, how damaging could it be to GM?
Maynard: Well, there's probably been some calculations done. Some of the Wall Street analysts are saying that they could go for about a month without being sufficiently damaged. After that, they start to burn cash.
Krizner: What's the most important thing for the listener to take away from any of this, Micki?
Maynard: I think what the listener has to understand is that we're at a time now, a defining moment in the automobile industry. The one weapon that the UAW has to make its point is a strike. And General Motors, in the past, has caved. We have to watch and see what they do now.
Krizner: Micki Maynard covers the auto industry for The New York Times. Micki, thanks so much for speaking with us.
Maynard: Sure, my pleasure.
