Longshoremen went on strike on Tuesday, shutting down East and Gulf Coast ports. A prolonged strike would most heavily affect automakers importing vehicles from Europe. Dock workers across the East and Gulf Coasts of the United States went on strike Tuesday morning.
The effects of a prolonged work stoppage would likely be felt throughout the US economy , including the automotive industry, which depends on ports like New York, Baltimore, and Savannah to handle millions of vehicles arriving from abroad. Fortunately for US consumers, there is a glut of inventory at dealerships across the country, so the immediate impacts of the strike will likely be limited. The latest September data provided by Cox Automotive shows that more than 2.
84 million new cars are on sale. If no new inventory arrives, car companies have, on average, a 77-day supply of vehicles to sell. That's well above last year's levels and higher than the 65-day level industry experts agree to be the healthiest.
European carmakers like BMW, Mercedes-Benz, Volkswagen, and Volvo will be most heavily affected, Reuters reported , citing research by Barclays analysts. But most of these automakers have significantly more than the national average of 77 days of inventory. According to Cox, BMW has 88 days, Mercedes has 100 days, and Volvo has a 142-day supply.
As for VW, the Volkswagen brand has a healthy 66-day supply, while its Audi luxury division has an 86-day supply. The Port of Baltimore led the nation last year, hand.
