Warner Norcross + Judd LLP Partner Laura N. You discussed the UAW strike in an Automotive News article “Industry keeps an eye out for UAW strike's impact on small suppliers.”
The UAW’s strike against the Detroit 3 comes at a time when the supply chain is already in a fragile state after more than three years of pandemic-related impacts on manufacturing and logistics, rising material costs, shortages of key components including microchips and reduced vehicle production volumes. Suppliers, particularly smaller ones and those at the Tier 2 and Tier 3 levels, have seen profits shrink or disappear entirely, even as automakers recorded some of their highest quarterly profits ever over the past few years.
According to Automotive News, the strike, if it expands and persists, could threaten the survival of many smaller suppliers that are crucial to the overall health and continuity of the supply chain.
"The smaller the entity is, the more at risk it is," said Laura You, a partner with Michigan law firm Warner Norcross + Judd's Automotive and Supply Chain Industry Groups. "So if the [automakers] and Tier 1 suppliers are not willing to work with smaller Tier 2 and Tier 3 suppliers, the reality is they might not have that supplier anymore when the strike is over."
Automotive News subscribers can read the complete story here.
You focuses her practice on complex commercial disputes and frequently advises automotive suppliers in commercial contract negotiations, pre-litigation disputes, trials and arbitration proceedings. Much of her work centers on Michigan but also extends across the United States and to several other countries, including Canada, China, Brazil, Mexico, France and Germany. You also represents business owners in closely held business disputes, lenders in foreclosure and related proceedings and commercial clients in a wide variety of conflicts including breach of contract, trade secret misappropriation and tort claims.
With deep roots in the heart of the U.S. automotive industry, Warner’s Automotive Industry Group provides proactive, timely and cutting-edge advice to suppliers throughout Michigan, North America and around the globe. Warner attorneys are recognized leaders in every area of law that impacts the global automotive and mobility market and understand the complex relationships between parts suppliers and vehicle manufacturers.
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