The cost of new cars could increase even more following a Friday decision by Hyundai auto workers to strike in the coming days.
The Korean Metal Workers’ Union (KMWU), which has around 45,000 unionized workers at Hyundai, voted with 92% of them in favor of a strike for Korean auto plants, Bloomberg reported.
Consumers are struggling in the U.S. as delinquencies on both prime and sub-prime auto loans rise, with only one new car model being listed as selling for under $20,000 in 2023, which contrasts with a dozen five years ago.
The strike is the first one the KMWU has called itself since 2018, according to Bloomberg. The Hyundai union workers joined a one-day strike last month with 180,000 South Korean metal workers.
In the news: UAW Announces Plans To Vote For Union Strike Authorization Of 150,000 Workers
The union is asking for an increase in wages of $139 in base salary per month, a raise in the retirement age from 60 to 64, a bonus of at least 30% of Hyundai’s 2023 net income, and wants to produce more of the company’s electric vehicles and associated batteries in South Korea, according to Bloomberg. Union leaders will discuss when the strike will occur and how long it will last on Aug. 30.
The workers’ demands follow huge earnings for Hyundai in the second quarter of 2023, with the company increasing revenue by 17.4% and operating profit by 42.2% for the quarter, according to Hyundai’s earnings report. The number of cars sold was up 8.5% year-over-year, and the sale of electric models was up 47% compared to last year.
Other major automakers are at risk of strikes as well, with the United Auto Workers soon voting on whether to authorize a strike against the Big Three automakers, Ford, General Motors, and Stellantis. The strike could include 150,000 auto workers in the U.S. and would result in $5.6 billion in total economic loss over just ten days.
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