On the morning of September 20th, the United Auto Workers (UAW) initiated a strike at the ZF Group factory located in Tuscaloosa, Alabama. The factory is responsible for producing front and rear axles for the nearby Mercedes-Benz factory, which is anticipated to be affected as early as September 21st.
In an article published on its official website, UAW stated that around 190 workers at the ZF Tuscaloosa Chassis Systems Plant stopped working at 5 a.m. local time on September 20th after voting down ZF's latest contract offer. The workers' main concerns include wages and a tiered wage structure, with healthcare being another significant issue. A union source stated that healthcare might be the "primary concern" for the UAW Local 2083 representing the plant's workers.
ZF spokesperson, Tony Sapienza, confirmed in an email that UAW union members at the Tuscaloosa plant chose to strike. However, he stated the factory would continue to operate. "We remain committed to continuing sincere negotiations and hope to reach a solution as soon as possible," he said.
Sam Fiorani, Vice President of Global Vehicle Forecasting at AutoForecast Solutions, predicts that the Mercedes-Benz assembly plant in Vance, Alabama will run out of axles supplied by ZF before September 21st. It's unclear if ZF workers' strike will lead to a halt in the production of Mercedes-Benz's internal combustion engine cars or also impact the all-electric vehicles produced at the same factory.
Data indicates that in addition to the EQE electric crossover and the EQS electric SUV, Mercedes also manufactures the GLS SUV, GLE mid-sized crossover, and GLE Coupe at the plant.
Mercedes did not immediately comment on the predictions from AutoForecast Solutions. Earlier in the day, Mercedes USA spokesperson Felyicia Jerald stated that the company is "monitoring the situation," but she didn't specify whether ZF's strike affected Mercedes' vehicle assembly.
If the strike against ZF leads to a halt or reduction in Mercedes-Benz vehicle assembly, it would create a historic situation where UAW's strike action simultaneously impacts production for four automakers.
The strike in the U.S. automotive industry began on September 15th when the UAW organized a strike against General Motors, Ford, and Stellantis – the three major U.S. automakers. UAW stated that if "significant progress" in negotiations with the Detroit Big Three isn't made by September 22nd, the scale of the strike might expand.
