Strike Will Sting Auto Suppliers, but How Much Depends on Fine Print in Contracts
"The automotive supply chain is incredibly resilient, but a strike lasting more than several weeks will likely cause some suppliers to seek bankruptcy protection," said Ann Marie Uetz, a partner at Foley & Lardner.
September 15, 2023 at 06:53 AM
4 minute read
Automotive
The United Auto Workers' strike against the Detroit 3 automakers will pose an extraordinary test for the nation's more than 5,600 automotive suppliers, some of which have just gotten back on their feet after weathering COVID-19 production slowdowns.
Counsel for the suppliers have been imploring them for months to shore up liquidity and review contracts with customers and subsuppliers to brace for a strike that they all hoped would not come to pass.
Those hopes were dashed when midnight Thursday hit and the union began a simultaneous strike against all three of the Big 3 for the first time in history. For now, the strike is limited to one plant for each of the Big 3—Ford, General Motors and Stellantis—covering about 13,000 of the UAW's 145,000 members, though the union is threatening to expand it.
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Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
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Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
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Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
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