In two months of negotiations, representatives of the United Auto Workers and leaders of the "Big Three" -- General Motors, Ford and Stellantis, which controls the American Chrysler -- could not agree on the content of a new four-year collective agreement.

"We've been telling businesses, from the beginning, that Sept. 14 (at midnight) is a deadline, not a milestone," UAW President Shawn Fain said Wednesday.

"We will not let the +Big Three+ continue to drag out discussions for months," he said.

A spokesman for General Motors said Thursday at midday that a new offer had been made to the UAW in the morning.

"We continue to conduct direct and good faith negotiations with the UAW," GM said. "Any disruption would negatively impact our employees and customers, and in turn impact our communities."

For its part, Ford noted the union's lack of return to its latest proposal. "We want to negotiate but we have still not received a counter-offer," a spokesman said.

Contacted by AFP, Stellantis did not immediately respond.

On Wednesday evening, the company said it wanted to "discuss in good faith to reach a draft agreement" before the expiry of the current collective agreements.

The UAW is demanding a 36% wage increase over four years, while the three American manufacturers have not gone further than 20% (Ford), according to the union leader.

The three historic giants of Detroit have also refused to grant additional days off and to increase pensions, provided by funds specific to each company.

Members of the UAW synicat on August 20, 20123 in Warren, Michigan © JEFF KOWALSKY / AFP/Archives

"They want to scare Americans by making them believe that the problem comes from the auto employees," said Shawn Fain, while he insists on "the greed of the leaders".

Unless compromised in extremis, the union plans to announce Thursday at 22:00 New York time, (02:00 GMT Friday), which sites will be affected by work stoppages.

According to CNBC, eight sites of the three groups in Michigan and the neighboring states of Ohio and Indiana could be affected, affecting 7,000 to 12,000 employees.

The union represents some 146,000 employees of the trio in the United States.

A risk for Biden

For Shawn Fain, the movement was a turning point, which he compared to the 1930s, including the 1936-1937 strike at General Motors in Flint, Michigan, a true birth certificate of the UAW, created in 1935.

The consulting firm Anderson Economic Group (AEG) estimates that a ten-day strike could represent more than five billion dollars in lost revenue for the US economy.

UAW President Shawn Fain on August 20, 2023 in Warren, Michigan © JEFF KOWALSKY / AFP/Archives

A protracted social conflict could have political consequences for US President Joe Biden, whose economic record has been criticised, particularly given the stubborn inflation in the US.

A little more than a year before the presidential election, the head of state is walking on eggshells, between his open support for the unions and the specter of a blow to the American economy by a strike.

"Consumers and dealers are, in general, relatively protected from the effects of a short strike," said AEG Vice President Tyler Theile.

But with inventories representing a fifth of those owned by the industry in 2019, during the last strike at GM, they "could be affected much more quickly" than four years ago, he said.

"We arrive at the fourth quarter, period during which we see the most sales of pickups and large SUVs, which are very profitable for these three manufacturers," says Jessica Caldwell, of the specialized site Edmunds.com.

"If they don't have enough in stock, they're going to miss sales," she adds.

JPMorgan analysts believe that a sharp rise in wages would affect vehicle prices, pushing motorists to "keep their cars longer" rather than buying a new model.

Around 19:00 GMT, GM (-0.35%), Stellantis (-0.82%) and Ford (-0.40%) fell on Wall Street.

© 2023 AFP