The deadlock of the major strike in the US automotive industry continues as two car companies lay off over 2,000 workers.

On Wednesday, September 20th, General Motors and Stellantis announced that they have laid off more workers due to the consequences of the strike by the United Auto Workers (UAW).

General Motors stated that the strike has caused a shortage of parts, leading the company to shut down an assembly plant in Kansas. Approximately 2,000 employees at the plant were laid off on Wednesday.

In a statement, General Motors announced that it has halted production at its Fairfax assembly plant in Kansas due to "critical stamping part shortages" that were supposed to be supplied by its plant in Wentzville, Missouri, where workers went on strike last week. Additionally, General Motors stated that there is still a significant gap in positions between the company and the UAW during negotiations.

General Motors also mentioned that the workers laid off on Wednesday due to the strike will not be eligible for the usual supplemental unemployment benefits.

Earlier on Wednesday, Stellantis announced that it will immediately lay off around 370 employees at three parts plants in Ohio and Indiana due to "inventory constraints" related to the strike. These plants produce parts for Jeep vehicles manufactured at the Toledo assembly plant, where the UAW held a strike last week.

"We have said repeatedly that no one wins in a strike," General Motors stated in a press release. "What happened to our Fairfax team members today is a clear and direct example of that fact. We will continue to negotiate in good faith with the union to reach an agreement as soon as possible."

On Wednesday, nearly 13,000 General Motors, Ford, and Stellantis workers went on strike at the Wentzville, Toledo, and Wayne plants. UAW President Shawn Fain stated that unless there is "significant progress" in the negotiations, the union will announce further strikes on Friday.

Canadian Ford announced on Wednesday that it has reached an agreement with the Canadian Auto Workers union, Unifor, signing a new three-year national labor contract that will cover 5,000 union workers in the country. The market expects this development to help expedite the end of the strike by American auto workers.

Ford did not outline any details of the deal as the contract still needs approval from Ford-Unifor members. An insider stated that Unifor is seeking a wage increase "well above 20%" and that expanding the pension plan has been a sticking point.

The contract between Canadian Ford and Unifor expired on September 18th at 11:59 pm, but negotiations between the two parties are ongoing, and Unifor has not called for a strike. Unifor began formal negotiations with Ford on August 10th and selected Ford as the "target" company to reach a preliminary agreement. Subsequently, Unifor will use this agreement to negotiate with other automakers such as General Motors and Stellantis.