Big Three automobile manufacturers in the context of "United Auto Workers"

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👉 Big Three automobile manufacturers in the context of United Auto Workers

The United Auto Workers (UAW), fully named International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, is an American labor union that represents workers in the United States (including Puerto Rico) and southern Ontario, Canada.

It was founded as part of the Congress of Industrial Organizations (CIO) in the 1930s and grew rapidly from 1936 to the 1950s. The union played a major role in the liberal wing of the Democratic Party under the leadership of Walter Reuther (president 1946–1970). It was known for gaining high wages and pensions for automotive manufacturing workers, but it was unable to unionize auto plants built by foreign-based car makers in the South after the 1970s, and it went into a steady decline in membership; reasons for this included increased automation, decreased use of labor, mismanagement, movements of manufacturing (including reaction to NAFTA), and increased globalization. After a successful strike at the Big Three in 2023, the union organized its first foreign plant (VW) in 2024.

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Big Three automobile manufacturers in the context of Automotive industry crisis of 2008–2010

The 2008–2010 automotive industry crisis formed part of the 2008 financial crisis and the resulting Great Recession. The crisis affected European and Asian automobile manufacturers, but it was primarily felt in the American automobile manufacturing industry. The downturn also affected Canada by virtue of the Automotive Products Trade Agreement.

The automotive industry was weakened by a substantial increase in the prices of automotive fuels linked to the 2003–2008 energy crisis which discouraged purchases of sport utility vehicles (SUVs) and pickup trucks which have low fuel economy. The popularity and relatively high profit margins of these vehicles had encouraged the American "Big Three" automakers, General Motors, Ford, and Chrysler to make them their primary focus. With fewer fuel-efficient models to offer to consumers, sales began to slide. By 2008, the situation had turned critical as the 2008 financial crisis placed pressure on the prices of raw materials.

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