CNH Dealers Talk UAW Strike's Impact on Revenue, Product Quality & Customers' Purchases

2022-08-26 22:28:29 By : Ms. Carrie Lin

According to the results of an Aug. 3 survey from Farm Equipment, CNH dealers are seeing less wholegoods revenue impact from the ongoing UAW strike than they initially predicted. The strike began in May, when 1,200 UAW workers at CNHI’s Burlington, Iowa, and Racine, Wis., factories walked off the job as their contract expired. Negotiations are set to restart in mid-August.

Some 39% of CNH dealers said there’d been no impact on their new wholegoods sales from the strike, almost double the 20% who predicted they’d see no impact in a similar survey Farm Equipment conducted in May.

A little over 27% of CNH dealers said they’d seen a 1-10% sales loss vs. the 40% who predicted the same 3 months ago. Another 20.8% said they’d experienced an 11-20% loss in new wholegoods revenue, just below the 21.3% who predicted this loss in May.

Almost 4% of CNH dealers reported a wholegoods revenue loss of 41-50% (almost double the percentage forecasting this loss in May), while 2.6% reported a loss of over 50%.

When asked to forecast their loss should the strike continue for another 3 months, about 77% of CNH dealers predicted a loss, below the 80% who predicted the same in May. It should be noted the May survey asked dealers to forecast their losses should the strike continue for 30 days or more.

Some 26% of CNH dealers forecast a loss of 1-10% if the strike continues another 3 months vs. 40% who said the same in May. The percentage forecasting a 21-30% loss rose to 17% from the 11% forecasting this loss 3 months ago. Over 10% of CNH dealers forecast a new wholegoods revenue loss of 41% or more, while just 2.1% forecast the same in May.

When asked if they felt the equipment they've received from the striking factories had dropped in quality, just 21.1% of CNH dealers felt it had. Several dealers mentioned quality problems with the two factories had been present since before the strike.

The following commentary was left by CNH dealers:

CNH dealers who answered yes:

CNH dealers who answered no:

When asked if their customers' planned purchases had been impacted by the strike, 45.6% of CNH dealers said it had.

Dealers left the following commentary:

CNH dealers who answered yes:

Dealers were also able to leave general commentary on the strike at the end of the survey, which is compiled below by the dealers' mainline brands.

For additional coverage on what happened during the CNHI/UAW trike, click here to read Ag Equipment Intelligence's full timeline of events.

Click here for more Industry News.

Ben Thorpe is the Associate Research Editor of  Farm Equipment and  Ag Equipment Intelligence. He joined Lessiter Media in 2019 after 1 year working with the Assn. of Equipment Manufacturers. He graduated with a writing degree from Carroll University.

Farm Equipment Dealership of the Year – 2022

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