Boyd Group Income Fund (the Boyd Group) commented on the potential impact of a prolonged GM labor strike (the strike).
“To date, the strike has had no meaningful impact on our ability to source GM collision parts required to complete collision repairs on GM vehicles, however, should the strike continue for a prolonged period of time, it is possible that GM collision parts supply could be disrupted in a way that could have a material impact on our short term results,” said Brock Bulbuck, the Boyd Group CEO.
In the event of a prolonged strike the company believes certain actions could be taken to mitigate the GM supply chain disruption so that most repairs to GM vehicles could continue. These actions would include greater use of aftermarket and used parts.
“Based upon what we have learned as well as arrangements and plans that could be implemented in the event that the strike does extend into weeks and months, we believe we are well positioned to minimize its impact,” said Bulbuck.