A series of auto supplier strikes in northern Mexico could lead to significant issues for the entire North American automotive industry.

According to reports, workers from as many as 48 companies in the town of Matamoros have walked off the job, demanding a 20 percent pay increase and a bonus. This is resulting in losses of as much as $500,000 for some companies. Penalties for failing to deliver parts on time are adding to the losses. Industry experts believe continued work stoppages could catastrophically impact supply for the entire North American automotive industry.

While labor stoppages in Mexico are usually ended fairly quickly, industry insiders are concerned that strikes could spread to other towns. According to reports, suppliers have lost an estimated $50 million over the last 30 days.