UAW Expands Strikes Against GM, Ford In What Auto Analyst Says Is 'Slow-Moving Car Crash'
Portfolio Pulse from AJ Fabino
The United Auto Workers (UAW) is extending its strike against General Motors (GM) and Ford (F), adding two more assembly plants. This intensifies pressure on the automakers to finalize a new contract agreement. The strike expansion targets Ford’s Chicago Assembly Plant and GM’s Lansing-Delta Assembly Plant, bringing the total number of striking workers to around 25,000. The strike comes at a time of heightened union activity and a shift toward manufacturing electric vehicles in the U.S. Analyst Dan Ives warns that a favorable deal for the union could increase the average EV vehicle price by $3,000-$5,000, impacting units sold and obstructing the future business models of the Detroit Three (GM, Ford, and Stellantis).

September 29, 2023 | 6:20 pm
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POSITIVE IMPACT
Tesla could potentially benefit from the ongoing UAW strike against GM, Ford, and Stellantis as it does not face the same union issues.
As Tesla does not face the same union issues as GM, Ford, and Stellantis, it could potentially benefit from the ongoing strike. If the strike leads to increased EV prices for the Detroit Three, Tesla's EVs could become more competitive in terms of price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
Ford could face disruptions in its business model and an increase in the price of its EVs due to the extended UAW strike and a potential union-favorable deal.
The ongoing strike could disrupt Ford's operations and production. If the union gets a favorable deal, it could increase the cost of Ford's EVs, potentially reducing sales and impacting their future business model.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The extended UAW strike and the potential for a union-favorable deal could disrupt GM's business model and increase the price of their EVs.
The ongoing strike could disrupt GM's operations and production. If the union gets a favorable deal, it could increase the cost of GM's EVs, potentially reducing sales and impacting their future business model.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Stellantis could also face disruptions in its business model and an increase in the price of its EVs due to the extended UAW strike and a potential union-favorable deal.
The ongoing strike could disrupt Stellantis's operations and production. If the union gets a favorable deal, it could increase the cost of Stellantis's EVs, potentially reducing sales and impacting their future business model.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80