UAW Plans to Expand Strike at Ford and GM, Reports Reuters

The United Auto Workers (UAW) announced plans to strike at an additional plant for both General Motors and Ford, while opting not to proceed with strikes at Stellantis due to last-minute concessions from the Chrysler parent company, as revealed by union president Shawn Fain on Friday.

Arthur Wheaton, director of labor studies at Cornell’s School of Industrial and Labor Relations, commented, “The world is watching closely, and so far, the majority aligns with the UAW.” He noted that Fain’s strategy involves a reciprocal approach: positive negotiations result in no escalation of the strike, while poor negotiations lead to an increase in strike actions.

Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, remarked that the impact on production volumes should be minimal. He pointed out that this serves as a warning to the original equipment manufacturers (OEMs), emphasizing that while the affected vehicles are popular, they do not severely impact the companies’ financial standings. Fiorani also highlighted the financial toll of the strike on the union, estimating costs of about $500 per worker weekly, which translates to over $12 million per week with the additional 7,000 employees involved.

He further noted that should the strike expand to include larger vehicles, the implications would be significant, potentially affecting powertrain facilities, stamping plants, and others within the production chain.

Daniel Ives, an analyst with Wedbush Securities, expressed concern regarding the ongoing strike situation, describing it as akin to witnessing a slow-motion accident on black ice. He characterized the conflict as intensifying, with both the UAW and the major Detroit automakers deeply entrenched in their positions, suggesting that a protracted struggle looms ahead.

Ives warned that this is a pivotal moment for the future of the auto industry in Detroit. If GM, Ford, and Stellantis were to agree to the current terms being negotiated, it could lead to a significant increase in electric vehicle prices—potentially by $3,000 to $5,000—forcing consumers to shoulder the costs and jeopardizing the business models of the region.