Ford Motor (F) -) shares slumped lower Thursday after the United Auto Workers union expanded its strike action to include its biggest production facility, a surprise escalation of its dispute with the Big 3 carmakers.
The UAW said around 8,700 members working at Ford's truck plant in Louisville, Ky., its biggest in the world, would walk off the job late Wednesday amid a failure to make progress in the union's ongoing pay and pensions negotiations.
The plant, producing Ford's Expedition SUV, as well as Super Duty pickup trucks and the Lincoln Navigator, generated more than $25 billion in revenue for the group last year.
UAW President Shawn Fain has also indicated he would direct union members to strike at key General Motors (GM) -) facilities in Arlington, Texas, later this week if the two sides can't move ahead in contract talks.
"The decision by the UAW to call a strike at Ford’s Kentucky Truck Plant is grossly irresponsible but unsurprising given the union leadership’s stated strategy of keeping the Detroit 3 wounded for months through 'reputational damage' and 'industrial chaos,'" Ford said in a statement.
"Ford made an outstanding offer that would make a meaningful positive difference in the quality of life for our 57,000 UAW-represented workers," the statement added. "The UAW leadership’s decision to reject this record contract offer – which the UAW has publicly described as the best offer on the table – carries serious consequences for our workforce, suppliers, dealers and commercial customers."
Ford shares were marked 2.1% lower in early Thursday trading to change hands at $11.99 each, while GM fell 1.7% to $30.44 each.
Ford's latest UAW offer includes salary increases and cost-of-living adjustments that would amount to a 30% pay boost over the next 4 1/2 years, a level that is still some distance from the union's 40% demand.
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