General Motors and Ford Motor confronted new strikes at more plants Friday, but Stellantis was spared from a further UAW strike expansion.
The United Auto Workers President Shawn Fain announced Friday that his union will expand its strikes to Ford's Chicago assembly plant and GM's Lansing Delta Township plant. The expansion left out Stellantis, with Fain citing progress in negotiations with that automaker.
Following the latest UAW strike expansion, Ford accused the UAW union of holding up a deal primarily over electric-vehicle battery plants "that will not come online for another two to three years."
"It is grossly irresponsible to escalate these strikes and hurt thousands of families," Ford CEO Jim Farley said in a news release. Ford's offer included "wage increases of more than 20%" and "health care coverage that is in the top 1% for all Americans," the release noted.
The union's latest move adds about 7,000 autoworkers to more than 18,000 already on strike.
Auto Stocks, Auto Suppliers
Shares of General Motors lost 0.6% to 32.97 on the stock market today. Ford stock and Stellantis also declined. Chrysler parent Stellantis bounced from the 50-day line Thursday within a bullish base.
Auto suppliers Lear and Magna closed lower Friday, but Dana eked out a gain.
Auto Strike Amid EV Transition
As the strike entered its 15th day, investors continued to assess the potential impact of workers' demands on auto business models.
Some automakers and analysts called the math on union demands unsustainable.
With "EV competition rising across the board, the timing could not be worse," Wedbush analyst Dan Ives reiterated in a note to clients Friday.
"If the Detroit Three took this current deal, we estimate the average electric vehicle will go up in price by $3,000-$5,000, to pass these costs onto the consumer," he added.
It could also set GM and Ford back vs. (nonunionized) Tesla, EV startups like Rivian, and foreign automakers, Ives suggested.
Further, the strike is seen threatening an already fragile auto supply chain, which is still recovering from pandemic disruptions and the global semiconductor shortage.
