Ford Motor and UAW negotiators have reached a tentative labor deal, the union announced Wednesday night. Ford stock rose modestly early Thursday. The United Auto Workers has been on strike vs. Ford, General Motors and Chrysler parent Stellantis since Sept. 14.
The tentative Ford-UAW agreement includes a wage gain of 25% over the contract, along with restored cost-of-living allowances. The UAW won several other concessions.
Local UAW leaders must still approve the deal, with Ford's 57,000 union workers then voting to ratify it.
The UAW would likely use a Ford labor deal as a template for agreements with GM and Stellantis. The union this week expanded strikes to highly profitable GM and Stellantis plants this week.
Ford reports third-quarter earnings late Thursday.
Ford Stock
Ford stock rose almost 3% in premarket trade. Shares climbed 1.3% to 11.54 in Wednesday's stock market trading, amid reports of progress in UAW strike talks. That's after hitting a seven-month low intraday.
GM stock climbed nearly 2% overnight. Shares fell 2.2% to 29.01 on Wednesday, hitting a three-year low.
In other overnight news, Stellantis became a strategic investor in China EV maker Leapmotor. That follows a similar alliance between Volkswagen and XPeng earlier this year.
STLA stock fell more than 1% early Thursday. Shares rose 0.7% to 18.89 on Wednesday, back above its 50-day line.
The UAW strike has been viewed as a positive for nonunion automakers such as Tesla and Toyota Motor. Tesla stock fell over 2% in late trade. Shares fell 1.9% to 212.42 on Wednesday, reversing lower to close back below the 200-day line. TM stock was little changed late. Shares rose 0.6% to 175.18 on Wednesday, but hit resistance at the 50-day line.
Please follow Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for stock market updates and more.
