The United Auto Workers (UAW) strike, now in its fifth week, has been an unquestioned disaster for the Big Three automakers. General Motors (NYSE:GM) has certainly been no exception here. However, it’s just gained some ground in Friday afternoon’s trading thanks to reports that things are actually starting to improve.
The latest word from one of GM’s own negotiators is that a tentative agreement may actually be reached in the near term. As the negotiator in question noted: “All the pieces are there, we just have to glue it together.” This is a particularly high-stakes agreement as well; reports note that should this agreement actually go through, it would end the strike. The last sticking point seems to be a matter of, not surprisingly, wages and pensions. General Motors offered a 20% raise over the next four years—a far cry from the 40% the UAW wanted—but Ford (NYSE:F) has reportedly offered 23%.
Whatever happens, it will likely need to happen soon. Just yesterday, a GM executive noted that should the UAW actually get everything it demands, the results will be “devastating” for jobs overall. There will also be an impact on market share and the ability to “…fund the EV transition.” GM maintains that its offer is “historic” and that it has also addressed the issue of electric vehicle manufacturing, which is currently a non-union shop. As for the UAW, meanwhile, it’s remained mum on the recent remarks from GM brass.
Is GM a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on GM stock based on eight Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average GM price target of $48.53 per share implies 62.69% upside potential.
