The United Auto Workers (UAW) union has threatened to further expand its strikes on Friday if there is no significant progress in its negotiations with the Detroit automakers Ford (NYSE:F), General Motors (NYSE:GM), and Stellantis (NYSE:STLA). The UAW intends to announce new strike targets at 10 a.m. Eastern Time on Friday in the absence of any favorable developments, with walkouts scheduled to begin at 12 p.m.
No Respite in Sight for Automakers
The news of a potential expansion in the ongoing strike comes after President Joe Biden met with UAW members at General Motor’s Van Buren Township parts distribution center in Michigan and expressed support for the union’s demand for higher salaries.
The UAW commenced its strikes on September 15 at one plant each of Ford, General Motors, and Stellantis after these automakers did not agree to its multiple demands, including 40% wage hikes and the return of defined benefit pensions.
Last Friday, the union extended its strike against General Motors and Stellantis to 38 parts distribution centers across the U.S. but spared Ford, citing improved offers by the company. However, Ford cautioned that there remain “significant gaps, which must be closed before striking a deal with the UAW.
Over 18,000 workers are on strike as discussions continue between the UAW and the three automakers. Meanwhile, on Tuesday, Tesla (NASDAQ:TSLA) CEO Elon Musk criticized the UAW, saying that the union’s demands would “drive GM, Ford, and Chrysler bankrupt in the fast lane.”
Let’s have a look at Wall Street’s ratings for Ford, General Motors, and Stellantis using TipRanks’ Stock Comparison Tool.
Wall Street is cautiously optimistic on Ford and General Motors, with a Moderate Buy consensus rating for both, but has a Strong Buy consensus rating for Stellantis. That said, analysts see a higher upside potential of 56% in General Motors stock.
