The labor contract between the United Auto Workers and the Detroit-Three automakers expired at midnight on Thursday. A deal isn’t done and the union will start by striking at three facilities, one at each automaker.
“For the first time in our history, we will strike all three of the Big Three at once,” said UAW president Shawn Fain. “We will call on select facilities, locals, or units to stand up and go on strike.”
Investors will need to figure out what to do with car stocks. A lengthy work stoppage might also impact other sectors and overall economic growth in the U.S. during the final parts of 2023. Navigating it all, however, doesn’t have to be overwhelming. There will also be some stocks to buy in the aftermath of whatever happens.
Where Is the Strike Happening
The UAW is starting to strike at
General Motors
‘ Wentzville Assembly Plant,
Stellantis
‘ Toledo Assembly Complex, and Ford’s Michigan Assembly Plant.
Wentzvill builds mid-size trucks and full-size vans including the GMC Canyon and Chevy Colorado. Toledo builds Jeeps including the Wrangler. Michigan Assembly builds Ford Ranger and Ford Bronco.
“The initial scope is more limited than expected,” wrote Baird analyst Luke Junk in a Thursday report, adding it had appeared the UAW would likely target engine and transmission plants that could have effectively shut down all of North American operations. “The situation could worsen from here.”
Keep Things In Perspective
Strikes are scary.
New UAW president Fain has a flare for the dramatic, literally trashing proposals from
Ford Motor
(F),
General Motors
(GM), and Chrysler parent Stellantis (STLA). It’s a little unnerving for investors.
What’s more, a strike will have wide-ranging impacts. Big numbers, mostly in the billions, will get thrown around daily but any strike will eventually get resolved and most of the economic activity, such as…
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