General Motors and Stellantis are grappling with a widening U.S. auto workers' strike, which entered its 11th day Monday.
In contrast to GM and Stellantis, Ford has been spared the strike's expansion to parts distribution plants, though its Michigan assembly plant continues to be impacted.
The economic damage to the nation may have spiraled above $5 billion, recent research suggests. Both President Joe Biden and former President Donald Trump are set to visit Michigan in coming days.
Auto Workers' Strike Expands, But Ford Spared
For GM and Stellantis, a prolonged strike at parts distribution plants could mean a "meaningful dent in profit from this as well," analysts at Deutsche Bank wrote in a note to clients Monday.
Automakers have grown new vehicle inventories to weather the initial thrust, but that will change over time. The UAW strike may also impact suppliers, dealers and consumers, depending on how long it lasts.
The Detroit Three continue to negotiate with the United Automobile Workers union, which on Friday expanded its strike to 38 parts distribution centers owned by GM and Stellantis. Its initial strike action targeted one vehicle assembly plant at each of the three automakers.
However, the UAW spared Ford from the widening strike, saying the company has done more to meet workers' demands. More than 18,000 UAW members are now on strike.
Ford has acknowledged progress in contract negotiations with the UAW in some areas, while cautioning that "we still have significant gaps to close" on key issues.
On Sept. 15, the UAW began simultaneous strikes at the Detroit Three assembly plants, following the expiry of previous four-year labor agreements.
The automakers proposed 20% raises over 4-and-half years. But the UAW seeks 36%, as well as 32-hour work weeks and the reinstatement of traditional pension plans.
The union has pointed to swelling automaker earnings as it demands more profit-sharing.
Ford stock rose 1.2% on the stock market today, just below at the falling 50-day moving average. On Sunday, Canada's autoworkers union, Unifor, ratified a new three-year labor agreement with the automaker.
GM, Stellantis And Auto Dealers
As the strike expands, some GM and Stellantis dealers may struggle to find parts. The sale and installation of components tends to be lucrative for car dealers like AutoNation and Lithia Motors.
GM stock gained 1.5% Monday but remains well below a falling 50-day line. Stellantis shares eased 0.6%, but found support near a rising 50-day line.
Tesla, which has no workers' union, rose 0.9%.
But the UAW, which has previously failed to organize Tesla's factory workers, is readying for another attempt, a top union official told the New York Times last Thursday.
The UAW is hoping that big wage and benefit gains will spur workers at other nonunion plants in the U.S. to organize, including those of foreign automakers.
UAW Strike Bites U.S. Economy
The strike by the United Auto Workers resulted in economic losses totaling over $1.6 billion in just the first week, according to an analysis published Sept. 22 by the Anderson Economic Group.
That figure spans company losses of $511 million and lost direct wages to auto workers of $107 million. It also includes consumer and dealer losses of $470 million.
The Michigan-based think tank specializes in the financial impact of labor strikes. It had estimated the total economic loss from the strike at more than $5 billion after 10 full days.
Trump, Biden Head To Michigan
On Tuesday, President Biden is set to visit Michigan to join a UAW picket line. The following day, former President Donald Trump is due in Michigan.
Both are competing for union workers ahead of the next presidential election.
Biden is navigating between his administration's push on electric vehicles and the demands of striking union workers.
Meanwhile, Trump argues that the livelihoods of auto workers are threatened by the shift to electric cars.
