https://www.barrons.com/articles/uaw-strike-announcement-update-b2bddb5a?redirect=amp
The UAW is threatening to expand its strike on Friday against Big Three automakers General Motors GM –1.48% , Ford Motor F –1.29% , and Chrysler parent Stellantis STLA –1.73% , and many observers are assuming it’s a done deal. If the union idles high-profit assembly plants or high-volume powertrain plants, it means the labor confrontation is entering a tough, new stage.
The UAW went out on a limited strike, at one facility per auto maker, on Sept. 15. Union leadership says more workers will walk out Friday if substantial negotiating progress isn’t made. “Expansion at this point seems almost a certainty,” says Wedbush analyst Dan Ives.
Benchmark analyst Mike Ward expects strike expansion too, but says investors should watch which factories are idled. He says one more plant per auto maker is likely. If the strike expands to larger plants with more workers and key products, it’s a sign that the union is unhappy and looking to inflict more financial pain on the auto makers.
Facilities such as GM’s Fort Wayne, Ind., plant that makes Chevrolet Silverados is a key one to watch. So is Stellantis’ Sterling Heights assembly plant in Michigan which builds Dodge Rams trucks. Ford has highly profitable truck plants in Dearborn, Mich., and Kansas City, Mo.
Idling one of these plants would be a gut blow to the auto makers. However, if the union really wants to hurt a car maker, it could strike a powertrain plant that supplies multiple assembly plants and shut them all down.
The UAW didn’t respond to a request for comment about its strike expansion plans.
