Posts tagged production delays
Here’s how a union strike could impact Ford — and what Jim Cramer thinks about the stock
September 6, 2023 // The risk of a walkout by the union has also created near-term uncertainty for General Motors (GM) and Stellantis (STLA) — the Dutch owner of the Chrysler, Dodge and Jeep brands, among others. The UAW's current labor contract covering 146,000 workers at the Big 3 American automakers expires at 11:59 p.m. ET on Sept. 14. Jim Cramer's advice: He would not look to buy more Ford on weakness nor would he look to sell Ford stock at this point. Club name Ford, which employs the most UAW members at 57,000, has seen its stock drop more than 6% in the past month. Over the same stretch, GM, which has 46,000 UAW members, declined roughly 9% and Stellantis, which has 43,000 union workers, fell roughly 7%. No matter where the talks lead, the automakers are going to see significant increases in their labor costs. The question is whether they have enough inventory to offset complications from work stoppage.