The United Auto Workers (UAW), which represents most Ford Motor Co. (NYSE: F) assembly line workers in the United States, could call a strike as soon as next month. It could shutter plants and put Ford in a position where it lacks inventory to send to dealers. (These companies have the worst reputations.)
[in-text-ad]
The union’s requests are also crippling financially. The union, which represents 146,000 workers at Ford, General Motors and Stellantis, wants a 40% wage hike spread over four years. Reuters has reported that this would drive labor costs per hour from $60 to $150 an hour.
How long could the UAW shut down Ford’s assembly line? The union says it has a strike fund of $825 billion. The threat to car company profits is real because workers could stay out on strike for months.
An increase in wages would go beyond hurting the Big Three financially. Rivals like Tesla do not have to contend with unions. That keeps labor costs low. The electric vehicle business has seen profits undermined due to a price war, started by Tesla. The difference in labor costs, which is already large, will get larger. Tesla’s advantage at the bottom line will grow.
Investors will pay a price as well. Ford’s stock has dropped by double digits in the past month. A labor stoppage would make that worse. It would not only damage P&L figures. It would mean Ford’s attempts to get EVs into the market to compete with Tesla could eventually be undermined.
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.