The UAW officer who heads negotiations with The Ford Motor Company (F) told other members of the union that the automaker could not weather a strike. He added that if the company’s sales continue to fall, Ford could have to enter Chapter 11 within “a couple of years”, according to Bloomberg.
Ford’s share of the US market has continued to fall as it former flagships including the F-series pick-up and Explorer have lost sales.
The UAW’s problem will be that, if it gives concessions to Ford (F), it may have trouble holding back agreeing to the same accommodations with GM (GM) and Chrysler. All three companies are troubled, and arguing that one is substantially worse off that the others should fall on deaf ears.
It is more likely that this fall’s negotiations will be the end of the UAW, as its members have known it, than the end of Ford.
Douglas A. McIntyre