The United Auto Workers (UAW) union is pushing for the inclusion of future battery plant workers in negotiations with major automakers General Motors (GM:NYE), Ford (F:NYE), and Stellantis (STLA:NYE). This development underscores the UAW’s commitment to ensuring equitable wages and benefits for electric vehicle (EV) plant employees. The Big Three’s ambitious plans to invest $20 billion in EV battery manufacturing plants are now facing challenges. This article will highlight the complexities of integrating these facilities into the ongoing labor contract discussions and provide insights into the Ford stock forecast.
GM Commits to Inclusion:
General Motors has taken the lead by agreeing to incorporate future battery plant workers into its new labor contracts. However, the specific terms regarding wages and benefits for these employees remain unresolved. One complication arises from the fact that many of these battery plants are joint ventures with Asian battery manufacturers.
Ford Halts Michigan Battery Plant:
Ford recently made headlines by halting the construction of a $3.5 billion battery plant in Michigan, citing political concerns. The facility was set to produce cost-effective EV batteries in collaboration with Chinese battery maker Contemporary Amperex Technology Co. (CATL). Meanwhile, a strike involving 25,000 workers at five plants and several parts distribution centers has entered its fourth week. The UAW, however, has clarified that it does not intend to extend the strikes to other plants for the time being.
F and STLA Follow GM’s Lead:
With GM’s commitment to including future battery plant workers in the new labor deal, it appears likely that Ford and Stellantis will follow suit in the near future. The upcoming earnings season is anticipated to provide further insights into the financial impact of the ongoing strikes on these automakers’ performance.
Analysts Ratings for Big Three:
Based on the Ford stock forecast from 12 analysts, the average target price is USD 14.99. The average analyst rating is Buy for Ford and GM. General Motors currently boasts a higher upside potential of 58.70% compared to its average price target of 49.04. Stock Target Advisor’s analysts are Neutral on F and GM.
Moreover, negotiations with GM are reportedly proceeding more smoothly than with the other two automakers, suggesting a possible resolution to the strike in the near future. However, among the Big Three, Stellantis stands out with a Strong Buy rating and STA analysts are Bullish.
Conclusion:
The inclusion of future battery plant workers in labor negotiations is a significant development in the automotive industry. As GM takes the lead in this regard, the outcomes of these negotiations will likely impact not only the workforce but also the financial performance of these major automakers. Investors are closely watching these developments, particularly during this earnings season, for clues about the resolution of the ongoing strike and the future prospects of companies like GM, Ford, and Stellantis.
