Watching Ford, General Motors shares as US car makers hit by union strikes
The United Auto Workers (UAW) has launched a series of strikes after a failure to reach agreement with the three largest US manufacturers over a new contract, kicking off the most ambitious industrial labour action in decades.
The deadline for talks between Ford, General Motors, Stellantis, and the UAW expired at midnight on Thursday, with the sides still far apart on the union's new contract priorities. While Stellantis is a European manufacturer it also owns US brands including Jeep, Dodge, Chrysler, and RAM trucks.
This union action marks the first time all three of the Detroit Three carmakers have been targeted by strikes at the same time.
(Video summary)
The United Auto Workers in the US are currently on strike, which means they have stopped working in protest. This strike is a big deal because it's the first time all three major car manufacturers in the country have been affected. The strike is causing a lot of problems for the companies, especially because China is trying to take over the market and become a leader in electric cars.
Stellantis share price
In France, a company called Stellantis, which owns popular brands like Citroen and Peugeot, hasn't been affected much by the strike. Their stock price dropped a little bit at first, but it has since recovered and is now stable.
Ford, General Motors share prices
However, in the US, both General Motors (GM) and Ford have seen their stock prices go down. GM is currently down half a percent and there's a risk that it could go down even further. Ford is also down about three-quarters of a percent and there's a price level that could make it go down even more.
When we look at the bigger picture, GM's stock is currently valued at $33.18, which is a lot less than its highest price of $52.86 in January 2022. There's a chance that it could go down even more and reach its lowest price in July 2022, which was $26.
Ford is also seeing a decline in its stock price and is currently being traded on the IG platform. The strike is a big deal because all three major car manufacturers in Detroit are being targeted, which shows how serious the situation is.
Overall, the strike by the United Auto Workers is causing problems for US car manufacturers and could have long-term effects on their stock prices. There's a concern that the prices could go down even more.
On top of that, they also have to deal with competition from China in the electric car industry, which adds even more challenges for them.
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