Ford and General Motors Stocks Rise as UAW Negotiations Resume
Ford and General Motors (GM) saw a cautious increase in their stocks on Monday as negotiations between the 'Big Three' car makers and the United Auto Workers (UAW) resumed over the weekend.
The UAW strike began on Friday, with workers striking at three facilities - General Motors' Wentzville Assembly in Missouri, Stellantis’ Jeep assembly complex in Toledo, Ohio, and select departments in Ford’s assembly plant near Detroit.
According to the union, discussions with Ford restarted over the weekend and were described as "reasonably productive," although no further details were provided.
In premarket trading, General Motors stock, which rose 0.9% on Friday, showed a 0.3% increase, while Ford, which slipped 0.1% on Friday, was up by 0.2%. Shares in Stellantis fell 0.8% ahead of the opening bell, after experiencing a 2.2% climb on Friday.
Apart from the resumption of talks, investors were also considering other developments on Monday.
A notable development was UAW President Shawn Fain rejecting Stellantis' offer of a 21% pay increase in an interview on CBS' Face the Nation on Sunday. Although the offer was made public by the Jeep maker on Saturday, Fain stated that it was "definitely a no go."
In response to the strikes, the auto makers have initiated temporary layoffs. Ford announced on Friday that approximately 600 nonstriking workers at its Michigan plant would be temporarily laid off. General Motors also stated that about 2,000 workers at its Fairfax Assembly plant in Kansas could be out of work this week until production resumes.
Regarding the layoffs, Fain criticized the auto makers' intention to "put the squeeze on our members to settle for less" in a post on X (formerly Twitter) on Saturday and added that their plan "won't work."
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