UAW strikes threaten already vulnerable auto parts suppliers
Publishing timestamp: 2023-09-27 11:27:01
Summary
The article discusses the potential economic effects of the United Auto Workers' strike against Ford Motor, General Motors, and Stellantis on the smaller suppliers in the automotive industry. It mentions that these smaller suppliers, many of which have only recently recovered from the shocks of the Covid-19 pandemic and semiconductor shortage, could be hit hard by the strike and may even go out of business. The article also mentions that larger publicly traded suppliers may start to feel the strain if the strike continues and expands further. It highlights the potential tension between automakers and suppliers in commercial discussions, as automakers may put pressure on suppliers to lower costs to offset expected increases in labor costs. The article concludes by stating that new UAW contracts could add billions of dollars of incremental costs annually to automakers' balance sheets.
Sentiment: MIXED
Tickers: MG-CA, F, LEA, STLA, DAN, GM, CAD-FF, STLAM-IT, MGA, ADNT,
Keywords: detroit, breaking news: business, transportation, dana holding corp, business news, general motors co, jobs, labor economy, ford motor co, strikes, stellantis nv, magna international inc, adient plc, united auto workers, labor unions, lear corp, personnel,
Source: https://www.cnbc.com/2023/09/27/uaw-strikes-threaten-already-vulnerable-auto-parts-suppliers.html