Ford nyse F and General Motors nyse Gm Shares Plummet Amidst Historic Uaw Strike

Ford (NYSE: F) and General Motors (NYSE: GM) Shares Plummet Amidst Historic UAW Strike

Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM) shares plummeted in pre-market trading today. The sharp decline comes at a time when the United Autoworkers Union (UAW) launched a historic strike against the Big Three U.S. automakers. This strike has unfolded amid a bitter wage dispute between the two parties.

The UAW, representing 146,000 members, launched this historic strike just hours before the expiration of a four-year contract at midnight on Thursday.

Initially, UAW members had demanded a staggering 46% pay increase to be spread over the next four and a half years. However, they later scaled back their demand to around 40%, which still significantly outpaces the 20% increase offered earlier this week by Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM). Stellantis (NYSE: STLA), the parent company of Jeep-Chrysler, also offered a 17.5% increase.

The strike has led to around 12,700 workers picketing assembly sites across the Midwest. These sites include Ford’s plant in Wayne, Michigan, a GM facility in Wentzville, Missouri, and a Stellantis-owned Jeep plant in Toledo, Ohio.

There are currently no scheduled talks between the UAW and the automakers. This raises concerns about the longevity of this high-stakes labor dispute.

UAW President Shawn Fain stated,

“Tonight, for the first time in our history, we will strike all three of the Big Three at once. This strategy will keep the companies guessing. It will give our national negotiators maximum leverage and flexibility in bargaining. And if we need to go all out, we will. Everything is on the table.”

Ford Motor Company stock plummeted by 2.22% to $12.34 in response to the news. Simultaneously, General Motors Company stock witnessed a 1.52% decline, trading at $33.15 per share.