What people are saying about the US auto worker strike

(Reuters) – The United Auto Workers union launched simultaneous strikes at three factories owned by General Motors (NYSE:), Ford (NYSE:) and Chrysler parent Stellantis (NYSE:) on Friday, kicking off the most ambitious U.S. industrial labor action in decades.

The walkouts will halt production of the Ford Bronco, Jeep Wrangler and Chevrolet Colorado pickup truck, along with other popular models.

Here is what people are saying about the unprecedented walkouts:

DAN IVES, ANALYST AT WEDBUSH:

“If the strike lasts longer than three to four weeks, it will be moderately detrimental to GM and Ford’s EV strategy in 2024…While the Detroit stalwarts battle with the UAW, there’s a bottle of champagne that’s being iced at Tesla (NASDAQ:) headquarters.”

SAM FIORANI, PRODUCTION FORECASTER AT AUTO FORECAST SOLUTIONS:

“This is more of a symbolic strike than an actual damaging one … If the negotiations don’t go in a direction that (UAW President Shawn) Fain thinks is positive, we can fully expect a larger strike coming in a week or two.”

KOJI ENDO, HEAD OF EQUITY RESEARCH, SBI SECURITIES:

“It’s still not known to what percentage wage hike the UAW and the Big 3 will agree, but if it for example leads to a 15% or 20% wage hike for the UAW, Japanese manufacturers (whose workers) do not belong to the UAW will also have to raise wages (by) about the same amount, otherwise workers at Japanese factories will disappear.”

MICHELE DE PALMA, GENERAL SECRETARY OF FIOM-CGIL, ITALY’S LARGEST METALWORKERS UNION WHICH REPRESENTS MANY STELLANTIS WORKERS:

“FIOM is here, at your side! By fighting together, we can win. Let’s fight together for a new season of rights for the working class around the world!”

LEE JAE-IL, ANALYST AT EUGENE INVESTMENT & SECURITIES:

“For South Korean automakers, the UAW strike could help raise their car prices in the United States due to production cuts, and that could create a seller’s market environment. Also, it could potentially help increase its car exports to the United States. However, production disruptions at parts suppliers that supply to GM would be inevitable.”

ARTHUR WHEATON, DIRECTOR OF LABOR STUDIES AT CORNELL SCHOOL OF INDUSTRIAL AND LABOR RELATIONS:

“It’s not a devastating hit to the communities. It’s not a devastating hit for the strike fund. It’s not a devastating hit on the balance sheet for any of the automakers but it starts to raise the stakes, which was the intent.

“I think they are making progress at the table… the initial (automaker) offers were much lower, like 9% (wage) increases and now you’re up to 20% for increases. So that’s more than double. You’re seeing the UAW come down. You’re no longer hearing anything about the 32-hour work week from the UAW.”

STELLANTIS:

“We are extremely disappointed by the UAW leadership’s refusal to engage in a responsible manner to reach a fair agreement in the best interest of our employees, their families and our customers. We immediately put the Company in contingency mode and will take all the appropriate structural decisions to protect our North American operations and the Company.”

DEMOCRATIC U.S. REPRESENTATIVE ELISSA SLOTKIN OF MICHIGAN:

“I’m looking forward to joining our auto workers on the picket line this weekend. For the sake of Michigan’s economy and our working families, I hope this strike is short-lived … I hope the UAW and the Big Three continue to negotiate in good faith to reach a fair agreement as quickly as possible.”

JAY TIMMONS, NATIONAL ASSOCIATION OF MANUFACTURERS PRESIDENT:

“The impact of this strike will echo far beyond the city of Detroit as multiple economic analyses have demonstrated. The small and medium-sized manufacturers across the country that make up the automotive sector’s integrated supply chain will feel the brunt of this work stoppage, whether they are a union shop or not.”

MONICA BOSIO, ANALYST AT INTESA SANPAOLO:

“If it is prolonged, the halt at the three plants is set to cause substantial side effects in terms of vehicles and components shortages, thus ultimately potentially putting further upside pressure on final prices.”

“While at this stage the final impact of the strikes on selected plants is difficult to quantify, we highlight that amongst the Big Three, Stellantis is the most profitable one and could leverage on a lower break-even point as well as on higher inventories days than GM and Ford.”

MARTINO DE AMBROGGI, ANALYST AT EQUITA:

“We confirm our idea that if the strike were to last less than two weeks it could be recovered by the end of the year, while if it were to last longer it could compromise Q4 performance.”

“The fact that it is selective, although it is starting to hit some of the most profitable models of the group, would render less heavy the economic consequences, but it is not to exclude that it could rapidly expand to other plants.”