The UAW Strike Is Here. Stocks to Buy, Sell, and Watch Carefully.

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The labor contract between the United Auto Workers and the Detroit-Three automakers expired Thursday. A deal isn't done and the UAW declared a strike against...

The labor contract between the United Auto Workers and the Detroit-Three automakers expired at midnight on Thursday. A deal isn’t done and the union will start by striking at three facilities, one at each automaker.

Wentzvill builds mid-size trucks and full-size vans including the GMC Canyon and Chevy Colorado. Toledo builds Jeeps including the Wrangler. Michigan Assembly builds Ford Ranger and Ford Bronco. Numbers, Numbers, Numbers The number of total workers directly impacted by the strike is small. The total impact on the U.S. economy isn’t that large either.

That’s what’s at risk for the companies. For consumers, lower auto production means a lower supply of new vehicles and higher prices for new and used cars, as well as higher prices for auto insurance. Insurance rates are tied to the value of vehicles. Why Ford and GM Could Bounce Back GM, Ford, and Stellantis shares are down about 16% from their 52-week highs on average with most of that drop coming in the last two months while labor rhetoric heated up. The S&P 500 is flat over the past two months.

 

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UAW strike countdown: Union president says targeted strike possible at all Big Three companiesUAW President Shawn Fain says that UAW may strike 'all of the Big Three at once,' and union prepares for 'standup strikes' if no deal is reached. '
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