The United Auto Workers strike against the Detroit-Three auto makers entered a new phase Wednesday. It means more uncertainty for investors. It also means the auto makers and the union are still far apart on a couple of key issues.
BofA Securities analyst John Murphy called it a “serious blow” in a report. Each week the Kentucky plant is down costs 5 cents in earnings per share according to his estimates. The consensus call for Ford’s fourth-quarter earnings is 28 cents a share. Now about 17,000 Ford workers are on strike, bringing the total at all three auto makers to about 33,000. Total UAW employment at the Detroit-Three is about 145,000 workers.
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