As the sixth week of the U.S. automaker strike began, its participation expanded to include the Ford plant in Kentucky. The plant produces F-Series Super Duty pickup trucks, the Ford Expedition, and the Lincoln Navigator SUV. It is the company’s most profitable plant, responsible for $25 billion in annual revenue.
The union also targeted Stellantis’ assembly plant in suburban Detroit that produces Ram full-size pickup trucks, bringing the total number of assembly plants on strike to seven and total facilities involved in the strike in some way to 45. The UAW has not expanded strikes at General Motors since September 29. The number of employees now on strike totals 40,800, including 16,600 from Ford, 14,600 from Stellantis, and 9,200 from General Motors.
The UAW indicated that the union is nearing a deal with all three automakers, but also warned that getting to the finish line could require adding more plants to the strike to pressure the companies into some final concessions.
Automakers announce more layoffs due to strike ripple effects
Since the start of the UAW strike on September 15, roughly 6,500 workers have been laid off across the three automakers. This includes 2,730 workers from Ford, 2,330 workers from General Motors, and 1,340 workers from Stellantis. The automakers have cited negative ripple effects from the strike that have forced the layoffs. Current figures estimate that the strike has cost Ford roughly $145 million and General Motors roughly $191 million in losses. The estimated figure for Stellantis has not been made available.
Dana, Exo-S, and Gerdau have already laid off employees in the past three weeks, underlining the wider impact of the ongoing labor disputes in the automotive industry. Forvia, a French car parts manufacturer, has raised concerns of impending layoffs due to the strike’s impact on their October earnings. During the past quarter, the UAW strike affected Forvia’s U.S. sales by approximately €6 million ($6.34 million), but this figure is projected to increase to around €55 million ($58.2 million) in October. Other parts suppliers including Rassini Suspensiones SA have reduced production from three to two shifts at its plant in Piedras Negras, Coahuila, Mexico due to effects from the strikes.
In the coming weeks, attention will be focused on other major parts suppliers including Aptiv, Magna International, Lear, and American Axle to assess the extent of the financial consequences they might face. Both Lear and Magna have a substantial sales exposure to the three automakers.
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