Wall Street analysts are viewing potential strikes by the UAW union against the Detroit automakers as largely manageable, even investment opportunities.
, collectively known as the Detroit automakers, or D-3, can handle such work stoppages and expected labor cost increases. The companies and the union are bargaining contracts for 146,000 union members ahead of an 11:59 p.m. ET Thursday deadline.
"Our theoretical math suggests that labor cost increases should largely be manageable for the D-3. Further, a work stoppage should keep inventories low and support prices staying elevated, which should be a near term offset for higher wages," RBC Capital Markets analyst Tom Narayan said Thursday in an investor note.
Using Ford, which has the most UAW employees at 57,000, as an example, RBC estimated margin impacts for 10% and 20% raises for union workers would be 0.39% and 0.79%, respectively. That doesn't factor in potential bonuses and other possible changes such as cost-of-living-adjustments, which the union has made a priority.
What"matters most" is the duration of a potential strike, Jefferies analyst Philippe Houchois said. In an investor note Monday, he estimates each week of a strike could account for 4% to 5% of adjusted earnings at Ford; 3% to 4% at GM; and 1.5% to 2% at Stellantis.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
US, Saudi Arabia in talks to secure metals in Africa, Wall Street Journal reportsUS, Saudi Arabia in talks to secure metals in Africa, Wall Street Journal reports
Weiterlesen »
9 Midwest schools make Wall Street Journal's Best Colleges listA new methodology used this year surfaced some 'hidden gems,' the Wall Street Journal said.
Weiterlesen »
‘Life and death situations’: Lawmakers battle Wall Street over health careBankruptcies at private equity-owned businesses are on track to reach decade highs — with losses in health care leading the pack.
Weiterlesen »
Wall Street rises to reverse some of last week’s lossesLed by technology shares, U.S. stocks are ticking higher as Wall Street recovers some of its losses from last week.
Weiterlesen »
Wall Street Donors Are Reportedly Pushing Biden to Fire FTC ChairThe Federal Trade Commission has taken legal action against several major merger proposals under Lina Khan's leadership.
Weiterlesen »