UAW Expands Strikes Against GM, Ford In What Auto Analyst Says Is 'Slow-Moving Car Crash'

The United Auto Workers is extending its historic strike against General Motors Co GM and Ford Motor Co F Friday in a move that sees the addition of two more assembly plants and intensifies the pressure on the automakers to finalize a new contract agreement.

Amid the ongoing labor battle, Dan Ives, managing director and senior equity research analyst at Wedbush Securities, shared his perspective on the situation, saying it’s like “watching a slow-moving car crash.”

The Expanded Strike: Friday’s strike expansion targets Ford’s Chicago Assembly Plant and GM’s Lansing-Delta Assembly Plant, NPR reported Thursday. This brings the total number of striking workers to around 25,000, with roughly 7,000 people employed at the newly added plants.

The expansion is a part of the UAW's strategic “stand-up strike” that Benzinga previously reported on, initiated two weeks ago against GM, Ford and Stellantis NV STLA, marking the first time in history the union targeted all three companies at the same time.

The strike, which comes at a time marked by heightened union activity and a shift toward manufacturing electric vehicles in the U.S., is in the middle of a changing labor movement and the future trajectory of the auto industry.

Read also: GM, Stellantis Scramble To Plug Parts Shortage As UAW Strike Threatens To Widen: What You Need to Know

A Pivotal Moment For Detroit: The continued strike is a situation that is getting “nastier,” Ives said on Friday, with both sides locked in their positions, potentially signaling a prolonged battle ahead.

Ives said he has concern over the repercussions a favorable deal for the union could have on the U.S. auto industry, saying the average EV vehicle price could increase by $3,000-$5,000, which would impact units sold, thereby obstructing the future business models of the Detroit Three.

Any delays due to extended strikes, he notes, could potentially push production and the EV roadmap into 2024, impacting GM, Ford and Stellantis in the crucial period.

The complexities of GM and Ford become even more pronounced when compared to non-union Tesla, which doesn't have the same issues, Ives said.

UAW’s strategic strike expansions, coupled with the deadlock stances of both parties, have set the stage for a defining period for Detroit and the future of the U.S. auto industry, the analyst said.

Some "painstaking" decisions are going to be made over the coming weeks, Ives said, adding the Big Three are finding themselves in an uncertain path ahead, which is contrast to market and investor sentiment earlier this year.

Read next: Biden Makes Historic Visit To UAW Picket Line, Tells Autoworkers ‘You Deserve Raise’

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