Ford Stock Is Falling Thursday: What's Driving The Action?

Ford Motor Co F shares are trading lower Thursday after the United Auto Workers (UAW) union expanded strikes to the company's truck plant in Kentucky.

What Happened: The UAW met with Ford officials late Wednesday for continued labor negotiations, but talks fell through after Ford failed to provide a counteroffer. The meeting reportedly lasted less than 10 minutes. 

In a post on X, the UAW said president Shawn Fain called on Kentucky workers to strike immediately after Ford refused to make progress in bargaining. 

Ford responded to the strikes, calling the move "grossly irresponsible." The company added that it was not surprised "given the union leadership’s stated strategy of keeping the Detroit 3 wounded for months through 'reputational damage' and 'industrial chaos.'"

CNBC's Phil LeBeau called it a "major gut punch" for Ford Thursday morning on "Squawk On The Street." He noted that most estimate that the company's Kentucky truck plant is the most profitable plant in the U.S. among all automakers. The plant has approximately 8,700 UAW workers and represents 19.7% of Ford's total U.S. production. 

"You cannot overstate the significance of this move by the UAW ... This is a clear signal to Ford. It's taking it to another level," LeBeau said.

See Also: Ford Says Ongoing UAW Strike At Auto Giant's Largest Plant Carries 'Serious Consequences'

F Price Action: Ford shares were down 2.53% at $11.95 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Ford.