The ongoing United Auto Workers‘ battle with Detroit’s Big Three — Ford Motor Co (NYSE:F), General Motors (NYSE:GM), and Stellantis N.V. (NYSE:STLA) — has raised concerns about potential car price hikes. While Initially staggering, analysts suggest the actual impact might be less alarming — or perhaps it might be.
What’s The Blow-Up Like? As the UAW strike expanded, Wedbush analyst Dan Ives estimated potential price increases of $3,000 to $5,000 for electric vehicles (EVs) from these automakers, as per a Barron’s report. Ives focused solely on EVs and assumed the need for profitable production, suggesting this range is partly an allocation issue.
Ford CEO Jim Farley didn’t dismiss the “worst case” estimate outright, according to Barron’s, noting it was based on initial demands, including substantial wage hikes, improved retirement benefits, and a 32-hour work week with full pay.
In contrast, Wells Fargo analyst Colin Langan calculated a smaller difference between initial UAW offers and automaker counteroffers, roughly $1.9 billion annually, or approximately $300 per North American vehicle sold. The total increase relative to the previous contract might be $500 per car, roughly 1% of the average U.S. new car ...