Ford (NYSE:F), General Motors (NYSE:GM), and Stellantis (NYSE:STLA) are trending on social media, and their stocks are in full focus today. The United Auto Workers (UAW) union has gone on strike against the Big Three American automakers. Unionized employees are conducting work stoppages at a number of the companies’ plants. These leading car stocks were initially down in pre-market trading but then rose quite significantly after the markets opened.
It is, however, unclear if and for how long these car stocks will stay in the green today. Each is already trending back towards the red.
More About the Strike
UAW workers at three Midwest auto plants are striking this morning. Ford, GM, and Stellantis each own one of the affected plants. According to NPR, “less than 9% of UAW membership at the three companies” are carrying out work stoppages. However, the UAW could decide to order its members to stop working at more factories at any time.
The union has not publicly dismissed the idea of having all of its members go on strike simultaneously.
The UAW said that its approach “gives us maximum leverage and maximum flexibility in our fight to win a fair contract at each of the Big Three automakers.”
According to CNN, the union is seeking “increased wages, benefits and job protections for its members.”
The UAW has asked for compensation hikes of as much as 40% over the next four years, along with the right to work only 32 hours weekly.
Ford has offered a 20% increase, while Stellantis weighed in with an offer of a 14.5% hike.
Ford has reportedly prepared nonunionized employees to replace striking unionized workers. The company could also ask its nonunionized employees to work more hours than usual in an effort to mitigate the effects of the strike.
Of course, GM and Stellantis could take similar steps.
However, the strike is likely to continue to weigh on all three car stocks until it is resolved.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.