Detroit drama: Ford goes its own way in UAW battle while auto suppliers walk a tightrope
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The United Auto Workers strike ratcheted up a level on Friday after the union added 38 General Motors (NYSE:GM) and Stellantis (NYSE:STLA) U.S. parts distribution centers to its strike for a new four-year labor contract. Since September 15, the UAW has been on strike at three vehicle assembly plants spread across the Detroit automakers. 
It could be significant that the United Auto Workers union has not added more vehicle assembly, engine or component plants to the stand-up strike as of yet after pointing to progress with the Ford (NYSE:F) negotiations during a Facebook Live event on Friday morning.
Weighing in on the auto drama, S&P Global Mobility noted that the UAW aims to achieve 100% of its demands and is willing to drag out the work stoppage situation. The view is that by holding off striking at vehicle, engine and components facilities, the UAW ensures that it still has leverage, while also inflicting economic difficulties for automakers. "In selecting the parts distribution centers, the UAW creates a scenario where manufacturing disruptions will be more difficult to predict or manage, and could be widespread. A vehicle has thousands of parts, and if one is missing, it cannot be completed," warned S&P forecaster Joe Langley.
Looking across the broad auto sector, S&P also noted that parts suppliers to Detroit 3 vehicle and powertrain assembly plants are breathing a sigh of short-term relief as the second UAW strike escalation at General Motors (GM) and Stellantis (STLA) parts distribution centers has mainly indirect impacts.
Wedbush Securities is a little more pessimistic about the most recent developments. "The UAW and GM/Stellantis now have crossed the invisible line and the UAW strike is about to get a lot nastier which could have a massive impact on GM's EV plans as well as billions of lost revenue/production depending how long this UAW debacle lasts," warned Dan Ives. The expectation is that the White House will get involved.
This heavyweight boxing match now will likely have the White House involved at some point given this UAW strike appears to be reaching a more complex and dangerous level for the Detroit stalwarts. We expect more updates over the weekend but this is an unfortunate (but predictable) turn for this UAW strike with Ford now pivoting away from staying with GM and Stellantis in this brewing battle.
Shares of Ford (F) moved 2.55% higher in afternoon trading on Friday, while General Motors (GM) dipped 0.36%. Stellantis (STLA) edged 0.22%.
Auto stocks: Toyota (TM), Tesla (TSLA), General Motors (GM), Honda (HMC), Ferrari (RACE), Ford (F), Hyundai (OTCPK:HYMTF), Nissan (OTCPK:NSANY), Mercedes-Benz (OTCPK:MBGAF), Volkswagen (OTCPK:VLKAF), BMW (OTCPK:BMWYY), Stellantis (STLA), Rivian Automotive (RIVN), and Subaru (OTCPK:FUJHY).
Auto supplier stocks: Adient (ADNT), Allison Transmission (ALSN), American Axle & Manufacturing (AXL), Aptiv (APTV), Autoliv (ALV), BorgWarner (BWA), China Automotive Systems (CAAS), Cooper-Standard (CPS), Dana (DAN), Douglas Dynamics (PLOW), Garrett Motion (GTX), Gentex (GNTX), Gentherm (THRM), Goodyear Tire & Rubber (GT), Johnson Controls (JCI), Lear (LEA), LKQ (LKQ), Magna International (MGA), Modine Manufacturing (MOD), Monro (MNRO), Motorcar Parts of America (MPAA), Standard Motor Products (SMP), Superior Industries (SUP), Visteon (VC), Voxx International (VOXX), and Westport Fuel Systems (WPRT).

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