UAW Strike: GM in ‘most vulnerable position,’ analyst says

Finance Finance Headlines News

The United Auto Workers strike deadline against the Big Three automakers, Ford (F), General Motors (GM), and Stellantis (STLA), is just over 24 hours away. CFRA Equity Analyst Garret Nelson joins Yahoo Finance Live discusses how the potential strike will impact the automakers and other companies, such as suppliers. Nelson says, “it’s nearly 100% certainty that there is going to be a strike,” but the big question is will “the UAW strike one company, would they strike all three, or specific plants? And the latest chatter is that they’re likely to strike specific plants.”  Nelson notes that “General Motors is in the most vulnerable position... because of their inventory.” Nelson explains how GM has reportedly “made the most generous offer” recently and seems “to be making more concessions” compared to Ford or Stellantis because GM’s inventories are “much lower across their four major brands, Chevy, Cadillac, Buick, and GMC, than the inventories of any of the Ford or Stellantis brands.” Nelson adds that Magna International (MGA) and Lear Corporation (LEA) are “most at risk” from a strike because of their degree of exposure to the Big Three. Whereas, Tesla (TSLA) would be “the big winner” from a UAW strike.