(AOF) – Ford and General Motors are the target of a strike called today by the American automobile union UAW which targets several of their sites as well as those of Stellantis. The union’s strike fund reached $825 million, allowing it to finance this social movement for twelve weeks – or a little less than three months – according to the consulting firm Evercore ISI. Ford Motor Chief Executive Jim Farley said Thursday on CNBC that UAW’s demands could bankrupt the company.
The central union is demanding a 40% increase in wages, a reduction in working hours and the addition of new retirement benefits. This is the first time that a strike has affected the three main American automobile manufacturers.
According to estimates from Goldman Sachs Equity Research, GM and Ford stand to lose $2.5 billion and $3 billion, respectively, in sales for each week of widespread strike action. According to the same source, accepting a 40% wage increase for UAW members would cost GM between $4 and $5 billion and Ford between $5 and $6 billion over a four-year period.
In 2019, General Motors workers launched a 40-day strike that cost the automaker some $3.6 billion that year. This social conflict put the state of Michigan in recession for a quarter.
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