But that’s also putting more money into the pockets of UAW members and strengthening their financial cushions. “Things are moving but they’re moving very slow and we’ve got a long way to go in four days,” Fain said on a Sunday night video event. The company has a one-year high of $20.71 and a one-year low of $10.61. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Sign-up to receive the latest news and ratings for Stellantis and its competitors with MarketBeat’s FREE daily newsletter. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.

• Over the past decade, the Detroit Three have emerged as robust profit-makers.
• The United Auto Workers are getting down to the wire in negotiations with the “Big Three” U.S. automakers — General Motors, Ford and Chrysler maker Stellantis — over a new labor contract for around 146,000 workers.
• This suggests a possible upside of 33.5% from the stock’s current price.
• Sign-up to receive the latest news and ratings for Stellantis and its competitors with MarketBeat’s FREE daily newsletter.
• “A work stoppage of three weeks or more,” Fiorani said, “would quickly drain the excess supply, raising vehicle prices and pushing more sales to non-union brands,” Fiorani said.

The United Auto Workers threaten to strike at the plants of the Big Three automakers — Ford (F), General Motors (GM), Stellantis (STLA) — in the hopes of disrupting incoming profits and negotiate bett… Investors were looking ahead to consumer-price inflation data Wednesday and producer-price numbers Thursday as they prepare for the Federal Reserve meeting next week. The S&P 500 retreated Tuesday as stocks fell after software giant Oracle reported underwhelming sales and gave a lackluster outlook. GM, Ford and Stellantis are the only major automakers whose U.S. workers are unionized. GM and Ford stand to lose $2.5 billion and $3 billion in revenue, respectively, for every week a strike lasts, Goldman Sachs Equity Research has estimated. By comparison, agreeing to a 40% wage bump for UAW members would cost GM $4 billion to $5 billion and Ford $5 billion to $6 billion over four years.

In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Stellantis NV was formed on Jan. 16, 2021, from the merger of Fiat Chrysler Automobiles and PSA Group. The combination of the two companies created the world’s fifth-largest automaker, with 14 automobile brands.

Ford Made an Offer to the UAW Union. It Won’t Go Over Well.

Since 1988 it has more than doubled the S&P 500 with an average gain of +24.32% per year. These returns cover a period from January 1, 1988 through July 31, 2023. Zacks Rank stock-rating https://1investing.in/ system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.

View analysts price targets for STLA or view top-rated stocks among Wall Street analysts. Currently, UAW workers who were hired after 2007 don’t receive defined-benefit pensions. For years, the union gave up general pay raises and lost cost-of-living wage increases to help the companies control costs. Though top-scale assembly workers earn $32.32 an hour, temporary workers start at just under $17.

Why aren’t workers from other car companies threatening to strike?

They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. In a report released today, Tom Narayan from RBC Capital maintained a Buy rating on Stellantis (STLA – Research Report), with a price target of €22.00. As the deadline approaches for Detroit’s Big Three automakers to reach new contract agreements with the United Auto Workers or face a strike, dealerships prepare for impact.

The United Auto Workers labor union is considering strikes at certain Ford, General Motors and Stellantis plants if new contracts with the manufacturers are not reached by the deadline. Stellantis NV engages in the design, manufacture, distribution, and sale of vehicles. It offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Fiat Professional, Jeep, Lancia, Opel, Peugeot, Ram, and Vauxhall brands. The company was founded on April 01, 2014 and is headquartered in Hoofddorp, the Netherlands. Chrysler owner Stellantis climbed, along with shares of GM and Ford, as the United Auto Workers union softened its demands for wage increases.

The consensus among Wall Street research analysts is that investors should “moderate buy” STLA shares. A tight U.S. labor market, expiration of cyclical contracts and high living costs have triggered tough negotiations for pay hikes and other benefits by workers and strikes and protests across industri… concept of risk and return Foreign automakers such as Toyota, Honda, Volkswagen, Mercedes and Hyundai are among those operating nonunion plants in the U.S. — including outside of Michigan. In the electric vehicle space, newer entrants like Tesla, Rivian and VinFast also build in the U.S., similarly without union labor.

UAW open to automaker negotiations ahead of Sept. 14 deadline

Compare
STLA’s historical performance
against its industry peers and the overall market. Morningstar analysts hand-select direct competitors or comparable companies to
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competitive advantage. Jessica Caldwell, Edmunds head of insights, expects a strike by the United Auto Workers. A possible UAW strike shows organized labor’s growing clout, and could lead to higher inflation.

Get smarter about markets with our free morning and evening newsletters, delivered every weekday. Today, though, was a big day for Apple, the world’s most valuable company. The tech giant unveiled new iPhones as part of its annual hardware refresher event. If fewer new cars are produced, inventory on dealer lots would dwindle, which could push prices higher. Here’s where the dispute between the union and the three automakers stands and what might come next.

Undervalued Auto Manufacturer Stocks

This means that over the past quarter there has been an increase of insiders selling their shares of STLA in relation to earlier this year. Narayan covers the Industrials sector, focusing on stocks such as Bayerische Motoren Werke Aktiengesellschaft, General Motors, and Mercedes-Benz Group. According to TipRanks, Narayan has an average return of 4.7% and a 45.66% success rate on recommended stocks. Stellantis announced an annual dividend on Wednesday, February 22nd.

Still, full-time workers have received profit-sharing checks ranging this year from $9,716 at Ford to $14,760 at Stellantis. Fain has promoted the union’s “ambitious” push for more generous wages and benefits. The union has asked for 46% raises in general pay over four years — an increase that would elevate a top-scale assembly plant worker from $32 an hour now to about $47. Offerings include luxury, premium, and mainstream passenger vehicles, pickup trucks, sport utility vehicles, commercial vehicles, parts and services, as well as retail and dealer financing, leasing, and rental services.

Investors of record on Tuesday, April 25th will be paid a dividend of $1.1664 per share on Thursday, May 4th. Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated. Targeted strikes are ones that only have work stoppages at certain plants, many times over local contract issues.

So far this year, 247 strikes have occurred involving 341,000 workers — the most since Cornell University began tracking strikes in 2021, though still well below the numbers during the 1970s and 1980s. Sam Fiorani, an analyst with AutoForecast Solutions, a consulting firm, said the automakers had roughly 1.96 million vehicles on hand at the end of July. Before the pandemic, that figure was as high as 4 million. On Friday, Fain said that the company offers weren’t enough and that he had put them in the trash.

Potential UAW strike could cut production, push up vehicle prices, analysts say

A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

• The union’s inability to organize U.S. factories run by foreign automakers represents a disadvantage for the union because those companies pay less than Detroit companies do.
• The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
• There are currently 1 hold rating and 5 buy ratings for the stock.
• (0.81%), DekaBank Deutsche Girozentrale (0.56%), Goldman Sachs Group Inc. (0.00%), Bank of New York Mellon Corp (0.34%) and M&G Investment Management Ltd. (0.29%).
• It sells its products directly, as well as through distributors and dealers.

As the United Auto Workers prepare for a possible strike, the fallout could result in higher prices for car buyers. Joel Levington, Global Director of Credit Research for Bloomberg Intelligence, expla… Rather than strike all facilities at once, the union’s president said they would wage strategic walkouts at Ford, GM and Stellantis if they don’t reach deals. The impact could be more muted for Ford and Stellantis brands like Jeep, Dodge, Chrysler and Ram, which Cox said had above-average levels of supply. But GM brands like Cadillac and Chevrolet have slightly below-average supplies. Ford appointed a new CEO in 2020, and the pay jumped 18% from 2018 to 2022, when the median employee’s pay rose 16.1%.

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