Ford, GM, and Stellantis (formerly Fiat Chrysler) are in a tough spot when dealing with the United Auto Workers (UAW) union. If the union goes on strike and more car factories stop working, these companies could lose hundreds of millions of dollars every week because they won’t be making any cars.
on X @sawymerritt “Ford, GM and Stellantis are in a lose lose situation with the UAW. If the strike goes on for a while and more plants shut down, no cars will be made, costing each automaker potentially hundreds of millions per week‘
But if the UAW gets what they want in the negotiations, it means that the costs of labor for these companies will suddenly double. This is a problem because their labor costs were already higher than what Tesla, a different car company, pays to its non-union workers. So, this would make it even more expensive for them to make cars.
On top of that, Ford and GM are already losing a lot of money for each electric car they sell. They won’t start making good profits from electric cars for a few more years. These companies also have less efficient ways of building cars compared to Tesla, and Tesla’s new Cybertruck is coming soon, which will make things even harder for them.
In the end, when all of this is done, it seems like these companies will be in a weaker position compared to their competitors. It’s a tough situation for them, and it might make it harder for them to compete in the future.
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