Buckingham Research analyst Joseph Amaturo reiterated a Neutral rating on both Ford (NYSE: F) and General Motors (NYSE: GM) ahead of 2019 UAW contract negotiations concluding.

The analyst stated "Given late-cycle dynamics, relatively robust OEM profitability, rising executive compensation, an anticipated ramp in EV/AV/mobility spend, pending plant closures, a well-funded union that feels it is due compensation for helping bail out the industry, as well as the UAW corruption scandal, we expect these negotiations to be as contentious as any other". He went on to state "we don't foresee meaningful UAW negotiation-related negative catalysts that drive OEM shares materially lower. However, we do believe that ultimately, the agreed upon contracts will have unfavorable long-term implications for the OEMs".

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Shares of Ford closed at $9.38 yesterday.