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

UBS says buy these two US automakers as potential UAW strike quickly approaches

UBS is showing strong confidence in the automotive industry, upgrading both General Motors (NYSE: GM) and Ford Motor Co. (NYSE: F) to Buy ratings, accompanied by revised 12-month price targets. Even as a UAW strike seems inevitable.

General Motors

UBS upgraded General Motors to a Buy rating (From Neutral) and raised their 12-month price target on the auto stock to $44.00 (From $41.00). This upgrade is grounded in GM's consistent performance amidst a highly uncertain and volatile economic landscape, notably maintaining an 8-10% GM North America (GMNA) EBIT-Adjusted... More

China EVs sink as EU launches probe into subsidies

Shares of Chinese electric vehicle manufacturers Nio (NYSE: NIO), Li Auto (NASDAQ: LI), and XPeng (NYSE: XPEV) experienced a decline in early trading Wednesday morning following a Bloomberg report that the European Union has initiated an inquiry into Chinese electric vehicle subsidies.

The European Commission president said that Brussels will launch an anti-subsidy... More

Ford (F) ramps hybrid pickup production

Ford (NYSE: F) is set to increase production of its hybrid F-150 pickup trucks in 2024, aiming to advance the automaker's shift towards gas-electric powertrains. This move serves as a precautionary measure against the reluctance of U.S. truck buyers to fully embrace all-electric vehicles.

In 2024, Ford plans to prepare 20% of its most popular model-line in the U.S. market with gas-electric... More

U.S. committee recommends royalties on mining minerals for EVs

A federal committee, Tuesday, put forth a suggestion to introduce royalties on U.S. hardrock mining with an aim to boost domestic mining production by generating additional funds for the agencies responsible for granting new mining permits.

This proposal is just one element of a comprehensive set of recommendations designed to enhance the supply of essential materials like lithium, cobalt, and nickel. Materials crucial for supporting the growth of a domestic electric vehicle (EV) industry, which plays a... More

Third Bridge analyst sees Ford (F) as most vulnerable if UAW strike

Third Bridge analyst, Shoggi Ezeizat conducted interviews with several auto executives regarding the potential for a strike by the United Autoworkers Union (UAW). Ezeizat's findings shed light on the situation within the automotive industry and its potential repercussions.

One key observation made by Ezeizat is the vulnerability of Ford Motors (NYSE: F) to... More

UAW talks 'moving very slow'; high likelihood of a strike says analyst

The Detroit 3 and UAW remain significantly apart in their contract negotiations as the September 14th deadline quickly approaches. However, there is a noticeable willingness from the UAW to make concessions on crucial terms, especially considering that their initial request, which they self-described as "audacious," appeared to be unattainable.

Recent proposals are asking for a mid-30% raise, rather than the... More