The United Auto Workers launched a surprise strike Wednesday night at the largest and most profitable Ford Motor Company (NYSE:F) factory, turning up the heat on the big three Detroit automakers.
The union shut down Ford’s Kentucky Truck plant, which employs 8,700 workers and produces Super Duty pickups and Lincoln Navigator SUVs, two high-margin vehicles for the automaker.
The move comes after UAW president Shawn Fain and other union officials called a meeting with Ford Wednesday evening and asked for a new offer, which the company did not have, according to reports.
On Thursday, talks will resume with rival automakers General Motors Company (NYSE:GM) and Stellantis NV (NYSE:STLA, EPA:STLA).
"Here’s to hoping talks at Stellantis today are more productive than Ford yesterday," Fain posted on social media.
Notability, contract offers from GM and Stellantis have so far lagged behind Ford in terms of wages and benefits, according to summaries released by the UAW and the automakers.
The snap strike at Ford, breaking from the union’s pattern of announcing additional striking plants each Friday, seems to be a signal from Fain that the union has entered a new phase of pressure tactics.
Last Friday, Fain said the UAW said it would consider striking the GM plant in Arlington, Texas, which produces the Cadillac Escalade, Chevy Suburban and other high-priced SUVs.
Fain has scheduled a Facebook Live address for 10 am ET on Friday, when such a target could be announced officially.
Ford shares are down more than 2% Thursday morning, as analysts at Wells Fargo estimated that Ford will lose roughly $150 million per week in core profit from the Kentucky plant strike.
That’s likely to bring Ford to the table in their view.
"We think this escalation is a sign that the UAW could be close to a contract proposal with Ford in the next 1-2 weeks," the analysts wrote.
Prior to Wednesday’s move, UAW workers were already striking five assembly plants, between the three automakers and 38 parts depots operated by GM and Stellantis.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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