But organized labor has been flexing its muscles and winning big contract settlements in other businesses. In its settlement with UPS, for example, the Teamsters won wages for its top-paid drivers of $49 an hour after five years. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed.
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What do workers want?
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They also contend that too lavish a UAW contract would saddle them with expenses that would force up the retail prices of vehicles, pricing Detroit automakers above competitors from Europe and Asia. Outside analysts say that when wages and benefits are included, Detroit Three assembly plant workers now receive around $60 an hour while workers at Asian automaker plants in the U.S. get $40 to $45. 6 brokers have issued twelve-month target prices for Stellantis’ shares. Their STLA share price forecasts range from $25.30 to $25.30. On average, they predict the company’s stock price to reach $25.30 in the next twelve months. This suggests a possible upside of 33.5% from the stock’s current price.
Further information concerning Stellantis and its businesses, including factors that could materially affect Stellantis’ financial results, is included in Stellantis’ reports and filings with the U.S. TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities. One share of STLA stock can currently be purchased for approximately $18.96. Stellantis’ stock is owned by a variety of institutional and retail investors. Top institutional investors include Bank of Italy (1.18%), Alliancebernstein L.P.
The UAW also recently filed a complaint with the National Labor Relations Board accusing GM and Stellantis of failing to bargain in good faith and in a timely fashion. Talks have been rocky, and some industry watchers foresee a fairly high likelihood of a strike, which could take place as soon as the current contract expires one minute before midnight next Thursday. 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.
Stellantis Stock Is Undervalued, Even as It Catches Up in the Electric Vehicle Market
The companies have plenty of cash on hand to withstand a strike. But it would be depleted in just under three months if all 146,000 workers walk out. This agreement will cover a maximum amount of up to €500 million. The third tranche of the Program shall start https://1investing.in/ on September 11, 2023 and end no later than December 11, 2023. Common shares purchased under the Program will be cancelled in due course. Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock.
The union and companies are continuing to trade wage and benefit counteroffers and will likely continue to do so into the work week ahead of Thursday night’s strike deadline. In a letter Friday, Mark Stewart, Stellantis’ chief operating officer, told employees that the company’s offer to the union would make it financially feasible to employ workers into the next generation. Under its proposal, Ford said it calculated that average annual pay, including overtime and lump-sum bonuses, would rise from an average of $78,000 a year last year to more than $92,000 in the first year of a new contract. Forward-looking statements are not guarantees of future performance. Rather, they are based on Stellantis’ current state of knowledge, future expectations and projections about future events and are by their nature, subject to inherent risks and uncertainties.
According to 4 analysts, the average rating for STLA stock is “Strong Buy.” The 12-month stock price forecast is $25.3, which is an increase of 33.51% from the latest price. If a strike against all three companies lasted just 10 days, it would cost them nearly a billion dollars, the Anderson Economic Group has calculated. During a 40-day UAW strike in 2019, GM alone lost $3.6 billion. Yes, if it’s long and especially in the Midwest, where most auto plants are concentrated. The auto industry accounts for about 3% of the U.S. economy’s gross domestic product — its total output of goods and services — and the Detroit automakers represent about half of the total U.S. car market. Still, Fain has raised some hope by saying the union doesn’t want to strike and would prefer to reach contract agreements with the automakers.
STLA vs Auto Stocks
But he said he visited GM and Ford on Sunday and was preparing to meet with Stellantis on Monday. Over the past decade, the Detroit Three have emerged as robust profit-makers. They’ve collectively posted net income of $164 billion, $20 billion of it this year. The CEOs of all three major automakers earn multiple millions in annual compensation. Any forward-looking statements contained in this communication speak only as of the date of this document and Stellantis disclaims any obligation to update or revise publicly forward-looking statements.
“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. At the end of August, the three automakers collectively had enough vehicles to last for 70 days. Buyers who need vehicles would likely go to nonunion competitors, who would be able to charge them more. “It also protects the company’s future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles,” Stewart wrote. Both sides began exchanging wage and benefit proposals last week.
Price Target and Rating
Its brands are Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, Teksid, and Comau. Was founded in 1899 and is headquartered in Hoofddorp, Netherlands. A contract offer from Ford proposed a cumulative 10% pay raise over the course of the four-year contract, plus several lump-sum payments, including $6,000 to cover inflation. Stellantis (formerly Fiat Chrysler) offered 14.5% wage increases over four years, without lump sums in the wage package.
- Fain has promoted the union’s “ambitious” push for more generous wages and benefits.
- Further information concerning Stellantis and its businesses, including factors that could materially affect Stellantis’ financial results, is included in Stellantis’ reports and filings with the U.S.
- As Detroit automakers and labor leaders scramble to hammer out a contract that will shape the future of the US auto industry, former Ford CEO Mark Fields has words of caution for both sides.
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As UAW Strike Looms and Labor Unrest Surges, Risks to Portfolios Grow
Apple shares, which have outpaced the S&P 500 this year, slipped as tech stocks— including Tesla, a big gainer yesterday—retreated broadly. 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. If a walkout occurs, workers would receive about $500 a week in strike pay —far short of what they earn while they’re working. As a result, millions of dollars in wages would be removed from the economy.
Data for Stellantis is unavailable because the company was formed only in 2021 and is now headquartered in Amsterdam, where pay disclosure rules are different from those in the U.S. The UAW has pointed to Big Three executives’ pay in demanding higher pay for workers. For example, GM chief Mary Barra’s compensation grew by 32.5% from 2018 to 2022. During the same period, the median GM employee’s pay grew by 2.8%, public filings show. GM, Ford and Stellantis have continued to run their factories around the clock to build up supplies on dealer lots.
High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.