Page 6 - Lear Corp News Today

DETROIT — Auto industry stakeholders are bracing for a potentially unprecedented strike by United Auto Workers members early Friday morning that could have more impact than the 40-day strike against

Here’s the lowdown on what’s happening with the worker strikes, why we’ve ended up here in the first place and how Wall Street took the news.

The United Auto Workers (UAW) union initiated a strike against Detroit's three major automakers following the expiration of their contracts.

Sources at several companies said they are preparing for layoffs if the strike drags out, but they declined to provide details on the record.

Major suppliers to the Detroit 3 plants on strike include Lear Corp., Dana Corp., Superior Industries, Cooper Standard, Tenneco and Martinrea, to name a few.

Automotive suppliers at every tier are playing the waiting game as the United Auto Workers strike unfolds, preparing for potential layoffs should it be a prolonged work stoppage.

The current contracts at General Motors, Ford Motor and Chrysler parent Stellantis are set to expire at 11:59 p.m. ET on Thursday. Detroit automakers, like their global counterparts, have been focused on cost reductions, which in some cases include job cuts, to help accelerate a shift to electric vehicles (EVs) from gasoline-powered vehicles. The UAW, which represents 46,000 GM workers, 57,000 Ford employees and 43,000 Stellantis workers, kicked off negotiations with the companies in July.

UBS initiated coverage of 13 auto stocks, as the broker said investors should focus on growth opportunities and not a looming strike.

Auto-parts suppliers Lear Corp. and Magna International Inc. are the companies with the “greatest counterparty exposure” to a possible UAW strike, Garrett...