BofA notes that UAW commenced a strike at the Ford Kentucky Truck plant in Louisville, where the company’s most profitable vehicles are assembled. This latest strike “represents a serious blow to Ford’s North America operations given the profitability of the plant and its importance to Ford’s production ecosystem,” says the analyst, who estimates that the work stoppage the plant will have a weekly $247M EBIT impact, or 5c on an EPS basis. This brings the total weekly run-rate impact for Ford from the UAW strike to $430M in EBIT, or 8c on an EPS basis, says the analyst, who notes the firm’s 2023 estimates for Ford include $10.7B in EBIT with EPS at $1.96. The firm, which calls this move from the UAW “concerning” given that Ford “gave the largest concessions to the union among the Detroit Three,” has a Buy rating and $23 price target on Ford shares.
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