It was bad news for Stellantis (NYSE:STLA) on Monday morning as the UAW’s ongoing strike expanded. Further, the UAW’s plan to no longer limit itself to Friday announcements also kicked in, as the strike expansion came with little notice. The latest expansion of the UAW strike, now in its fifth week, is taking on a Stellantis plant that focuses on one of Stellantis’ biggest product lines: the Ram 1500.
It’s also the largest plant Stellantis has in the United States and is also one of its highest-volume plants as well. The UAW, for its part, continues in its demands for record contracts in light of the record profitability that the Big Three automakers have seen thus far.
Reports note that Stellantis’ latest proposal to the UAW represented the worst of the bunch, behind in several factors, including temporary worker pay, cost-of-living adjustments, the conversion to full-time pay, and wage progression. That’s likely why Stellantis was singled out for further action in this latest move.
With this latest shutdown, the UAW now has over 40,000 workers on strike. However, reports also note that Stellantis planned for this sort of thing and built a substantial inventory of Ram 1500 trucks, with a 114-day supply in place.
Which Auto Stock Will Gain the Most?
Turning to Wall Street, GM stock (NYSE:GM) remains the clear winner in upside potential, as this Moderate Buy offers 62.8% upside potential against an average price target of $48.53. Meanwhile, STLA stock is the laggard, with its $25.02 average price target yielding 30.38% upside potential.
