The ongoing United Auto Workers (UAW) strike is picking up, as another plant was hit by the strike and shutdowns that go along with it. This time, it was a General Motors (NYSE:GM) plant in Texas that got shut down. As a result, GM, Ford (NYSE:F), and Stellantis (NYSE:STLA) all dropped at the time of writing.
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This time, the UAW strike hit a plant in Arlington, Texas. With it, over 5,000 workers from General Motors Arlington Assembly walked off the job and, with it, took a major source of GM’s revenue-producing capability out of the game.
The Arlington plant is a key producer of many of GM’s biggest revenue draws, including the GMC Yukon, the Chevy Suburban, the Chevy Tahoe, and perhaps the biggest of all, the Cadillac Escalade. This move comes immediately after a major walkout in a Stellantis plant, where around 6,800 workers filed off the line.
The strike appears to have an impact. Already, GM has reported profits are in decline as the company is simply unable to produce vehicles in sufficient quantity to keep car lots fed. GM even managed to put a number to the impact: $800 million so far.
And that was before factoring in the Arlington expansion, which will likely swell those numbers still further. GM, not surprisingly, turned on the union, declaring that it was “…disappointed by the escalation of this unnecessary and irresponsible strike.”
Which Automaker Stocks are a Good Buy Right Now?
Turning to Wall Street, GM stock is still the leader when it comes to upside potential. This Moderate Buy stock’s average price target of $48.53 gives its investors 66.8% upside potential. Meanwhile, the laggard is now Ford stock once more, as this Moderate Buy stock offers only 32.17% upside potential against its $15.14 average price target.
