{"id":70472,"date":"2023-10-09T06:04:51","date_gmt":"2023-10-09T10:04:51","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/uaws-fain-may-be-fighting-a-domestic-war-auto-makers-are-battling-overseas\/"},"modified":"2023-10-09T06:04:54","modified_gmt":"2023-10-09T10:04:54","slug":"uaws-fain-may-be-fighting-a-domestic-war-auto-makers-are-battling-overseas","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=70472","title":{"rendered":"UAW’s Fain May Be Fighting a Domestic ‘War.’ Auto Makers Are Battling Overseas."},"content":{"rendered":"
\n
<\/p>\n

<\/p>\n

<\/p>\n<\/figure><\/div>\n

United Auto Workers President Shawn Fain spoke at a rally one day after winning a big concession from
\n General Motors
\n in the tough 2023 labor negotiations. It sounds like he is looking for more. The rhetoric, which included a \u201cclass war on humanity,\u201d makes it hard for investors to know what will be enough. <\/p>\n

There is one problem with all the rhetoric. If his intention is to continue pushing he might end up disadvantaging the Big Three, or Detroit-Three, auto makers\u2014General Motors (ticker: GM),
\n Ford Motor
\n (F), and Chrysler parent
\n Stellantis
\n (STLA). That isn\u2019t good for anyone. <\/p>\n

\n

Fain on Friday said that GM agreed to place electric battery plant workers into the master labor contract that governs all UAW workers at GM. That was a wow moment for Fain. The UAW can unionize any group of workers and it was very likely that battery plant workers in Ohio and Michigan would be unionized by the UAW. But what contract they would work under, and if the workers would be treated as suppliers to GM or as workers at GM was an open question.<\/p>\n

\u201cNegotiations remain ongoing, and we will continue to work towards finding solutions to address outstanding issues,\u201d GM said Friday when asked to confirm the claim. \u201cOur goal remains to reach an agreement that rewards our employees and allows\u00a0GM\u00a0to be successful into the future.\u201d<\/p>\n

Fain spoke at a rally in Chicago on Saturday. He sounded happy with the progress: \u201cFor months, [auto makers] said that a just transition with the EV industry was impossible\u2026we said hell no!\u201d <\/p>\n

Faid added: \u201cWe\u2019ve outsmarted, we\u2019ve outorganized corporate America\u2026and we\u2019re going to keep going until we win social and economic justice at the Big Three and beyond.\u201d <\/p>\n

The UAW didn\u2019t respond to a request for comment about what social and economic social justice means for Fain. <\/p>\n

Fain continued: \u201cOur union is again building the arsenal of democracy, but this war is not against some foreign power. The front lines are right here in our homes. It\u2019s a class war on humanity. It\u2019s a war of the working class versus the billionaire class and corporate greed.\u201d <\/p>\n

He might not be fighting a foreign war, but the auto makers are. Fain also returned to a line used frequently about the quarter trillion in profits made by the Big Three over the past 10 years. The auto makers have made money. But you have to make money to compete and the question of how much is enough rarely comes up. Neither does how competitors are doing. <\/p>\n

Fain is actually understating when he says a quarter-trillion. Using the 10-year span from 2013 to 2023, using Wall Street\u2019s estimates for the rest of 2023, GM, Ford, and Stellantis generated about $315 billion in operating profit, according to FactSet. <\/p>\n

But sales total some $4.8 trillion so the spending is $4.5 trillion. That\u2019s a lot of spending on labor, parts, commercials, platform development, and everything else that goes into a car. <\/p>\n

The profit margin amounts to about 6.6%. Is that enough? Comparing it with others can help answer that. <\/p>\n

The three largest auto makers in the U.S. that are not the Detroit Three are
\n Toyota Motor
\n (TYO: 7201),
\n Hyundai Motor
\n (005380.Korea), and
\n Honda Motor
\n (HMC). Over the comparable span, they generated about $5.2 trillion in sales, and spent about $4.8 trillion to generate some $377 billion in operating profit for a margin of 7.2%. Every number is bigger or better those of the Detroit Three. <\/p>\n

The union might want to think about the comparison, too, and make sure the Detroit Three can compete effectively in the long run. <\/p>\n

Along with battery concessions, GM, according to statements from the union and GM, is offering wage increases in the range of 20% over the life of the contract with inflation protection and a big wage increase in year one of the contract to offset recent inflation. <\/p>\n

Coming into Monday trading, Ford and GM shares are down 21% over the past three months. The
\n S&P 500
\n is down about 2%. Stellantis shares are up about 11%.<\/p>\n

Stellantis is a more global company, less impacted by what happens in the U.S. It\u2019s also a cheaper stock, trading for less than four times estimated 2024 earnings. GM trades for less than five times. Ford trades for less than seven times.<\/p>\n

Write to Al Root at allen.root@dowjones.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

United Auto Workers President Shawn Fain spoke at a rally one day after winning a big concession from General Motors in the tough 2023 labor negotiations. It sounds like he is looking for more. The rhetoric, which included a \u201cclass war on humanity,\u201d makes it hard for investors to know what will be enough. There […]<\/p>\n","protected":false},"author":1,"featured_media":70473,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-70472","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nUAW's Fain May Be Fighting a Domestic 'War.' Auto Makers Are Battling Overseas. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"United Auto Workers President Shawn Fain spoke at a rally one day after winning a big concession from General Motors in the tough 2023 labor negotiations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=70472\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UAW's Fain May Be Fighting a Domestic 'War.' Auto Makers Are Battling Overseas. | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"United Auto Workers President Shawn Fain spoke at a rally one day after winning a big concession from General Motors in the tough 2023 labor negotiations.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=70472\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-09T10:04:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-09T10:04:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/10\/1696845892_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=70472#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=70472\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"UAW’s Fain May Be Fighting a Domestic ‘War.’ Auto Makers Are Battling Overseas.\",\"datePublished\":\"2023-10-09T10:04:51+00:00\",\"dateModified\":\"2023-10-09T10:04:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=70472\"},\"wordCount\":743,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=70472#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=70472\",\"url\":\"https:\/\/ifintechworld.com\/?p=70472\",\"name\":\"UAW's Fain May Be Fighting a Domestic 'War.' Auto Makers Are Battling Overseas. | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-10-09T10:04:51+00:00\",\"dateModified\":\"2023-10-09T10:04:54+00:00\",\"description\":\"United Auto Workers President Shawn Fain spoke at a rally one day after winning a big concession from General Motors in the tough 2023 labor negotiations.\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=70472#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=70472\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=70472#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"UAW’s Fain May Be Fighting a Domestic ‘War.’ Auto Makers Are Battling Overseas.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"UAW's Fain May Be Fighting a Domestic 'War.' Auto Makers Are Battling Overseas. | iFintechWorld","description":"United Auto Workers President Shawn Fain spoke at a rally one day after winning a big concession from General Motors in the tough 2023 labor negotiations.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=70472","og_locale":"en_US","og_type":"article","og_title":"UAW's Fain May Be Fighting a Domestic 'War.' Auto Makers Are Battling Overseas. | iFintechWorld","og_description":"United Auto Workers President Shawn Fain spoke at a rally one day after winning a big concession from General Motors in the tough 2023 labor negotiations.","og_url":"https:\/\/ifintechworld.com\/?p=70472","og_site_name":"iFintechWorld","article_published_time":"2023-10-09T10:04:51+00:00","article_modified_time":"2023-10-09T10:04:54+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/10\/1696845892_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=70472#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=70472"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"UAW’s Fain May Be Fighting a Domestic ‘War.’ Auto Makers Are Battling Overseas.","datePublished":"2023-10-09T10:04:51+00:00","dateModified":"2023-10-09T10:04:54+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=70472"},"wordCount":743,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=70472#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=70472","url":"https:\/\/ifintechworld.com\/?p=70472","name":"UAW's Fain May Be Fighting a Domestic 'War.' Auto Makers Are Battling Overseas. | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-10-09T10:04:51+00:00","dateModified":"2023-10-09T10:04:54+00:00","description":"United Auto Workers President Shawn Fain spoke at a rally one day after winning a big concession from General Motors in the tough 2023 labor negotiations.","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=70472#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=70472"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=70472#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"UAW’s Fain May Be Fighting a Domestic ‘War.’ Auto Makers Are Battling Overseas."}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/70472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=70472"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/70472\/revisions"}],"predecessor-version":[{"id":70474,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/70472\/revisions\/70474"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/70473"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=70472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=70472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=70472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}