(Reuters) -The United Auto Workers (UAW) union launched simultaneous strikes at three factories owned by General Motors (NYSE:GM), Ford (NYSE:F) and Chrysler parent Stellantis (NYSE:STLA) on Friday, kicking off the most ambitious U.S. industrial labor action in decades.
The walkouts will halt production of the Ford Bronco, Jeep Wrangler and Chevrolet Colorado pickup truck, along with other popular models.
Here is what people are saying about the unprecedented walkouts:
GM CEO MARY BARRA TO CNBC:
"Every negotiation takes on the personality of the leader who's running, you know, from a UAW perspective, as well as what the situational issues are at the time. But I think the key in any of this is to get to the table, talk through the issues. And then that's what we've been working to do."
SAM FIORANI, PRODUCTION FORECASTER AT AUTO FORECAST SOLUTIONS:
"This is more of a symbolic strike than an actual damaging one ... If the negotiations don't go in a direction that (UAW President Shawn) Fain thinks is positive, we can fully expect a larger strike coming in a week or two."
DAN IVES, ANALYST AT WEDBUSH:
"If the strike lasts longer than three to four weeks, it will be moderately detrimental to GM and Ford's EV strategy in 2024...While the Detroit stalwarts battle with the UAW, there's a bottle of champagne that's being iced at Tesla (NASDAQ:TSLA) headquarters."
KOJI ENDO, HEAD OF EQUITY RESEARCH, SBI SECURITIES:
"It's still not known to what percentage wage hike the UAW and the Big 3 will agree, but if it for example leads to a 15% or 20% wage hike for the UAW, Japanese manufacturers (whose workers) do not belong to the UAW will also have to raise wages (by) about the same amount, otherwise workers at Japanese factories will disappear."
LEE JAE-IL, ANALYST AT EUGENE INVESTMENT & SECURITIES:
"For South Korean automakers, the UAW strike could help raise their car prices in the United States due to production cuts, and that could create a seller's market environment. Also, it could potentially help increase its car exports to the United States. However, production disruptions at parts suppliers that supply to GM would be inevitable."
ARTHUR WHEATON, DIRECTOR OF LABOR STUDIES AT CORNELL SCHOOL OF INDUSTRIAL AND LABOR RELATIONS:
"It's not a devastating hit to the communities. It's not a devastating hit for the strike fund. It's not a devastating hit on the balance sheet for any of the automakers but it starts to raise the stakes, which was the intent."
"I think they are making progress at the table... the initial (automaker) offers were much lower, like 9% (wage) increases and now you're up to 20% for increases. So that's more than double. You're seeing the UAW come down. You're no longer hearing anything about the 32-hour work week from the UAW."
STELLANTIS:
"We are extremely disappointed by the UAW leadership's refusal to engage in a responsible manner to reach a fair agreement in the best interest of our employees, their families and our customers. We immediately put the Company in contingency mode and will take all the appropriate structural decisions to protect our North American operations and the Company."
DEMOCRATIC U.S. REPRESENTATIVE ELISSA SLOTKIN OF MICHIGAN:
"I'm looking forward to joining our auto workers on the picket line this weekend. For the sake of Michigan's economy and our working families, I hope this strike is short-lived ... I hope the UAW and the Big Three continue to negotiate in good faith to reach a fair agreement as quickly as possible."
JAY TIMMONS, NATIONAL ASSOCIATION OF MANUFACTURERS PRESIDENT:
"The impact of this strike will echo far beyond the city of Detroit as multiple economic analyses have demonstrated. The small and medium-sized manufacturers across the country that make up the automotive sector's integrated supply chain will feel the brunt of this work stoppage, whether they are a union shop or not."
MONICA BOSIO, ANALYST AT INTESA SANPAOLO:
"While at this stage the final impact of the strikes on selected plants is difficult to quantify, we highlight that amongst the Big Three, Stellantis is the most profitable one and could leverage on a lower break-even point as well as on higher inventories days than GM and Ford."
MARTINO DE AMBROGGI, ANALYST AT EQUITA:
"We confirm our idea that if the strike were to last less than two weeks it could be recovered by the end of the year, while if it were to last longer it could compromise Q4 performance."
DONALD TRUMP, FORMER U.S. PRESIDENT:
"The all Electric (car) is a disaster for both the United Auto Workers and the American Consumer. They will all be built in China and, they are too expensive, don't go far enough, take too long to charge, and pose various dangers under certain atmospheric conditions. If this happens, the UAW will be wiped out, along with all other auto workers in the United States. The all Electric Car policy is about as dumb as Open Borders and No Voter I.D. IT IS A COMPLETE AND TOTAL DISASTER!"
CHRIS MCNALLY, ANALYST AT EVERCORE ISI
"Pickups likely hit next. Despite "targeted", very soon, the strike could hit max pain for OEMs given SUV/pickup profitability. The targeted strike is intended to give UAW flexibility strike fund duration."
COLIN LANGAN, ANALYST AT WELLS FARGO
"The Detroit Three could face uncertainty & volatility for well over a year. Transmission plants could be future targets, though needed strike pay for MI workers adds cost."
PATRICK ANDERSON, CEO AT ANDERSON ECONOMIC GROUP LLC
"These (plants) were chosen carefully by the UAW and reflect a strategy that will ensure a large number of suppliers and dealers are affected, while reducing the number of UAW workers that, at least initially, are on strike and receiving strike pay."
JOHN MURPHY, ANALYST AT BOFA GLOBAL RESEARCH
"Despite the noise around the strike, based on public comments by company management and our understanding of the process, Ford appears closest to getting a deal done in terms of procedure and numbers, GM may not be too far behind, but Stellantis has a long way to go."
ROBERT STREDA, SENIOR VICE PRESIDENT AT DBRS MORNINGSTAR
"While the UAW strike actions could prove quite costly for the Detroit 3, we currently do not expect such to result in negative credit implications of a magnitude sufficient to result in a change in the ratings or in the trends on the ratings on GM, Ford or Stellantis."
SUZANNE CLARK, CEO OF US CHAMBER OF COMMERCE
"The UAW strike and indeed the 'summer of strikes' is the natural result of the Biden administration's 'whole of government' approach to promoting unionization at all costs."