UAW Strike Expands as Ford Joins GM in Standoff Over Wage Demands

The UAW strike began on Sept. 15 and has expanded to include Ford's largest US plant. The union is seeking a 40% wage increase over 4 years amid high inflation.

The Detroit automakers are concerned that meeting UAW demands will make them less competitive against rivals like Tesla that have lower labor costs.

Higher UAW labor costs could lead to higher vehicle prices industry-wide over time as other automakers face pressure to raise wages.

Analysts estimate the strike could add $1-1.5 billion in additional labor costs per automaker per year if UAW demands are met.

A resolution could come soon as the UAW ramps up pressure, but automaker stocks may suffer if investors view the eventual deal as too costly.