At the end of the day on Friday (October 6), the share prices of traditional car companies in the United States rebounded significantly. As of the close, General Motors rose 1.95%, Ford Motor rose 0.84%, both ended the day's five consecutive negative, Stellantis NV US stocks also rose more than 3%.
Since Sept. 15, the United Auto Workers (UAW) strike action against Detroit's Big Three automakers has been ongoing, and the number of participants has increased by the week, the latest reached 25,200 people, about 17 percent of the total number of union members working at the three automakers.
Shortly before press release, UAW President Shawn Fain said that next week will not expand the size of the strike against the three automakers. It is understood that this is the first time since September 15. Fein said earlier that the union would decide whether to increase the number of strikes based on the progress of contract negotiations.
All three automakers have committed to converting temporary workers to permanent workers, with Ford offering the union a 23 percent pay increase and GM and Stellantis offering raises of about 20 percent, Fein said. He added that while no agreement had been reached, the union was "making significant progress".
Fein also noted that the UAW had planned new strike action at GM's lucrative Arlington assembly plant. However, GM "caved in at the last minute" and agreed to include workers who make electric car batteries in the company's "national agreement."
It is understood that GM's battery factory is a joint venture with South Korean companies such as LG New Energy and was once considered impossible to be included in the agreement. In response, Fein said, "We called their bluff and proved that our members cannot be ignored."
Stellantis North America chief operating officer Mark Stewart, who is overseeing the talks, said the two sides are making progress but there are still gaps that need to be closed and "while we have some work to do, I am optimistic that the discussions have provided a path to a preliminary agreement."
Stewart, by contrast, called the UAW's demands "outrageous" when the strike first began in September. This means that the sentiment of car companies may have changed significantly, and the expectation of "the final solution to the problem" is more optimistic.