The United Auto Workers expanded its strike to a major Ford Motor plant in Kentucky on Wednesday evening. The surprise move shuts production at Ford's largest plant worldwide. Ford stock fell modestly.
The UAW wanted Ford to make a better offer in the ongoing labor negotiations.
"The 8,700 UAW members at Ford's iconic and extremely profitable Kentucky Truck Plant have joined the Stand Up Strike after Ford refuses to make further movement in bargaining," the union said on X, formerly known as Twitter.
The UAW move is a major escalation in its ongoing strike vs. Ford, General Motors and Chrysler parent Stellantis, which started Sept. 15. The Louisville, Kentucky plant is the automaker's largest in revenue, generating $25 billion a year. It makes the highly profitable Ford Super Duty pickups as well as the Ford Expedition and the Lincoln Navigator.
It's also a shift in strategy. Until now, the UAW has publicly named in advance which plants it would target.
Ford denounced that move in a statement: The "decision by the UAW to call a strike at Ford's Kentucky Truck Plant is grossly irresponsible but unsurprising given the union leadership's stated strategy of keeping the Detroit 3 wounded for months through 'reputational damage' and 'industrial chaos.'"
The automaker said it made an "outstanding offer" and has been "bargaining in good faith."
On Thursday, a senior Ford executive said the automaker is "at the limit" of what it can offer.
"We've been very clear that we are at the limit. We stretched to get to this point," said, Kumar Galhotra, president of Ford Blue, the company's traditional operations. "Going further will hurt our ability to invest in the business like we need to invest."
Ford Stock
Ford stock fell 2% to 12, coming off intraday lows. GM stock lost 2.1% and Stellantis ceded 2.4%.
The ongoing UAW strike is an advantage for nonunion automakers such as Toyota, Tesla and Rivian. The eventual labor deal will likely boost Detroit automakers' costs substantially. TM stock rose 2%. Tesla stock fell 1.6% and Rivian dipped 0.2%.
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