Current UAW demands could increase EV prices up to $5,000 — and ‘torpedo’ Ford and GM’s business model, analyst says
- Wedbush analyst Dan Ives argues that UAW raises would be passed down to consumers.
- The union says workers are being left behind in the transition to EVs.
- Ford, GM, and Stellantis are trying to remain competitive with Tesla.
The current demands from the United Auto Workers union in their labor talks with Ford, GM, and Stellantis could make electric vehicles even more expensive, one analyst said.
As the UAW’s historic strike at all three Detroit car companies drags through its third week – and President Joe Biden became the first sitting president in modern history to visit a picket line – Wedbush analyst Dan Ives says the companies’ “nightmare situation” threatens their very business model.
“40%+ cost increases (current UAW proposal) to the union workforce would make the move to electric vehicles an Everest-like uphill battle,” Ives said in a note to clients Wednesday. “We estimate the average EV vehicle will go up in price by $3k-$5k to pass these costs onto the consumer and would ultimately be a torpedo to the future business models of the 313 area code.”
Published September 27, 2023 7:13PM