GM, Ford Shares Slide With Strike Fears Fueling Investor Anxiety
- GM shares mark their biggest weekly drop since mid-March
- Auto union demands ‘audacious,’ raise strike risks: analyst
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The specter of crippling labor strikes and rising costs slammed stocks of the two major US automakers, with General Motors Co. notching its worst weekly run in nearly five months and Ford Motor Co. closing at its lowest since early June.
Shares of GM and peer Ford nosedived amid a rush of news that heightened fears over surging labor costs. Both car manufacturers are currently in talks with their labor union — United Auto Workers (UAW) — on new contract terms, and a report Tuesday suggested that the demands could end up adding more than $80 billion to each of their labor costs.