The United Auto Workers will say it has made real progress towards a deal with Ford Motor but expand its strikes against rival automakers General Motors and Stellantis, according to sources familiar with talks.
It will not expand its strike against Ford, the sources said.
The union will also invite President Joe Biden to come to the picket lines, a source said.
The UAW last week launched unprecedented, simultaneous strikes at one assembly plant each of General Motors, Ford and Chrysler parent Stellantis, but analysts expect any wider strike will include plants that build highly profitable pickup trucks like GM’s Chevy Silverado and Stellantis’ Ram.
UAW President Shawn Fain said earlier this week further strikes could be avoided if companies showed “significant progress” toward an agreement. It was not immediately clear if Ford would avoid wider walkouts. The UAW did not immediately comment.
Ford did not immediately comment. Ford shares gained 4.4% on the news. GM shares were up 0.4%, giving back earlier gains following the news. GM did not immediately comment. Stellantis said the company is continuing to meet with the union.
The strike is expected to expand to at least six additional GM and Stellantis facilities in Michigan, the sources said.
About 12,700 workers walked out at plants in Missouri, Michigan and Ohio, which produce the Ford Bronco, Jeep Wrangler and Chevrolet Colorado, alongside other popular models.
Long walkouts at factories producing large pickup trucks could cost the automakers billions in revenue and profit. Analysts estimate the automakers earn as much as $15,000 per vehicle on each of their respective large pickup models.
The standoff is fueling worries about prolonged industrial action that could disrupt production and ripple through the supply chain and dent U.S. economic growth. A Reuters/Ipsos poll released on Thursday shows significant support by Americans for the striking auto workers.
The strike has become a focus of attention for Biden and Republican candidates who want to replace him. An invitation by the UAW to Biden would be a notable overture by the union to the White House, which it has held at arm’s length until now.
White House spokeswoman Karine Jean-Pierre was asked Thursday if Biden plans to visit a picket line. She declined to answer but said “all parties continuing to be at the negotiating table is a positive. It is important that we result in a win-win agreement.”
The White House did not immediately comment on Friday.
Fain has said the Detroit automakers have not shared their huge profits with workers while enriching executives and investors.
GM President Mark Reuss this week rejected those claims, saying the current offer to the union would be generous and the company’s profits have been reinvested in the transition to electric vehicles.
The automakers have proposed 20% raises over 4-1/2 years, while the UAW is seeking 40%.
The union also wants to end a tiered wage structure that it says has created a large gap between newer and older employees.
S&P said the strikes, which began on Sept. 15, were highly likely to last several weeks, potentially cutting third-quarter U.S. gross domestic product by 0.4% and causing “upheaval” across global automotive supply chains.
GM, Ford and Stellantis have said they are making contingency plans for further U.S. work stoppages.
Ford reached a last-minute deal to avoid a walkout at its Canadian operations late on Tuesday. Unifor, which represents about 5,600 Canadian auto workers, had been threatening to go on strike at all three Ford plants in the country.
