Stellantis Faces More Walkouts as Strike Hits Sterling Heights Assembly Plant
Union announces strike at Sterling Heights Assembly Plant in Michigan, affecting production of Dodge RAM 1500 trucks. Stellantis stock sees modest increase amidst labor unrest.
Troy D. Hanson
October 23, 2023
Stellantis, one of the leading auto makers in Detroit, is facing another setback as the union announced a strike at the Sterling Heights Assembly Plant in Michigan. This plant is responsible for manufacturing the popular Dodge RAM 1500 pickup trucks, which contribute significantly to the profits of the Detroit car companies.
Currently, approximately 14,000 Stellantis workers are on strike, bringing the total number of strike participants from the Detroit Three to around 40,000 out of a total workforce of roughly 145,000.
Despite the labor unrest, Stellantis stock saw a modest increase of 0.7% on Monday. In contrast, both the S&P 500 and Dow Jones Industrial Average experienced a slight decline.
Since the labor issues first emerged in July, Stellantis stock has witnessed a growth of approximately 9%. On the other hand, shares of Ford Motor (F) and General Motors (GM) have plummeted by over 20%.
Stellantis distinguishes itself as a more globally-oriented company compared to its Detroit peers. Additionally, it offers a more affordable stock, currently trading at less than 4 times the estimated 2024 earnings. In comparison, Ford and GM shares are trading below 7 times and 5 times, respectively.