Detroit Three strike: politics or business?

Detroit Three strike: politics or business?Trade union activity is taking on the characteristics of a pandemic. Early Friday morning, the United Auto Workers (UAW) began simultaneous strikes at three plants owned by General Motors, Ford and parent company Chrysler Stellantis.The auto industry union has launched a fight to increase wages by 46% over four years and improve pension conditions. Companies do not agree with the requirements and are preparing for production interruptions. None of the Detroit Three proposed eliminating tiered wage systems, a core demand of the UAW.The standoff has become a political issue as President Joe Biden, who is seeking re-election next year, has actively called for a truce, angering both sides of the conflict. Biden is allocating billions of federal subsidies to expand sales of electric vehicles, so he is trying to simply observe the process, which will bring colossal losses to the classic auto industry.According to Deutsche Bank estimates, during a week of production downtime, each of the affected automakers will lose approximately $400-500 million in profit. The union's costs of paying for strikes are also not unlimited: the UAW has a strike fund of $825 million and no real sources to replenish it. The entire industry may join in the protest, and this threatens new problems for the US economy.So far, the Biden administration is discussing the issue of providing emergency assistance to small companies that are associated with auto giants in technology or marketing. The government does not interfere in the global situation.In any case, the American auto industry is not recommended for either speculation or investment, but it will be interesting to observe the market reaction to the conflict.Profits to yall!#ForexChief #market #forexnews #stocks #worldnews #profit #StockMarket #DeutscheBank #Biden #GeneralMotors #Ford