WASHINGTON: Chrysler parent Stellantis (STLAM.MI) and the United Auto Workers were nearing a deal that could be finalized as soon as Saturday to end a six-week-old strike, sources told Reuters.
On Wednesday, Ford Motor (F.N) was the first of Detroit's Big Three car manufacturers to negotiate an agreement to settle strikes joined by 45,000 Detroit Three auto workers since mid-September. The deal will likely set a pattern for new UAW contracts with GM and Stellantis.
Talks between Stellantis and the UAW were set to reconvene at 10 a.m. Detroit after lengthy talks on Friday. The meeting on Saturday could finalize a tentative agreement, the sources said. Talks between the UAW and General Motors were continuing past 9 p.m. Friday.
Both GM and Stellantis have agreed to match Ford on key economic terms including the 25% wage hike, but some final crucial issues including the use of temporary workers has been one of the final issues of discussion, the sources said.
Stellantis has offered to build a new vehicle at a shuttered Belivdere, Ilinois factory as well as a new battery plant, a person briefed on the matter said, confirming a Bloomberg News report.
GM shares closed down 4.6% at $27.22. Stellantis shares closed down 2.4% at $18.04 in New York.
The Ford agreement, which still must be ratified by union members, includes a 25% wage hike over the life of the 4-1/2-year contract, a boost in retirement contributions, and the elimination of lower-pay tiers for workers in certain parts operations at Ford.