: UAW strike could affect auto-parts companies Lear, Magna the most: CFRA


Auto-parts suppliers Lear Corp. LEA, -4.38% and Magna International Inc. MGA, -4.20% are the companies with the “greatest counterparty exposure” to a possible UAW strike, Garrett Nelson at CFRA said in a note Wednesday. “One of the major risks in the event of a prolonged strike is degradation of the supply chain and the financial health of the parts and equipment suppliers,” the analyst said. In contrast, Aptiv Plc APTV, -1.34% and Autoliv Inc. ALV, -1.51% are among the ones with the least exposure, he said. “For the other suppliers, their exposure to the Detroit Three is less clear due to lack of disclosure, and not as substantial as either [Lear or Magna], but it is still significant.” The UAW contract is set to expire at 11:59 p.m. Eastern on Thursday and a gulf remains between the autoworkers’ demands and Ford Motor Co. F, +1.53%, General Motors Co. GM, +0.57%, and Stellantis NV STLA, -0.42% offers. In what would be a break with tradition, the UAW reportedly is looking at targeted strikes at specific assembly lines of all three auto makers.

This article was originally published by Marketwatch.com. Read the original article here.

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