Shares of insurers Allstate and Progressive could be hurt by more-expensive policies if the United Auto Workers strike against the Detroit-Three automakers.
Auto insurance is set to get more expensive if the United Auto Workers simultaneously strike against the Detroit-Three automakers. That isn’t great news for auto-insurance stocks.
Americans were buying cars at a rate of about 17 million units a year before the pandemic. Now that’s about 15 million units a year. There just aren’t enough cars around to buy. “U.S. light-vehicle dealer inventory ended July at 1.79 million units,” wrote Benchmark analyst Mike Ward in a recent report. “The highest levels since April 2021.” Still, that’s about 1 million units below typical levels.
Insurance price increases have just started to catch up and now the UAW could strike against all three automakers with roots in Detroit, General Motors , Ford Motor , and Chrysler parent Stellantis , if a new labor deal isn’t reached by midnight on Sept. 14.insurers,” wrote J.P. Morgan analyst Jimmy Bhullar in a Thursday report. “A strike would disrupt supply chains, cut new vehicle production, and drive an uptick in used car values.
Strike fears have hit the automaker stocks. GM, Ford, and Stellantis shares are down about 8% on average over the past month, while the S&P 500 has only slipped about 1%. Insurance stocks don’t appear to have been impacted. Allstate stock is down about 3% but Progressive shares are up about 6% over the past month.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Kokomo auto workers prepare for likely UAW strikeThe auto industry built Kokomo, but the factories that made the city famous will likely go silent next week due to a labor dispute.
Consulte Mais informação »
Here’s how a UAW strike could affect car pricesIf there is no deal, as many as 150,000 UAW workers could go on strike against three automakers — Ford, General Motors and Stellantis, the parent company of Jeep and Chrysler — just after midnight on Friday Sept. 15.
Consulte Mais informação »
Here’s how a UAW strike could affect car pricesIf there is no deal, as many as 150,000 UAW workers could go on strike against three automakers - Ford, General Motors and Stellantis, the parent company of Jeep and Chrysler - just after midnight on Friday Sept. 15.
Consulte Mais informação »
UAW strike could drive up car prices, insurance costsA UAW strike could lead to higher car prices and insurance costs because of a reduced supply of vehicles and repair parts.
Consulte Mais informação »
How a UAW strike could affect production of the popular Ford F-150 pickup truckThe Ford F-Series is one of the Detroit automaker's most profitable automobiles and has been the best-selling vehicle in the U.S. for more than 40 years.
Consulte Mais informação »