While the ratings agency believes both manufacturers and the union want to resolve the strike quickly, the gap between compensation offers and union demands will make that difficult.
U.S. vehicle manufacturers (OEMs) have sufficient liquidity for their ratings to withstand an extended strike by members of the United Auto Workers (UAW), according to Fitch Ratings. However, a work stoppage lasting several months could result in liquidity erosion that could pressure credit profiles, particularly if it results in a widespread shutdown of the OEMs’ U.S. manufacturing facilities.
Fitch said it believes the OEMs and the UAW are interested in resolving the
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