As the United Auto Workers strike against the Detroit Big 3 persists, CNBC’s Jim Cramer said Thursday he believes Ford (F) may eventually consider shifting additional production to Mexico.
“There is some movement between Ford and the UAW,” Cramer said on “Squawk on the Street.” However, Cramer said, “I have a feeling that, if they don’t come to the table soon, Mexico will be in play.”
Cramer suggested that could occur within “a couple of weeks,” while noting Ford already has assembly plants south of the border. Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, owns Ford shares.
In a statement Thursday to CNBC, Ford spokesman Dan Barbossa said the company’s “focus remains on working diligently with the UAW to achieve a record contract and a strong future for our employees.” Ford is the top employer of UAW-represented hourly autoworkers in the U.S., Barbossa noted.
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Tensions are high between the UAW and the automakers, which in addition to Ford also include General Motors (GM) and Chrysler parent Stellantis (STLA). Since the UAW’s targeted strike began on Sept. 15, the union has twice expanded the number of plants affected by work stoppages.
Last week, Ford CEO Jim Farley described the state of negotiations with the UAW, saying at a press briefing that he believed both sides “could have reached a compromise on pay and benefits, but so far the UAW is holding the deal hostage over battery plants” for electric vehicles.
Here’s a full list of the stocks in Jim’s Charitable Trust, the portfolio used by the CNBC Investing Club.