Ford and GM Just Answered a Big Question. But Does That Make the Stocks a Buy?
One of the biggest questions facing automakers in a few years was this: "Will new labor contracts cripple profits?" The negotiations between United Auto Workers (UAW) and major automakers can sometimes get bitter, and with the former aggressively going after the best contracts in recent memory, it was an ominous development for auto investors.
Fortunately, we may already have an answer to the previous question, and it appears to be good news for Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) investors.
From the start of negotiations, the UAW made it clear it was going for an ambitious contract that would aim to be the largest amount of gains in wages seen in years. That goal was fairly well accomplished, and the price tag for the new contract hit automakers like Ford and General Motors hard.
Source Fool.com
General Motors Corp Stock
Currently there is a rather positive sentiment for General Motors Corp with 32 Buy predictions and 5 Sell predictions.
With a target price of 46 € there is a slightly positive potential of 10.39% for General Motors Corp compared to the current price of 41.67 €.
