The UAW strike against International Truck and Engine Corp. will not have an immediate impact on production of Ford Motor Co. Super Duty pickups, a Ford spokeswoman said today.
Ford is assessing how the strike would affect production and inventory of the hot-selling trucks if the 4,000-worker strike that began Tuesday, Oct. 23, continues for more than a few days, said company spokeswoman Becky Sanch.
International supplies Fords truck assembly plant in Louisville, Ky., with 200,000 to 250,000 Powerstroke diesel V-8 engines a year for the popular Super Duty truck series. Production at the Louisville plant continued today, Sanch said.
Were going to continue producing where necessary, said International spokesman Roy Wiley. Were using our nonunion employees that are already working for us along with management.
The UAWs strike against International began at 11 union locals in six states at 5 p.m. Tuesday. It is the unions third major strike in the past month, following a two-day walkout against General Motors and a six-hour strike against Chrysler LLC.
The International strike could be more acrimonious than the two others. The UAW said it is striking over unfair labor practices and has filed a petition with the National Labor Relations Board in Indianapolis. International contends it has bargained in good faith for more than two years.
Fiery commentary from the UAW indicates that the strike could span longer than just a few days, Itay Michaeli, an auto industry analyst with Citigroup Investment Research, said in a report issued today.
Production at Fords Kentucky Truck plant in Louisville was idled for two weeks this month to prevent an inventory buildup.
If engine inventories dry up as a result of the strike, we estimate that Ford could lose up to an incremental $22 million in earnings before interest and taxes per week, Michaeli said in the report.
At the beginning of October, Ford had F-series pickup inventories totaling 83 days, according to the Automotive News Data Center.
It remains unclear whether the UAW plans to bring up the International situation when it begins final contract negotiations at Ford. The UAW has ratified its contract with GM and is trying to win ratification of a similar contract with Chrysler.
International is a unit of Warrenville, Ill.-based Navistar Corp., which ranks No. 45 on the Automotive News list of the top 100 global suppliers, with estimated parts sales to the automakers of $3.40 billion in 2006.