The United Auto Workers union and the big 3 automakers Ford (NYSE:F), Chrysler and General Motors (NYSE:GM) will extend talks with the hope of achieving a 4 year labor deal which proved elusive before yesterday’s deadline. The new deal will replace the current contract on wages and benefits signed in 2007.
“The union, which pledged not to strike either automaker, reconvened with GM and Chrysler this morning, the companies each said in e-mails. While GM (NYSE:GM) and the UAW didn’t set a new deadline for an agreement or turning to binding arbitration, Chrysler Chief Executive Officer Sergio Marchionne offered in a letter to UAW President Bob King to let teams negotiate for one more week,” according to Bloomberg.
Ford (NYSE:F) shares are up over 0.5% to $10.38. The company trades at a P/E ratio of about 6 which lower than its industry peers. The company also trades at a sales multiple of 0.3 which is lower than its industry rivals. Technically speaking shares trade well below their declining 50 and 200 day moving averages. The MACD is bullish while RSI is pointing up at 44.