Strike at Detroit Three 'positive' for used-car, parts retailers, says Oppenheimer

OReilly Automotive

18/09/2023 16:26

** United Auto Workers (UAW) strikes at the Detroit Three
automakers can be a "potential positive" for used-car and auto
parts retailers, says brokerage Oppenheimer 
    ** In the longer term, high-cost infrastructure for
automakers could further elevate new vehicle prices, likely to
bolster demand for pre-owned cars, while encouraging consumers
to maintain vehicles longer and thereby benefiting parts
retailers - brokerage
    ** Brokerage says, in the near term, strikes likely to
impact new vehicle production, hence pricing     
    ** Oppenheimer names O'Reilly Automotive  ORLY.O  (up 0.3%
at $932.73), AutoZone Inc  AZO.N  (up 0.21% at $2535), and
CarMax Inc  KMX.N  (up 0.3% at $83.49) as favorites across the
auto retail sector
    ** The UAW union on Friday launched simultaneous strikes at
three factories owned by GM, Ford and Chrysler-owner Stellantis
 urn:newsml:reuters.com:*:nL1N3AR03X
    ** Shares of Detroit Three automakers Ford  F.N , GM  GM.N ,
U.S. listed Stellantis  STLAM.MI  are down between ~1% to ~2% as
the strike enters the fourth day

 (Reporting by Pratyush Thakur)
 ((Pratyush.Thakur@thomsonreuters.com))