GM estimates a $200M loss since UAW strike began
General Motors secured a $6B line of credit on Wednesday
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General Motors has lost an estimated $200 million since the beginning of the United Auto Workers (UAW) strike against Detroit’s Big Three on September 15.
The automaker also secured a $6 billion line of credit on Wednesday, two days after cutting 164 more jobs due to the ongoing work stoppage.
AFTER VISITING STRIKE, BIDEN WILL LEAVE NEGOTIATIONS ‘UP TO THE UAW LEADERSHIP,’ WHITE HOUSE SAYS
GM lost production at assembly plants building full-size vans and mid-size pickups, as well as the Cadillac XT4 crossover and Chevrolet Malibu, a GM spokesperson confirmed to FOX Business.
With the General Motors world headquarters in the background, United Auto Workers members attend a solidarity rally as the UAW strikes the Big Three automakers on September 15, 2023 in Detroit, Michigan. (Bill Pugliano/Getty Images / Getty Images)
GM said it also lost revenue for service parts, with $200 million being the estimated impact on the company’s pre-tax operating earnings.
GM SECURES $6B LINE OF CREDIT AS UAW STRIKE DRAGS ON
The automaker’s tally of workers furloughed in connection with the work stoppage now exceeds 2,100, with the strike in its 21st day.
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Last month, Stellantis cut roughly 370 jobs due to the strike, and Ford temporarily furloughed 600 workers, according to Forbes.
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Meanwhile, Ford told FOX Business on Thursday that it has not estimated its own revenue and production losses and remains focused on the strike.
A United Auto Workers (UAW) member on a picket line outside the Ford Motor Co. Michigan Assembly plant in Wayne, Michigan, on September 15, 2023. (Photographer: Emily Elconin/Bloomberg via Getty Images / Getty Images)
UAW STRIKE AGAINST FORD, GM, STELLANTIS COST US ECONOMY NEARLY $4B SO FAR
Stellantis declined to provide an estimate on losses associated with the UAW strike at this time.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 58.53 | +2.85 | +5.12% |
| F | FORD MOTOR CO. | 11.18 | +0.38 | +3.47% |
| STLA | STELLANTIS NV | 13.04 | +0.20 | +1.52% |
In a media briefing on Friday, Ford executives cautioned that a prolonged work stoppage at its assembly plants would not only hurt the company but could lead to as many as 500,000 workers at suppliers losing their jobs.
The auto strike has already cost the U.S. economy nearly $4 billion, according to the latest numbers from Michigan economic consulting firm Anderson Economic Group.