Investment company Berkshire Hathaway sold nearly half of its stake in GM during the second quarter of the 2023 calendar year. Berkshire Hathaway declined to comment on the selloff. GM stock value was down 2.26 percent for the day in trading Tuesday.
According to a report from Automotive News, which cites a quarterly filing made Monday with the U.S. Securities and Exchange Commission, Berkshire Hathaway sold 45 percent of its stake in GM during Q2 of 2023, down from roughly 40 million shares to roughly 22 million shares.
Berkshire Hathaway declined to comment on the selloff, but analysts point to a variety of potential motivating factors, including looming threats of a strike amid ongoing contract negotiations with the United Auto Workers (UAW) labor union. Earlier today, UAW president Shawn Fain issued a statement indicating UAW members would vote on strike authorization next week, with reports indicating that little progress has been made in reaching a new agreement.
The existing labor contracts are set to expire in September, while one report indicates that the UAW’s latest contract demands may result in an added $80 billion in annual labor costs. President Biden has even weighed in on the situation, calling for both sides to come to a fair agreement.
GM stock value has hovered between $30 per share and $40 per share throughout the 2023 calendar year. GM’s Q2 earnings report was highlighted by $44.7 billion in revenue, $2.6 billion in net income attributable to stockholders, and EBIT-adjusted of $3.2 billion. The results also included a $792 million charge for new commercial agreements with LG Electronics and LG Energy Solution to help cover the battery recall for the Chevy Bolt EV and Bolt EUV.
Berkshire Hathaway CEO Warren Buffet is considered loyal to the Big Three Detroit automakers, and is known for driving a Cadillac. Berkshire acquired 10 million shares of GM stock in 2012, but the stake has grown and shrunk considerably over the years.