The ongoing UAW labor strike could end up costing GM and Ford between $100 million and $125 million per week in lost revenue, according to a recent analysis. UAW union members went on strike this past Friday following the expiration of the previous labor agreements. Walkouts are currently underway at only three production facilitates, with the UAW possibly expanding the strike to include additional facilities if a deal is not found.
According to a note released by Goldman Sachs, the lost revenue figure of $100 million to $125 million per week for GM and Ford is based on the weekly production averages of the facilities where the UAW is currently striking, as well as the models produced at those facilities. The UAW is currently striking at the GM Wentzville plant in Missouri, which produces the Chevy Colorado and GMC Canyon pickup trucks, plus the Chevy Express and GMC Savana full-size vans. Strikes are also underway at Ford’s Wayne Assembly plant in Michigan, which produces the Ford Bronco and Ford Ranger. UAW members are striking at the Stellantis Toledo Assembly Complex in Ohio as well, although the Goldman Sachs analysis did not include the potential financial impact on Stellantis in its note.
It’s estimated that the UAW strike includes roughly 12,700 union members across all three automakers. The strike is historic in that it is the first time in the union’s history wherein members have conducted walkouts at all three of the Big Detroit automakers simultaneously.
The strike is already resulting in downstream effects, with workers at the GM Fairfax plant informed that production will be affected. Meanwhile, UAW members continue to work at the GM Arlington plant in Texas, one of GM’s most-profitable facilities, but are ready to strike, if given the word. It’s expected that if the UAW does call in additional walkouts, it will likely target high-profit facilities.
Meanwhile, the Biden administration has sent a team to Detroit to assist both parties in negotiations.