GM is securing a $6 billion line of credit amid the ongoing United Auto Workers (UAW) labor strike, indicating that the automaker is preparing for a long, drawn-out negotiating process. The UAW has been striking since the expiration of the previous labor contracts on September 14th, and it’s estimated that GM has lost several hundred million dollars so far as a result. The UAW is currently employing a targeted strike strategy, and may expand walkouts to include additional GM facilities.
According to a recent report from Bloomberg, GM’s move to secure a $6 billion line of credit was announced in a securities filing made early on Wednesday. A GM spokesperson indicated that GM wants a 364-day revolving credit line to maintain operational flexibility. The company spokesperson also indicated that the UAW strike has cost GM $200 million as of September 31st.
GM’s total automotive liquidity stood at $38.9 billion as of June 30th, so it’s unlikely the automaker will be running out of money soon. That said, the new line of credit is an indication that the automaker is gearing up for an extended work stoppage. Financial services firm J.P. Morgan recently released an estimate that GM is losing $21 million every day as a result of the UAW strike. A recent report from Anderson Economic Group indicates the strike has cost the U.S. economy nearly $4 billion so far.
The UAW is currently striking at all three of the Big Detroit automakers, including GM, Ford, and Stellantis. The initial round of strikes included the GM Wentzville plant in Missouri, Ford’s Michigan Assembly Plant, and the Stellantis Toledo Assembly Complex in Ohio.
The UAW later expanded the strike to include 38 parts distribution sites belonging to GM and Stellantis, opting not to expand the strike against Ford, citing more-substantial progress with Ford. The UAW expanded the strike a second time the following week, targeting the GM Lansing Delta Township plant in Michigan and Ford’s Chicago Assembly plant in Illinois, opting not to expand the strike against Stellantis, once again citing more-substantial progress.
The strike has had a ripple effect in GM’s production efforts, forcing The General to idle production at the GM Fairfax plant and furlough more than 160 metal workers.
It’s estimated that 25,300 UAW members of the union’s 146,000 workers across all three automakers are currently on strike.
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Comments
Nice. Rack up that debt GM with these soaring interest rates.
Onward to Chapter 7!
Why does it need a credit line if it’s supposedly sitting on billions?
spend others’ money, use yours to pay mary barra.
they fully expect to be bailed. maybe a bailout has been already arranged as long as they keep pushing EVs. i hate to go into foil land but none of this makes much sense.
That is awesome!!!!!!! Wait out the UAW until they are all laid off, on strike and in the poor house!!!!! I love it!!!!!
Greats
What happened to the billions GM made from gouging their ‘GM family’ customers for the last few years.
Mary is driving GM straight into its next bankruptcy.
Thanks.
That is greats.