GM stock value fell below $30 per share on Thursday, marking a three-year low as the automaker contends with the ongoing United Auto Workers (UAW) labor strike and a potentially massive new recall. GM stock has fallen by more than 10 percent since the UAW’s strike began last month. The last time GM stock fell below $30 per share was October 2nd, 2020.
GM stock hit a low of $29.72 per share in trading Thursday. Shares closed at $33.66 per share the day prior to the UAW’s announcement of the initial walkouts. The UAW called for strikes against all three of the Big Detroit automakers (GM, Ford, and Stellantis) following the expiration of the initial labor contracts on September 14th. This is the first time that the UAW has called for strikes against all three automakers at the same time.
The UAW is currently employing a targeted strike strategy wherein workers at only certain facilities are called on to walkout, as opposed to all workers at all facilities, all at once. The UAW has expanded its strike targets twice since the initial round of walkouts.
GM stock value has also been impacted by a report from The Wall Street Journal that GM has at least 20 million vehicles equipped with a potentially dangerous airbag that will need to be recalled. The airbags in question were sourced from Tennessee-based supplier ARC Automotive, with 52 million airbags total affected. Affected airbags may explode when inflating, sending metal shrapnel into the cabin, potentially injuring or even killing occupants. It’s reported that at least two people have been killed, while several others have been injured.
The National High Traffic Administration (NHTSA) has yet to release how many vehicles overall will need to be recalled. It’s possible that the number of GM cars and truck affected may be higher than the 20 million figure.
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Comments
The choice is simple.
Mary Barra goes. Or GM goes bankrupt.
At some point the pension plan collapses cause the GM stock breaks the camels back.
Investors expect that GM will go bankrupt or be absorbed within a decade, similar to Chrysler and soon to be Ford, that’s why the share price is so low and at a low multiple. Even Buffet has dropped most of his GM shares.
The UAW is trying to get back to what their workers used to earn with the pension and benefits. If they get it, it’s allover.
January 2021, GM stock hit it’s high $62.96. Then the FlimFlamMan started to sink his teeth into the auto companies with the green new hysteria pushed by the green base. Gm as well as every auto company and it’s workers should have told Briben to stick the new cafe standards up AOC’s hinny. Look what one man can do to the United States of America. Look back at history when other countries had high inflation, strike, looting, government manipulation.
This was the exact same things that happened in Germany, Russia, Spain, Italy, China.
This whole EV thing has really turned into a boondogle.
well, GM’s “EV thing” is certainly a debacle. As for CAFE standards, this should be no surprise right? Why didn’t GM prepare for this?
Does GM have to go into bankruptcy again before they fire Mary Barra, Gerald Johnson and Mark Ruess and the rest of the entitled goons?
It’s looking more that way everyday