GM is reporting that the ongoing United Auto Workers (UAW) labor strike has cost the automaker upwards of $800 million as the strike nears its sixth week. The announcement coincides with the release of General Motors’ third-quarter earnings report. The UAW expanded its strike to include the GM Arlington plant in Texas mere hours after the release of the automaker’s third-quarter earnings report.
GM estimates that in addition to the $800 million hit seen thus far, the strike is costing roughly $200 million every week that it continues. With the UAW now calling for a walkout at the GM Arlington plant in Texas, that figure will increase. The UAW may call for further expansions in the future if contract negotiations do not show further progress.
The UAW called for its initial round of strikes on September 15th following the expiration of previous labor contracts with the Big Three Detroit automakers (General Motors, Ford, and Stellantis), marking the first time that the union has called for strikes against all three automakers simultaneously. The UAW has expanded the strikes on multiple occasions since, most recently targeting Ford’s Kentucky Truck plant and Stellantis’ Sterling Heights Assembly Plant (SHAP).
With regard to GM, the UAW has targeted The General’s Wentzville plant in Missouri, the GM Lansing plant in Michigan, and 18 part and distribution centers across the nation. General Motors says that the strikes have forced the automaker to furlough workers at the Fairfax Assembly plant in Kansas and metalworking plants, among other facilities.
The UAW’s latest strike at the GM Arlington facility adds a further 5,000 workers to the picket lines, with an 45,000 UAW workers now on strike across the Big Three Detroit automakers. The UAW represents 150,000 workers across all three of the Big Detroit makes.
In its latest Q3 earnings report, General Motors withdrew its 2023 guidance, reporting that third-quarter net income declined 7.3 percent to $3.1 billion, while adjusted earnings before interest and taxes fell 17 percent to $3.6 billion. Global revenue increased 5.4 percent to $44.1 billion, while net profit margins fell to 6.9 percent. General Motors also indicated that its EV production outlook was uncertain, withdrawing its 400,000 EV production estimates for the North American market by mid-2024 in order to balance production with demand.
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Comments
Another bad week for GM. I predict they’ll be bankrupt in less than five years.
Big deal, 3.2 weeks worth of profit. Fain is licking his chops now.
Fain shall be sitting on the curb with an empty cup because of his greed. Oh, he won’t be alone with all the workers without work. Great job
This is one measure for the Automakers to further justify the means of bringing in AI along with more Robots, Amazon is already doing away with employees along with their complaints on the job by making that happen and Jeff Bezos is certainly unapologetic about it…the man simply has a business to run and more profits to make.
Steve Jobs had the same mentality. Look what it got him. When is enough, enough? When do you look in the mirror as a billionaire and say, “ I have enough? “ Suck up some employee complaints, go home to your $79 million mansion and know that everything is ok.