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UAW strike price GM $200 million in its first two weeks | CNN Enterprise

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CNN
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The United Auto Employees union strike has price Basic Motors $200 million for the reason that work stoppage started two weeks in the past, the corporate mentioned Wednesday.

The loss runs by means of the top of the third quarter, which closed on September 30. GM was comparatively flush with money heading into the strike, which began on September 15. Its robust money place, and the file earnings it earned in 2022 and the first half of this 12 months, has spurred the UAW to demand important will increase in pay and advantages for its members.

The UAW is waging focused strikes in opposition to not simply GM but in addition its rivals Ford and Stellantis, which builds automobiles for the US market below the Jeep, Ram, Dodge and Chrysler model. Neither Ford nor Stellantis would disclose the quantity of their losses from the strike when requested.

For the primary week of the strike, the UAW shut down only one meeting line at every firm, though the closure of the Wentzville, Missouri, plant for GM pressured it to additionally shut operations on the close by Fairfax Meeting plant in Kansas Metropolis, Kansas, for the reason that Fairfax plant will depend on stampings from Wentzville.

Through the second week, the UAW additionally went on strike at a collection of 18 elements and distribution facilities operated by GM in addition to 20 at Stellantis. And this previous Friday, the second-to-last day of the quarter, it went on strike at GM’s Lansing Delta Township Meeting plant, in addition to the Ford meeting plant in Chicago.

However GM nonetheless reported it had robust third quarter automotive gross sales, up 21% in comparison with a 12 months earlier. Again then it was a scarcity of elements, significantly laptop chips, that restricted its manufacturing and the stock of automobiles on its dealerships’ tons. It ended the latest quarter with probably the most automobiles in stock at its US dealerships since 2020, within the early months of the pandemic.

GM had earlier reported money available of $23.1 billion as of June 30, up from $19.2 billion at the beginning of the 12 months. Excluding money put aside for GM Monetary and its “Cruise” unit that’s engaged on creating self-driving automobiles, GM has about $16 billion in what it classifies as “automotive money.”

Together with strains of credit score, GM mentioned it has about $39 billion in liquidity out there on the finish of the second quarter. This week, GM organized for a brand new $6 billion line of credit score.

“The enterprise has continued to carry out nicely for the reason that [end of the second quarter],” mentioned GM. “The brand new facility raises our liquidity by $6 billion. We’re being prudent within the face of uncertainty.”

The union declined to touch upon the mortgage.

GM misplaced $2.9 billion from a six-week strike the UAW waged in opposition to it in 2019. However that strike was in opposition to all the firm’s US operations. And the union was not hanging Ford and Stellantis whereas it was hanging GM in 2019, so its rivals’ operations weren’t disrupted.

GM disclosed the mortgage in a submitting Wednesday with the Securities and Change Fee. In 2019, it went by means of the six week strike with out disclosing any further borrowing occasion although it went into the 2019 strike with much less money available, with $17.1 billion in complete money, and $11.4 billion in automotive money.

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