{"id":5077,"date":"2023-10-24T16:04:38","date_gmt":"2023-10-24T16:04:38","guid":{"rendered":"https:\/\/infundpros.com\/business\/gm-says-strike-has-cost-800mn-as-5000-more-workers-walk-out\/"},"modified":"2023-10-24T16:04:38","modified_gmt":"2023-10-24T16:04:38","slug":"gm-says-strike-has-cost-800mn-as-5000-more-workers-walk-out","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=5077","title":{"rendered":"GM says strike has cost $800mn as 5,000 more workers walk out"},"content":{"rendered":"<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=8cf3c5ea-a9f0-4537-9ed4-2e0c8fa703dd\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>General Motors said the US carworkers\u2019 strike was costing it approximately $200mn a week, an estimate that is set to rise after 5,000 members of the United Auto Workers union walked out of one of its largest and most lucrative plants on Tuesday.<\/p>\n<p>The UAW has been on strike for more than five weeks against GM, Ford and Stellantis, targeting an increasing number of plants and parts depots. <\/p>\n<p>The costs of the stand-off to GM became clearer on Tuesday as the Detroit carmaker reported third quarter financial results. GM said that so far, the strike had cost $800mn in operating profit. <\/p>\n<p>Chief financial officer Paul Jacobson said that GM was withdrawing its guidance because of the uncertainty triggered by the industrial action. GM had in July forecast it would earn an adjusted $12bn-$14bn in operating income for the year.<\/p>\n<p>\u201cWe\u2019re not going to speculate on the duration or extent of the strike,\u201d he said.<\/p>\n<p>Hours later, the UAW announced that workers had shut down production at a GM assembly plant in Arlington, Texas that makes the Chevrolet Suburban and Cadillac Escalade. The union called the plant GM\u2019s \u201clargest moneymaker\u201d. <\/p>\n<p>GM said in a statement that it was \u201cdisappointed by the escalation of this unnecessary and irresponsible strike\u201d. <\/p>\n<p>More than 45,000 of the union\u2019s 146,000 members at the Detroit three are now on strike pressing for higher wages and greater job security as the US shifts towards electric vehicles. <\/p>\n<p>The UAW has gradually broadened its strike, hitting individual sites to maximise its leverage at the bargaining table. With the strike at GM\u2019s Texas location, it has now shut down highly profitable SUV or truck plants at all three of the Detroit carmakers. <\/p>\n<p>The UAW\u2019s last strike against GM in 2019, which lasted six weeks and affected all the carmaker\u2019s operations, cost $3.6bn in earnings.<\/p>\n<p>Deutsche Bank analyst Emmanuel Rosner estimated that GM had manufactured nearly 62,000 fewer cars and trucks than it would have without a strike. Data group Cox Automotive found that car dealers only have a 20-day supply of GM\u2019s Chevrolet Colorado midsize truck, down from 35 days last month, while the supply of GM\u2019s GMC Canyon midsize truck has shrunk from 33 days to 31.<\/p>\n<p>GM reported on Tuesday that during the third quarter, adjusted earnings reached $3.6bn before interest and taxes. That was down nearly 17 per cent from a year ago but was still ahead of Wall Street\u2019s expectations for $3.3bn.<\/p>\n<p>Revenue rose 5 per cent from the same period a year earlier, to $44bn, with Jacobson citing strong sales and \u201chealthy\u201d pricing. <\/p>\n<p>GM\u2019s adjusted operating profit margin also shrank from 10.2 per cent to 8.1 per cent. Jacobson said the margin decrease partly came from the strike, as well as higher warranty costs, a trend GM has seen all year. While fewer owners were making warranty claims, \u201cthe cost for repair has gone up\u201d because of inflation.<\/p>\n<p>\u201cThe earnings are strong right now,\u201d Jacobson said. But he added that to be competitive over the long term, \u201cwe can\u2019t get into signing a deal that we can\u2019t afford to pay\u201d.<\/p>\n<p>GM also pulled back from ambitious targets to manufacture electric vehicles. The company said on Tuesday that it no longer plans to build 400,000 EVs by the middle of next year, although it still aims to reach 1mn EVs annually by the end of 2025. GM has delayed retooling of a plant in Michigan that had been scheduled next year to build electrified versions of the popular Chevrolet Silverado and GMC Sierra pick-up trucks.<\/p>\n<p>The moves are \u201cto adjust to slowing near-term growth\u201d in EVs, said Mary Barra, chief executive.<\/p>\n<p> \u201cThe transition to EVs will have ups and downs,\u201d she said. \u201cWe\u2019re making sure that we have a system that will respond to where the market is.\u201d<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.ft.com\/content\/8cf3c5ea-a9f0-4537-9ed4-2e0c8fa703dd\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. General Motors&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":{"0":"post-5077","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GM says strike has cost $800mn as 5,000 more workers walk out | inFundPros<\/title>\n<meta name=\"description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.General Motors said the US\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=5077\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GM says strike has cost $800mn as 5,000 more workers walk out | inFundPros\" \/>\n<meta property=\"og:description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.General Motors said the US\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=5077\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-24T16:04:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-wall.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=5077#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=5077\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"GM says strike has cost $800mn as 5,000 more workers walk out\",\"datePublished\":\"2023-10-24T16:04:38+00:00\",\"dateModified\":\"2023-10-24T16:04:38+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=5077\"},\"wordCount\":668,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=5077#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=5077\",\"url\":\"https:\/\/infundpros.com\/?p=5077\",\"name\":\"GM says strike has cost $800mn as 5,000 more workers walk out | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2023-10-24T16:04:38+00:00\",\"dateModified\":\"2023-10-24T16:04:38+00:00\",\"description\":\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.General Motors said the US\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=5077#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=5077\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=5077#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"GM says strike has cost $800mn as 5,000 more workers walk out\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"GM says strike has cost $800mn as 5,000 more workers walk out | inFundPros","description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.General Motors said the US","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=5077","og_locale":"en_US","og_type":"article","og_title":"GM says strike has cost $800mn as 5,000 more workers walk out | inFundPros","og_description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.General Motors said the US","og_url":"https:\/\/infundpros.com\/?p=5077","og_site_name":"inFundPros","article_published_time":"2023-10-24T16:04:38+00:00","og_image":[{"width":1920,"height":1200,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-wall.jpg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=5077#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=5077"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"GM says strike has cost $800mn as 5,000 more workers walk out","datePublished":"2023-10-24T16:04:38+00:00","dateModified":"2023-10-24T16:04:38+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=5077"},"wordCount":668,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Business"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=5077#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=5077","url":"https:\/\/infundpros.com\/?p=5077","name":"GM says strike has cost $800mn as 5,000 more workers walk out | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2023-10-24T16:04:38+00:00","dateModified":"2023-10-24T16:04:38+00:00","description":"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.General Motors said the US","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=5077#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=5077"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=5077#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"GM says strike has cost $800mn as 5,000 more workers walk out"}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/5077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5077"}],"version-history":[{"count":0,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/5077\/revisions"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}