The automakers fear long-lasting consequence of the ongoing United Auto Workers’ strike, as the union on Tuesday expanded their strike at General Motors’ SUV factory in Arlington, Texas. Around 5,000 workers walked off their jobs at General Motors’ highly profitable SUV factory in Arlington.
Shares of General Motors dipped 0.4% after it withdrew its 2023 profit outlook, blaming the rising costs of UAW’s strikes.
General Motors reported September quarter profit at $3.1 billion, 7% down from the year-ago period, but better than analysts forecast.
During the quarter, the UAW strike has cost GM $200 million.
More than 45,000 UAW union members working at the Detroit’s Big Three automakers -- Ford, General Motors and Stellantis -- are on strike since the walkouts began on September 15.
According to some analysts estimate, after five weeks of strikes, the economic losses for the auto industry had crossed $9.3 billion.
On Monday, the UAW went on strike at Chrysler-parent Stellantis's largest assembly plant hitting the automaker's profitable RAM 1500 pickup truck production.
Stellantis has said that it is outraged over the expanded strike after presenting a more generous offer to the workers union.
“We left the bargaining table expecting a counter-proposal, but have been waiting for one ever since,” the company said. “The UAW’s continued disturbing strategy of “wounding” all the Detroit Three will have long-lasting consequences. With every decision to strike, the UAW sacrifices domestic market share to non-union competition.”
Shares of Stellantis fell 1.64% in Milan trading.
Shares of Ford Motor Co and Tesla rose 0.17% and 2.55%, respectively, as the US stock markets rebounded on Tuesday.
At 9:52 a.m. ET, the Dow Jones Industrial Average was up 172.94 points, or 0.53%, at 33,109.35. The S&P 500 gained 21.76 points, or 0.52%, at 4,238.80. The Nasdaq Composite added 80.05 points, or 0.61%, at 13,098.38.
The union had initially demanded a 40% wage hike over four-and-a-half years, including a 20% immediate increase, improvements in benefits, as well as covering EV battery plant workers under union agreements.
UAW president Shawn Fain on Friday had warned of more walkouts unless the automakers improved their compensation offers.
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