Genera Motors’ Loss from Strike Estimated at $1 Billion
The auto workers strike at General Motors, now in its third week, has cost the carmaker about $1 billion so far, according to a report released Tuesday.
The strike, launched last month by the United Auto Workers, halted US production immediately and Canadian and Mexican facilities were progressively affected soon thereafter, said a report by JPMorgan Chase.
The overall cost is “likely over $1 billion at this point,” the report said, adding that the company has the potential to recover some of the lost profits in the fourth quarter if the strike ends soon.
Nearly 50,000 US autoworkers have been on strike since September 16 as the biggest US auto company and the UAW spar over wages, health benefits, temporary workers and job security.
The strike has also put stress on a group of auto supply companies, including Lear, Tenneco, and American Axle & Manufacturing.
Auto supply companies are vulnerable if the UAW strikes at Ford and Fiat Chrysler said a report from RBC Capital Markets.
Ford and FCA are scheduled to negotiate new UAW contracts after General Motors strike.
The strike risk at the other two companies “is likely dependent on the deal struck with GM,” said RBC.