The auto strike cost General Motors $800 million

General Motors, the American auto giant, has estimated that the auto workers’ strike has caused a loss of $800 million in earnings before interest and taxes so far, and that another $200 million will be lost each year. week while the strike continues.

In July, the company had forecast operating revenue of between $12 billion and $14 billion by 2023. However, the auto giant said it withdrew these predictions due to the uncertainty generated by the stock.

WEEKLY LOSS MAY INCREASE

“We will not speculate on the duration or scope of the strike,” Chief Financial Officer Paul Jacobson said. Jacobson said the $200 million weekly loss would increase if workers went on strike at more GM plants.

The United Automobile Workers (UAW) has been on strike against GM, Ford and Stellantis for more than five weeks. As the United States moves toward electric vehicles, workers are fighting for higher wages and greater job security.

About 40,000 of the union’s 146,000 members at three large companies are on strike. The UAW is attacking factories one by one to increase their influence at the negotiating table. The company is also abandoning GM plants and parts warehouses in Michigan and Missouri.

LOSS OF 62 THOUSAND VEHICLES

Deutsche Bank analyst Emmanuel Rosner predicted that GM will produce 62,000 fewer cars and trucks this year because of the strike.

The UAW’s six-week strike against GM in 2019 cost $3.6 billion in profits.