UAW strikes reduced Stellantis’ earnings by roughly $3.2 billion
Stellantis revealed on Tuesday that until October, the United Auto Workers union’s labor strikes cost the company roughly $3.2 billion, or 3 billion euros, in lost sales.
The impact of the Unifor strikes, which occurred on Monday for a brief period of time, is also included in that total. On September 15, UAW employees launched a nearly six-week-long series of targeted U.S. strikes against Stellantis, General Motors, and Ford Motor.
Since Saturday, Stellantis has made announcements on tentative agreements with both North American unions. Members still need to approve the agreements, though.
Natalie Knight, the chief financial officer of Stellantis, stated that the impact of the UAW strikes on the company’s earnings would probably be comparable to those of GM and Ford, but she did not say how much.
According to Ford, the UAW strike lost the company $1.3 billion in earnings before interest and taxes, with the third quarter accounting for about $100 million of that total. As of last week, GM claimed that the strike had cost it $800 million, of which $200 million had come from the third quarter.
In contrast to its primary U.S.-based competitors, Stellantis demonstrated the strength of its global footprint by sticking to its 2023 guidance despite the labor strikes. Ford and General Motors withdrew their 2023 guidance as a result of the volatility brought on by the work stoppages.
