General Motors Faces Tough Challenges Amid Ongoing UAW Strike

The United Auto Workers strike, which has been ongoing for over three weeks, is impacting all three Detroit-based automakers. However, General Motors (GM) is facing the hardest hit so far. The strike, led by President Shawn Fain, is demanding wage increases, an end to the tiered wage system, and more job security in the EV age, among other key issues.

This strike is unique as the UAW is targeting all three companies simultaneously for the first time. GM has been targeted three times, while Ford and Stellantis have only been hit twice each. GM narrowly avoided a fourth strike by making an offer that delayed Fain’s update for members. Fain mentioned that GM has made progress on union representation for future battery plants under the threat of a major financial hit.

GM’s CEO, Mary Barra, is investing $35 billion in future technology, including EVs, over the coming years. However, the company has been slow in releasing affordable EVs and currently does not have a competitively priced option available. The strike has already cost GM over $200 million, and it could continue for an extended period of time.

Ford, which has the highest number of UAW-represented employees among the Detroit Three, has already faced challenges this year, including stock drops and increased losses from EVs. However, Ford has more inventory supply to absorb the blow of the strike. Stellantis, on the other hand, has been the slowest in UAW negotiations and has the highest inventory days among the three automakers.

GM has been hit the hardest, with the most striking workers and the most number of temporarily laid-off employees. It has also lost over 31,000 units of production compared to Ford’s 19,000 and Stellantis’ 17,000.

The outcome of the strike remains uncertain as the dynamics of the automotive industry are undergoing fundamental changes with the rise of EVs.

Source: GM is shaping up to be the hardest hit by the UAW strike