General Motors secures a $6 billion credit line to prepare for ongoing United Auto Workers strike costs, according to a filing with the Securities and Exchange Commission (SEC).
As per the SEC document filed early Wednesday, the Detroit-based Chevy-maker’s revolving credit line will mature on October 1, 2024.
A General Motors spokesperson informed The Post that the company’s total automotive liquidity stands at approximately $38.9 billion as of June 30.
Furthermore, GM reported a 21.4% increase in third-quarter sales of new vehicles in the US from July through September, which marks the company’s best three-month period since the third quarter of 2020.
Although GM is not facing a cash shortage, the spokesperson stated that “we are being prudent in the face of uncertainty.”
The credit line suggests that GM is preparing for prolonged plant shutdowns as the UAW strike continues to target the automaker’s major plants. According to Bloomberg, GM has already incurred losses of $200 million since the strike began on September 15.
Last week, GM laid off 130 workers associated with metal-part makers near Cleveland, Ohio, and another 34 workers in central Indiana. These layoffs came after UAW President Shawn Fain expanded the number of targeted plants at automakers that failed to reach an agreement with the union.
The affected plants supply parts used at GM assembly factories in Lansing, Michigan, where Chevy Traverse and Buick Enclave SUVs are produced. These factories have remained inactive due to the UAW’s walkouts.
Regarding the layoffs, a GM spokesperson commented that “the affected team members are not expected to return until the strike has been resolved.”
Ford has also been impacted by recent strike expansions. The UAW strategically targeted specific plants instead of calling for a mass walkout, leading to Ford furloughing 330 workers after the UAW workers walked off the job at two additional factories in Chicago. These factories supply parts to a Michigan plant responsible for producing the Ford Explorer and Lincoln Aviator SUVs, as well as an engine plant in Lima, Ohio.
In addition to these recent furloughs, Ford had already laid off 600 staff members from its Michigan Assembly Plant, where the Ford Bronco and Ranger models are manufactured.
A Ford spokesperson stated earlier this week that “our production system is highly interconnected, which means the UAW’s targeted strike strategy has knock-on effects for facilities that are not directly targeted for a work stoppage.”
Currently, approximately 25,000 workers across the Detroit Three automakers are on strike, accounting for 17% of the union’s 146,000 members at Ford, GM, and Jeep-maker Stellantis.
Stellantis managed to avoid strikes at additional plants after reaching last-minute concessions with the UAW, as announced by Fain on Friday.
These concessions include progress with Stellantis pertaining to the cost of living allowance payments and the right to strike over product commitments and plant closures. Negotiations are still ongoing for all three companies.
Although progress has been made in negotiations between the UAW and Ford, the union has yet to approve a cost-of-living allowance that satisfies their demands.
UAW autoworkers have been vocal about their desire for higher wages, improved benefits, and the elimination of the two-tier wage system that pays newer workers significantly less.
Automakers argue that the UAW’s demands would negatively impact their profits as they compete with nonunion manufacturers such as Tesla.
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