UAW Strike Slowly Expands but GM Q3 Sales Skyrocket by Impressive 21%

DETROIT – The ongoing strike by the United Auto Workers union against the Detroit automakers had minimal impact on General Motors’ third-quarter U.S. new vehicle sales.

General Motors reported a significant 21.4% rise in sales from July through September. This increase outperformed industry expectations of 15% to 16% for the third quarter. Sales for all of General Motors’ brands saw a rise compared to the previous year.

While General Motors thrived in the third quarter, other automakers also experienced an increase in sales. Toyota Motor saw a 12.2% rise, Hyundai Motor saw a 9% rise, Kia saw a 14% rise, Mazda saw a 22% rise, and Honda saw a staggering 53% rise.

Stellantis was the only outlier, with sales declining by 1.3%. However, this decline is likely not attributed to the UAW strikes but instead relates to Stellantis’ strategic pricing approach.

Though the strike’s impact has yet to be fully realized, General Motors and other companies could face sales and supply chain issues if the UAW strike expands or continues. Currently, the strikes involve only 17% of the UAW members covered by expired contracts with General Motors, Ford Motor, and Stellantis.

The UAW has been gradually increasing targeted strikes since it failed to reach agreements with the automakers. These targeted strikes aim to preserve the union’s funds and prolong the work stoppages to put pressure on the automakers.

The effects of the strikes may become more apparent in October, particularly for certain vehicles like the Chevrolet Colorado and GMC Canyon midsize pickups, where production has been impacted.

“Thus far, the impact has been fairly muted,” said Cox Automotive chief economist Jonathan Smoke. “Should the strike against production sites further expand, the more vulnerable products are the large SUVs from Chevrolet and Cadillac, which have tighter inventory levels compared to their domestic rivals.”

For General Motors, the UAW strikes have affected the production of midsize pickups and Chevrolet Traverse and Buick Enclave SUVs.

General Motors’ sales in the fourth quarter increased by more than 19%, with over 1.97 million vehicles sold in the U.S. The company also saw a 28% increase in electric vehicle sales compared to the second quarter.

During the third quarter, General Motors introduced new electric versions of the Chevrolet Blazer SUV and Silverado pickup. The company also ramped up production and sales of the Cadillac Lyriq EV and Hummer models. However, sales still trail behind Tesla’s electric vehicle deliveries.

Additionally, General Motors benefited from the growth of new entry-level models like the Chevrolet Trax and Buick Envista, both imported from South Korean plants.