Oct. 4 (UPI) — General Motors has revealed that the ongoing strike by the powerful United Auto Workers union has cost the carmaker $200 million, which is approximately six times the salary of CEO Mary Barra in 2022.
This revelation was made on the 20th day of the strike in a filing with the Securities and Exchange Commission. According to The Detroit News and the Detroit Free Press, the $200 million figure is based on the estimated value of production lost at two of GM’s three factories.
Ford and Stellantis, the other major carmakers in Detroit, have not publicly disclosed the financial impact of the strike on their companies.
Despite the $200 million cost, analysts on Wall Street are not expressing concern because it represents only a small portion of GM’s quarterly revenue and most production has not halted.
The United Auto Workers has employed a unique strike strategy following unsuccessful labor negotiations this year—simultaneous rolling strikes at all three major Detroit automakers. By gradually increasing the number of workers on picket lines, the union is managing its strike budget and extending the duration of the walkout.
Morningstar Auto Analyst David Whiston mentioned to the Detroit Free Press that the situation could worsen for GM as more plants are added to the picket lines, particularly those producing full-size SUVs and pickups.
Currently, the UAW has initiated strikes at a midsize truck plant in Wentzville, MO, all parts distribution warehouses, and the Lansing Delta Township plant, which manufactures Chevrolet Traverse and Buick Enclave SUVs. The Detroit News reports that approximately 25,300 union members are on strike across the three companies, with about 9,200 of them at GM facilities.
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