{"id":2078023,"date":"2023-10-24T16:18:03","date_gmt":"2023-10-24T20:18:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/general-motors-loses-800-million-so-far-amid-strike-says-its-slowing-ev-strategy\/"},"modified":"2023-10-24T16:22:36","modified_gmt":"2023-10-24T20:22:36","slug":"general-motors-loses-800-million-so-far-amid-strike-says-its-slowing-ev-strategy","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/general-motors-loses-800-million-so-far-amid-strike-says-its-slowing-ev-strategy\/","title":{"rendered":"GM&#8217;s EV strategy slows as strike costs $800M."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgeneral-motors-loses-800-million-so-far-amid-strike-says-its-slowing-ev-strategy%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2078023&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>General Motors has suffered a \u2062loss of $800 million in\u200d operating profits since the \u200bstart of the United Auto Workers (UAW) union \u200bstrike, forcing the automaker to revise its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/car-company-sells-russian-government-all-operations-for-one-euro\/\" title=\"Car Company Sells Russian Government All Operations For One Euro\">full-year earnings guidance<\/a> and slow \u200ddown\u2064 its electric vehicle strategy.<\/p>\n<p>During a\u200c call with reporters on Oct.\u200c 24, GM Chief Financial Officer Paul Jacobson disclosed the financial impact of the strike, \u2062stating that the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/general-motors-loses-800-million-so-far-amid-strike-says-its-slowing-ev-strategy\/\" title=\"GM's EV strategy slows as strike costs 0M.\">company anticipates\u200b losing\u2064 approximately\u200b 0 million<\/a> \u200dper week if the strike continues at its current scale.<\/p>\n<p>Jacobson warned that if the union expands the strike to\u200b other GM facilities, \u2064the losses\u200c could escalate even further.<\/p>\n<blockquote>\n<h2>Related Stories<\/h2>\n<ul>\n<li><a href=\"http:\/\/www.theepochtimes.com\/epochtv\/uaw-autoworkers-strike-again-at-michigan-stellantis-plant-5515897?ea_src=author_manual&#038;ea_med=related_stories\"><strong>UAW Autoworkers \u200bStrike Again at Michigan Stellantis Plant<\/strong><\/a>  &#8211; 10\/24\/2023<\/li>\n<li><a href=\"http:\/\/www.theepochtimes.com\/article\/should-not-be-ford-vs-the-uaw-it-should-be-ford-and-the-uaw-ford-motors-chief-5511285?ea_src=author_manual&#038;ea_med=related_stories\"><strong>Ford Chairman\u200d Urges End of UAW Strike, Warns Company Will Suffer<\/strong><\/a>  &#8211; 10\/17\/2023<\/li>\n<\/ul>\n<\/blockquote>\n<p>A \u2063few\u2064 hours after Jacobson&#8217;s discussion on GM&#8217;s \u200bfinancial performance, the UAW extended the strike to include another GM production facility.<\/p>\n<p>The union leadership stated\u2062 that &#8220;it is clear that GM \u2063can afford \u200ca record contract.&#8221;<\/p>\n<p>GM&#8217;s current offer\u2063 includes a 23 percent wage increase over a four-and-a-half year contract, while the UAW is pushing \u200dfor\u2063 a higher percentage, closer\u2062 to\u2063 35 percent.<\/p>\n<p>During the same \u200dcall with \u200dreporters, GM CEO Mary Barra emphasized that\u2064 the company&#8217;s current contract offer is already \u200ba record and that GM \u200cwill not overextend itself.<\/p>\n<p>&#8220;We will not \u2062agree \u200bto \u200da contract that isn&#8217;t responsible to our employees and our shareholders,&#8221; she \u2062asserted.<\/p>\n<div class=\"my-5\">\n<p>Despite the $800 million\u2063 in \u2062strike-related losses, GM&#8217;s third-quarter results, announced \u2062Tuesday, exceeded expectations \u2064and \u200bperformed well in the market.<\/p>\n<h2>EV Push &#8216;Moderating&#8217;<\/h2>\n<p>GM&#8217;s third-quarter net income\u2062 decreased by 7.3 percent to $3.06 billion, while overall revenues increased by 5.4 percent to\u200c $44.1 billion.<\/p>\n<\/div>\n<p>GM&#8217;s operating profit for the third quarter was $3.56 billion, a 16.9 percent decline compared \u200cto\u2063 the same period last year.<\/p>\n<p>During the call, Jacobson acknowledged GM&#8217;s \u200b&#8221;strong underlying business fundamentals,&#8221; but highlighted the\u2062 uncertainty caused\u200d by the strike, leading the company to\u2062 withdraw its\u2064 full-year guidance for 2023.<\/p>\n<p>While reaffirming GM&#8217;s commitment \u2063to \u200dincreased electric \u200dvehicle (EV)\u2062 production, Jacobson mentioned that\u2063 the company is slowing down its electrification strategy to \u200dprotect pricing, adjust to slower near-term\u200b demand growth, and \u2062implement engineering changes to enhance profitability.<\/p>\n<p>Once a new contract\u200c is\u200b reached with the\u200c union, Jacobson assured\u200c that there will be an update on the financial guidance for the year, as well\u2063 as a comprehensive assessment of the strike&#8217;s costs.<\/p>\n<p>Barra added that\u2062 GM \u200cwill reduce spending \u200don EV products and delay the launch of certain EV models \u2064to \u2062cut \u200dcosts.<\/p>\n<div class=\"post-figure\" style=\"margin-left:0;margin-right:0;max-width:1200px\">\n<figure style=\"width:640px;margin-left:auto;margin-right:auto\" class=\"alignnone\"><figcaption>Electric \u200dvehicles are charging at a charging station in Monterey Park, \u2064Calif., on \u2063April\u200d 12,\u200c 2023. (Frederic J. \u200dBrown\/AFP via Getty\u200b Images)<\/figcaption><\/figure>\n<\/div>\n<p>Shortly after GM released its third-quarter results, the UAW announced that an additional 5,000 union\u200b workers were joining the strike at \u200cGM&#8217;s largest and most profitable\u2062 plant in \u200cArlington, Texas.<\/p>\n<p>This facility is\u2062 responsible for manufacturing large SUVs like the Cadillac \u2062Escalade and the Chevrolet Suburban.<\/p>\n<div class=\"my-5\">\n<p>The walkout at Arlington Assembly brings the\u200d total number of \u200bUAW members on strike at \u200cDetroit&#8217;s Big Three automakers to 45,000.<\/p>\n<h2>Strike Expands<\/h2>\n<\/div>\n<p>A day \u200dbefore GM&#8217;s third-quarter \u200bearnings announcement, the UAW expanded\u200b the\u2063 strike to a Stellantis pickup \u2064truck facility in Michigan.<\/p>\n<p>About \u20636,800\u200c UAW members at the Sterling Heights Assembly Plant \u200djoined the strike, halting production of\u2062 RAM \u20631500 trucks.<\/p>\n<p>The union criticized Stellantis\u2064 for lagging behind Ford \u2064and GM in addressing the demands of\u2062 their UAW workforce.<\/p>\n<p>&#8220;Currently, Stellantis has the worst proposal on the\u2064 table regarding wage progression, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/uaw-expands-strike-to-stellantiss-largest-factory\/\" title=\"UAW broadens strike to Stellantis's main plant.\">temporary worker pay<\/a> and \u200cconversion to full-time, cost-of-living adjustments (COLA), and more,&#8221; stated the union leadership.<\/p>\n<p>Recent reports confirm that General\u2062 Motors and Stellantis have offered wage increases\u2064 matching Ford&#8217;s 23 percent\u200b raise over a four-year contract.<\/p>\n<p>However, UAW President \u200cRory \u2062Gamble \u2064believes the\u2064 offers are insufficient, urging \u200cthe \u2064automakers to \u2064improve their proposals.<\/p>\n<p>&#8220;We&#8217;ve got cards left to play, and they&#8217;ve got money left to \u2064spend,&#8221;\u2062 Gamble \u2062declared.<\/p>\n<p>When the UAW\u2063 initiated\u200d the strike in September, they\u200b demanded a wage increase of over 40 percent over four\u2063 years, restoration of the \u2062<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/lost-retirement-why-401ks-are-not-ok-and-not-just-because-of-the-lousy-economy\/\" title=\"Lost Retirement: Why 401(k)s Are Not OK (and Not Just Because of the Lousy Economy)\">defined-benefit pension plan<\/a>,\u2062 and a 32-hour work week with 40-hour pay.<\/p>\n<p>Although the UAW has since reduced\u200b its demands to a\u2063 36 percent wage increase during\u200c the\u2062 contract&#8217;s\u2062 duration, the current status of negotiations remains unclear.<\/p>\n<p>The \u200dthree automakers\u200b expressed \u2064their desire \u200bto reach agreements \u2062that balance employee concerns with their respective visions\u2062 for the future, which involve a shift to electric models that require less\u200c labor and\u2063 have fewer parts.<\/p>\n<div class=\"my-5\">\n<em>Andrew Moran contributed to this report.<\/em>\n<\/div>\n<\/div>\n<\/blockquote>\n<p> <\/p>\n<h2> \u2064How has the strike impacted\u200c General Motors&#8217; financial performance and earnings guidance?<\/h2>\n<p><span>  Arge SUVs, including the Chevrolet Tahoe \u2064and \u200bCadillac\u2063 Escalade. The expansion of the strike to such a crucial facility further exacerbates the financial \u200dimpact on General Motors.<\/p>\n<p>GM&#8217;s decision to revise its full-year earnings guidance is not surprising\u2063 given the magnitude of the strike&#8217;s \u2063impact. The loss\u2062 of $800 million in\u200b operating profits since the start of the strike is a significant\u200c blow to\u2064 the company&#8217;s bottom \u2063line. The weekly loss\u2062 of approximately \u2063$200 million is unsustainable in the long term \u200band necessitates\u2064 a reassessment of \u2063GM&#8217;s \u200bfinancial\u200b expectations\u2063 for \u2063the year.<\/p>\n<p>Furthermore, GM&#8217;s electric \u2063vehicle (EV) strategy is also being affected by \u2064the strike. \u2064As\u200b part of its revised approach, \u2064the company\u2063 is slowing down its electrification strategy to protect pricing,\u200b adjust to slower near-term demand\u2063 growth, and\u2062 implement engineering changes to enhance\u200c profitability. While the commitment to increased EV production remains, certain EV\u200b models will\u200b be delayed, and \u2062spending\u200b on\u200b EV products will be reduced to mitigate costs.<\/p>\n<p>It is clear that the \u200dstrike \u2064has introduced a\u200d level of uncertainty for GM and has disrupted its operations. GM&#8217;s CEO, Mary Barra, emphasized the importance\u2064 of reaching \u200ba responsible contract\u200c that \u200dtakes into\u200c account the interests of both employees and shareholders. The company cannot overextend itself \u200dand must prioritize sustainable and\u2064 profitable growth.<\/p>\n<p>Despite the strike-related losses, GM&#8217;s third-quarter results were better than expected, with overall revenues increasing by 5.4 percent to $44.1 billion. However, the impact of the \u2062strike is undeniable, as demonstrated by the 16.9 percent decline in operating profit compared to the \u2062same period last\u200d year.<\/p>\n<p>Once a new \u2063contract is reached with the UAW, GM will provide an update on its financial guidance for the year and conduct a comprehensive assessment of the \u200bstrike&#8217;s costs. This \u200cassessment\u2064 will likely reveal the full extent of the financial impact on the company.<\/p>\n<p>In conclusion, \u200bthe United Auto Workers union strike \u200dhas <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/like-a-nascar-pit-crew-authorities-bust-car-theft-ring-that-stole-catalytic-converters-in-less-than-a-minute\/\" title=\"\u2018Like A NASCAR Pit Crew\u2019: Authorities Bust Car Theft Ring That Stole Catalytic Converters In Less Than A Minute\">caused significant financial losses<\/a> for\u200c General Motors, with $800 million in operating profits\u200c lost since the start of \u200bthe strike. The company has had \u200cto revise its earnings\u2064 guidance and slow\u200c down its electric vehicle \u2062strategy to mitigate the financial \u200bimpact. The strike&#8217;s \u200bexpansion to other facilities and the addition of 5,000 union workers \u2064further exacerbate the situation. GM remains committed to a responsible contract and will assess\u200b the strike&#8217;s costs\u2062 once it is resolved. However, it is clear that the strike\u200c has introduced uncertainty and disrupted GM&#8217;s operations, necessitating a reassessment of its financial expectations for the year.<\/p>\n<\/div>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>General Motors reported an $800 million loss in operating profits due to the ongoing UAW strike, prompting the company to retract its full-year earnings forecast and delay its electric vehicle plans. GM&#8217;s CFO, Paul Jacobson, disclosed the financial impact of the strike, which has lasted approximately 40 days.<\/p>\n","protected":false},"author":118,"featured_media":2078024,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2078023","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2078023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2078023"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2078023\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2078024"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2078023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2078023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2078023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}