- The maker of Jeep and Dodge reported the losses caused by the auto workers strike during a call with reporters on Tuesday
- The impact on Stellantis is the least compared to that of Ford and GM
- The six-week strike against Detroit’s big three automakers ended on Monday
Car giant Stellantis said that the strike by U.S. auto workers had cost the company $3.2 billion in lost revenue and $800 million in profits on Tuesday.
The maker of Jeep and Dodge reported that the financial loss from the 44-day strike involving 46,000 workers equated to around three billion euros, equivalent to $3.2billion in revenue.
The company’s profit loss was under €750 million, equivalent to around $800 million, as Chief Financial Officer Natalie Knight stated during a call with reporters.
The historic six-week strike against Detroit’s big three automakers ended on Monday after General Motors and the United Auto Workers union reached a tentative agreement, joining Ford and Stellantis.
Ford and GM reported $1.3 billion and $800 million in profit losses, respectively.
The maker of Jeep and Dodge reported a $3.2 billion loss in revenue and a profit loss of just under $800 million during a call with reporters on Tuesday
The historic six-week strike against Detroit’s big three automakers ended on Monday after General Motors and the United Auto Workers union reached a tentative agreement, joining Ford and Stellantis
Ford and GM reported $1.3 billion and $800 million in profit losses, respectively
‘For us, we are a big global company, so [North America] is part of the scheme but it’s very different than what it is for our competitors,’ Knight said.
Despite the hit from the strike, the company reported a rise in sales and revenue for the July-to-September period – up 7 percent on the same quarter in 2022 at $48 billion. The vehicle shipment was up 11 percent on 2022 with more than 1.4million vehicles.
The company stated that despite the strike and the expenses related to new labor agreements, it remains on track to achieve its annual profit goal.
The UAW said Monday that the tentative contract with Stellantis includes a 25 percent raise in base wages by 2028, as well as cost of living adjustments that will cumulatively raise the top wage by 33 percent, to over $42 an hour.
‘We look forward to welcoming our 43,000 employees back to work and resuming operations to serve our customers,’ Stellantis North America chief operating officer Mark Stewart.
Since the strike stared on September 15, Stellantis had laid off more than 1,000 employees at the Toledo Machining Plant in Ohio and the Kokomo Transmission and Kokomo Casting facilities in Indiana.
UAW President Shawn Fain addressed workers outside the plant and handed out placards
President Joe Biden supported striking workers at a picket in Michigan in September, when he urged them to ‘stick with it’ to get ‘the significant raise you need’
A week ago, nearly 7,000 workers walked out of Stellantis’ most profitable plant in a major escalation of the UAW strike. which shut down production at the company’s 5million-square-foot Sterling Heights plant in Michigan.
The walk-out came days after the President of UAW, Shawn Fain, said he had received a new offer from Stellantis – a 23 per cent wage increase – but that more work needed to be done.
The UAW demands include a 40 percent raise.
Factory workers in the auto industry earned an average of $28 per hour, but ‘top tier’ workers who have been at companies the longest take home about $33 an hour. The UAW demanded to end the tiered system.
The UAW’s strategy of escalating, targeted strikes cost the Detroit Three and suppliers billions of dollars over more than 40 days.
Last week, General Motors said the strike cost about $200 million per week in lost profits.
U.S. President Joe Biden on Monday lauded the tentative agreement. ‘I think it’s great,’ Biden, who has touted himself as pro-union and backed the UAW, said when asked about the reported deal.