A strike at GM would potentially cost 11 billion a week
A UAW strike of GM, possibly as early as mid night to-night, might cost the auto-maker at least $1.1 billion a week in lost income and exacerbate deficits of some popular-selling versions.
The UAW told GM Saturday that it may determine by mid night to night to permit expire a contract extension under which General Motors's 52,600 hourly workers been employed by since Sept. 14. That is when the existing four-year agreement with General Motors Corporation expired.
Both sides are locked in intense discussions since Thursday when the UAW made General Motors Corporation its next negotiating goal following ratification of a four-year handle Fiat Chrysler.
If General Motors and UAW do not attain a new provisional arrangement by mid-night, the labor organization could again draw out its existing deal or require a a strike of General Motors Corporation.
A basic strike would shut GM's motor and assembly plants, costing the auto-maker about 8,800 automobiles of generation per day. With each car having around wholesale worth of approximately $25,000, that would cost GM about $220 million per day in gross income or $1.1 billion in a week.
It is an estimated amount, but underscores the possible fiscal impact of a strike against General Motors Corporation.
A GM spokeswoman on Sunday stated she could not instantly discuss the possible price approximation.
General Motors Corporation's actual prices would decrease as the firm would not incur components and labour expenses. The price additionally would rely on stocks and General Motors Corporation's capacity to make up lost generation after.
To be certain, some of GM's automobiles happen to be in limited supply for months, somewhat its Chevrolet Colorado mid-size pickup. There was a 4-7-day offer of the trucks on dealer lots or on the way to shops by Oct. 1, as stated by the Automotive News data-center.
General Motors had a 71-day offer of the Chevrolet Silverado, its greatest-quantity and among its most money-making vehicles. That is to the the lower side -- General Motors had a 9-5-day supply a year earlier in the day.
General Motors could strike at particular plants to crimp motor or transmission creation that will immediately hamstring construction generation throughout the united states. This kind of tactical stoppage would price the UAW strike fund less cash. The fund guarantees striking employees $200 per week in strike pay.
It's possible for you to reach David Barkholz at [email protected] -- Follow David on and
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