So Far, GM Has Lost Over Half A Billion Dollars Over The Strike
The war wages on between GM and the UAW. Earlier this month, 45,000 hourly GM employees started striking over plant closings and weaker healthcare proposals, along with other issues.
It’s been unclear which side would be first to back down during negotiations however, it’s starting to look like it might be GM based on the fact that they are losing money, and quickly.
Bloomberg reports that the automaker is missing out on more than $500 million of profit due to the strike. General Motors has reportedly reached a potential turning point in its contract negotiations.
Analysts at IHS Markit are saying that that figure has been estimated base on the fact that the strike has cost GM output of more than 8,000 vehicles a day. Each vehicle on average brings in about $8,000 in earnings and the walkout has affected about nine production days so far leaving GM out of $544 million in profit. The total could soar to $700 million by Sunday if no settlement is reached.
This is the longest national strike against GM since 1970.