Breaking News
Investing Pro 0
Extended Sale! Save on premium data with Claim 60% OFF

Detroit carmakers face financial strain amid ongoing UAW strike

Published Sep 18, 2023 03:14PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

The ongoing strike by the United Auto Workers (UAW) union is impacting Detroit's big three carmakers - Ford (NYSE:F), General Motors (NYSE:GM), and Stellantis (NYSE:STLA) - with significant financial losses expected. The strike began on Thursday, following unsuccessful negotiations, and is estimated to be costing both Ford and GM between $100 million to $125 million per week, according to analysts at Goldman Sachs.

In response to the strike, both Ford and GM have begun idling operations. This week, GM is anticipated to suspend production at its Fairfax plant in Kansas City, Kansas, which will impact around 2,000 workers. Concurrently, Ford has temporarily laid off 600 employees due to a halt in operations at its Michigan Assembly Plant body department as it cannot continue production due to the strike's effects on the plant's assembly and paint areas.

The UAW has strategically targeted three factories so far: a section of a Ford plant in Wayne, Michigan; a GM assembly plant in Wentzville, Missouri; and a Stellantis assembly complex in Toledo, Ohio. These plants collectively represent nearly 13,000 workers and contribute to more than 14,000 vehicles in weekly production.

The affected plants are significant contributors to the companies' revenue streams. For instance, Ford's Wayne plant is responsible for the production of the Bronco and Ranger models, while GM's Wentzville plant produces the GMC Canyon and Colorado. Despite Stellantis workers participating in the strike, Goldman Sachs has not yet estimated the potential financial impact on the Jeep manufacturer.

The UAW boasts nearly 150,000 members and may halt labor at additional factories depending on how negotiations evolve in upcoming days. Union members are advocating for increased wages, cost of living adjustments, reinstatement of pensions, a 32-hour work week among other demands. These requests come during a time when automakers have experienced significant profits during the pandemic-induced supply-and-demand crunch.

The ongoing strike not only threatens the financial stability of the Detroit 3 and their workers, but it also poses potential ramifications for the broader industry and car buyers. Consumers looking for deals on a Detroit 3 car may find that incentives introduced over the summer months have disappeared. Additionally, vehicle prices may return to sticker price or higher, and even for non-Detroit 3 vehicles, dealers are anticipated to manage their supply cautiously.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Detroit carmakers face financial strain amid ongoing UAW strike

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email