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Autoworkers strike cuts into GM earnings, company sees further loses if walkouts linger

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A strike by autoworkers against General Motors is expected to cut the automaker's pretax earnings by $800 million this year, and another $200 million per week after that.

FILE- In this April 23, 2018, file photo, the logo for General Motors appears above a trading post on the floor of the New York Stock Exchange. General Motors reports earnings on Tuesday, Oct. 24, 2023. – A strike by auto workers against General Motors is expected to cut pretax earnings by $800 million this year, and another $200 million per week after that, the company's chief financial officer said.

Jacobson said the third-quarter strike loss was $200 million, since the walkouts were only in effect the final two weeks of the period. He predicted another $600 million of losses from October through December. GM is sticking with plans to increase manufacturing capacity to 1 million EVs per year in North America by the end of 2025, he said. But earlier guidance of building 400,000 EVs in North America through the middle of next year have been scrapped. Jacobson said GM still expects to start turning low-to-mid single-digit profit margins on electric vehicles in 2025.

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Autoworkers strike cuts into GM earnings, company sees further loses if walkouts lingerA strike by autoworkers against General Motors is expected to cut the automaker's pretax earnings by $800 million this year, and another $200 million per week after that. That's according to the company’s chief financial officer. And those figures just include factories that are on strike now by the United Auto Workers union.
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