General Motors said Tuesday that the United Auto Workers strike cost it $200 million in the third quarter and is now costing it $200 million a week.
GM Chief Financial Officer Paul Jacobson told reporters that the strike by the labor union is expected to cut earnings by $800 million this year.
Those figures account only for the 20 plants that are currently shut down. If more are shut, the losses would grow, he said.
The UAW expanded its strike after the company’s third-quarter earnings were better than expected, announcing a surprise work stoppage at the Arlington, Texas, plant. More than 5,000 workers walked off the job Tuesday, boosting the number of striking GM workers to 45,000.
The strike has made it tough for the open GM plants to keep up production due to work stoppages at parts distribution centers around the Midwest.
The announcement comes after GM withdrew its full-year financial guidance for 2023 because of uncertainty caused by the strike.
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“After we’ve had a ratified contract, we will provide an investor update to quantify the final impact of the strike as well as costs moving forward,” Mr. Jacobson said.
Before the strike started in mid-September, GM expected to bring in $14 billion in operating profit for the year. That amount is expected to drop as the strike continues.
Still, the automaker posted strong results for the quarter. GM’s adjusted net income fell to $3.1 billion from $3.3 billion in the third quarter of 2022, with revenue climbing 5% to $44.1 billion.
GM recently announced that, with its most recent offer, it’s at the limit of what it can offer the UAW. The company is still far behind the union’s demands of a 40% wage increase and substantial improvements to benefits.
Correction: A previous version of this report incorrectly reported the amount the strike has cost GM.
