UAW strike against GM now hitting both sides of the border

UAW strike forces GM to close Mexican pickup truck factory

"While September sales are being reported today and arriving pretty much as forecast, the real story for the auto industry will be told in the coming weeks as Chevy and GMC dealers run low on pickup trucks to sell, with the UAW strike against General Motors leading the company to idle the plant in Mexico that makes the Silverado and Sierra", noted Cox Automotive executive analyst Michelle Krebs.

General Motors (GM) on Wednesday reported higher third-quarter U.S. auto sales and lower vehicle inventories as it contends with an auto worker strike now in its third week.

The strike is lowering demand, meaning their companies are cutting hours, leaving them without money to pay bills or even buy food.

"We estimate General Motors produced roughly ~2.0 million vehicles in its U.S. factories previous year (roughly 38,500 per week), and ~3.0 mn when additionally considering its factories in Canada and Mexico (roughly 57,500 per week in total)", Brinkman said.

After GM presented the offer, bargainers for the United Auto Workers union made a counter offer that is now the subject of bargaining, according to the person, who asked not to be identified because details of the talks are private.

The union responded Tuesday with a counterproposal and is awaiting a reply.

A GM spokesman confirmed to the Wall Street Journal that around 6,000 employees at the Mexican plants had temporarily been let go.

General Motors will soon lose $600 million in profits by the week's end because of the ongoing strike affecting several states, including Kentucky.

The strike also comes against the backdrop of GM's decision last November to effectively shutter five plants in North America.

The automaker cited a parts shortage due to the strike as the reason for the plant closure.

The Anderson Economic Group warned that G.M. could lose $90 million a day if the strike continues.

The strike has cost GM just over $1 billion thus far, JP Morgan analyst Ryan Brinkman estimated Tuesday.

"I'm for them trying to work out their contract but other things need to be taken into consideration, especially the length that this is going it's going to effect more and more people outside of GM and the UAW", Founty said. Dittes wrote that many issues remain unresolved.



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