Auto giant Stellantis says the UAW strike cost it $3.2 billion in lost sales and $800 million in profits

Auto giant Stellantis said the U.S. auto workers strike on Tuesday cost the company $3.2 billion in lost sales and $800 million in profits.

The Jeep and Dodge maker reported that financial losses from the 44-day strike involving 46,000 workers amounted to about three billion euros, representing $3.2 billion in revenue.

The company’s profit loss was less than 750 million euros, or about $800 million, Chief Financial Officer Natalie Knight said in a call with reporters.

The historic six-week strike against Detroit’s three major automakers ended Monday after General Motors and the United Auto Workers union reached a tentative agreement, joining Ford and Stellantis.

The impact on Stellantis is minimal compared to that of Ford and GM, which reported profit losses of $1.3 billion and $800 million, respectively.

The maker of Jeep and Dodge reported a revenue loss of $3.2 billion and a profit loss of nearly $800 million in a call with reporters on Tuesday

The historic six-week strike against Detroit’s three major automakers ended Monday after General Motors and the United Auto Workers union reached a tentative agreement, joining Ford and Stellantis

The impact on Stellantis is minimal compared to that of Ford and GM, which reported profit losses of $1.3 billion and $800 million, respectively

“For us, we are a large global company [North America] “is part of the program, but it is very different than what it is for our competitors,” Knight said.

Despite the impact of the strike, the company reported an increase in sales and earnings for the July to September period – up 7 percent compared to the same quarter in 2022 to $48 billion. Vehicle deliveries increased by 11 percent compared to 2022 to more than 1.4 million vehicles.

The company said it remains on track to meet its annual profit target despite the strike and costs associated with new collective bargaining agreements.

The UAW said Monday that the tentative contract with Stellantis calls for a 25 percent increase in base wages through 2028, as well as cost-of-living adjustments that will increase the top wage overall by 33 percent, to more than $42 an hour.

“We look forward to welcoming our 43,000 employees back to work and resuming operations to serve our customers,” said Mark Stewart, chief operating officer of Stellantis North America.

Since the strike began on September 15, Stellantis had laid off more than 1,000 employees at the Toledo Machining Plant in Ohio and the Kokomo Transmission and Kokomo Casting plants in Indiana.

UAW President Shawn Fain addressed workers outside the plant and handed out posters

President Joe Biden supported striking workers at a strike demonstration in Michigan in September when he urged them to “hang in there” to get “the significant raise you need.”

A week ago, nearly 7,000 workers walked out of Stellantis’ most profitable plant in a massive escalation of the UAW strike. which halted production at the company’s 5 million square foot Sterling Heights facility in Michigan.

The strike came days after UAW President Shawn Fain said he had received a new offer from Stellantis – a 23 percent wage increase – but more needed to be done.

The UAW’s demands include a 40 percent increase.

Factory workers in the auto industry earned an average of $28 an hour, but top-tier workers who have been employed at companies the longest earn about $33 an hour. The UAW called for the tier system to be abolished.

The UAW’s strategy of escalating, targeted strikes cost the Detroit Three and their suppliers billions of dollars over more than 40 days.

Last week, General Motors said the strike cost about $200 million a week in lost profits.

US President Joe Biden praised the preliminary agreement on Monday. “I think it’s great,” Biden, who describes himself as pro-union and has supported the UAW, said when asked about the reported deal.