Stellantis Expects To Lose $795 Million Due To UAW Strikes

Stellantis announced during a conference call on Tuesday that the United Auto Workers (UAW) strike in North America is projected to result in a loss of approximately $795 million in profits. In contrast, General Motors (GM), the last of Detroit’s Big-3 automakers to resolve the strike, reported a strike-related loss of $800 million, while Ford’s impact was estimated at $1.3 billion.

Stellantis reported a 7% surge in net revenues, amounting to $47.9 billion. However, the strike-induced production halts took a toll, causing the company to incur losses of $3.2 billion in sales through October. This increase in net revenue was attributed to higher sales volumes in all markets except Asia.

“We continue to be in a very strong position globally and in the U.S. This is an important market for us, and we’re highly profitable and very committed to our future,” Natalie Knight, the Stellantis CFO said. “But mitigation is core to how we act, and how we proceed.”

In response to the strike’s impact, Stellantis has canceled its participation at the Specialty Equipment Market Association (SEMA) show, LA Auto Show, and the Consumer Electronics Show (CES) in January.

North America remained the revenue leader, contributing $22.9 billion, marking a 2% increase from the previous year, and representing nearly half of global revenues. Meanwhile, Europe, the next highest-performing region, experienced a 5% growth in revenues, reaching $14.9 billion, with sales witnessing an impressive 11% rise.

Stellantis reached a tentative agreement with the UAW on Saturday, concluding a 6-week strike at its Toledo Assembly Complex (home to the Jeep® Wrangler and Gladiator), its Mopar distribution centers, and Sterling Heights Assembly Plant (Ram 1500).

Source: Stellantis and Associated Press