Stellantis Expects To Lose $795 Million Due To UAW Strikes

Company Continues To Be The Revenue Leader Among Detroit's Big-3...

Robert S. Miller November 1, 2023

Ram 1500 production at the Sterling Heights Assembly Plant (SHAP) in Michigan. (Ram).

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.

Ram 1500 production at the Sterling Heights Assembly Plant (SHAP) in Michigan. (Stellantis).

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.”

Jeep® Grand Cherokee L production at the Detroit Assembly Complex – Mack Facility. (Stellantis).

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.

Jeep® Wrangler Unlimited 4xe production at the Toledo Assembly Complex. (Stellantis).

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

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A AlexB Nov 01, 2023 #1

Cost $795 million, not "lose".

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bill burke Nov 01, 2023 #2

I’d call it an investment. Reopening Belvidere is an investment in American industrial manufacturing and most important, jobs and workers. Higher pay, better qualified and motivated workers. One reason Communism is a global failure is collectivism of labor and equity of results by mandate in lost motivation and quality of product. Anyone trading in their Ford for a Lada ?
Clearly this strike forced Stellantis to invest in America, not shift production and jobs to other countries and in return allows blue collar workers to buy their products with sustainable real job wages and not temporary, artificial government handouts. Anyone keeping track of our inflation rates caused by government handouts and printing money that devalues the dollar? You should.
Losses? I believe that thinking folks are viewing this deal as an investment and an acknowledgement of the wisdom of free market Capitalism and the American tradition of collective bargaining. Clearly a $795 million investment that in the long run, will pay for itself and then some....USA !!!

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patfromigh Nov 01, 2023 #3

One reason Communism is a global failure is collectivism of labor and equity of results by mandate in lost motivation and quality of product. Anyone trading in their Ford for a Lada ?

Wake up and smell the vodka comrade :coffee:! We live in a socialist paradise. I realize it was Ford's BS that I was silently dumped from the Maverick waiting list after a year-long wait. I then had a six month wait for the vehicle of a different brand, which I eventually purchased. This gave me a Soviet era flashback which left me wondering if I indeed would end up with a Lada. In fairness to the manufacturer, the last six weeks of my wait was because my vehicle was sitting in a rail yard awaiting shipment. Who is in charge of the USDOT and what were his qualifications for getting that job?

I'm still dealing with empty shelves at the grocery stores despite the high prices. I have to drive to another locality miles away to receive full medical care, because the care where I live is rationed for equality. The most unmotivated workers I have met are the recent graduates of our government school system. I constantly deal with a lack of functional literacy in a certain percentage of travelers at the airport where I work. Travelers from other countries have an understandable language problem, they simply need a sign translated. It is disheartening dealing with Americans who lack basic life skills and have trouble thinking independently, because they were raised by the state. <end of rant>

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