German Manager Magazine: US car manufacturer: Union also reaches agreement with GM002845

After six weeks, the three major US car manufacturers are on strike ford, Stellantis and General Motors (GM) ended. GM was the last of the “Detroit Three” to reach a tentative agreement with the United Auto Workers (UAW) union and agreed to wage increases of 25 percent. That shared UAW President Shawn Fain in a video message.

Last week we already had ford and the Stellantis Group agreed to a salary increase of this magnitude over the more than four-year term of the contract. The agreements now have to be approved by the union members.

The UAW’s original demand was 40 percent – on the grounds that the income of the top management of the major auto companies had been increased by that amount. Before the strike began, car manufacturers were prepared to accept increases of up to 20 percent over a period of four and a half years and had initially emphasized that a higher offer was not economically possible.

The union had gradually expanded the strikes to other plants. This meant that the companies did not know which of their factories might be affected next.

The agreements with Ford and Stellantis increased pressure on General Motors as its competitors’ factories that had previously been on strike resumed production.

Stellantis: Strike reduced sales by three billion

The car manufacturer Stellantis, based in Amsterdam, said it would cover the costs of the strike USA would have cost him around three billion euros in sales. The profit will be reduced by a little less than 750 million euros as a result of the strike, said Stellantis CFO Natalie Knight on Tuesday. This makes Stellantis, with the US brands Chrysler, Dodge and Jeep, the least affected US car manufacturer.

Overall, Stellantis increased global sales in the third quarter by 7 percent to 45.1 billion euros. Deliveries by the company, which also includes the Opel, Peugeot and Fiat brands, increased by 11 percent to 1.43 million vehicles.

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