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UAW Union Strike Cost Stellantis Billions Of Dollars
The UAW union recently finally reached agreements with Ford, General Motors and Stellantis after weeks of strikes. The outcome is that the ‘Big Three’ promise their employees a 25 percent wage increase. That will certainly cost a lot of money, but the strikes themselves have also cost a lot. At Stellantis this concerns a cost item of the equivalent of 3 billion euros, it announced when presenting new financial figures. This concerns the turnover that the company is estimated to have lost due to the work stoppage of more than six weeks.
Despite the problems Stellantis had due to the wage dispute, the company managed to increase turnover by 7 percent in the third quarter. There was especially a lot of demand for Stellantis’ electric cars. In the past quarter, Stellantis sold 37 percent more electric cars, mainly due to increasing sales of the Jeep Avenger and Citroën ë-Berlingo. Stellantis, which also owns the Peugeot and Opel car brands, has become more optimistic about sales in the North American and European markets. In South America, the company expects to sell less than previously expected.
