Detroit – General Motors The automaker secured a new $6 billion credit line as it prepares for further strikes by the United Auto Workers union.
“The credit line we announced today is $6 billion, which I think is prudent given some of the information we’ve seen from some UAW leadership that they intend to delay this line for several months,” Treasurer Paul said. “Jacobson told CNBC’s Phil LeBeau in an interview with “Halftime Report.”
General Motors said Wednesday that targeted strikes in the third quarter have cost the automaker $200 million.
A GM spokesman said the $200 million in strike costs were due to lost wholesale volume production, largely due to the United Auto Workers union’s Sept. 15 action against GM’s mid-size truck and full-size trucks in Wentzville, Missouri. The first strike at the truck factory. The strike has since expanded to include GM parts and distribution facilities nationwide and, as of Friday, to a crossover plant in central Michigan.
GM also idled its Fairfax, Kansas, assembly plant, which makes the Cadillac XT4 SUV and Chevrolet Malibu sedan, and laid off nearly 2,000 workers because of the strike in Missouri.
General Motors CEO Mary Barra and Ford Chief Executive Jim Farley publicly criticized UAW President Shawn Fain and the union’s strike tactics, claiming Fain actually had no intention of reaching a deal with GM, Ford and Chrysler parent companies for 146,000 workers star.
On September 26, 2023, members of United Auto Workers (UAW) Local 230 and their supporters walked on a picket line in front of a Chrysler Corporation parts department in Ontario, California, in support of currently striking Big Three autoworkers.
Patrick T. Fallon AFP | Getty Images
“It is clear that there is no real intention on either side to reach a deal,” Barra said in an email. Friday statement night. “It’s clear that Sean Fearn wants to make history for himself, but this must not be done to the detriment of the team members and the industry we represent.”
Fein has consistently said the union can negotiate 24/7 and has in turn accused the automakers of slow progress in negotiations.
GM’s newly announced credit line will require the automaker to maintain at least $4 billion in global liquidity and $2 billion in U.S. liquidity. The terms of the credit agreement also limit GM from merging or selling assets and limiting other new debt. As of June 30, GM’s total automotive liquidity was $38.9 billion.
The credit line is more than a month behind Ford Receives $4 billion credit line Help them cope with market “uncertainty”.
Svlook
