Members of the United Auto Workers rally outside the Stellantis Ram 1500 plant in Sterling Heights, Michigan, after the United Auto Workers declared a strike on October 23, 2023.
Michael Weiland/CNBC
DETROIT—The cost of a UAW strike star The company reported on Tuesday that it had lost about $3.2 billion, or 3 billion euros, in revenue through October.
That total also includes the impact of a strike by Canada’s Unifor union, but Monday’s shutdown lasted only a few hours. UAW workers begin roughly six weeks of U.S. targeted strikes against Stellantis, General Motors and Ford September 15th.
Since Saturday, Stellantis has announced tentative agreements with two North American unions. However, members must still approve these transactions.
Stellantis Chief Financial Officer Natalie Knight declined to say how much of an impact the UAW strike would have on the company’s earnings, but she said the impact was likely consistent with what happened at General Motors and Ford Motor Co.
Ford said the UAW strike cost it $1.3 billion in earnings before interest and taxes, including about $100 million in the third quarter. GM said the strike had cost $800 million as of last week, including $200 million in the third quarter.
Stellantis maintained its 2023 guidance despite a worker strike, signaling a stronger global presence compared with its main U.S. rivals. Ford and General Motors both canceled their 2023 guidance due to volatility caused by shutdowns.
Stellantis’ guidance includes double-digit adjusted operating margins, positive industrial free cash flow and completion of $1.6 billion, or €1.5 billion, in share repurchases.
Stellantis did not report quarterly earnings, but third-quarter global revenue reported on Tuesday rose 7% year-on-year to about $48.08 billion (€45.1 billion). Third-quarter shipments increased 11% year-on-year to more than 1.4 million units.
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