GM secures $6B line of credit as UAW strike drags on
UAW strike cost General Motors $200M in third quarter
Former Chrysler CEO Bob Nardelli discusses the ongoing negotiation talks between the UAW and the Big Three automakers on 'The Claman Countdown.'
General Motors secured a $6 billion line of credit on Wednesday, just two days after cutting 164 more jobs due to the ongoing United Auto Workers (UAW) strike.
In a filing with the Securities and Exchange Commission (SEC), GM said it entered into a new 364-Day Revolving Credit Agreement with JPMorgan Chase to secure the line.
The automaker’s tally of workers furloughed in connection with the work stoppage now exceeds 2,100, while the strike, which began on Sept. 15 at plants for Detroit’s Big Three in Michigan, Missouri and Ohio, is in its 20th day.
UAW STRIKE AGAINST FORD, GM, STELLANTIS COST US ECONOMY NEARLY $4B SO FAR
"This morning, GM filed an 8K disclosing that we have secured an additional revolving credit facility," a GM spokesperson said in a statement sent to FOX Business. "GM’s total automotive liquidity was approximately $38.9 billion at the end of the second quarter. The business has continued to perform well since then."
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The deal requires that GM maintain at least $4 billion in global liquidity and at least $2 billion in U.S. liquidity.
United Auto Workers members and supporters rally at the Stellantis North America headquarters on Sept. 20, 2023, in Auburn Hills, Michigan. (Bill Pugliano/Getty Images / Getty Images)
"We are being prudent in the face of uncertainty," the GM spokesperson added.
GM estimates the strike impact in the automaker's third quarter was about $200 million.
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Meanwhile, the auto strike has already cost the U.S. economy nearly $4 billion, according to the latest numbers from Michigan economic consulting firm Anderson Economic Group.
With the General Motors world headquarters in the background, United Auto Workers members attend a solidarity rally as the UAW strikes the Big Three automakers on Sept. 15, 2023, in Detroit, Michigan. (Bill Pugliano/Getty Images / Getty Images)
The breakdown shows the work stoppage has cost workers $325 million in direct wages, while automakers collectively lost $1.12 billion, dealers and customers lost $1.2 billion and suppliers took a $1.29 billion blow.
United Auto Workers union President Shawn Fain joins UAW members who are on a strike, on the picket line at the Ford Michigan Assembly Plant in Wayne, Michigan, on Sept. 15, 2023. (REUTERS/Rebecca Cook / Reuters Photos)
Last month, Stellantis cut roughly 370 jobs due to the strike and Ford temporarily furloughed 600 workers, according to Forbes.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 12.27 | -0.11 | -0.89% |
| STLA | STELLANTIS NV | 22.57 | -0.26 | -1.14% |
In a media briefing on Friday, Ford executives cautioned that a prolonged work stoppage at its assembly plants would not only hurt the company but could lead to as many as 500,000 workers at suppliers losing their jobs.
President Joe Biden joined United Auto Workers in Michigan on the 12th day of their strike against major carmakers.
In an August regulatory filing, Ford announced a $4 billion credit line with JPMorgan.
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FOX Business reporter Breck Dumas and Reuters contributed to this report.