GM strike stalls 165K new cars, including overhauled Corvette
The 23-day strike by auto workers at General Motors has stalled production of 165,000 cars and trucks, passing the point at which the manufacturer could make up for lost volume, according to industry analysts.
Dealers have enough inventory to get by for several more weeks, but since the beginning of the strike, analysts have said GM loses tens of millions of dollars a day.
Fifteen of GM’s 18 North American assembly plants have been shut down by the labor action, including every site in the U.S. and one plant each in Mexico and Canada, according to Bill Rinna of LMC Automotive consulting firm.
"Once the strike ends, it may still take up to a week to get the parts pipeline going again," Rinna wrote on Tuesday. "So we are likely looking at a loss of well over 200,000 vehicles."
The strike has delayed production of the new mid-engine Chevrolet Corvette sports car, which was supposed to start in December, Rinna wrote.
GM’s Corvette plant in Bowling Green, Kentucky, had about 1,000 of the current-generation Corvettes left to build before the strike. Then the plant was to shift its equipment to the new version.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 45.62 | +0.54 | +1.20% |
| FCAU | n.a. | n.a. | n.a. | n.a. |
| F | FORD MOTOR CO. | 13.04 | 0.00 | 0.00% |
Now, Rinna wrote, GM will either have to delay the new car's launch or retool the plant faster.
GM made a confidential offer to the UAW on Monday morning, but the two sides have yet to reach an agreement.
Part of the holdup is GM's desire to transition away from traditional products to electric and autonomous vehicles, which clashes with the union's desire to maintain the status quo and job security.
The United Auto Workers were frustrated by GM's idling of plants in the Midwest even before negotiations began, and the two sides are at odds over pay and healthcare benefits.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The Associated Press contributed to this report.