Monday, December 4, 2023

The economic fallout from the US auto strike is beginning to hurt global companies

In 36 days there were about 7 billion dollars in losses, and companies began to feel the impact of the strike.

Companies from airlines to auto parts makers are beginning to feel the effects of a month-long strike by hourly workers at three Detroit automakers, and analysts are warning that economic growth may grow if the strike does not end.

As the United Auto Workers (UAW) strike enters its 36th day, with total economic costs estimated at more than $7 billion, companies are weighing the cost of lost sales amid an uncertain economy and continued inflation.

US airline Delta Air Lines was one of the first major companies to report a major setback earlier this month after it said the strike had caused a “significant” drop in business in Detroit.

Paint and coatings maker PPG Industries said earlier this week it included an earnings hit of “a few cents” per share in its fourth-quarter forecast, while Union Pacific Railroad said the strike has had little effect so far.

Transportation companies and suppliers that make parts for General Motors, Ford Moto,r and Stellantis were the hardest hit by a strike that saw more than 34,000 workers walk off, analysts said. daily work.

As major retailers such as Aptiv, Magna International, Lear, and American Axle report results in the coming weeks, investors will be paying attention to the extent of the financial hit the companies may suffer.

The UAW is leading an unusual campaign of simultaneous strikes against three Detroit automakers, demanding a 40 percent pay increase, including an immediate 20 percent raise, better benefit,s and electric vehicle battery coverage through union agreements.

World Nation News Desk
World Nation News Desk
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