UAW strike costs Stellantis $3 billion in lost revenue

While United Auto Workers members will be returning to work this week, their six-week strike cut the auto industry deeply.

Jeep and Chrysler manufacturer Stellantis said Tuesday that the labor union’s work stoppage cost the company about $3 billion in lost revenue. However, the company said it was the least affected among the Big Three automakers.

“We believe we continue to be in a very strong position globally and in the U.S.,” Stellantis Chief Financial Officer Natalie Knight said. “We’re going to continue to be very focused on sales and profitability in all our regions.”

Stellantis reported better-than-expected revenue for the third quarter, which ended Sept. 30 — $48 billion, up 7% from last year, which likely helped it weather the storm from the strike, which started Sept. 15. 

The two other targets of the UAW strike, Ford and General Motors, were disproportionately affected by the walkout. Ford had several of its most profitable plants shut down unexpectedly, and GM announced that the strike cost the company $200 million in its first two weeks.

The union’s negotiators and Ford reached a tentative agreement Thursday, and Stellantis followed with its own agreement Saturday. Stellantis’ deal, which has yet to be approved by UAW members, includes a 25% wage increase over the course of the four-year contract as well as significant improvements to benefits.

UAW leadership and General Motors reached a tentative agreement Monday, effectively ending the strikes.