The Potential Financial Impact of UAW Negotiations on GM, Ford, and Stellantis

The Potential Financial Impact of UAW Negotiations on GM, Ford, and Stellantis


United Auto Workers‌ members on​ strike picket outside General Motors’ Detroit-Hamtramck Assembly plant in Detroit,‍ Sept. 25,​ 2019.

Michael Wayland / CNBC

DETROIT — The Oracle of Omaha is cutting exposure to the U.S. automotive industry​ amid ‌union negotiations — potentially for good reason.

Warren Buffett’s Berkshire Hathaway this ​week said ⁣it nearly⁤ halved its stake ‍in General‍ Motors in the second quarter. While the⁤ firm didn’t disclose its⁢ reasoning,⁤ the year-end is expected to be a challenging ⁢one for the U.S. automotive industry amid contentious contract talks‍ between the United Auto Workers union and ‍GM, Ford Motor ⁤and Stellantis.

The⁣ talks, ‌which cover⁢ nearly 150,000 U.S. autoworkers, could cost⁢ the automakers billions of dollars in additional labor costs, ⁤work stoppages or, in a worst-case scenario,‍ both.

The ⁢new UAW leadership team has dubbed these talks the union’s “defining ‌moment.” President Shawn Fain has already ⁤deployed harsh‌ messaging and a‌ few ⁢theatrics, including…

2023-08-18 12:56:39
Post⁤ from www.cnbc.com
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