United Auto Workers members rally outside Stellantis’ Ram 1500 plant in Sterling Heights, Mich. after the union called a strike at the plant on Oct. 23, 2023.
Michael Wayland / CNBC
DETROIT – Labor strikes by the United Auto Workers union cost Stellantis about $3.2 billion (3 billion euros) in lost revenue through October, the company reported Tuesday.
That total also includes the impact of strikes by the Canadian Unifor union, but that work stoppage lasted only a few hours on Monday. UAW workers began roughly six weeks of targeted U.S. strikes against Stellantis, General Motors and Ford Motor on Sept. 15.
Stellantis has announced tentative agreements with both North American unions since Saturday, however the deals must still be ratified by members.
Stellantis CFO Natalie Knight declined to disclose how much the UAW strikes dented the company’s earnings, however she said the impact would likely be in line with GM and Ford.
Ford said the UAW strike cost it $1.3 billion in earnings before interest and taxes, including roughly $100 million during the third quarter. GM said the strike cost it $800 million as of last week, including $200 million during the third quarter.
Despite the labor strikes, Stellantis maintained its 2023 guidance, signaling the strength of its global footprint compared to its main U.S.-based competitors. Both Ford and GM pulled their 2023 guidance due to the volatility caused by the work stoppages.
Stellantis’ guidance includes double-digit adjusted operating income margin, positive industrial-free cash flows and completion of $1.6 billion (1.5 billion euro) in share buybacks.
Stellantis, which does not report quarterly earnings, reported global revenues Tuesday that were up 7% year over year in the third quarter to roughly $48.08 billion (45.1 billion euros). Its shipments during the third quarter were up 11% compared to a year earlier to more than 1.4 million units.