Dive Brief:
- The United Auto Workers strike cost Stellantis about $3.2 billion (3 billion euros) in net revenue during the third quarter due to work stoppages at key assembly plans in North America, the automaker said Tuesday.
- The strike reduced vehicle shipments by 50,000 units in September and October, which led to the lost revenue, CFO Natalie Knight said during a conference call with analysts and the media.
- Despite shipping fewer vehicles in Q3, Stellantis expects to resume full vehicle production by the end of the year after reaching tentative agreements with the UAW and Unifor-represented autoworkers in Canada.
Dive Insight:
Stellantis said it was probably less affected by the strike than General Motors or Ford Motor Co., losing less than $795 million (750 million euros) in net income. Last week, Ford estimated the UAW strike cost the automaker $1.3 billion, erasing $1.2 billion in third-quarter net income. GM, meanwhile, said the strike cost the company $800 million as of Oct. 24 — that figure likely rose following new strikes at its assembly plants in Arlington, Texas, and Spring Hill, Tennessee.
Stellantis had healthy inventory levels in North America at the start of the strike in September, which lessened the strike’s short-term impact. According to a Cox Automotive report last month, Stellantis began October with a 111-day supply of new vehicles, while GM and Ford had 60- and 90-day supplies, respectively.
Knight said Stellantis increased its new vehicle inventory in anticipation of the UAW strike to ensure it had enough vehicles to meet customer demand.
“Our focus between now and the end of the year will be on finalizing North American labor contracts so we can restore full production capacity,” Knight said.
